In this article, we discuss 5 energy stocks to buy according to billionaire Bruce Kovner’s Caxton Associates. If you want our detailed analysis of these stocks, go directly to 10 Energy Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
5. Ovintiv Inc. (NYSE:OVV)
Caxton Associates’ Stake Value: $1,941,000
Percentage of Caxton Associates’ 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 44
Ovintiv Inc. (NYSE:OVV) is one of the top energy stock picks of Bruce Kovner’s Caxton Associates, with the hedge fund recently acquiring the stock during Q3 2021. Caxton Associates purchased 59,031 shares of Ovintiv Inc. (NYSE:OVV), worth $1.94 million, accounting for 0.21% of the firm’s total Q3 investments. Ovintiv Inc. (NYSE:OVV) is a hydrocarbon exploration company, which is one of the largest natural gas producers from Canada.
On November 2, Ovintiv Inc. (NYSE:OVV) announced its Q3 results, posting earnings per share of $1.50, missing estimates by $0.01. Revenue over the period jumped 50.34% year-over-year to $1.79 billion, but missed estimates by $134.55 million.
Mizuho analyst Silvio Micheloto raised the price target on Ovintiv Inc. (NYSE:OVV) to $56 from $54 and kept a Buy rating on the shares on November 30, as part of a broader research note on the US energy sector.
A total of 44 hedge funds were bullish on Ovintiv Inc. (NYSE:OVV) in Q3 2021, with stakes equaling roughly $684 million. One of the leading Ovintiv Inc. (NYSE:OVV) stakeholders is Maple Rock Capital, with 2.6 million shares, worth $88.5 million.
Here is what Davis International Fund has to say about Ovintiv Inc. (NYSE:OVV) in their Q4 2020 investor letter:
“Energy holdings in Ovintiv also experienced detracted performance, as oil demand collapsed due to the pandemic. With approximately 70% of oil demand used for transportation, the decline in miles driven (i.e., U.S. miles driven are down 11% in 2020) and the far bigger 60–70% decline in global air passenger traffic led to a dramatic drop in oil prices.
It is our expectation that oil demand will remain weak for the foreseeable future, as flying and driving slowly recover, and that over the long term, electric vehicles and renewable energy will also decrease demand for fossil fuels. As a result, we sold out of our energy positions in 2020. We redeployed the assets in other sectors such as financial services that also saw falling stock prices, but where we had stronger conviction that the long-term health of their business was strong.”
4. Devon Energy Corporation (NYSE:DVN)
Caxton Associates’ Stake Value: $2,362,000
Percentage of Caxton Associates’ 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 48
Devon Energy Corporation (NYSE:DVN), an Oklahoma-based hydrocarbon exploration company, is one of the best energy stocks to buy according to Bruce Kovner’s Caxton Associates. The hedge fund elevated its position in Devon Energy Corporation (NYSE:DVN) by 97% in the third quarter, owning 66,506 shares of the company, valued at $2.36 million.
In the Q3 earnings report of Devon Energy Corporation (NYSE:DVN), published on November 2, the company announced an EPS of $1.08, exceeding estimates by $0.15. Revenue for the period gained 224.84% from the prior-year quarter, totaling $3.47 billion, outperforming estimates by $546.05 million.
Truist analyst Neal Dingmann on December 28 kept a Buy rating and a $60 price target on Devon Energy Corporation (NYSE:DVN), stating that the company strikes the “right balance” in free cash flow maximization and shareholder returns, which is reflected by its number one ranking in the S&P 500 index year-to-date.
Of the 867 hedge funds tracked by Insider Monkey in the third quarter, Rajiv Jain’s GQG Partners is the largest Devon Energy Corporation (NYSE:DVN) stakeholder, with 13.9 million shares of the company, worth approximately $494 million.
Here is what GoodHaven Capital Management has to say about Devon Energy Corporation (NYSE:DVN) in their Q4 2020 investor letter:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
3. ConocoPhillips (NYSE:COP)
Caxton Associates’ Stake Value: $2,718,000
Percentage of Caxton Associates’ 13F Portfolio: 0.30%
Number of Hedge Fund Holders: 49
Billionaire Bruce Kovner’s Caxton Associates acquired 40,100 ConocoPhillips (NYSE:COP) shares in the third quarter, worth $2.71 million, representing 0.30% of the firm’s 13F portfolio. ConocoPhillips (NYSE:COP) is a Texas-based multinational natural gas liquids company.
In the third quarter of 2021, ConocoPhillips (NYSE:COP) posted its financial results on November 2. The company announced earnings per share of $1.77, exceeding estimates by $0.25. ConocoPhillips (NYSE:COP)’s revenue increased 165.21% from the prior-year quarter, reaching $11.62 billion, surpassing estimates by $1.36 billion.
On November 30, Mizuho analyst Silvio Micheloto raised the price target on ConocoPhillips (NYSE:COP) to $101 from $99 and kept a Buy rating on the shares.
49 hedge funds in the Q3 database of Insider Monkey were bullish on ConocoPhillips (NYSE:COP), with stakes equaling $1.37 billion. One of the largest ConocoPhillips (NYSE:COP) shareholders is Adage Capital Management, with 5.71 million shares worth $387.5 million.
Here is what ClearBridge Investments has to say about ConocoPhillips (NYSE:COP) in its Q1 2021 investor letter:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) ConocoPhillips. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
2. Antero Resources Corporation (NYSE:AR)
Caxton Associates’ Stake Value: $3,580,000
Percentage of Caxton Associates’ 13F Portfolio: 0.39%
Number of Hedge Fund Holders: 41
Antero Resources Corporation (NYSE:AR) is one of Caxton Associates’ top energy stock picks as of September 2021, with the hedge fund expanding its position in the company by 356% in Q3, holding 190,314 shares worth $3.58 million, representing 0.39% of the total 13F portfolio. Antero Resources Corporation (NYSE:AR) is a Colorado-based energy company offering natural gas, ethane, natural gas liquids, and petroleum.
SailingStone Capital Partners is the largest Antero Resources Corporation (NYSE:AR) stakeholder as of the third quarter, holding a $115 million position in the company. Overall, 41 hedge funds were long Antero Resources Corporation (NYSE:AR) in Q3, up from 33 funds in the preceding quarter.
Raymond James analyst John Freeman raised the price target on Antero Resources Corporation (NYSE:AR) to $32 from $19 and kept a Strong Buy rating on the shares on October 26.
1. Chesapeake Energy Corporation (NASDAQ:CHK)
Caxton Associates’ Stake Value: $3,844,000
Percentage of Caxton Associates’ 13F Portfolio: 0.42%
Number of Hedge Fund Holders: 44
Chesapeake Energy Corporation (NASDAQ:CHK) is a notable energy stock in billionaire Bruce Kovner’s Caxton Associates’ portfolio. The hedge fund increased its stake by 346% in Chesapeake Energy Corporation (NASDAQ:CHK) during the third quarter, holding 62,405 shares of the company, worth $3.84 million. The stock accounts for 0.42% of the firm’s total Q3 investments.
Chesapeake Energy Corporation (NASDAQ:CHK) is an Oklahoma-based energy company specializing in hydrocarbon exploration, natural gas, and petroleum.
In the third quarter earnings report of Chesapeake Energy Corporation (NASDAQ:CHK), announced on November 2, the company posted an EPS of $2.38, exceeding estimates by $0.70. The $1.17 billion revenue surpassed estimates by $360.83 million.
Johnson Rice analyst Charles Meade upgraded Chesapeake Energy Corporation (NASDAQ:CHK) on December 13 to Buy from Accumulate with an unchanged price target of $115.
Oaktree Capital Management is the biggest Chesapeake Energy Corporation (NASDAQ:CHK) stakeholder as of Q3 2021, with almost 12 million shares of the company, worth $735.3 million. Overall, 44 hedge funds were bullish on the stock at the end of September.
You can also take a look at Ark Invest Stock Portfolio: Top 10 Picks and Top 10 Stock Picks of Rajiv Jain’s GQG Partners.
