5 Fossil Fuel Stocks to Invest In for Future

1. Pioneer Natural Resources Company (NYSE:PXD)

Number of Hedge Fund Holders: 56

Pioneer Natural Resources Company (NYSE:PXD) is a Texas-based independent oil and gas exploration and production company. On August 2, the company declared a base and variable quarterly dividend of $8.57 per share. The dividend was distributed to shareholders on September 16. Pioneer Natural Resources Company (NYSE:PXD) owns notable acreage in the Permian Basin, and it is one of the biggest dividend payers in the energy sector. This merits its inclusion on our list of fossil fuel stocks to buy for the future. 

On September 21, Citi analyst Scott Gruber reiterated a Buy recommendation on Pioneer Natural Resources Company (NYSE:PXD) but lowered the price target on the shares to $257 from $260. While crude oil prices have dropped, the exploration and production companies have “bounced modestly, leading to material 2023 multiple expansion and yield compression”, the analyst informed investors in a research note.

According to the second quarter database of Insider Monkey, 56 hedge funds were bullish on Pioneer Natural Resources Company (NYSE:PXD), up from 54 funds in the prior quarter. Gavin M. Abrams’ Abrams Bison Investments is a leading stakeholder in the company, with 598,000 shares worth $133.40 million. 

In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Pioneer Natural Resources Company (NYSE:PXD) was one of them. Here is what the fund said:

“Our underweight to the energy sector weighed on performance, as energy prices skyrocketed from inflationary pressures and the threat of reduced supply. We have a limited footprint within the sector but continue to look for companies that will generate strong, long-term returns such as Pioneer Natural Resources Company (NYSE:PXD). Pioneer is an oil and gas exploration and production company that offers a combination of a strong asset base, quality balance sheet and compelling free cash flow yield at current commodity prices. We believe Pioneer Natural Resources Company (NYSE:PXD) has strong underlying drivers that will generate attractive risk-adjusted returns beyond shorter-term fluctuations in energy prices.”

You can also take a look at 10 Monthly Dividend Stocks with Highest Yields and 12 Best Reddit Stocks To Buy. 

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