In this article, we discuss the 5 most profitable oil stocks in the world. To go through our detailed analysis of the oil and gas sector, go directly to the 13 Most Profitable Oil Stocks in the World.
5. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 62
Latest TTM Net Income: $11.16 billion
ConocoPhillips (NYSE:COP), headquartered in Houston, is an independent exploration and production (E&P) company engaged in the global exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas.
In a successful move in October, ConocoPhillips (NYSE:COP) completed the acquisition of the remaining 50% stake in the Surmont oil sands project from TotalEnergies EP Canada Ltd. The deal, valued at approximately $2.7 billion in cash (equivalent to CAD 3.7 billion), also includes potential future contingent payments of around $0.3 billion (equivalent to CAD 0.4 billion). This transaction grants ConocoPhillips (NYSE:COP) full ownership, holding a 100% stake in Surmont, and maintains its position as the project’s operator.
As of the third quarter of 2023, a total of 62 hedge funds, tracked by Insider Monkey, had stakes in ConocoPhillips (NYSE:COP). The largest stakeholder, with a $1.5 billion investment in the company, was Natixis Global Asset Management’s Harris Associates.
Oakmark Select Fund made the following comment about ConocoPhillips (NYSE:COP) in its second quarter 2023 investor letter:
“ConocoPhillips (NYSE:COP) is one of the largest and most efficient exploration and production companies in the country. The company has an extensive resource base of high-quality drilling inventory in the U.S. and various international locations as well as a growing liquified natural gas business. In our view, the depth and quality of ConocoPhillips’s inventory is a competitive differentiator that is not fully captured in today’s share price. Over the next 10 years, we believe ConocoPhillips will be able to return more than 100% of its current market cap to shareholders via dividends and share repurchases while growing its production at a mid-single-digit annual pace. We believe ConocoPhillips is also among the best managed companies in the oil and gas industry and we are impressed by its history of accretive capital allocation under CEO Ryan Lance. The stock has meaningfully underperformed the broader market year-to-date and is an attractive addition to our portfolio.”
4. Marathon Petroleum Corporation (NYSE:MPC)
Number of Hedge Fund Holders: 48
Latest TTM Net Income: $11.47 billion
Headquartered in Findlay, Ohio, Marathon Petroleum Corporation (NYSE:MPC) is a U.S.-based company primarily involved in petroleum refining, marketing, and transportation. Formerly a wholly-owned subsidiary of Marathon Oil until a corporate spin-off in 2011, the company holds a prominent position as one of the world’s largest pipeline companies, managing a network of nearly 14,000 miles.
On October 25, Marathon Petroleum Corporation (NYSE:MPC) announced a dividend of $0.825 per share on common stock, reflecting approximately a 10% increase compared to its previous dividend of $0.75 per share. The dividend was set for distribution on December 11, 2023, to shareholders on record as of November 16, 2023. Additionally, MPC recently approved an additional $5 billion share repurchase authorization, supplementing its existing authorization, which had approximately $4.3 billion remaining as of September 30.
In the third quarter of 2023, the company was included in 48 hedge fund portfolios, marking an increase from 42 in the previous quarter. Paul Singer’s Elliott Management emerged as the largest stakeholder of Marathon Petroleum Corporation (NYSE:MPC) in Q3, holding over 11 million shares valued at approximately $1.67 billion.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 72
Latest TTM Net Income: $25.46 billion
Headquartered in San Ramon, California, Chevron Corporation (NYSE:CVX) is a prominent American multinational energy company with a primary focus on the oil and gas industry. Originally established as the Standard Oil Company of California and emerging as the second-largest direct descendant of Standard Oil, Chevron operates across over 180 countries worldwide.
On October 23, Chevron Corporation (NYSE:CVX) unveiled a definitive agreement with Hess Corporation for an all-stock transaction valued at $53 billion. Under this agreement, Chevron is set to acquire all outstanding shares of Hess. The acquisition is anticipated to enhance and broaden Chevron’s portfolio, with a particular emphasis on the Stabroek block in Guyana. Described as an “exceptional” asset offering industry-leading cash margins and a low carbon footprint, it promises continued production growth into the next decade.
By the end of the third quarter of this year, 72 out of the 910 hedge funds part of Insider Monkey’s database held a stake in Chevron Corporation (NYSE:CVX). The firm’s most significant investor is Warren Buffett’s Berkshire Hathaway, owning 110.24 million shares valued at $18.59 billion.
2. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 35
Latest TTM Net Income: $25.67 billion
BP p.l.c. (NYSE:BP), a British multinational oil and gas company headquartered in London, England, stands as one of the oil and gas “supermajors” and is among the world’s largest companies in terms of revenues and profits. On November 6, Morgan Stanley analyst Martijn Rats maintained an Overweight rating on BP p.l.c. (NYSE:BP) shares, albeit with a reduced price target of 610 GBp from the previous 700 GBp.
Recently, BP p.l.c (NYSE:BP) has taken a significant step in its transition strategy by agreeing to acquire the remaining 50.03% stake in the solar power developer Lightsource BP. The influence of former CEO Bernard Looney’s vision is evident in this decision. The initial payment for this acquisition amounts to £254 million, with potential additional payments contingent on the company’s performance and the divestment of identified assets.
As of the close of Q3 2023, 35 hedge funds tracked by Insider Monkey reported having stakes in BP p.l.c. (NYSE:BP), compared with 36 in the preceding quarter. The collective value of these stakes is more than $2.05 billion.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 79
Latest TTM Net Income: $41.13 billion
Exxon Mobil Corporation (NYSE:XOM), a prominent American energy company, stands out as a top investment choice during bear markets. With a rich history dating back to John D. Rockefeller’s Standard Oil, Exxon Mobil Corporation (NYSE:XOM) has undergone a remarkable 140-year transformation. Originating as a local kerosene distributor in the United States, it has evolved into a global giant, ranking among the foremost publicly traded entities in the petroleum and petrochemical sectors.
On October 11, Exxon Mobil Corporation (NYSE:XOM) and Pioneer Natural Resources (NYSE:PXD) jointly unveiled a firm agreement detailing Exxon Mobil Corporation (NYSE:XOM)’s acquisition of Pioneer. This merger is structured as an all-stock transaction with a total valuation of $59.5 billion, equivalent to $253 per share based on ExxonMobil’s closing price on October 5, 2023. According to the agreement’s stipulations, Pioneer shareholders will receive 2.3234 shares of XOM for each PXD share upon completion. The overall enterprise value of this transaction, accounting for net debt, approximates $64.5 billion.
As of the end of Q3 2023, data from Insider Monkey’s database revealed that 79 hedge funds had positions in Exxon Mobil Corporation (NYSE:XOM), representing a decrease from the 71 hedge funds in the previous quarter. The combined value of these holdings exceeds $4.48 billion.
Disclosure: None. You can also take a look at 11 Best Fundamentally Strong Penny Stocks To Invest In and 13 Best Holding Company Stocks To Invest In.
