In this article, we discuss the 5 oil and gas stocks to buy in billionaire Steve Cohen’s portfolio. If you want to read our detailed analysis of Steve Cohen’s history, investment philosophy, and hedge fund performance, go directly to the 10 Oil and Gas Stocks in Billionaire Steve Cohen’s Portfolio.
5. BP p.l.c. (NYSE:BP)
Point72 Asset Management’s Stake Value: $46.31 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.2%
Number of Hedge Fund Holders: 29
BP p.l.c. (NYSE:BP) is a British oil and gas company formerly known as The British Petroleum company. It is one of the world’s seven “supermajors” in the oil and gas industry. The company works across all major sectors of the oil and gas industry including exploration, extraction, refining, distribution, and power generation in around 80 countries across the globe.
At the end of the third quarter of 2021, Ken Fisher’s Fisher Asset Management holds the highest position in BP p.l.c. (NYSE:BP) with 12.635 million shares worth $345.32 million. Additionally, Point72 Asset Management owned 1.69 million shares of the company worth $46.31 million, representing 0.2% of the fund’s portfolio. Point72 Asset Management also increased its activity in BP p.l.c. (NYSE:BP) by 161% in the third quarter of 2021.
BP p.l.c. (NYSE:BP) recently stepped into the global “net-zero emissions by 2050” race after announcing to acquire Amply Power, an EV charging, and energy infrastructure, provider. The amount for the acquisition of Amply Power has not been disclosed yet.
4. Sempra (NYSE:SRE)
Point72 Asset Management’s Stake Value: $58.32 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.25%
Number of Hedge Fund Holders: 23
Sempra (NYSE:SRE) is a California-based energy infrastructure company. It primarily focuses on electricity and natural gas infrastructure. The company operated across North and South America up until June 2020, after which it exited the South American market after selling its business in Chile.
Sempra (NYSE:SRE) beat the EPS estimates by $0.01 in the third quarter of 2021. The EPS of the company was $1.70, compared to the $1.69 forecast. On top of that, the company generated $3.01 billion in revenue, beating the estimates of $2.75 billion by 9.74%.
On October 19, Sempra’s (NYSE:SRE) price target was lowered by Mizuho analyst Anthony Crowdell to $139 down from $154; however, the analyst kept a Buy rating on the company’s shares.
Sempra (NYSE:SRE) was mentioned by ClearBridge Investments in their second-quarter 2021 investor letter. Here are the contents of the letter:
“Over the last year we have increased our exposure to utilities and during the quarter we continued to build out our position in Sempra. We added to utilities during the depths of the pandemic as their stocks sold off despite the defensive nature of their businesses. In a world of uncertainty, utilities offered predictable results with an attractive entry point. Our investment thesis in utilities, however, is not merely defensive; we believe utilities are one of the best ways to capitalize on the energy transition as the world decarbonizes and electrifies. As we move to electric vehicles and renewable power, the world will see tremendous investment in electric infrastructure. Utilities will build the grids of the future and this investment should drive attractive earnings growth for decades. We have focused our utilities investments in states with aggressive green policy initiatives that will drive strong growth.”
3. DT Midstream, Inc. (NYSE:DTM)
Point72 Asset Management’s Stake Value: $70.25 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.3%
Number of Hedge Fund Holders: 22
DT Midstream, Inc. (NYSE:DTM) is a US-based midstream natural gas company. The company was founded in 2021 and operates in Northeastern and Midwestern United States and Canada. DT Midstream, Inc. (NYSE:DTM) owns gas storage assets with a capacity of 94 Bcf, in addition to 290 miles of lateral pipelines.
At the end of the third quarter of 2021, Point 72 Asset Management held 1.52 million shares of DT Midstream, Inc. (NYSE:DTM) worth $70.25 million, representing 0.3% of the fund’s portfolio. Point72 Asset Management holds the third biggest position in the company’s shares after Zimmer Partners and Sessa Capital.
The hedge fund sentiment towards DT Midstream, Inc. (NYSE:DTM) increased drastically in the third quarter of 2021 with 22 hedge funds having stakes worth $482.42 million, compared to 4 worth $13.166 million in the previous quarter.
2. Dominion Energy, Inc. (NYSE:D)
Point72 Asset Management’s Stake Value: $83.97 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.36%
Number of Hedge Fund Holders: 27
Dominion Energy, Inc. (NYSE:D) is an American energy company that supplies electricity in Virginia and North and South Carolina. Additionally, the company provides natural gas in several states across the United States.
Diamond Hill Capital which is owned by Ric Dillon held the most significant stake in Dominion Energy, Inc. (NYSE:D) in the third quarter of 2021. Diamond Hill Capital owned 3.72 million shares worth $271.76 million of Dominion Energy, Inc. (NYSE:D), representing 1.03% of the fund’s portfolio.
1. Cenovus Energy Inc. (NYSE:CVE)
Point72 Asset Management’s Stake Value: $94.818 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.41%
Number of Hedge Fund Holders: 30
Cenovus Energy Inc. (NYSE:CVE) is a Canadian oil and natural gas company founded in 2009. The company primarily focuses on its oil sands assets, refining, and transportation. In January 2021, Cenovus Energy Inc. (NYSE:CVE) acquired Husky Energy (TSX:HSE) for 3.9 billion.
According to the third-quarter 2021 filings, the EPS of Cenovus Energy Inc. (NYSE:CVE) was $0.31 compared to $0.38 estimates. Nonetheless, the company beat the revenue forecast by $1.35 billion in the same quarter. Cenovus Energy Inc. (NYSE:CVE) generated a revenue of $10.84 billion compared to $9.49 billion estimates.
On November 19, Scotiabank analyst Jason Bouvier raised the price target for Cenovus Energy Inc. (NYSE:CVE) from $16.50 to $19 and kept an Outperform rating on its shares.
You can also take a peek at Echo Street Capital Management: Greg Poole’s Top 10 Stock Picks and 10 Healthcare Stocks to Buy According to Peter S. Park’s Park West Asset Management.
