5 Oil and Gas Stocks to Buy According to Billionaire Steve Cohen

2. Cenovus Energy Inc. (NYSE:CVE)

Point72 Asset Management’s Stake Value: $154.52 million

Percentage of Point72 Asset Management’s 13F Portfolio: 0.61%

Number of Hedge Fund Holders: 44

A Canadian hydrocarbon exploration company with sizeable oil and natural gas properties across the United States and Canada, investors took a liking to Cenovus Energy Inc. (NYSE:CVE) in the first quarter. 44 hedge funds held the company shares at the end of March, as compared to 37 hedge funds at the end of December.

On June 16, National Bank analyst maintained an ‘Outperform’ rating on Cenovus Energy Inc. (NYSE:CVE) shares and increased the price target to C$41 from C$35. CVE shares have registered gains of 83.94% in the last 12 months, and 36.94% so far in 2022 as of July 6.

Cenovus Energy Inc. (NYSE:CVE) recently announced the purchase of a 50% interest in the Sunrise oil sands project from British firm BP plc (NYSE:BP), for C$600 million in cash and a conditional payment of C$600 million which expires after two years. Cenovus has now become 100% stakeholder of the project located in Alberta, Canada, thereby boosting its oil sands portfolio.

As of the end of the first quarter of 2022, the top shareholder of Cenovus Energy Inc. (NYSE:CVE) was Soroban Capital Partners, with a stake worth $808 million which represented a massive 346% increase from the previous quarter. Point72 Asset Management’s $154.5 million stake in Cenovus Energy Inc. (NYSE:CVE) also showed a huge jump of 496% from the previous quarter, and consisted of 9.26 million shares.

Investment firm L1 Capital talked about many stocks in its Q4 2021 investor letter, and Cenovus Energy Inc. (NYSE:CVE) was one of them. Here is what they said:

“Detailed, bottom-up stock research remains the investment team’s primary focus and the core driver of portfolio performance. 2021 once again demonstrated the team’s ability to identify ‘winners’ through extensive company and industry research across a diverse range of sectors. Key contributors included Cenovus Energy, (due to) recovering oil price leading to improved investor sentiment, consensus earnings upgrades and strong free cashflow generation.”