In this piece, we will take a look at the five oil and gas stocks to buy today according to Rajiv Jain’s GQG Partners. If you want to learn more about Mr. Jain and his hedge fund, then head on over to 10 Oil & Gas Stocks to Buy Today According To Rajiv Jain’s GQG Partners.
5. Enbridge Inc. (NYSE:ENB)
GQG Partners’ Stake Value: $380 million
Percentage of GQG Partners’ 13F Portfolio: 0.94%
Number of Hedge Fund Holders: 22
Enbridge Inc. (NYSE:ENB) is an infrastructure firm that is involved in the storage and transportation of natural gas. The company invests in natural gas pipelines and storage facilities. It also distributes natural gas to commercial, retail, and industrial customers in Canada.
By the end of Q4 2021, Mr. Jain’s investment firm owned 9.7 million Enbridge Inc. (NYSE:ENB) shares. These were worth $380 million and represented 0.94% of its portfolio. During the same time period, 22 of the 924 hedge funds polled by Insider Monkey owned the company’s shares.
Enbridge Inc. (NYSE:ENB) posted CAD$0.68 in non-GAAP EPS for its fiscal Q4, missing analyst estimates for the metric. BMO Capital raised the company’s price target to $59 from $57 in February 2022, alongside keeping an Outperform rating on the shares.
Joseph Sirdevan’s Galibier Capital Management is Enbridge Inc. (NYSE:ENB)’s largest investor after GQG Partners. It owns one million shares worth $43 million.
ClearBridge Investments mentioned Enbridge Inc. (NYSE:ENB) in its third quarter 2021 investor letter. Here is what the fund said:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
4. Devon Energy Corporation (NYSE:DVN)
GQG Partners’ Stake Value: $638 million
Percentage of GQG Partners’ 13F Portfolio: 1.58%
Number of Hedge Fund Holders: 52
Devon Energy Corporation (NYSE:DVN) is an oil and natural gas producer based in the United States. The company has thousands of wells and is headquartered in Oklahoma City, Oklahoma.
By the end of its fiscal fourth quarter, Devon Energy Corporation (NYSE:DVN) beat analyst estimates for both revenue and non-GAAP EPS, by posting $4.27 billion and $1.39 in the segments, respectively. Piper Sandler raised the company’s price target to $67 from $62 in February 2022, stating that the segment is beating capital expenditure hurdles.
GQG Partners owned a $638 million stake in Devon Energy Corporation (NYSE:DVN) by the end of the fourth quarter of last year. This came through owning 14 million shares and it represented 1.58% of the investment firm’s portfolio. A Q4 2021 Insider Monkey poll of 924 hedge funds revealed that 52 had also owned a stake in the company.
Devon Energy Corporation (NYSE:DVN)’s largest investor after GQG Partners is Ken Fisher’s Fisher Asset Management which owns 3.9 million shares worth $175 million.
3. Occidental Petroleum Corporation (NYSE:OXY)
GQG Partners’ Stake Value: $666 million
Percentage of GQG Partners’ 13F Portfolio: 1.65%
Number of Hedge Fund Holders: 68
Occidental Petroleum Corporation (NYSE:OXY) is a global oil and gas developer headquartered in Houston, Texas, United States. The company explores, develops, and produces natural gas and associated products. It operates in the U.S., Middle East, Latin America, and Africa.
Mr. Jain’s investment firm owned 22 million Occidental Petroleum Corporation (NYSE:OXY) shares by the end of Q4 2021. These were worth $666 million and represented 1.65% of its portfolio. During the same time period, 68 out of 924 hedge funds polled by Insider Monkey also owned a stake in the company.
Occidental Petroleum Corporation (NYSE:OXY) brought in $8 billion in revenue and $1.48 in non-GAAP EPS, pleasing Wall Street by beating analyst estimates for both. Morgan Stanley increased the firm’s price target to $52 from $50 in March 2022, outlining that the company has great long term potential via a diversified revenue stream and good asset quality.
Carl Icahn’s Icahn Capital LP is Occidental Petroleum Corporation (NYSE:OXY)’s largest investor through a $1.3 billion stake that comes through 45 million shares.
Smead Capital Management mentioned Occidental Petroleum Corporation (NYSE:OXY) in its third quarter 2021 investor letter, outlining that:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
2. Exxon Mobil Corporation (NYSE:XOM)
GQG Partners’ Stake Value: $1.9 billion
Percentage of GQG Partners’ 13F Portfolio: 4.91%
Number of Hedge Fund Holders: 73
Exxon Mobil Corporation (NYSE:XOM) is a crude oil and natural gas explorer and producer that is headquartered in the American state of Texas. It manufacturers, transports, and sells oil and natural gas and has thousands of wells.
As its fiscal Q4 came to an end, Exxon Mobil Corporation (NYSE:XOM) had raked in $84.9 billion in revenue and $2.05 in non-GAAP EPS, beating analyst estimates for both. Barclays raised the company’s price target to $98 from $91 in March 2022, outlining that the new price reflected updated assumptions.
GQG Partners had a whopping $1.9 billion stake in Exxon Mobil Corporation (NYSE:XOM) during the fourth quarter of last year. This came through owning 32 million shares and represented 4.91% of its investment portfolio. An Insider Monkey survey of 924 hedge funds for Q4 2021 revealed that 73 also held a stake in the oil company.
Jean-Marie Eveillard’s First Eagle Investment Management is Exxon Mobil Corporation (NYSE:XOM)’s second largest investor. It has a $1.4 billion stake that comes through 23 million shares.
Saturna Capital mentioned the company in its Q4 2021 investor letter. Here is what the firm said:
“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”
1. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
GQG Partners’ Stake Value: $2 billion
Percentage of GQG Partners’ 13F Portfolio: 5.1%
Number of Hedge Fund Holders: 36
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a Brazilian oil and gas producer and seller. The company scouts for, produces, refines, processes, transports, and sells oil.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) earned $24 billion in revenue and $5.6 billion in net income for its fiscal fourth quarter, missing analyst estimates for revenue. BofA kept a $16.5 price target for its American Depository Receipts (ADRs) in March 2022, but downgraded the stock rating from Buy to Neutral, stating that domestic price pressure might not bode well for the company.
Mr. Jain’s GQG Partners owned 187 million Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) shares by the end of Q4 2021, for a $2 billion stake that represented 5.1% of its investment portfolio. An Insider Monkey survey of 924 hedge funds covering the same time period outlined that 36 had also owned the company’s shares.
Ken Fisher’s Fisher Asset Management is Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)’s largest investor after GQG. It owns 35 million shares that are worth $385 million.
Disclosure: None. You can also take a look at Billionaire Lee Ainslie’s Top 10 Stock Picks and 10 Best Solar Energy Stocks To Buy Now.
