10 Oil Stocks to Watch on Thursday

Published June 2, 2022 at 3:43 pm EDT Updated August 19, 2026 at 7:59 am EDT

In this article, we will take a look at the 10 oil stocks to watch on Thursday.

Energy stocks are in the limelight on Thursday after the Organization of Petroleum Exporting Countries (OPEC), led by Saudi Arabia, agreed to increase crude oil production to counter the impact of a reduction in Russian production. This could result in a decline in crude oil prices, which would cool off the rising inflation. Furthermore, experts are calling this a peace offering by Riyadh to Washington, which could make way for a visit to Saudi Arabia by US President Joe Biden. Oil stocks such as ConocoPhillips (NYSE:COP), Shell plc (NYSE:SHEL), and Chevron Corporation (NYSE:CVX) are attracting investors’ attention today.

Let’s look at why these stocks are in the news today and discuss how hedge funds are positioned in them.

10. Exxon Mobil Corporation (NYSE:XOM)

Exxon Mobil Corporation (NYSE:XOM) is an Irving, Texas-based integrated oil corporation that is involved in the upstream, midstream, and downstream parts of the value chain. The stock is up 0.09% as of 12:50 PM ET. The energy company has operations globally. In a note issued to investors on May 31, Jeanine Wai at Barclays increased the price target on Exxon Mobil Corporation from $98 to $111 and reiterated an Overweight rating on the stock. The analyst anticipates the company to reach 0% net debt by 2026 despite an increase in share repurchase activity.

Here’s what Goehring & Rozencwajg Associates said about Exxon Mobil Corporation in its Q3 2021 investor letter:

“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.

What should Chevron expect?

It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publically expressed concerns about both projects.

According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”

Exxon Mobil Corporation was held by 83 hedge funds at the end of Q1 2022.

9. TotalEnergies SE (NYSE:TTE)

TotalEnergies SE (NYSE:TTE) is a French oil major and is up 0.55% as of 1:02 PM ET. As one of the seven supermajors in the world, the company is expected to be affected by OPEC’s decision. TotalEnergies SE received a boost when Henry Tarr at Berenberg upgraded the stock from a Hold to a Buy rating on May 13. The analyst highlighted that TotalEnergies SE reported strong operational results but is underperforming against its peers. Tarr anticipates the company to report a free cash flow yield of 17%, which could make it the highest dividend-paying stock in terms of dividend yield.

As of Q1 2022, TotalEnergies SE was held by 20 hedge funds. Fisher Asset Management was long over 26 million shares of TotalEnergies SE during the first quarter of 2022.

8. Enbridge Inc. (NYSE:ENB)

Enbridge Inc. (NYSE:ENB) is a Canadian pipeline company that is up 2.09% as of 1:05 PM ET. On May 17, the Premier of Alberta, Jason Kenney, testified in front of the US Senate Committee. He said that Canada could raise its crude oil output by 900,000 barrels per day (BPD) to make up for the shortfall of supply shortages due to the conflict between Russia and Ukraine. The premier highlighted an energy alliance would be beneficial for the people of North America. Enbridge Inc. continues to increase its dividends and offers a dividend yield of 6% as of June 2.

Enbridge Inc. was mentioned in the Q3 2021 investor letter of ClearBridge Investments. Here’s what the firm 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.”

Of the 912 hedge funds in Insider Monkey’s database, 24 funds held a stake in Enbridge Inc. as of Q1 2022.

7. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a Rio de Janeiro, Brazil-based state-owned integrated energy company. The stock is down 0.69% as of 2:42 PM ET. Brazilian President Jair Bolsonaro, who is running for re-election later this year, recorded his protest against the energy company for raising its prices in line with the international market. The President also commented that Petróleo Brasileiro S.A. – Petrobras is not fulfilling its “social function” as required by the constitution of Brazil.

However, Petróleo Brasileiro S.A. – Petrobras is currently a Zacks Rank #1 in the Oil and Gas Emerging Markets industry, which means the analysts are rating the stock as a Strong Buy.

As of Q1 2022, Petróleo Brasileiro S.A. – Petrobras was held by 28 hedge funds.

6. China Petroleum & Chemical Corporation (NYSE:SNP)

China Petroleum & Chemical Corporation is down 0.78% as of 2:42 PM ET. The company is the second-biggest oil producer in China that has taken a keen interest in acquiring Russian assets of firms suspending operations in the country. The Chinese energy company is in talks with Shell plc (NYSE:SHEL) to acquire its assets. However, Shell plc (NYSE:SHEL) is hesitant to offload its high-quality assets at a steep discount during these uncertain times, as this would undermine shareholders’ returns. Renaissance Technologies was the leading investor in China Petroleum & Chemical Corporation during the first quarter of 2022.

China Petroleum & Chemical Corporation was held by 7 hedge funds at the end of Q1 2022.

In addition to China Petroleum & Chemical Corporation, stocks such as ConocoPhillips, Shell plc (NYSE:SHEL), and Chevron Corporation are on our watchlist today.

5. ConocoPhillips (NYSE:COP)

ConocoPhillips is a Houston, Texas-based oil and gas E&P corporation. OPEC’s decisions would impact the company as a decline in crude oil prices is expected to make many sites unfeasible for oil production. ConocoPhillips stock is down 0.19% as of 1:50 PM ET. Jeanine Wai at Barclays reiterated an Overweight rating on ConocoPhillips stock with a price target of $132 in a note issued to investors on May 25. The analyst highlighted that the payout yield would be a major determinant in ConocoPhillips’ stock price performance this year. She added that the sustainability of healthy dividend yield would become a topic of focus as we move forward in 2022 and try to move on towards pre-pandemic levels.

ConocoPhillips was discussed in the Q1 2022 investor letter of ClearBridge Investments. Here’s what the investment management firm said:

“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holdings ConocoPhillips (NYSE:COP) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”

Overall, 67 hedge funds held a stake in ConocoPhillips at the end of Q1 2022.

4. Shell plc (NYSE:SHEL)

Shell plc (NYSE:SHEL) is an Anglo-Dutch energy company that has operations across continents and is considered a bargain in the industry by Andrew Barry at Barron’s. The writer highlighted that Shell plc (NYSE:SHEL) owns some of the most attractive assets in the crude oil exploration and production (E&P) industry. Furthermore, the company holds the biggest liquefied natural gas (LNG) and has the largest chain of service networks. At the current price, Shell plc (NYSE:SHEL) stock is trading at a multiple of six times as compared to the expected 2022 EPS of $9. Shell plc (NYSE:SHEL) is down 0.87% as of 2:25 PM ET.

Shell plc (NYSE:SHEL) was mentioned in the Q1 2022 investor letter of Third Point Management. Here’s what the firm said:

“We have continued to add to our position in Shell, as it trades at the same deeply discounted multiple today that it did last year due to a move up in commodity prices. We are engaged in discussions with management, board members, and other shareholders, as well as informal talks with financial advisors. We have discussed various alternatives with the aim of both increasing shareholder value and allowing Shell to effectively manage the energy transition. We have reiterated our view that Shell’s portfolio of disparate businesses ranging from deep water oil to wind farms to gas stations to chemical plants is confusing and unmanageable. Most investors we have discussed this with agree that the company would be more successful over the long term with a different corporate structure. Discussions among the parties have been constructive and will be ongoing since stakeholders clearly see these corporate changes as instrumental, particularly if Shell wishes to become a leader in the energy transition rather than be left behind as a tarnished legacy brand.

Beyond our discussions around corporate structure, there have been two important developments since our last update. First, Shell announced a plan to redomicile its headquarters to the UK and create a single shareholder class. This move allows greater flexibility to modify its portfolio (either through asset sales or spin-offs) and allows for a more efficient return of capital, specifically via share repurchases. Second, fundamental and geopolitical events have highlighted the strategic importance of reliable energy supplies, especially in Europe. Shell’s LNG business, the largest in the world outside of Qatar, will play a critical role in ensuring energy security for Europe. In our view, the value of this business has increased dramatically since our original investment.

While Shell continues to trade at a large discount to its intrinsic value, with proper management we believe the company can simultaneously deliver shareholder returns, reliable energy and decarbonization of the global economy. We look forward to continued engagement with management and other shareholders and to more strategic clarity from the Company.”

Shell plc (NYSE:SHEL) was held by 37 hedge funds as of Q1 2022.

3. Chevron Corporation (NYSE:CVX)

Chevron Corporation is a San Ramon, California-based energy company with extensive operations across the world. Chevron Corporation is down 0.52% as of 2:00 PM ET. The company received a go-ahead to continue its operations in Venezuela from the US Treasury Department, which is one of the OPEC members. The Treasury Department maintained its original mandate and did not agree to the additional conditions of Chevron Corporation. Chevron Corporation was asking for an additional mandate to gain permission to trade Venezuelan crude oil to recover billions of dollars in debt stuck in the North American state.

In its Q1 2022 investor letter, ClearBridge Investments shared its stance on Chevron Corporation. Here’s what the firm said:

“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holding Chevron (NYSE:CVX) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”

Chevron Corporation was held by 53 hedge funds at the end of Q1 2022.

2. PetroChina Company Limited (NYSE:PTR)

PetroChina Company Limited (NYSE:PTR) is the biggest oil and gas producer in Asia. The stock is up 0.49% as of 1:53 PM ET.

In 2021, 4.5% of PetroChina Company Limited’s total revenue came from Russia. PetroChina Company Limited agreed to import 800,000 barrels per day (BPD) of oil from Russia, as revealed by filings to the US Securities and Exchange Commission on April 29. This is 40% of the total non-OPEC production that comes into China. The demand for crude oil products would rise in China following the end of COVID-19-related lockdowns across various parts of the country.

Out of the 912 hedge funds in Insider Monkey’s database, 7 funds held a stake in PetroChina Company Limited as of Q1 2022.

1. BP p.l.c. (NYSE:BP)

BP p.l.c. (NYSE:BP) is a London-based energy company that is expected to be impacted by the OPEC agreement due to its diversity of operations across the globe. BP p.l.c. (NYSE:BP) is up 0.47% as of 2:15 PM ET. The diversification of activities helped BP p.l.c. (NYSE:BP) bear the effect of a 25% windfall tax on the profits generated by oil and gas production. Only 7% of total production and 4.3% of total profits of the company would be impacted by this development. This number falls further for other European oil majors like Shell plc (NYSE:SHEL) and TotalEnergies SE.

BP p.l.c. (NYSE:BP) was held by 27 hedge funds as of Q1 2022.

You can also take a peek at the 10 Software Stocks to Buy Now According to Jim Davidson’s Silver Lake Partners and 10 Undervalued Dividend Stocks to Buy in 2022.

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