In this article, we discuss the 5 oil stocks with the biggest upside. If you want to read about some more oil stocks with the biggest upside, go directly to 12 Oil Stocks With Biggest Upside.
5. Pioneer Natural Resources Company (NYSE:PXD)
Number of Hedge Fund Holders: 49
Pioneer Natural Resources Company (NYSE:PXD) operates as an independent oil and gas exploration and production company in the United States. Pioneer Natural Resources revealed that it will seek to lift productivity levels in 2023 by reshuffling its drilling portfolio to target wells with potentially higher returns. The firm is one of the most reliable players in the oil sector with a dividend history stretching back more than sixteen years. The sector median in this regard is just five years.
On December 7, Barclays analyst Jeanine Wai maintained an Overweight rating on Pioneer Natural Resources Company (NYSE:PXD) stock and lowered the price target to $277 from $300, highlighting that the company posted the third quarter results.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Pioneer Natural Resources Company (NYSE:PXD) with 769,600 shares worth more than $166.6 million.
In its Q1 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Pioneer Natural Resources Company (NYSE:PXD) was one of them. Here is what the fund said:
“Pioneer Natural Resources (NYSE:PXD) performed well in a strong energy sector. Pioneer stood out recently with a pledge to return a large majority of free cash flow to shareowners through dividends and stock buybacks, and ended hedging to give shareowners more earnings and dividend potential should oil and gas prices continue to rise.”
4. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 55
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company that focuses on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas. On November 7, Diamondback Energy declared a quarterly dividend of $0.75 per share in line with the previous. The company also declared a $1.51 variable cash dividend for the third quarter. The forward yield was 1.86%.
On December 8, KeyBanc analyst Tim Rezvan maintained an Overweight rating on Diamondback Energy, Inc. (NASDAQ:FANG) stock and lowered the price target to $171 from $182, highlighting that in the fourth quarter, oil prices have been worse than expected as a result of worries about lockdowns in China.
At the end of the third quarter of 2022, 55 hedge funds in the database of Insider Monkey held stakes worth $910.9 million in Diamondback Energy, Inc. (NASDAQ:FANG), compared to 54 in the previous quarter worth $811.4 million.
In its Q1 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Diamondback Energy, Inc. (NASDAQ:FANG) was one of them. Here is what the fund said:
“Diamondback Energy (FANG) returned 14.4% in the quarter as the oil price rose and fell during the quarter ending the period largely in the same place that it started. The company reported strong 3Q results beating on the top and bottom lines. The company reported revenue of $1.9B beating the consensus of $1.5B with EPS of $2.94 beating expectations for $2.79. The beat was driven by a combination of higher volumes, higher realizations, and efficiency gains. The company increased its total production guidance for the year to 370-372mboe/d1 (up from 363-370mboe/d) while lowering Capital Expenditure (CAPEX) guidance for the second time this year to $1.49-1.53B. The company raised the dividend for the third time this year to $2/share annually while authorizing a new $2B share repurchase program. Starting in 4Q21, the company plans to return 50% of Free Cash Flow to shareholders through the base dividend and a combination of buybacks and special dividends. Finally, the CEO Travis Stice announced plans to reduce methane emissions by 70% as part of the firm’s ESG initiative.”
3. EQT Corporation (NYSE:EQT)
Number of Hedge Fund Holders: 57
EQT Corporation (NYSE:EQT) operates as a natural gas production company in the United States. The firm is one of the top natural gas stocks in the US and has benefited from the recent rise in natural gas prices as winter season approaches and the demand increases. The is also priced at just 4x cash flows, making it an interesting value proposition. The firm expects to generate reliable long-term returns, giving capital back to shareholders as it does so.
On November 17, Piper Sandler analyst Mark Lear maintained an Overweight rating on EQT Corporation (NYSE:EQT) stock and raised the price target to $63 from $62, noting that the exploration and production models, as well as fiscal 2023 models, were updated based on third-quarter results.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Soroban Capital Management is a leading shareholder in EQT Corporation (NYSE:EQT) with 6.5 million shares worth more than $263.6 million.
In its Q2 2022 investor letter, ClearBridge Investment, an asset management firm, highlighted a few stocks and EQT Corporation (NYSE:EQT) was one of them. Here is what the fund said:
“We also added natural gas company EQT (NYSE:EQT) in the energy sector. As one of the lowest-cost domestic producers, EQT stands to benefit from its position as a leading supplier of natural gas to a world suffering from critically low energy reserves. The Russian invasion of Ukraine and threats to hold natural gas exports hostage have spurred a surge in European energy prices, generating long-term agreements by European countries to purchase U.S. natural gas.
This strong demand and elevated prices have helped EQT strengthen its balance sheet and position it to take advantage as opportunities emerge for natural gas to plug the gaps in the global energy transition from fossil fuels to renewables.”
2. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 64
ConocoPhillips (NYSE:COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. On November 29, ConocoPhillips and QatarEnergy announced agreements to supply 2 million per year metric tons of liquefied natural gas to Germany for 15 years starting in 2026, as Germany seeks to cover future gas needs following the rupture of its energy relationship with Russia.
On December 7, Barclays analyst Jeanine Wai maintained an Overweight rating on ConocoPhillips (NYSE:COP) stock and lowered the price target to $151 from $134.
At the end of the third quarter of 2022, 64 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in ConocoPhillips (NYSE:COP), compared to 71 in the previous quarter worth $2.4 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund said:
“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 74
Occidental Petroleum Corporation (NYSE:OXY) engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. In late November, the firm announced that it had signed a letter of intent with Enbridge to explore the joint development of a carbon dioxide pipeline transportation system and sequestration hub in the Corpus Christi area on the Texas Gulf Coast. The former plans to build as many as 135 direct air carbon capture facilities by 2035.
On December 7, Barclays analyst Jeanine Wai maintained an Overweight rating on Occidental Petroleum Corporation (NYSE:OXY) stock and lowered the price target to $74 from $84.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based firm Berkshire Hathaway is a leading shareholder in Occidental Petroleum Corporation (NYSE:OXY) with 194.4 million shares worth more than $11.9 billion.
In its Q3 2022 investor letter, Smead Capital Management, an asset management firm, highlighted a few stocks and Occidental Petroleum Corporation (NYSE:OXY) was one of them. Here is what the fund said:
“Our top-performing stocks in the quarter include Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”
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