In this article, we will take a look at the 5 top performing energy stocks in January 2023. To see more such companies, go directly to 12 Top Performing Energy Stocks in January 2023.
5. Kosmos Energy Ltd. (NYSE:KOS)
Performance in January: +32%
Texas-based upstream energy company Kosmos Energy Ltd. (NYSE:KOS) ranks 5th in our list of top performing energy stocks in January 2023. In November 2022, Kosmos Energy Ltd. (NYSE:KOS) posted its third quarter results. Adjusted EPS in the quarter totaled $0.19. Revenue in the period increased 127.4% to total $456.1 million. Net capital expenditure for the third quarter came in at $203 million. Kosmos Energy Ltd. (NYSE:KOS) said that for the full-year 2022, it expects its capital expenditure to total $700 million, excluding acquisitions and divestitures. Its FY22 production guidance was 63,000 – 65,000 boe per day.
As of the end of the third quarter, 30 hedge funds out of Insider Monkey’s 920 funds had stakes in Kosmos Energy Ltd. (NYSE:KOS). The net worth of these stakes was about $224 million. The biggest stakeholder of Kosmos Energy Ltd. (NYSE:KOS) was Len Kipp and Xavier Majic’s Maple Rock Capital which owns a $60 million stake in Kosmos Energy Ltd. (NYSE:KOS).
4. Seadrill Limited (NYSE:SDRL)
Performance in January: +40%
Deepwater drilling contractor Seadrill Limited (NYSE:SDRL)’s shares jumped about 40% in January 2023. In December, Seadrill Limited (NYSE:SDRL) said it will acquire Aquadrill in an all-stock deal for about $958 million. Seadrill Limited (NYSE:SDRL)’s third-quarter performance was also strong. Its revenue jumped 21.2% on a YoY basis in the period to come in at $269 million. Seadrill Limited (NYSE:SDRL)’s management said that its West Saturn and West Carina have recently started operations in Brazil for their long-term contracts.
In November, Seadrill Limited (NYSE:SDRL) announced that its 50-50 joint venture with Angola’s state-owned Songanol was awarded a $327 million extension for the Libongos drillship for offshore operations.
3. NGL Energy Partners LP (NYSE:NGLS)
Performance in January: +42%
This midstream MLP company ranks 3rd in our list of the top-performing energy stocks in January 2023. NGL Energy Partners LP (NYSE:NGLS) gained about 42% in January. In early January, NGL Energy Partners upped its FY 2023 adjusted EBITDA guidance to over $630 million from over $600 million. NGL Energy Partners LP (NYSE:NGLS) cited increases in water volumes processed in the Delaware Basin and other cash flow positive developments for the upgrade. NGL Energy Partners LP (NYSE:NGLS) said $430 million out of this $630 million will be generated from its Water Solutions segment.
A total of 3 hedge funds had stakes in NGL Energy Partners LP (NYSE:NGLS) as of the end of the third quarter.
Here is what Miller Value Partners has to say about NGL Energy Partners LP (NYSE:NGLS) in their Q4 2020 investor letter:
“NGL Energy Partners (NGL) dropped 37.0% over the period, though its small weight in the fund meant only 12 basis points (bps) of value detraction. NGL reported EBITDA of $138M, missing consensus of $142 by 3% driven by lower than expected crude and water volumes. Distributable cash flow of $73M beat analyst estimates of $69M and provided 5.5x coverage on the reduced quarterly dividend of $0.10/share (13.6% annualized yield). Since July 1st, NGL has retired $75M of unsecured notes, bringing Year-to-Date (YTD) repurchases to $125M. Management remains fully committed to deleveraging and noted a Joint Venture (JV) for the Water business is likely by year-end. NGL exited the quarter with $3.3Bn in total debt, $122M of liquidity, leverage of 5.3x, and remains in full compliance with all debt covenants.”
2. Independence Contract Drilling, Inc. (NYSE:ICD)
Performance in January: +45%
Texas-based Independence Contract Drilling, Inc. (NYSE:ICD) offers land-based contract drilling services for oil and natural gas producers in the United States. Independence Contract Drilling, Inc. (NYSE:ICD) gained more than 40% in January. It ranks 2nd in our list of the top performing energy stocks in January 2023. As of the end of the third quarter of 2022, 11 hedge funds had stakes in Independence Contract Drilling, Inc. (NYSE:ICD), compared to 10 funds in the previous quarter. The biggest stakeholder of Independence Contract Drilling, Inc. (NYSE:ICD) was Marc Lisker, Glenn Fuhrman and John Phelan’s MSDC Management, which owns a $5 million stake in the company. The second biggest stakeholder of Independence Contract Drilling, Inc. (NYSE:ICD) was Matthew Barrett’s Glendon Capital Management with a $1.7 million stake.
In November, Independence Contract Drilling posted third-quarter results. Independence Contract Drilling, Inc. (NYSE:ICD) posted adjusted EPS of-$0.35 in the period. Revenue in the quarter jumped 104% to total $49.1 million. Adjusted EBITDA came in at $12.5 million.
1. Transocean Ltd. (NYSE:RIG)
Performance in January: +60%
One of the biggest offshore drilling companies, Transocean Ltd. (NYSE:RIG) ranks 1st in our list of the top performing energy stocks in January 2023.
As of the end of the third quarter of 2022, 36 hedge funds had stakes in Transocean Ltd. (NYSE:RIG). The total value of these stakes was $302 million. The biggest stakeholder of Transocean Ltd. (NYSE:RIG) was Stephen Mildenhall’s Contrarius Investment Management which owns a $68 million stake in Transocean Ltd. (NYSE:RIG).
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