Billionaires Are Betting On These 5 Energy Stocks

In this article, we discuss the 5 energy stocks billionaires are betting on. To read the detailed analysis of the energy industry and its outlook, go directly to Billionaires Are Betting On These 10 Energy Stocks.

5. Marathon Petroleum Corporation (NYSE:MPC)

Number of Billionaire Investors: 15

Dollar Value of Billionaire Holdings: $2.53 billion

Marathon Petroleum Corporation (NYSE:MPC), previously a subsidiary of Marathon Oil Corporation (NYSE:MRO), is an Ohio-based company that is engaged in the refinement, marketing, and transportation of petroleum products.

Marathon Petroleum Corporation (NYSE:MPC) is an energy stock that billionaires are betting on, as 15 billionaires had investments in the stock in the third quarter at a combined value of $2.53 billion.

On November 14, Marathon Petroleum Corporation (NYSE:MPC) announced that its Green Bison soy processing facility, a joint venture with Archer-Daniels-Midland Company (NYSE:ADM), opened in North Dakota. According to the companies, the $350 million facility is expected to have an output of 600 million lbs/year of refined soybean oil and enough feedstock for around 75 million gal/year of renewable green diesel.

Out of the 910 hedge funds tracked by Insider Monkey, 48 funds had investments in Marathon Petroleum Corporation (NYSE:MPC) in Q3, up from 42 in Q2. New York-based Elliott Management was the most prominent stakeholder in the company, with 11.065 million shares worth $1.67 billion, representing 12.95% of the firm’s portfolio.

4. Pioneer Natural Resources Company (NYSE:PXD)

Number of Billionaire Investors: 16

Dollar Value of Billionaire Holdings: $1.16 billion

Pioneer Natural Resources Company (NYSE:PXD) is an oil and natural gas exploration and production corporation that carries out its operations mainly in the Spraberry Trend, Permian Basin.

On November 2, Pioneer Natural Resources Company (NYSE:PXD) announced a quarterly dividend of $3.20, which included a $1.25 base dividend and a $1.95 variable dividend. The dividend is payable by December 22 to the shareholders of record on November 30.

On December 6, JPMorgan lowered the price target on Pioneer Natural Resources Company (NYSE:PXD)’s stock to $253 from $264 and maintained an Overweight rating.

3. ConocoPhillips (NYSE:COP)

Number of Billionaire Investors: 16

Dollar Value of Billionaire Holdings: $1.38 billion

ConocoPhillips (NYSE:COP) is one of the largest hydrocarbon exploration and production companies in the world with operations in 13 countries. The corporation carries out exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids.

ConocoPhillips (NYSE:COP)’s stock was covered by 20 Wall Street analysts, and 17 analysts kept a Buy rating. The average price target of $142.05 had an upside of 27.58% at the time of writing on December 7.

The number of hedge funds with a stake in ConocoPhillips (NYSE:COP) remained the same, 62 funds, in Q3 and Q2, but the combined stake value increased to $3.68 billion in the third quarter from $2.6 billion in the previous quarter. The biggest shareholder of the company was Natixis Global Asset Management’s Harris Associates, with 13.5 million shares worth $1.6 billion.

Oakmark Funds commented on ConocoPhillips (NYSE:COP) in its second quarter 2023 investor letter. Here is what it said:

“ConocoPhillips (NYSE:COP) is one of the largest and most efficient exploration and production companies in the country. The company has an extensive resource base of high-quality drilling inventory in the U.S. and various international locations as well as a growing liquified natural gas business. In our view, the depth and quality of ConocoPhillips’s inventory is a competitive differentiator that is not fully captured in today’s share price. Over the next 10 years, we believe ConocoPhillips will be able to return more than 100% of its current market cap to shareholders via dividends and share repurchases while growing its production at a mid-single-digit annual pace. We believe ConocoPhillips is also among the best managed companies in the oil and gas industry and we are impressed by its history of accretive capital allocation under CEO Ryan Lance. The stock has meaningfully underperformed the broader market year-to-date and is an attractive addition to our portfolio.”

2. Exxon Mobil Corporation (NYSE:XOM)

Number of Billionaire Investors: 17

Dollar Value of Billionaire Holdings: $2.61 billion

Exxon Mobil Corporation (NYSE:XOM) is one of the biggest integrated oil and gas companies in the world. The corporation carries out the discovery, exploration, development, and production of crude oil, natural gas, and natural gas liquids.

On December 7, Exxon Mobil Corporation (NYSE:XOM)’s CEO, Darren Woods, commented that the company is hurrying to respond to the Federal Trade Commission’s second request for more information on its acquisition of Pioneer Natural Resources Company (NYSE:PXD). The $59.5 billion or $253 per share deal was disclosed in October 2023.

On December 6, Exxon Mobil Corporation (NYSE:XOM) announced to raise its share repurchase program to $20 billion per year from the previously announced $17.5 billion program in 2023. The corporation said that the program will be initiated next year around the time it completes the above-mentioned acquisition and will continue through 2025.

Among our list of energy stocks that billionaires are betting on, Exxon Mobil Corporation (NYSE:XOM) is one of the top stock picks, as 17 billionaires had investments in the stock at a total dollar value of $2.61 billion.

1. Chevron Corporation (NYSE:CVX)

Number of Billionaire Investors: 19

Dollar Value of Billionaire Holdings: $21.1 billion

Chevron Corporation (NYSE:CVX), previously known as Standard Oil Company of California, explores, produces, stores, refines, markets, distributes, and offers pipeline transportation of oil and gas products.

According to Insider Monkey’s database, 72 hedge funds held a stake in Chevron Corporation (NYSE:CVX)’s stock in the third quarter. Warren Buffett’s Berkshire Hathaway was the biggest investor in the stock, with 110.248 million shares worth $18.59 billion.

Chevron Corporation (NYSE:CVX) was mentioned in Carillon Tower Advisers’ third quarter 2023 investor letter. Here is what it said:

“Chevron Corporation (NYSE:CVX) traded higher along with oil prices that increased throughout the third quarter. Oil prices rose about 30% following ongoing production cuts by major global producers (Saudi Arabia and Russia) and slowing output growth from U.S. shale energy producers.”

You can also look at the 13 Hot Penny Stocks To Buy According to Hedge Funds and the 25 Best Bourbons in the World.

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