Hedge Fund Sentiment Turned Against These Energy Stocks in Q1

#3. Western Refining Inc. (NYSE:WNR)

 – Investors with long positions (as of March 31): 26

 – Aggregate value of investors’ holdings (as of March 31): $228.84 Million

While the number of hedgies invested in Western Refining Inc. (NYSE:WNR) declined to 26 from 34 during the March quarter, the aggregate value of those hedge funds’ equity investments in the company plummeted to $228.84 million from $375.47 million quarter-over-quarter. The 26 asset managers amassed nearly 9% of Western Refining’s outstanding shares. The crude oil refiner has seen its market value plummet by 40% since the beginning of 2016, partially due to a weaker-than-expected first-quarter earnings report. Western Refining’s first-quarter net sales and net income figures came in below analysts’ expectations because of lower-than-normal gasoline margins. The company’s net sales for the quarter were $1.46 billion, down from $2.32 billion posted a year earlier. Even so, the second quarter has shown promising signs of improvement for the industry and the company itself, thanks to strong gasoline demand and recovering southwest U.S gasoline margins. Steven Cohen’s Point72 Asset Management owns 969,000 shares of Western Refining Inc. (NYSE:WNR) as of the end of March.

#2. HollyFrontier Corp (NYSE:HFC)

 – Investors with long positions (as of March 31): 20

 – Aggregate value of investors’ holdings (as of March 31): $269.63 Million

The hedge fund sentiment towards HollyFrontier Corp (NYSE:HFC) declined meaningfully during the first quarter of the year, as the number of money managers in our system with stakes in the company dropped to 20 from 34 quarter-over-quarter. The dollar value of those stakes also shrank to a mere $269.63 million from a much higher value of $587.54 million. The independent petroleum refiner recently reached a new 52-week low of $25.80, after seeing its shares go down by nearly 33% since the start of the year. Shares of HollyFrontier are currently changing hands at around 7.7-times expected earnings, below the forward P/E multiple of 10.5 for the oil and gas refining and marketing sector. Gasoline margins have recovered substantially from first-quarter levels and are anticipated to continue strengthening on positive vehicle miles traveled data. The refiner currently pays out a quarterly dividend of $0.33 per share, which equates to an annual yield of 4.93%. Cliff Asness’ AQR Capital Management has 5.59 million shares of HollyFrontier Corp (NYSE:HFC) among its holdings as of March 31.

#1. EOG Resources Inc. (NYSE:EOG)

 – Investors with long positions (as of March 31): 33

 – Aggregate value of investors’ holdings (as of March 31): $631.34 Million

EOG Resources Inc. (NYSE:EOG) also fell out of favor with the hedge funds monitored by our team, as the number of them with long positions in the company plunged to 33 from 51 quarter-over-quarter. Meanwhile, the aggregate value of those long positions decreased to $631.34 million from $909.82 million during the March quarter. The shares of the U.S independent crude oil and natural gas company are up by 15% since the beginning of 2016. EOG Resources posted net operating revenue of $1.35 billion for the first quarter of 2016, down by $965 million year-over-year. Meanwhile, the company’s wellhead revenue, which represents revenue from the sales of EOG’s production of crude oil and condensate, NGLs, and natural gas, declined by $665 million year-over-year to $995 million due to both lower realized prices and decreased production. The management of EOG Resources is not anticipated to boost production even if crude oil prices reach the $60 price level. Ric Dillon’s Diamond Hill Capital reported ownership of 2.02 million shares of EOG Resources Inc. (NYSE:EOG) in its 13F for the March quarter.

Disclosure: None