Kinder Morgan, Pioneer, Baker Hughes: Which Energy Stocks Are Garnering the Most Interest Among Billionaires?

Baker Hughes Incorporated (NYSE:BHI)

– Number of Billionaires With Long Positions (as of June 30): 10
– Number of Billionaires With Long Positions (as of March 31): 9

Ken Griffin made a big move on Baker Hughes Incorporated (NYSE:BHI) during the second quarter, almost doubling his fund’s investment in the company. According to its latest 13F filing, Citadel Investment Group held 3.55 million Baker Hughes shares valued at $160 million. Israel Englander‘s Millennium Management, on the other hand, chose to trim its exposure to the stock, reducing its holding by 9% to 1.29 million shares worth $58.4 million at the end of June. Baker Hughes Incorporated (NYSE:BHI) was on the verge of being acquired by Halliburton Company (NYSE:HAL), but the deal was blocked by U.S. regulators, who argued it would hurt competition in the sector. Baker Hughes was awarded $3.5 billion in compensation for the failed merger and used a part of the funds to extinguish $1.1 billion worth of debt and buy back $500 million worth of shares. This had a significant impact on the company’s balance sheet and capital structure, as the debt-to-capital ratio fell to 17.4%, significantly lower than its main competitors.

Kinder Morgan Inc (NYSE:KMI)

– Number of Billionaires With Long Positions (as of June 30): 11
– Number of Billionaires With Long Positions (as of March 31): 9

Warren Buffett was one of the first to invest in Kinder Morgan Inc (NYSE:KMI) ahead of an expected energy comeback. At the end of the fourth quarter, Berkshire Hathaway reported a new stake amassing 26.5 million shares of the company and has not made any adjustments to it since then. Jim Simons’ Renaissance Technologies joined the party during the most recent quarter, having acquired 4.67 million shares worth $87.4 million. Kinder Morgan Inc (NYSE:KMI) has a market cap of $50 billion and currently pays an annual dividend of $0.50 per share, providing investors with an annual yield of 2.30%. After a massive 72% drop, the stock bottomed out in the beginning of January and has been climbing vigorously since then, being up by 50% for the year. Analysts at Morgan Stanley recently upgraded the stock to “Overweight” from “Equal Weight” and slightly increased their price target on it to $24 per share from the previous target of $23. The firm said that it sees better cash flow and improved credit metrics in 2018, and expects the stock to extend its current rally.

Pioneer Natural Resources (NYSE:PXD)

– Number of Billionaires With Long Positions (as of June 30): 11
– Number of Billionaires With Long Positions (as of March 31): 7

The most popular energy stock among billionaire hedge fund managers at the end of June was Pioneer Natural Resources (NYSE:PXD). Ken Griffin‘s Citadel Investment Group boosted its stake in the company by 42% to 1.74 million shares worth approximately $264 million. Andreas Halvorsen, on the other hand, chose to cut his fund’s exposure, dumping 47% of its holding in the process. According to its recently-released 13F filing, Viking Global held 1.37 million Pioneer shares worth roughly $207 million. Pioneer Natural Resources (NYSE:PXD) recently acquired 28,000 acres in the Permian Basin for $443 million, taking its holding to roughly 800,000 acres. The company said that it expects 2016 production to increase by 13%, while 2017 production growth is expected to reach 17%. For the second quarter, Pioneer Natural Resources posted an adjusted loss of $0.22 per share, having registered $1 billion in revenue, up by 21% year-over-year. Production rose by 5% to 233,000 barrels of oil equivalent per day, beating its own output guidance.

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