Most Popular Energy Stocks Under $5

#3. Seadrill Ltd (NYSE:SDRL)

– Investors with long positions (as of March 31): 22

– Aggregate value of investors’ holdings (as of March 31): $110.83 Million

The hedge fund industry was mildly bullish on Seadrill Ltd (NYSE:SDRL) during the first quarter of 2016, as the number of money managers in our database with equity investments in Seadrill increased to 22 from 21 quarter-over-quarter. Similarly, the overall value of those equity investments rose to $110.83 million from $57.95 million during the three-month period. The 22 hedge funds invested in Seadrill held almost 7% of the company’s outstanding shares, which are down by 3% year-to-date. The company owns and operates a fleet of 38 offshore drilling units, which consist of seven drillships, 12 semi-submersible rigs and 19 jack-up rigs. Analysts at Credit Suisse consider Seadrill to be on a “winding road to a workout”, as the company’s high indebtedness needs some reshuffling. Credit Suisse analysts, who have an ‘Underperform’ rating and price target of $1 on Seadrill, anticipate increased idle time for the company’s drilling rigs after several contracts were recently terminated. Himanshu H. Shah’s Shah Capital Management added a 1.45 million-share position in Seadrill Ltd (NYSE:SDRL) to its portfolio during the first quarter of 2016.

#2. Cobalt International Energy Inc. (NYSE:CIE)

– Investors with long positions (as of March 31): 25

– Aggregate value of investors’ holdings (as of March 31): $429.06 Million

Cobalt International Energy Inc. (NYSE:CIE) also received some love from the hedge funds monitored by Insider Monkey, as the number of asset managers invested in the company climbed to 25 from 23 quarter-over-quarter. Nonetheless, the aggregate value of those asset managers’ equity investments in CIE declined to $429.06 million from $577.02 million during the period. It is important to note that the 25 hedge funds with stakes in CIE stockpiled a whopping 35% of the company’s outstanding shares. The shares of the independent E&P company, which has operations in the deepwater U.S. Gulf of Mexico, are 61% in the red year-to-date. Cobalt International Energy has not generated meaningful revenue since going public in December 2009, as the company achieved initial production of oil and gas from the Heidelberg field in January of 2016. As a result, the company’s oil and gas revenue for the first three months of 2016 was $1.6 million. John Paulson’s Paulson & Co. owns 39.55 million shares of Cobalt International Energy Inc. (NYSE:CIE) as of March 31.

#1. California Resources Corp (NYSE:CRC)

– Investors with long positions (as of March 31): 32

– Aggregate value of investors’ holdings (as of March 31): $88.00 Million

California Resources Corp (NYSE:CRC) received more attention from the hedge fund industry during the first quarter of 2016, with the number of funds invested in the company increasing to 32 from 29 quarter-over-quarter. In spite of that, the overall value of those funds’ equity investments in CRC plunged to $88.00 million from a much higher figure of $237.28 million, though that still accounted for 22% of the company’s shares. The independent oil and natural gas E&P company, which operates properties solely within the State of California, has seen its shares go down by 33% in value year-to-date. The disappointing stock performance has been mainly attributable to investor worries over the company’s extremely levered balance sheet, as higher crude oil prices alone will not be able to improve CRC’s financial health. The company needs to conduct asset monetizations to reduce its heavy debt burden. Cliff Asness’ AQR Capital Management reported owning 29.47 million shares of California Resources Corp (NYSE:CRC) in its latest 13F filing.

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