In this article, we discuss oil predictions for 2022 and 5 stocks to watch. If you want our comprehensive analysis of the oil industry, go directly to Oil Price Predictions for 2022 and 10 Stocks to Watch.
5. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 26
BP p.l.c. (NYSE:BP) is a London-based energy company that operates worldwide, engaged in the production of natural gas, oil, biofuels, and renewable energy. On March 10, JPMorgan analyst Christyan Malek lowered the price target on BP p.l.c. (NYSE:BP) to £480 from £500 and kept an Overweight rating on the shares.
BP p.l.c. (NYSE:BP) on February 28 announced plans to divest from the company’s 20% shareholding in Rosneft, a Russian integrated energy company headquartered in Moscow.
On February 8, BP p.l.c. (NYSE:BP) published its Q4 results, posting an EPS of $1.23, exceeding estimates by $0.09. Revenue over the period jumped 12.87% year-over-year to $50.55 billion, outperforming estimates by $26.07 billion.
Among the hedge funds tracked by Insider Monkey, 26 funds were long BP p.l.c. (NYSE:BP) in Q4 2021, compared to 29 funds in the previous quarter. Fisher Asset Management is the biggest shareholder of the company, with 13.7 million shares worth $367.1 million.
4. Oasis Petroleum Inc. (NASDAQ:OAS)
Number of Hedge Fund Holders: 27
Oasis Petroleum Inc. (NASDAQ:OAS) is a Texas-based exploration company that focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States.
Oasis Petroleum Inc. (NASDAQ:OAS) and Whiting Petroleum Corporation (NYSE:WLL) on March 7 announced plans to combine in a $6 billion merger of equals.
On February 23, Oasis Petroleum Inc. (NASDAQ:OAS) reported earnings for the fourth quarter. Oasis Petroleum Inc. (NASDAQ:OAS) posted an EPS of $5.68, topping estimates by $0.11. Revenue over the period came in at $521.28 million, up 102.06% year-over-year, surpassing market consensus by approximately $200 million.
Oasis Petroleum Inc. (NASDAQ:OAS) announced on March 11 the declaration of its first variable dividend in the amount of $3.00 per share, payable on March 31 to shareholders of record on March 21. This is in line with its previously announced plan to return $70 million of capital to shareholders per quarter.
Truist analyst Neal Dingmann raised the price target on Oasis Petroleum Inc. (NASDAQ:OAS) to $207 from $180 and kept a Buy rating on the shares on March 8. The analyst cited the company having made its merger announcement with Whiting Petroleum Corporation (NYSE:WLL) official, stating that with a strong 60% shareholder return target and a contiguous acreage position, he continues to see upside in the shares.
A total of 27 hedge funds were long Oasis Petroleum Inc. (NASDAQ:OAS) at the end of December 2021, up from 19 funds in the earlier quarter. Aristeia Capital is the leading shareholder of the company, with 651,860 shares worth $82.1 million.
3. Denbury Inc. (NYSE:DEN)
Number of Hedge Fund Holders: 32
Headquartered in Plano, Texas, Denbury Inc. (NYSE:DEN) is an independent energy company that produces oil from mature oil fields in the Gulf Coast and Rocky Mountain regions. The company offers exposure to oil prices, with its production being around 97% oil.
On February 18, Roth Capital analyst John White upgraded Denbury Inc. (NYSE:DEN) to Buy from Neutral ahead of the company’s earnings report, as he cited higher crude oil futures and lower debt levels for an increased target on the shares of $87.75, up from $78.75. Denbury Inc. (NYSE:DEN)’s balance sheet is “in great shape” and he sees further longer-term upside from Denbury Inc. (NYSE:DEN)’s nascent CCUS effort, the analyst added.
Among the hedge funds tracked by Insider Monkey, 32 funds were bullish on Denbury Inc. (NYSE:DEN) in Q4 2021, up from 29 funds in the quarter earlier. Silver Point Capital is the leading shareholder of the company, with 3.8 million shares worth $292.5 million.
2. Chesapeake Energy Corporation (NASDAQ:CHK)
Number of Hedge Fund Holders: 50
Based in Oklahoma, Chesapeake Energy Corporation (NASDAQ:CHK) acquires and develops properties that generate oil, natural gas, and natural gas liquids across the United States.
On March 3, Chesapeake Energy Corporation (NASDAQ:CHK) declared a quarterly dividend of $0.4375 per share, in line with previous. The dividend is payable on March 22, to shareholders of record on March 7.
RBC Capital analyst Scott Hanold raised the price target on Chesapeake Energy Corporation (NASDAQ:CHK) on March 8 to $98 from $88 and kept an Outperform rating on the shares. The company is digesting the recent acquisitions but looks positioned to deliver among the highest return to shareholders, the analyst told investors in a research note. He expects a total dividend yield of near 10% in 2022 and noted that investors should see another 5% from stock buybacks.
According to the Q4 database of Insider Monkey, 50 hedge funds were long Chesapeake Energy Corporation (NASDAQ:CHK), up from 44 funds in the quarter earlier. Oaktree Capital Management held the largest stake in Chesapeake Energy Corporation (NASDAQ:CHK) at the end of December 2021, with 12 million shares worth $774.3 million.
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 58
Occidental Petroleum Corporation (NYSE:OXY) is a Texas-based company that develops oil and gas properties in the United States, the Middle East, Africa, and Latin America. The stock has gained over 120% over in the last six months.
Occidental Petroleum Corporation (NYSE:OXY) has recently been endorsed by Warren Buffett, who purchased approximately $3 billion of Occidental Petroleum Corporation (NYSE:OXY) stock less than two weeks ago. Berkshire Hathaway reported on March 12 that it boosted its stake in Occidental Petroleum Corporation (NYSE:OXY) by another $1.5 billion over the past week just as oil prices were peaking. Overall, 58 hedge funds were bullish on the stock at the end of December 2021.
On February 24, Occidental Petroleum Corporation (NYSE:OXY) declared a $0.13 per share quarterly dividend, a 1200% increase from its prior dividend of $0.01. The dividend is payable on April 14, to shareholders of record on March 10.
Truist analyst Neal Dingmann raised the price target on Occidental Petroleum Corporation (NYSE:OXY) on March 11 to $75 from $58 and kept a Buy rating on the shares. The stock has significantly outperformed peers since February 25th amid “large key purchases” on expectations of a broad re-rating, the analyst told investors in a research note.
Here is what Smead Capital Management has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2021 investor letter:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
You can also take a look at 10 Monthly Dividend Stocks to Buy in March and 10 Defense Stocks to Buy As Geopolitical Tensions Rise.
