In this article, we discuss the 5 safe energy stocks for a retirement stock portfolio. If you want to read about some more energy stocks, go directly to Retirement Stock Portfolio: 11 Safe Energy Stocks to Consider.
5. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 55
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company that focuses on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas. It is one of the best safe energy stocks for a retirement stock portfolio. On October 11, Diamondback said that it agreed to acquire all leasehold interest and related assets of closely held FireBird Energy for 5.86 million common shares and $775 million in cash. The deal adds 75 gross, highly contiguous acres in the Midland Basin.
On November 1, Roth Capital analyst John White maintained a Buy rating on Diamondback Energy, Inc. (NASDAQ: FANG) stock and raised the price target to $182 from $150, noting that the company’s guidance prompted an increase to the third quarter 2022 production estimate.
At the end of the third quarter of 2022, 55 hedge funds in the database of Insider Monkey held stakes worth $910.9 million in Diamondback Energy, Inc. (NASDAQ:FANG), compared to 54 in the previous quarter worth $811.4 million.
In its Q1 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Diamondback Energy, Inc. (NASDAQ:FANG) was one of them. Here is what the fund said:
“Diamondback Energy (FANG) returned 14.4% in the quarter as the oil price rose and fell during the quarter ending the period largely in the same place that it started. The company reported strong 3Q results beating on the top and bottom lines. The company reported revenue of $1.9B beating the consensus of $1.5B with EPS of $2.94 beating expectations for $2.79. The beat was driven by a combination of higher volumes, higher realizations, and efficiency gains. The company increased its total production guidance for the year to 370-372mboe/d1 (up from 363-370mboe/d) while lowering Capital Expenditure (CAPEX) guidance for the second time this year to $1.49-1.53B. The company raised the dividend for the third time this year to $2/share annually while authorizing a new $2B share repurchase program. Starting in 4Q21, the company plans to return 50% of Free Cash Flow to shareholders through the base dividend and a combination of buybacks and special dividends. Finally, the CEO Travis Stice announced plans to reduce methane emissions by 70% as part of the firm’s ESG initiative.”
4. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 64
ConocoPhillips (NYSE:COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids worldwide. It is one of the top safe energy stocks for a retirement stock portfolio. On October 31, ConocoPhillips revealed that it was selected as Qatar Energy’s third international partner in the huge North Field South liquified natural gas project by taking a 6.25 percent stake.
On November 7, Truist analyst Neal Dingmann maintained a Buy rating on ConocoPhillips (NYSE:COP) stock and raised the price target to $167 from $149, noting that the company’s third quarter results beat the expectations.
At the end of the third quarter of 2022, 64 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in ConocoPhillips (NYSE:COP), compared to 71 in the previous quarter worth $2.4 billion.
In its Q1 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund said:
“We redeployed capital into ConocoPhillips (NYSE:COP), which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 66
Chevron Corporation (NYSE:CVX) engages in integrated energy and chemical operations worldwide. It is one of the elite safe energy stocks for a retirement stock portfolio. On October 25, after releasing the 2022 methane report, Chevron said it has cut the methane intensity at its operations by 50%, making the company’s US upstream methane intensity 85% lower than the US upstream production sector average as of 2020.
On October 19, Jefferies analyst Lloyd Byrne initiated coverage of Chevron Corporation (NYSE:CVX) stock with a Hold rating and $171 price target, noting that the Option Value of energy is up again, driven by a constrained capital cycle.
At the end of the third quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $27 billion in Chevron Corporation (NYSE:CVX), compared to 59 in the preceding quarter worth $26 billion.
In its Q1 2022 investor letter, Diamond Hill, an asset management firm, highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 75
Exxon Mobil Corporation (NYSE:XOM) explores for and produces crude oil and natural gas. It is one of the prominent safe energy stocks for a retirement stock portfolio. On October 31, Truist analyst Neal Dingmann maintained a Hold rating on Exxon Mobil Corporation (NYSE:XOM) stock and raised the price target to $114 from $111, noting that the company’s third quarter results included US refining throughput levels not seen since 2008, as its Energy Products division posted 13% sequential growth.
Among the hedge funds being tracked by Insider Monkey, Lauderdale, Florida-based investment firm GQG Partners is a leading shareholder in Exxon Mobil Corporation (NYSE:XOM) with 33.9 million shares worth more than $3 billion.
In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“Integrated oil and gas giant Exxon Mobil performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industrywide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 88
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. It is one of the major safe energy stocks for a retirement stock portfolio. On October 31, Tesla held preliminary talks with Glencore about taking a stake as large as 10% to 20% in the Swiss commodities trading and mining giant. On October 25, Cathie Wood of ARK Invest said that she believes Tesla could expand the market 10 times with a cheaper electric vehicle.
On October 20, Oppenheimer analyst Colin Rusch maintained an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) stock and a price target of $436, noting that the company delivered third quarter results that were slightly better than expectations.
At the end of the third quarter of 2022, 88 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 73 in the preceding quarter worth $7.2 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:
“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:
First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic;
second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.
Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE, not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)
You can also take a peek at 10 Growth Stocks with Upside Potential and 14 Best Agriculture Stocks To Buy Now.
