Top 12 Oil and Gas Stocks To Invest In According to Hedge Funds

8. Chord Energy Corporation (NASDAQ:CHRD)

Number of Hedge Fund Holders: 50

Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company, with an immense focus on acquiring and developing oil and natural gas properties. Chord finalized its acquisition of Enerplus in June, significantly expanding its footprint and making it the largest producer in the Bakken. However, while the merger comes with a plethora of opportunities, integration challenges could potentially affect the company’s near-term performance.

Chord Energy Corporation (NASDAQ:CHRD) had a strong Q3 2024 as its oil volumes were toward the top end of guidance, driven by strong execution, well performance, and lower downtime. As a result, the Texas-based company generated an adjusted free cash flow of $312 million and a net income of $225.3 million. Chord also announced a base dividend of $1.25 per share and repurchased shares worth $146 million during the quarter. The company’s commitment to returning 75% of its free cash flow to shareholders through dividends and stock buybacks presents significant potential upside for investors.

Chord Energy Corporation (NASDAQ:CHRD) also remains focused on becoming more sustainable and reported a 9% decrease in operated Scope 1 GHG emissions intensity in 2023 as compared to 2022 and a 57% decrease as compared to 2019. Additionally, it also witnessed a 44% decline in operated Scope 1 methane emissions intensity last year when compared to 2022 and a 70% decrease as compared to 2019.

50 hedge funds tracked by Insider Monkey held shares of Chord Energy Corporation (NASDAQ:CHRD) at the end of Q3 2024, with Point72 Asset Management holding the largest stake of 880,787 shares, valued at over $114.7 million.

Carillon Tower Advisers stated the following about Chord Energy Corporation (NASDAQ:CHRD) in its Q3 investment letter:

“Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company with operations in the Williston Basin in North Dakota, Montana, and South Dakota. The company’s shares lagged largely due to the recent pressure in the price of oil. Some recent data indicating slightly disappointing initial well productivity from a handful of recently completed wells also contributed to lackluster performance. Despite this, we remain optimistic on management’s ability to drive operational efficiencies following the recent close of Chord’s acquisition of Enerplus, by applying best practices of both independent companies in a manner that should provide upside to the previously communicated synergies. We believe the continued successful implementation of Chord’s 3-mile lateral strategy, which entails drilling both vertically and horizontally for distances longer than in 2-mile lateral wells, also could drive increased shareholder returns.”