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

3. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 66

Founded in 1875, ConocoPhillips (NYSE:COP) is an independent company that explores, produces, transports, and markets crude oil, bitumen, natural gas, natural gas liquids, and LNG worldwide.

ConocoPhillips (NYSE:COP) announced last month that it has completed the $22.5 billion acquisition of Marathon Oil, making it the third-largest oil and natural gas producer in America. And importantly, the resources that ConocoPhillips has added have a fairly low average cost of around $30 per barrel of oil. The company also stated that it would significantly increase its dividends and share buybacks after the deal.

Ryan Lance, Chairman and CEO of ConocoPhillips (NYSE:COP) said regarding the deal:

“This acquisition of Marathon Oil is a perfect fit for ConocoPhillips, adding to our deep, durable and diverse portfolio while meeting our strict financial framework. Marathon Oil adds high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position. We have a strong history of seamlessly integrating assets and we expect to deliver synergies of over $1 billion on a run rate basis in the next 12 months.”

In Q3 of 2024, ConocoPhillips (NYSE:COP) reported a revenue of $13.6 billion. Although it beat the analysts’ estimates by over $32 million, it was down by almost 8.5% from the same period last year, primarily due to the decrease in prices. Meanwhile, cash generated from operating activities was $5.8 billion and the company ended the quarter with cash and short-term investments of $7.1 billion and long-term investments of $1 billion. More significantly, ConocoPhillips (NYSE:COP) raised its ordinary dividend by 34% to $0.78 per share and increased existing share repurchase authorization by up to $20 billion, effectively living up to its promises.

ConocoPhillips (NYSE:COP) is also well-positioned to capitalize on several growth opportunities, including Qatar’s North Field East & South LNG projects, the Port Arthur project in Texas, and the Willow project in Alaska. These major investments, coupled with the Marathon Oil acquisition, are expected to substantially grow its cash flow in the coming years.

Shares of ConocoPhillips (NYSE:COP) were held by 66 hedge funds at the end of Q3 2024, according to IM’s database. The largest stake of over 15.2 million shares, valued at more than $1.6 billion, was held by Eagle Capital Management.