In this article, we will take a look at the top 5 oil and gas stocks to buy. To see more such companies, go directly to Top 10 Oil and Gas Stocks To Buy.
5. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 60
Out of the 910 hedge funds in Insider Monkey’s database, 60 hedge funds had stakes in Cheniere Energy, Inc. (NYSE:LNG). The biggest hedge fund stakeholder of Cheniere Energy, Inc. (NYSE:LNG) was D E Shaw which owns a $217 million stake in the company. In August Cheniere Energy, Inc. (NYSE:LNG) posted second quarter results. GAAP EPS in the quarter came in at $5.61, beating estimates by $2.88. Revenue fell 48.8% YoY to $4.1 billion, missing estimates by $290 million. Cheniere Energy, Inc. (NYSE:LNG) raised its 2023 Consolidated Adjusted EBITDA2 guidance to $8.3 billion – $8.8 billion.
TimesSquare U.S. Mid Cap Growth Strategy made the following comment about Cheniere Energy, Inc. (NYSE:LNG) in its Q4 2022 investor letter:
“Within Energy, Cheniere Energy, Inc. (NYSE:LNG) is an energy infrastructure company that operates liquefied natural gas (LNG) terminals in Louisiana and Texas. Despite reporting inline for the latest quarter, its stock traded down -9%. Contributing factors were Europe had filled its storage ahead of the winter and a recent dip in natural gas pricing. The market for LNG is likely to remain tight for the next several years. Notably, Cheniere paid down $1.3 billion of long-term debt and repurchased $75 million of common stock during the quarter. Cheniere is well positioned to benefit from ongoing tightness in global gas markets.”
4. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 62
ConocoPhillips (NYSE:COP) shares have gained about 9% year to date through October 23.
A total of 62 hedge funds tracked by Insider Monkey had stakes in ConocoPhillips (NYSE:COP) as of the end of the second quarter of 2023. The biggest stakeholder of ConocoPhillips (NYSE:COP) was Natixis Global Asset Management’s Harris Associates which owns a $1.5 billion stake in the company.
Oakmark Select Fund made the following comment about ConocoPhillips (NYSE:COP) in its second quarter 2023 investor letter:
“ConocoPhillips (NYSE:COP) is one of the largest and most efficient exploration and production companies in the country. The company has an extensive resource base of high-quality drilling inventory in the U.S. and various international locations as well as a growing liquified natural gas business. In our view, the depth and quality of ConocoPhillips’s inventory is a competitive differentiator that is not fully captured in today’s share price. Over the next 10 years, we believe ConocoPhillips will be able to return more than 100% of its current market cap to shareholders via dividends and share repurchases while growing its production at a mid-single-digit annual pace. We believe ConocoPhillips is also among the best managed companies in the oil and gas industry and we are impressed by its history of accretive capital allocation under CEO Ryan Lance. The stock has meaningfully underperformed the broader market year-to-date and is an attractive addition to our portfolio.”
3. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
Truist recently upgraded Exxon Mobil Corporation (NYSE:XOM) to Buy from Hold with a $131 price target, up from $110. Exxon Mobil Corporation (NYSE:XOM) has been in the news recently because of its $60 billion acquisition of Pioneer Natural Resources.
Truist said that Exxon Mobil Corporation (NYSE:XOM) would see significant longer-term benefits of the deal in 2025 and beyond.
As of the end of the second quarter of 2023, 71 hedge funds in Insider Monkey’s database of 910 hedge funds reported owning stakes in Exxon Mobil Corporation (NYSE:XOM). The biggest stakeholder of Exxon Mobil Corporation (NYSE:XOM) was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $1.43 billion stake in the company.
Here is what First Eagle Investments Global Fund has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q2 2022 investor letter:
“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.”
2. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 73
With over 35 years of consistent dividend hikes oil giant Chevron Corporation (NYSE:CVX) is one of the top oil and gas stocks to buy according to smart money investors. Insider Monkey’s database of 910 hedge funds shows that 73 hedge funds reported owning stakes in Chevron Corporation (NYSE:CVX). The biggest stakeholder of Chevron Corporation (NYSE:CVX) was Warren Buffett’s Berkshire Hathaway which owns a $19.4 billion stake in the company.
Carillon Eagle Growth & Income Fund made the following comment about Chevron Corporation (NYSE:CVX) in its Q2 2023 investor letter:
“Chevron Corporation (NYSE:CVX) stock also traded lower as global oil prices declined in response to fears of an economic slowdown. Energy stocks were the second-worst-performing sector in the quarter.”
1. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 73
Occidental Petroleum Corp is up about 6.5% year to date through October 23.
A total of 73 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Occidental Petroleum. The biggest stakeholder of the company was Warren Buffett’s Berkshire Hathaway which had a $13.2 billion stake in the company.
Here is what Smead Value Fund has to say about Occidental Petroleum Corporation in its Q3 2022 investor letter:
“Our top-performing stocks in the quarter includes Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”
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