Newfield Exploration Co. (NFX): Viking Global takes a 5.7% stake

Viking Global, a long/short equity fund run by Andreas Halvorsen, has bought 7.7 million shares in Newfield Exploration Co. (NYSE:NFX), a Houston-based energy company. With a stake of 5.7%, worth around $315 million at today’s market price, Viking Global becomes one of the largest shareholders of the company. The bet is probably an attempt to cash in big on the shale gas revolution, which is set to make the United States energy independent.

Andreas Halvorsen

The move comes soon after the firm released a second quarter earnings report that has beaten the analysts’ estimates by reporting an increase in its earnings per share of $0.44 versus a consensus estimate of $0.40. Newfield Exploration Co. (NYSE:NFX)’s revenue stood at $553 million compared to an estimate of just $513 million. In addition to that, the company has increased its 2014 production guidance, expecting to extract 46.5–48.5 million barrels against previous guidance of 44-48 million barrels.

Analysts have increasingly recommended the company as a “Buy”, despite the recent drop in the share price. Newfield Exploration Co. (NYSE:NFX) stock fell 3.5% during the last month, but that was not enough to shake an astonishing 64% rally since the beginning of the year.  The company trades at $40.40 per share, as of today.

Viking Global, which in its first year of activity returned 89% after fees, is adding a second energy company to its portfolio, after Valero Energy Corporation (NYSE:VLO), a petroleum refiner, where it owns 12 million shares, valued at $644 million. The shift towards energy reflects growing optimism in the Newfield Exploration Co. (NYSE:NFX)’s ability to bring high shareholder returns by riding the shale gas revolution.

Other notable shareholders of Newfield Exploration Co. (NYSE:NFX) are Dmitry Balyasny’s Balyasny Asset Management with a stake of 5.4 million shares, which has a market value of $220 million and Israel Englander’s  Millennium Management, who owns 3.7 million shares worth $115 million, as of the end of the first quarter. Also important, Citadel Investment Group, a hedge fund managed by Ken Griffin owns 2.4 million shares valued at around $100 million, also as of the end of March.

Disclosure: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!