15 Small-Cap Energy Stocks Hedge Funds Are Buying

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10. Petroleo Brasileiro (NYSE:PBR)

Market Capitalization as of April 25: $28.47 billion

Number of Hedge Fund Holders: 31

Petroleo Brasileiro (NYSE:PBR) explores, produces, and sells oil and gas in Brazil and internationally. It operates through three segments: Exploration & Production; Refining, Transportation & Marketing; and Gas & Power. It also engages in R&D, production, transport, distribution, and trading of energy.

On March 10, HSBC analyst Liyanna Yang upgraded the stock from Hold to Buy, while setting a $15 price target. Yang’s confidence in the company is based on projections of a great performance in 2025, despite current challenges. Petrobras made over BRL 200 million in cash and paid BRL 102 billion in dividends despite lower Brent and diesel crack prices.

In 2024, Petroleo Brasileiro (NYSE:PBR) achieved significant milestones, such as the start of operations at FPSO Almirante Tamandare in the Buzios field, which has a capacity of 225,000 barrels of oil per day. The Buzios field is the largest deepwater operations field globally and is expected to produce about 200 million barrels a day by 2030. For 2025, management plans to increase production by 100,000 barrels per day and will have 3 new producing units becoming fully operational throughout the year.

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