In this article, we discuss the 3 best oil and gas stocks to buy according to billionaire Carl Icahn. If you want our detailed analysis of the oil and gas sector, go directly to the 6 Best Oil and Gas Stocks to Buy According to Billionaire Carl Icahn.
3. CVR Energy, Inc. (NYSE:CVI)
Carl Ichan’s Stake Value: $1,186,171,000
Percentage of Carl Ichan’s 13F Portfolio: 5.26%
Number of Hedge Fund Holders: 16
CVR Energy, Inc. (NYSE:CVI), one of the best oil and gas stocks from Icahn’s Q3 portfolio, is a petroleum refining company from Sugarland, Texas, that is involved in the exploration, marketing, and distribution of petroleum. The company, via its subsidiaries, also operates a nitrogen fertilizer business. Carl Icahn owns 71.1 million shares in CVR Energy, Inc. (NYSE:CVI) as of the third quarter of 2021, worth $1.18 billion, accounting for 5.26% of his Q3 portfolio.
Israel Englander’s Millennium Management is one of the leading CVR Energy, Inc. (NYSE:CVI) stakeholders from Q3 2021, holding 1.12 million shares in the company worth $18.68 million. Overall, 16 hedge funds in the database of Insider Monkey were bullish on CVR Energy, Inc. (NYSE:CVI), with total stakes valued at $1.24 billion. This is compared to the same number of funds in the preceding quarter, with a total stake value of $1.34 billion.
CVR Energy, Inc. (NYSE:CVI), on November 1, posted its Q3 earnings. EPS in the period amounted to -$0.24, missing estimates by -$0.22. Revenue for the quarter totaled $1.88 billion, up 87.36% from the preceding-year quarter, exceeding revenue estimates by $150.85 million.
Credit Suisse analyst Manav Gupta on October 27 downgraded CVR Energy, Inc. (NYSE:CVI) to Underperform from Neutral with a price target of $20, up from $19. The analyst cited macro headwinds and limited upside potential associated with the stock as the primary reasons for the downgrade.
2. Occidental Petroleum Corporation (NYSE:OXY)
Carl Ichan’s Stake Value: $1,331,110,000
Percentage of Carl Ichan’s 13F Portfolio: 5.91%
Number of Hedge Fund Holders: 60
Occidental Petroleum Corporation (NYSE:OXY) is a Texas-based company that is engaged in hydrocarbon exploration in the United States, the Middle East, and Colombia. The company also has vested interests in petrochemical manufacturing in the US, Canada, and Chile. The product portfolio at Occidental Petroleum Corporation (NYSE:OXY) includes petroleum, natural gas, and chemical substances.
Carl Icahn, as of the third quarter of 2021, cut his stake in Occidental Petroleum Corporation (NYSE:OXY) by 9%. He still owns 45 million shares in the company, worth $1.33 billion, representing 5.91% of his total investments.
On November 4, Occidental Petroleum Corporation (NYSE:OXY) announced its Q3 earnings, posting an EPS of $0.87, beating estimates by $0.21. The quarterly revenue totaled $6.82 billion, exceeding estimates by $247.24 million.
Silvio Micheloto from Mizuho raised the price target on Occidental Petroleum Corporation (NYSE:OXY) to $50 from $48 and kept a Buy rating on the shares on November 30.
As per Insider Monkey’s database of 867 elite hedge funds, 60 funds were long Occidental Petroleum Corporation (NYSE:OXY) in the third quarter, with one of the largest stakeholders being Rajiv Jain’s GQG Partners, holding 19.85 million shares worth $587.2 million.
Here is what Smead Capital Management has to say about Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2021 investor letter:
“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”
1. Cheniere Energy, Inc. (NYSE:LNG)
Carl Ichan’s Stake Value: $1,579,188,000
Percentage of Carl Ichan’s 13F Portfolio: 7.01%
Number of Hedge Fund Holders: 49
Cheniere Energy, Inc. (NYSE:LNG) accounts for 7.01% of Carl Icahn’s Q3 investments, with the billionaire holding over 16 million shares in the company, worth $1.57 billion. Cheniere Energy, Inc. (NYSE:LNG) is a company from Texas, specializing in liquified natural gas and the energy sector. Cheniere Energy, Inc. (NYSE:LNG) is also the first American company to export LNG in 2016.
Cheniere Energy, Inc. (NYSE:LNG), on November 4, posted its Q3 results. EPS in the period equaled -$4.23, missing estimates by -$5.50. The revenue came in at $3.20 billion, up 119.18% year-over-year, yet missing estimates by $547.43 million.
On November 17, Mizuho analyst Robert Mosca initiated coverage of Cheniere Energy, Inc. (NYSE:LNG) with a Buy rating and a $122 price target. The analyst believes that Cheniere Energy, Inc. (NYSE:LNG) is positioned to take further advantage of lucrative marketing opportunities before the gas backdrop normalizes.
Kensico Capital is one of the biggest Cheniere Energy, Inc. (NYSE:LNG) stakeholders from the 49 hedge funds that were bullish on the stock in Q3 2021, holding 3.49 million shares worth $341.1 million.
Here is what Horizon Kinetics has to say about Cheniere Energy, Inc. (NYSE:LNG) in its Q3 2021 investor letter:
“Cheniere Energy, from this list, shows our time frame approach in action. The share price is up very substantially from when we initially bought it 2 ½ years ago, and it reaches new all-time highs almost monthly. The stock dropped by 50% early last year, and the entire return occurred this year. You might think, ‘Ok, 3 years, excellent performance, that’s it.’ That’s not why we bought it. We bought a certain business model, a value development pattern on a massive dormant asset, and a valuation discount.
We bought Cheniere because it was exceedingly cheap as it transitioned from a development stage operating company stage, having just turned profitable a year after completing its basic plant construction and selling its first shipload of liquified natural gas (LNG): 2017 loss of $(390) million vs. 2018 earnings of $470 million…” (Click here to see the full text)
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