5 Best Crude Oil Stocks To Buy As Tensions Rise

4. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 62

ConocoPhillips (NYSE:COP), based in Houston, Texas, is an autonomous exploration and production (E&P) enterprise engaged in the global exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas.

On October 5, ConocoPhillips (NYSE:COP) successfully finalized the acquisition of the remaining 50% stake in the Surmont oil sands project from TotalEnergies EP Canada Ltd. for roughly $2.7 billion in cash (equivalent to CAD 3.7 billion), along with potential future contingent payments amounting to approximately $0.3 billion (equivalent to CAD 0.4 billion). With this transaction, ConocoPhillips (NYSE:COP) has attained full ownership, holding a 100% stake in Surmont, and will retain its role as the project’s operator.

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.”