5 Cheap Oil Stocks to Buy Today

4. Southwestern Energy Company (NYSE:SWN)

Number Of Hedge Fund Holders: 35

Share Price as of July 28: $6.97

Southwestern Energy Company (NYSE:SWN) is a natural gas exploration and production company organized in Delaware and headquartered in Spring, Texas. It engages in the exploration, development, and production of natural gas, oil, and natural gas liquids in the United States, and operates through two segments: Exploration & Production, and Marketing.

On July 21, Citi analyst Paul Diamond upgraded Southwestern Energy Company (NYSE:SWN) to Buy from Neutral with an $8 price target after assuming coverage of the name. The analyst named Southwestern as his top pick among the gas-centric exploration and production companies. According to Diamond, the company’s geographic diversification provides relative operational flexibility, while its “conservative” hedge profile “somewhat constrains the upside.” He expects the company’s leverage and debt targets to be hit well ahead of schedule and sees opportunities for relative outperformance from its operational optionality between Haynesville and Appalachia.

At the end of Q1 2022, 35 hedge funds were bullish on Southwestern Energy Company (NYSE:SWN) and held stakes worth $516.68 million in the company. This is compared to 24 positions in the prior quarter with stakes worth $255.41 million.

Greenlight Capital shared its outlook on Southwestern Energy Company (NYSE:SWN) in its Q1 2022 investor letter. Here is what the firm said:

“SWN is the second largest producer of natural gas in the U.S. The company is well-situated to satisfy growing domestic and export demand. Over the short, medium and long term, Europe now intends to reduce its reliance on Russian energy and increase its use of U.S. LNG. Based on its 2021 year-end reserves – which assumed a $3.60/MMBtu long-term natural gas price – SWN has a PV-104 value of $13.83 per share. By the end of the first quarter, the U.S. natural gas 5-year forward curve averaged $4.28/MMBtu, while international seaborne LNG was close to $20/MMBtu. Over the intermediate term, with the benefit of substantial global investment in infrastructure, we expect prices for U.S. and international natural gas to converge. We acquired our shares at an average price of $6.58. SWN shares ended the quarter at $7.17.”