In this article, we discuss 5 energy stocks to buy according to Joe Huber’s Huber Capital Management. If you want our detailed analysis of these stocks, go directly to 10 Energy Stocks to Buy According to Joe Huber’s Huber Capital Management.
5. ConocoPhillips (NYSE:COP)
Huber Capital Management’s Stake Value: $4,371,000
Percentage of Huber Capital Management’s 13F Portfolio: 1.12%
Number of Hedge Fund Holders: 49
ConocoPhillips (NYSE:COP) is a Texas-based multinational corporation that specializes in hydrocarbon exploration, petroleum, natural gas, natural gas liquids, bitumen, and liquefied natural gas. Joe Huber’s Huber Capital Management owns 64,500 ConocoPhillips (NYSE:COP) shares as of Q3 2021, worth $4.3 million, representing 1.12% of the hedge fund’s total 13F investments.
On February 3, ConocoPhillips (NYSE:COP) posted its Q4 results. The company reported earnings per share of $2.27, beating estimates by $0.08. Revenue for the quarter jumped roughly 164% year-over-year to $15.96 billion, surpassing estimates by $2.56 billion.
ConocoPhillips (NYSE:COP) on February 3 declared a $0.46 per share quarterly dividend, in line with previous. The dividend will be paid on March 1, to shareholders of record on February 14. The company announced an increase of $1 billion in expected 2022 return of capital to shareholders to a new total of $8 billion, which is an increase of more than 30% over 2021.
RBC Capital analyst Scott Hanold raised the price target on ConocoPhillips (NYSE:COP) on February 4 to $110 from $100 and kept an Outperform rating on the shares. The analyst is positive on the company’s total shareholder return of 7%-8%, adding that its portfolio also has “high exposure” to some of the more robust markets such as European gas, LNG, Brent oil, and Permian oil. He further observed that ConocoPhillips (NYSE:COP) has diverse assets and operational opportunities to keep inflation-related costs in check.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 49 funds were bullish on ConocoPhillips (NYSE:COP), with stakes equalling $1.37 billion. Fisher Asset Management held the largest stake in ConocoPhillips (NYSE:COP), with 5.95 million shares worth $403.5 million.
Here is what ClearBridge Large Cap Value Strategy has to say about ConocoPhillips (NYSE:COP) in its Q3 2021 investor letter:
“We also seized the opportunity to add to our position in energy producer ConocoPhillips at what we considered an attractive valuation. The market rewarded this move late in the quarter after ConocoPhillips announced its purchase of Permian Basin assets from Shell, making the company the second-largest oil and gas producer in the contiguous U.S. We view this as a positive strategic transaction for a well-run, ESG-cognizant oil producer. With this and prior transactions, the company continues to press its cost advantage and is well-positioned to benefit from ongoing energy demand recovery to pre-pandemic levels.”