In this article, we’d be discussing 10 energy stocks to buy now according to SailingStone Capital Partners.
SailingStone Capital Partners is an investment advisory firm and hedge fund with a portfolio value of $395 million. The fund is managed by Mackenzie B. Davis And Kenneth L. Settles Jr.
The investment philosophy employed at SailingStone Capital Partners is an unorthodox mixture of modern as well as traditional investment approaches and value investing. Three of the most popular energy companies that SailingStone Capital Partners is invested in include Antero Resources Corporation (NYSE:AR), NextEra Energy, Inc. (NYSE:NEE) and Cheniere Energy, Inc. (NYSE:LNG).
When it comes to Antero Resources Corporation (NYSE:AR), SailingStone Capital Partners holds 6.1 million shares in the company as of the third quarter of 2021.
On the other hand, SailingStone Capital Partners holds 119,469 shares in NextEra Energy, Inc. (NYSE:NEE). These shares account for 2.3% of the fund’s portfolio. It is an American company with 58 Giga-Watts of power generating capacity. On December 8, BMO Capital analyst James Thalacker raised the price target on NextEra Energy, Inc. (NYSE:NEE) to $98 from $89 and kept an ‘Outperform’ rating on the shares.
Besides these, there are 7 other energy stocks that SailingStone Capital Partners is invested in which are discussed below.
Our Methodology:
We picked these stocks from SailingStone Capital’s Q3 portfolio.
10. Hudbay Minerals Inc. (NYSE:HBM)
SailingStone Capital Partners’ Stake Value: $15,400
Percentage of SailingStone Capital Partners’ 13F portfolio: 0.03%
Number of Hedge Fund Holders: 13
Number 10 on the list of 10 energy stocks to buy now according to SailingStone Capital Partners is the HBM stock. Hudbay Minerals Inc. (NYSE:HBM) is a Canadian mining company specializing in the mining and processing of Copper and Zinc concentrates extensively used in batteries. The company is headquartered in Toronto, Ontario.
SailingStone Capital Partners is the owner of 19,510 shares in the company as of the third quarter of 2021. The leading stakeholder in the company is GMT Capital with 31.7 million shares. SailingStone Capital Partners has dramatically lowered its stake in the Hudbay Minerals Inc. (NYSE:HBM) over the years. It held shares worth $136 million in the fourth quarter of 2014 and the stake has gone down to worth a mere $15,400.
9. Rio Tinto Group (NYSE:RIO)
SailingStone Capital Partners’ Stake Value: $2.6 million
Percentage of SailingStone Capital Partners’ 13F portfolio: 0.68%
Number of Hedge Fund Holders: 20
Rio Tinto Group (NYSE:RIO) is another mining company whose stock made it to the list of 10 energy stocks to buy now according to SailingStone Capital Partners. Rio Tinto Group (NYSE:RIO) is a multinational company with headquarters in London. It’s a key player in the energy industry due to its mining of elements like copper and uranium, the latter of which is a rare and very powerful source of energy.
SailingStone Capital Partners holds 40,319 shares in Rio Tinto Group (NYSE:RIO) after a 26% decrease of stake in the third quarter of 2021. On December 21, Rio Tinto signed a contract to begin acquisition of the Rincon lithium project in Argentina for $825 million from Rincon Mining, a mining corporation owned by funds managed by the private equity group known as the Sentient Equity Partners.
8. NextEra Energy, Inc. (NYSE:NEE)
SailingStone Capital Partners’ Stake Value: $9.3 million
Percentage of SailingStone Capital Partners’ 13F portfolio: 2.37%
Number of Hedge Fund Holders: 53
NEE stock is one of the most popular stocks to make it to the list of 10 energy stocks to buy now according to SailingStone Capital Partners. SailingStone Capital Partners holds 119,469 shares in NextEra Energy, Inc. (NYSE:NEE) as of the third quarter of 2021.
On December 8, BMO Capital analyst James Thalacker raised the price target on NextEra Energy, Inc. (NYSE:NEE) to $98 up from $89 and kept an ‘Outperform’ rating on the shares.
7. Cheniere Energy, Inc. (NYSE:LNG)
SailingStone Capital Partners’ Stake Value: $9.6 million
Percentage of SailingStone Capital Partners’ 13F portfolio: 2.44%
Number of Hedge Fund Holders: 49
Cheniere Energy, Inc. (NYSE:LNG) is a Houston based American company that specializes in liquefied natural gas. SailingStone Capital Partners holds 98,970 shares in the company as of the third quarter of 2021.
On December 13, Cowen analyst Jason Gabelman raised the price target on Cheniere Energy, Inc. (NYSE:LNG) to $130 up from $120 and kept an ‘Outperform’ rating on the shares. The analyst sees Cheniere Energy, Inc. (NYSE:LNG) offering relatively better risk/reward within his coverage space in 2022 with a potential 30% upside but only very limited downside.
6. Linde plc (NYSE:LIN)
SailingStone Capital Partners’ Stake Value: $10 million
Percentage of SailingStone Capital Partners’ 13F portfolio: 2.53%
Number of Hedge Fund Holders: 46
Linde plc (NYSE:LIN) is a multinational company specializing in industrial gas. In fact, it’s the largest industrial gas producing company in the world by market cap. The company was founded in Germany and is headquartered in the UK. SailingStone Capital Partners holds 34,131 shares in the company as of the third quarter of 2021. Linde plc (NYSE:LIN) filed the Q3 revenue of $7.67 billion with an EPS of $2.73 that beat analyst estimates by $0.07.
On December 9, Wolfe Research analyst Josh Silverstein raised the price target on Linde plc (NYSE:LIN) to $404 from $338 and assigned an ‘Outperform from Peer Perform’ rating on the shares.
Linde plc (NYSE:LIN) is also a prominent company that the hedge fund has invested in apart from Antero Resources Corporation (NYSE:AR), NextEra Energy, Inc. (NYSE:NEE) and Cheniere Energy, Inc. (NYSE:LNG).
5. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)
SailingStone Capital Partners’ Stake Value: $12.9 million
Percentage of SailingStone Capital Partners’ 13F portfolio: 3.27%
Number of Hedge Fund Holders: 26
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) or Chemical & Mining Company of Chile is a mining company headquartered in Santiago, Chile. The company specializes in Lithium ore as far as mining goes. SailingStone Capital Partners holds 241,213 shares in the company after a 10% decrease in stake as of the third quarter of 2021.
On December 21, Scotiabank analyst Ben Isaacson downgraded SQM stock to ‘Underperform’ from ‘Sector-Perform’ and set the price target of $47, down from $59. The analyst anticipates that SQM shares would likely underperform following the election of Gabriel Boric as Chile’s next president. Boric has recently entertained the idea of creating a state-owned lithium company, which the analyst believes, brings “significant risk” to the extension of lithium extraction concessions in the Salar de Atacama.
4. Cameco Corporation (NYSE:CCJ)
SailingStone Capital Partners’ Stake Value: $18.7 million
Percentage of SailingStone Capital Partners’ 13F portfolio: 4.73%
Number of Hedge Fund Holders: 35
Cameco Corporation (NYSE:CCJ) is one of the leading uranium mining companies. The company is headquartered in Saskatoon, Saskatchewan, Canada. SailingStone Capital Partners holds 680,716 shares in the company after a 33% decrease in stake in the third quarter of 2021. On November 3, BofA analyst Lawson Winder upgraded Cameco Corporation to the rating of ‘Buy’ from Neutral with a price target of $32.
3. PDC Energy, Inc. (NASDAQ:PDCE)
SailingStone Capital Partners’ Stake Value: $31 million
Percentage of SailingStone Capital Partners’ 13F portfolio: 7.94%
Number of Hedge Fund Holders: 20
PDC Energy, Inc. (NASDAQ:PDCE) is an oil and gas extraction company headquartered in Colorado, US. The company filed a Q3 revenue of $486 million, missing the mark by $52 million as far as analyst estimates were concerned.
Its EPS stood at $2.33 that beat analyst estimates by $0.64. SailingStone Capital Partners holds 663,534 shares in the company after a 38% decrease in stake in the Q3’21.
2. Range Resources Corporation (NYSE:RRC)
SailingStone Capital Partners’ Stake Value: $107 million
Percentage of SailingStone Capital Partners’ 13F portfolio: 27.12%
Number of Hedge Fund Holders: 25
Range Resources Corporation (NYSE:RRC) is an oil and gas exploration and extraction company based in Texas, US. The company was founded in 1976. The company mainly operates in The Marcellus Formation. As of late, the company has 17 trillion cubic feet of proven natural gas reserves.
SailingStone Capital Partners holds 4.7 million shares in the company after a 50% decrease in stake in the third quarter of 2021. The investment accounts for 27.12% of the hedge fund’s total portfolio in Q3’21.
On November 19, Morgan Stanley analyst Devin McDermott downgraded the Range Resources stock to ‘Underweight’ from ‘Equal Weight’ and set the price target at $26.
1. Antero Resources Corporation (NYSE:AR)
SailingStone Capital Partners’ Stake Value: $115 million
Percentage of SailingStone Capital Partners’ 13F portfolio: 29.07%
Number of Hedge Fund Holders: 41
Antero Resources Corporation (NYSE:AR) is an independent American energy company based in Colorado. It explores, extracts and processes natural gas, oil and NGLs in the Appalachian Basin. SailingStone Capital Partners holds over 6 million shares in the company albeit after a 35% decrease in their stake in the third quarter of 2021.
On October 26, Raymond James analyst John Freeman raised the price target on Antero Resources Corporation (NYSE:AR) to $32 from $19 and kept a ‘Strong Buy’ rating on the shares.
You can also take a peek at 9 Best Clean Energy Stocks to Buy Today and 12 Best EV Stocks to Invest In.
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Disclosure:none. 10 Energy Stocks to Buy Now According to SailingStone Capital Partners is originally published on Insider Monkey.
