In this article, we discuss 5 LNG stocks to watch amid the Ukraine crisis. If you want to read our detailed analysis of these stocks, go directly to 10 LNG Stocks to Watch Amid Ukraine Crisis.
5. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 51
Devon Energy Corporation (NYSE:DVN) operates as an independent energy company. Elite hedge funds are bullish on the stock. Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Devon Energy Corporation (NYSE:DVN), with 14.5 million shares worth more than $638 million.
On February 22, Raymond James analyst John Freeman kept a Buy rating on Devon Energy Corporation (NYSE:DVN) stock and raised the price target to $70 from $65, identifying “shareholder-friendly dividend payout structure, strong balance sheet and deep drilling inventory position” as some growth catalysts for the company. The stock has also benefited from rising energy prices due to the Russian invasion of Ukraine.
In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund said:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
4. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 52
Cheniere Energy, Inc. (NYSE:LNG) is a Texas-based energy infrastructure firm with a large stake in the LNG business. As Russia invades Ukraine, the prices of energy in Europe have climbed more than 30% as the threat of sanctions pushes countries away from Russian gas exports towards more expensive alternatives. Cheniere Energy, Inc. (NYSE:LNG) is expected to be one of the biggest beneficiaries of this crisis.
Hedge funds have been loading up on Cheniere Energy, Inc. (NYSE:LNG) stock as well. At the end of the fourth quarter of 2021, 52 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in Cheniere Energy, Inc. (NYSE:LNG), up from 49 in the previous quarter worth $3.1 billion.
In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Cheniere Energy, Inc. (NYSE:LNG) was one of them. Here is what the fund said:
“Cheniere Energy is an energy infrastructure company that owns and operates U.S. liquefied natural gas (LNG) export facilities. Strong quarterly results and the disclosure of capital allocation policies were positively received by the markets. In addition, continued supply and demand tightness in the LNG market created a favorable commodity price environment.”
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 53
Chevron Corporation (NYSE:CVX) is an integrated oil and gas firm. There is positive hedge fund sentiment around the stock. At the end of the fourth quarter of 2021, 53 hedge funds in the database of Insider Monkey held stakes worth $6.5 billion in Chevron Corporation (NYSE:CVX), up from 51 in the preceding quarter worth $4.4 billion.
Chevron Corporation (NYSE:CVX) was in advanced talks for an agreement related to a shale gas project in Russia a few years ago. It had also held similar talks for a shale gas project in Ukraine. Both talks failed to yield positive results. However, the company does own a 15% stake in the Caspian Pipeline Consortium, a pipeline from Kazakhstan to a Black Sea terminal owned by Russia and used by Chevron to export crude oil. Sanctions would affect imports from these ports.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names, (including) Chevron. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
2. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 56
ConocoPhillips (NYSE:COP) is a Texas-based diversified energy company. The company has been selling non-core assets to reduce debt and benefit from surging oil prices. This trend is likely to continue in the coming months as talks between Russia and Ukraine after a military campaign by Moscow stall and investors prepare for the worst.
Elite hedge funds remain bullish on ConocoPhillips (NYSE:COP) stock. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in ConocoPhillips (NYSE:COP), with 6 million shares worth more than $447 million.
In its Q1 2021 investor letter, ClearBridge Investments highlighted a few stocks and ConocoPhillips (NYSE:COP) was one of them. Here is what the fund said:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) ConocoPhillips. We are positive on the company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
Exxon Mobil Corporation (NYSE:XOM) is an integrated oil and gas firm. Hedge funds have been loading up on the stock in recent weeks as energy prices surge. At the end of the fourth quarter of 2021, 71 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in Exxon Mobil Corporation (NYSE:XOM), compared to 64 in the preceding quarter worth $4.6 billion.
Exxon Mobil Corporation (NYSE: XOM) has come under increased pressure over dealings with Rosneft, one of the largest energy producers in Russia, as the US government sanctions Russian entities. The bank through which Exxon conducts business in Russia is among those sanctioned recently by the White House. In 2014, Exxon had taken a $200 million hit by abandoning joint ventures with the Russians after military operations by Moscow in Ukraine.
In its Q1 2021 investor letter, Harding Loevner highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“We felt that our remaining energy holding, ExxonMobil, with its stronger balance sheet, was in a better position to ride out the cyclical slump in oil demand and even perhaps take advantage of it by investing counter-cyclically. While ExxonMobil does plan to increase capital expenditure, we’ve been disappointed in its regrettable failure to address ongoing emission trends, which reflects poorly on management’s foresight. As a result, we sold our ExxonMobil holdings.”
You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.
