10 Oil and Gas Stocks to Buy According to Ray Dalio

Published August 22, 2022 at 9:03 am EDT Updated August 19, 2026 at 8:11 am EDT

In this article, we discuss the 10 oil and gas stocks to buy according to Ray Dalio.

Raymond Thomas Dalio is an American billionaire, philanthropist, and the founder of Bridgewater Associates. He is known to be one of the greatest innovators in the finance world. According to Forbes, Ray Dalio is worth $22 billion as of August 2022.

Investment Philosophy

At the age of 12, Ray Dalio was caddying at The Links Golf Club in New York where he constantly interacted with Wall Street investors. He invested his first $300 in Northeast Airlines, which tripled his investment due to a merger.

Ray Dalio’s most famous investment strategy revolves around macro focus. He employs multiple strategies and allocates capital to each of them according to the current economic factors. He calls it risk parity, which means allocating capital based on risk.

Another one of Ray Dalio’s philosophies includes the “All Weather Portfolio”. Its main purpose is to create a portfolio to be stable in any and all economic conditions as Dalio believes that inflation, deflation, and the rise and fall of economic growth impact investment portfolios.

Moreover, Ray Dalio suggests investors diversify investments across 15 or more unrelated assets to reduce the risk-to-return ratio. He does not believe in the buy-and-hold philosophy and believes that investors should take profits on fully priced stocks. The two investments Ray Dalio tends to avoid are cash and bonds.

Bridgewater Associates

Ray Dalio founded Bridgewater Associates in 1975. The fund serves institutional clients such as pension funds, endowments, foundations, foreign governments, and central banks. According to Ray Dalio, Bridgewater Associates is a “global macro firm” and uses quantitative investment methods, especially to stay clear of unrealistic historical models.

Bridgewater Associates is the world’s largest hedge fund with $235.5 billion in discretionary assets under management. The firm’s Q2 13F holdings are valued at $23.598 billion, down from $24.8 billion in the previous quarter. In the second quarter of 2022, the firm made 116 new purchases and sold off 99 stocks. Furthermore, the fund increased its holdings in 612 stocks and reduced its stake in 256 stocks. In this article, we will discuss the oil and gas stocks in Bridgewater Associates’ Q2 13F portfolio. The firm significantly increased its holdings in most of these stocks.

Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP) are some of the notable oil and gas stocks in Ray Dalio’s portfolio.

10 Oil and Gas Stocks to Buy According to Ray Dalio

Our Methodology

These oil and gas stocks were picked from Bridgewater Associates’ Q2 13F portfolio. For further understanding of the readers, financial reports, analyst ratings, and dividend history of these stocks has also been discussed.

The hedge fund sentiment was taken from Insider Monkey’s second quarter database of 895 hedge funds.

Oil and Gas Stocks to Buy According to Ray Dalio

10. Sempra (NYSE:SRE)

Number of Hedge Fund Holders: 29

Sempra (NYSE:SRE) is a California-based energy infrastructure company. It provides electric and natural gas services to nearly 40 million customers in North America. According to the Q2 2022 13F filings, Bridgewater Associates owned 142,439 shares of the company, valued at $21.404 million, representing a 0.09% concentration in the portfolio.

The company expects its utility rate base to grow from $41 billion in 2021 to $62 billion in 2026, representing an average growth rate of 8.6%. Additionally, the company has a 5-year investment plan of $36 billion, which will help it grow the base rate in Texas and California by 8% and 9%, respectively. Subsequently, the company expects to grow its EPS by 6%-8% per year on average until 2026.

In mid-July, ConocoPhillips (NYSE:COP) announced its partnership with Sempra in the development of a large-scale LNG facility. ConocoPhillips has entered into a Heads of Agreement with Sempra Infrastructure in a 30% acquisition of direct equity holding in Port Arthur Liquefaction Holdings.

Exxon Mobil Corporation, Chevron Corporation, and ConocoPhillips are some of the notable oil and gas stocks to buy according to Ray Dalio, along with Sempra.

Here is what ClearBridge Investments had to say about Sempra in its Q1 2022 investor letter:

“Energy shortages in Europe were only intensified by the invasion. The conflict and economic sanctions against Russia have brought to the forefront EU dependence on Russian oil and natural gas. As Germany and its EU neighbors look to diversify their natural gas suppliers, some U.S. companies stand to benefit. Within the portfolio, Sempra Energy is well-positioned. Sempra’s previously underappreciated portfolio of infrastructure assets, with existing as well as prospective liquified natural gas (LNG) facilities, should benefit from renewed interest in U.S.-sourced LNG. The U.S. commitment to increase LNG exports to Europe over the coming years should create a favorable long-term demand environment and hopefully regulatory framework benefiting Sempra along with other natural gas and LNG suppliers. Sempra’s core utilities operations in California and Texas continue to generate solid mid- to high-single-digit earnings growth, and it enjoys additional growth opportunities from renewable natural gas (RNG), hydrogen and other renewable sources of energy.”

9. Cheniere Energy, Inc. (NYSE:LNG)

Number of Hedge Fund Holders: 65

Cheniere Energy, Inc. (NYSE:LNG) is a liquified natural gas company headquartered in Texas. In 2016, it became the first US company to export LNG. At the end of the second quarter of 2022, Icahn Capital LP was the most significant stakeholder of the company with 5.6 million shares, worth $746.51 million. As of Q2 2022, Bridgewater Associates increased its stake by 414% in Cheniere Energy, Inc.. The fund owned 186,710 of the company shares, valued at $24.838 million, representing 0.1% of its portfolio.

In the second quarter of 2022, Cheniere Energy, Inc. missed its EPS estimates by $0.50 after posting an EPS of $2.90. However, the company recorded a 164.9% YoY growth in revenue, which came in at $8 billion, outperforming the consensus by $1.58 billion. Moreover, the company had previously made an LNG import deal with Chevron Corporation (NYSE:CVX), which was terminated following a one-time payment of $765 million by Chevron. Owing to this payment, Cheniere Energy, Inc. updated its FY 2022 adjusted EBITDA guidance to $9.8 billion-$10.3billion from $8.2 billion-$8.7 billion previously. In addition, the distributable cash flow outlook increased from $5.5 billion-$6 billion to $6.9 billion-$7.4 billion.

On August 16, Barclays analyst Marc Solecitto maintained an Overweight rating on Cheniere Energy, Inc.’s shares and raised the price target to $186 from $160.

Here is what ClearBridge Investments had to say about Cheniere Energy, Inc. in its Q3 2021 investor letter:

“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.”

8. Marathon Petroleum Corporation (NYSE:MPC)

Number of Hedge Fund Holders: 50

Marathon Petroleum Corporation (NYSE:MPC) is an American company that refines, markets, and transports petroleum products. At the end of the second quarter of 2022, Bridgewater Associates owned 303,890 shares of the company shares, worth $24.98 million, representing 0.1% of the fund’s portfolio. As of August 18, Marathon Petroleum Corporation’s stock has been up by 53.50% on a YTD basis.

For the second quarter of 2022, Marathon Petroleum Corporation posted impressive results. The company generated a revenue of $53.8 billion, compared to $38.06 billion in the previous quarter. The company also made a significant leap in net income from the previous quarter’s $835 million to $5.87 billion in the second quarter of 2022. Moreover, the company exited the quarter with $13.32 billion in cash and generated a free cash flow of $6.45 billion.

On August 16, Barclays analyst Theresa Chen maintained an Overweight rating on Marathon Petroleum Corporation’s shares and raised her price target to $112 from $94. Chen, along with her colleague Marc Solecitto, believes that there are unique tailwinds within the North American midstream and refining coverage. They further added that the U.S refining fundamentals would do well in the absence of a severe economic shock.

Here is what Clark Street Value had to say about Marathon Petroleum Corporation in its Q4 2021 investor letter:

“During the worst of covid, I bought some LEAPs on Marathon Petroleum (MPC) as a proxy for Par Pacific (PARR) since long dated options weren’t available on the later. Those MPC calls expire next month and I’ll take profits, with PARR I’ve reduced my position throughout the year and might sell the rest early next year, I’ve owned it for 6-7 years and it has gone nowhere, they haven’t touched the NOLs, just a difficult business that I probably don’t understand as well as I should.”

7. Dominion Energy, Inc. (NYSE:D)

Number of Hedge Fund Holders: 30

Dominion Energy, Inc. (NYSE:D) is an American energy company that supplies electricity and natural gas across the United States. At the end of Q2 2022, the company covered 0.12% of Bridgewater Associates’ portfolio with 377,929 shares worth $30.16 million. In second the quarter, the most prominent stakeholder of the company was Diamond Hill Capital, with 3.29 million shares worth $262.85 million.

As of August 18, Dominion Energy, Inc. has a dividend yield of 3.12% compared to the 3.75% sector average. The next quarterly dividend of $0.6675 is payable by September 20 to the shareholders of record as of September 2.

On July 18, Barclays analyst Eric Beaumont maintained an Equal Weight rating on Dominion Energy, Inc.’s shares. The analyst lowered his price target on the stock to $86 from $93. Beaumont updated the price targets of the power and utility sector in North America to reflect expectations of a lower group multiple than previously used.

6. EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Holders: 43

EOG Resources, Inc. (NYSE:EOG) is an American hydrocarbon exploration company headquartered in Houston. Bridgewater Associates increased its activity in the company by 57% in Q2 2022, bringing its total stake to $32.54 million. EOG Resources, Inc. had a 0.13% concentration in the Bridgewater portfolio.

According to its Q2 2022 reports, EOG Resources, Inc. had an EPS of $2.74 versus $2.67 consensus and outperformed the revenue estimates of $6.14 billion after generating $7.4 billion. The company is working on a double premium strategy that generates a 60% return at $40 per barrel of oil and $2.50 per million cubic feet of gas. In its latest quarterly presentation, EOG Resources, Inc. revealed that the company is focused on rapid drilling to reduce the oil price required to generate at least 10% ROCE.

On August 18, Mizuho analyst Vincent Lovaglio reaffirmed a Buy rating on EOG Resources, Inc.’s shares and lowered the price target to $167 from $173. The analyst mentioned that his broader thesis for the exploration and production sector comes after the Q2 results.

EOG Resources, Inc. is one of the prominent oil and gas stocks to buy according to Ray Dalio, along with Exxon Mobil Corporation, Chevron Corporation, and ConocoPhillips

EOG Resources, Inc. is one of the stocks mentioned by Oakmark Funds in its first-quarter 2022 investor letter. Here is what the firm said:

“EOG Resources (+36%), was among our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”

5. Cenovus Energy Inc. (NYSE:CVE)

Number of Hedge Fund Holders: 42

Cenovus Energy Inc. (NYSE:CVE) is a Canadian integrated oil and gas company, focusing primarily on oil sands assets. As of August 18, the company stock has climbed 47.74% on a year-to-date basis.

Cenovus Energy Inc. reached an agreement to buy BP p.l.c. (NYSE:BP)’s 50% interest in BP-Husky Toledo Refinery in early August. The company has already owned 50% of the refinery since 2021. Cenovus Energy Inc. is expected to assume the operations of the refinery by the end of 2022 after the closing of the transaction, which is considered to be $300 million in cash subject to customary closing adjustments and the value of inventory at that time. Upon the closing of the transaction, the company’s total refining capacity will increase to 740,000 bbls/d.

According to the Insider Monkey database, 42 hedge funds had long positions in Cenovus Energy Inc., with a combined stake value of $2.9 billion at the end of the second quarter of 2022. In the previous quarter, 44 hedge funds held bullish positions in the company, collectively valued at $2.39 billion. In Q2, Bridgewater Associates increased its hold on the company by 254% to $37.38 million, representing 0.15% of the fund’s portfolio.

Here is what L1 Capital said about Cenovus Energy Inc. in its fourth-quarter 2021 investor letter:

“Detailed, bottom-up stock research remains the investment team’s primary focus and the core driver of portfolio performance. 2021 once again demonstrated the team’s ability to identify ‘winners’ through extensive company and industry research across a diverse range of sectors. Key contributors included Cenovus Energy, (due to) recovering oil price leading to improved investor sentiment, consensus earnings upgrades and strong free cash flow generation.”

4. Schlumberger Limited (NYSE:SLB)

Number of Hedge Fund Holders:64

Schlumberger Limited (NYSE:SLB) is an oilfield service and equipment company. It is the world’s largest offshore drilling company. The company has a 0.16% concentration in Bridgewater Associates’ portfolio with 1.086 billion shares worth $32.85 billion. The fund made 171% of additional purchases of Schlumberger Limited in the second quarter.

On July 22, Schlumberger Limited posted its Q2 2022 results and raised its guidance. The company recorded an EPS of $0.50, compared to the $0.40 consensus. Furthermore, the company reported a 20.2% revenue growth on a YoY basis to $6.77 billion, outperforming the estimates by $490 million. The company expects full-year revenue of at least $27 billion for 2022, while the consensus stands at $26.2 billion and sees a 200 bps increase in adjusted EBITDA margins at the end of the fourth quarter.

The day Schlumberger Limited posted its Q2 earnings reports, the company also declared a quarterly dividend of $0.175 per share payable on October 13 for shareholders of record on September 7. As of August 18, the company has a dividend yield of 1.97%.

3. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 71

ConocoPhillips is an American hydrocarbon exploration company with operations in around 15 countries. As of the second quarter of 2022, 71 hedge funds had a stake in the company, compared to 67 in the previous quarter. Bridgewater Associates increased its stake by 196% in the second quarter of 2022, bringing the total position to $97.6 million, representing 0.41% of the firm’s portfolio.

On August 4, ConocoPhillips declared a $0.46 per share quarterly dividend, payable on September 1 to shareholders of record on August 16. The company also announced a fourth-quarter VROC of $1.46, to be paid out on October 14. As of August 18, ConocoPhillips has a dividend yield of 1.84%.

In the second quarter of 2022, ConocoPhillips made shareholder returns of $3.3 billion, which included $1 billion in ordinary dividends and VROC and $2.3 billion in stock repurchases. Additionally, the company is expecting to make a $5 billion increase in return of capital to shareholders by the end of 2022.

On August 18, Mizuho analyst Vincent Lovaglio reiterated a Buy rating on ConocoPhillips’s shares. However, the analyst lowered his price target to $138 from $148.

Here is what Diamond Hill Capital had to say about ConocoPhillips in its Q1 2022 investor letter:

“We redeployed capital into ConocoPhillips, which was trading at a discount to our estimate of intrinsic value and is well positioned over the long run due to its low-risk asset base.”

2. Chevron Corporation (NYSE:CVX)

Number of Hedge Fund Holders: 59

Chevron Corporation is an energy company that is involved in hydrocarbon exploration, oil and gas production, refining, marketing, and transport. Ray Dalio’s investment portfolio increased its holding in the company by 64% to 711,243 shares in Q2, valued at $102.97 million, accounting for 0.43% of the firm’s portfolio.

On June 29, Chevron Corporation posted impressive second-quarter results, with an EPS of $5.82, exceeding the forecasts by $0.79. The revenues were up 82.9% on a YoY basis to $68.76 billion, outperforming estimates by a staggering $11.07 billion. Furthermore, the cash flow from operations was recorded at $13.8 billion and the company generated a free cash flow of $10.6 billion during the quarter.

On August 15, Cowen analyst Charles Ryhee maintained an Outperform rating on Chevron Corporation’s shares and raised his price target to $120 from $119. Ryhee remains positive about the company and noted that the price target revision was made in the light of raised Q2 2022 guidance from the management.

Here is what ClearBridge Investments had to say about Chevron Corporation in its Q1 2022 investor letter:

“The energy sector, which led a strong market in 2021, generated even more dramatic relative performance in the quarter, advancing 39% and leading the benchmark Russell 1000 Value Index. Years of restrained investment in the energy sector, combined with a strong post-pandemic recovery, contributed to the higher commodity prices. The upward pressure escalated with the Russian invasion of Ukraine. Our energy holding Chevron benefited from higher commodity prices and was among the top contributors to first-quarter performance.”

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 72

Exxon Mobil Corporation is a Texas-based oil and gas company. At the end of Q2 2022, Bridgewater Associates held 1.9 million shares of the company, worth $163.48 million, representing 0.69% of the fund’s portfolio. Bridgewater increased its position in Exxon Mobil Corporation by 67% in Q2 2022.

In the first half of 2022, Exxon Mobil Corporation generated a free cash flow of $27.0 billion, and its payout obligations summed up to $7.6 billion. Furthermore, the company repurchased stocks worth $6 billion and is aiming towards buying back $30 billion in common stock by the end of December 2023.

Exxon Mobil Corporation has worked towards improving its balance sheet in recent years. Including its short-term debt, the company had a net debt load of $63.8 billion at the end of 2020, which was brought down to $28.0 billion by June 30, 2022.

Saturna Capital mentioned Exxon Mobil Corporation in its fourth-quarter 2021 investor letter. Here is what the firm said:

“Few companies maintain their position at the top for more than a decade or two. One that did was Exxon, which appeared decennially from 1980 through 2010. In 2019 it was ranked 10th, but as of writing has dropped to 39th place.”

You can also take a look at 10 Stocks To Buy According to William Von Mueffling’s Cantillon Capital Management and 10 Important Energy Stocks Making Moves After Earnings.

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