5 Oil Stocks to Sell Before Recession Begins

In this article, we discuss the 5 oil stocks to sell before the recession begins. If you want to read our analysis of the outlook on the oil prices, go directly to the 10 Oil Stocks to Sell Before Recession Begins.

5. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 67

Stock Price as of July 7: $84.64

ConocoPhillips (NYSE:COP) is a Houston, Texas-based oil and gas E&P entity.

Crude oil prices declining to $45 per barrel could be disastrous for the company. The price will be in touching distance of the $40 per barrel breakeven required by ConocoPhillips (NYSE:COP) to generate $7.5 billion for maintaining production and securing dividends. ConocoPhillips (NYSE:COP) can generate $3 billion in excess cash only if crude oil prices remain above the $50 per barrel level.

In May, it was also reported that Timothy Leach, the Director & Advisor at ConocoPhillips (NYSE:COP), sold a stake worth $4.2 million in the company at a price of $102 per share. The decline of 5.7% in Leach’s holding resulted in the investors being concerned over the future outlook on ConocoPhillips (NYSE:COP). The company has seen substantial inside selling in the last three months.

ConocoPhillips (NYSE:COP) was mentioned in the Q1 2022 investor letter of ClearBridge Investments. Here’s what was said about the company prior to the decline in oil prices:

“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 holdings ConocoPhillips (NYSE:COP) benefited from higher commodity prices and was among the top contributors to first-quarter performance.”

ConocoPhillips (NYSE:COP) was held by 67 hedge funds at the end of Q1 2022.