Encompass Capital Killed The Market in Q1: Newfield Exploration (NFX), Valero (VLO), Others Led the Charge

Chesapeake Energy Corporation (NYSE:CHK) is a $10.2 billion market cap producer of natural gas and liquids. It owns interests in over 47,000 natural gas and oil wells around the United States including Texas, Ohio, Wyoming, Oklahoma, and many other locations. Chesapeake is one of Encompass’ new positions and it could take some time for positive returns to be achieved, as the stock dropped 27% for the first quarter of 2015. Investors like Chesapeake Energy Corporation (NYSE:CHK) because the new CEO Robert Lawler and his management team are cleaning up problems from the past. Chesapeake Energy Corporation (NYSE:CHK) spun off its oilfield services business and sold off assets to delever its balance sheet. The fundamentals now look attractive, with the company paying a dividend yield of 2.25%. For the fourth quarter of 2014, Kantor bought for the firm over 634,000 shares valued at $12.42 million, representing 3.82% of his portfolio. Activist Carl Icahn recently increased his position in Chesapeake Energy Corporation (NYSE:CHK) to almost 11% of the company’s outstanding stock.

Valero Energy Corporation (NYSE:VLO) was another solid new pick by Kantor added to Encompass’ portfolio. In the fourth quarter of 2014, Kantor bought for the firm 276,100 shares of Valero Energy Corporation (NYSE:VLO) at a value of $13.67 million. Investors like Valero Energy Corporation (NYSE:VLO) at the moment because the refiner actually performs better with lower prices for oil (its main operating expense). Shares of Valero Energy Corporation (NYSE:VLO) gained 29% for the first quarter of 2015. Valero was also one of Steve Cohen’s top picks this quarter. D E Shaw is the top shareholder among the funds we track followed by Cliff Asness’ AQR Capital Management.

Gulfport Energy Corporation (NASDAQ:GPOR) was another new pick by Kantor and it immediately became the firm’s second largest position. For the fourth quarter of 2014, Kantor bought 551,000 shares at a value of $23.0 million, representing a 7.08% position in Encompass Capital Advisor’s 13F portfolio. Gulfport Energy Corporation (NASDAQ:GPOR) is a $4.35 billion market cap oil and natural gas exploration and production company operating in the U.S. Bulls like Gulfport Energy Corporation (NASDAQ:GPOR) because it is taking advantage of lower energy prices and making solid acquisitions. The company last week announced a $300 million deal to buy oil and gas company Paloma Partners. Even before the announcement Gulfport appeared poised for a solid 2015. The company could still increase its production by 100% for the year even after cutting capital expenditures by 40%. Shares rose 10% for the first quarter of 2015.

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