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Hedge Funds Love These Smid-cap Energy Stocks ~ Macquarie Infrastructure Corporation (MIC), Newfield Exploration Co. (NFX), More

Next up on our list is Whiting Petroleum Corp. (NYSE:WLL), which has seen its stock plummet by 52% year-to-date, partly owning to the volatile oil prices. Although the number of hedge funds with long positions in this stock decreased during the quarter to 53 from 61, the value of their holdings went up to $2.17 billion from $1.97 billion. The independent oil and gas company delivered stronger-than-expected production in the second quarter, posting another record quarterly production, of 170,000 BOEs per day. This success has been mainly supported by the company’s newest completion designs, which delivered production increases of 40% to 50% in comparison to its older offset wells. John Labanowski’s Brenham Capital Management initiated a new 1.25 million share-position in Whiting Petroleum Corp. (NYSE:WLL) during the quarter.

Range Resources Corporation (NYSE:RRC) also received investor confidence during the second quarter, as the number of hedge funds with positions in the company rose to 42 from 39. However, the value of their positions declined to $1.23 billion from $1.28 billion over the quarter. Analysts believe there is a good deal of upside potential for the company, which currently ranks as just the 14th-largest natural gas producer in the U.S, but has over 1.7 million net acreage, including a good deal of net acreage in the Marcellus Shale, one of the most economically-viable natural gas fields in the U.S. RRC expects to devote as much as 95% of its capital towards this year. The performance of the company’s stock has been disappointing for its investors, as the shares have lost over 37% year-to-date, which is making it more tempting for new investors. Ross Margolies’ Stelliam Investment Management continued to be bullish on Range Resources Corporation (NYSE:RRC) in the second quarter, boosting its stake to 2.41 million shares.

Last but not least, 37 hedge funds within our extensive database had FMC Technologies Inc. (NYSE:FTI) in their portfolios at the end of the second quarter, seven more quarter-over-quarter. At the same time, the value of the shares held by these hedge funds amounted to $1.23 billion, up from $710.49 million registered a quarter ago. The stock’s performance this year wasn’t in any way better than the performance of the previously-discussed stocks, delivering a negative return of nearly 36% year-to-date. There is no doubt that the company’s shares have been partly affected by the overall pullback in energy stocks. However, FMC’s decision to cut its workforce in its subsea segment and its lower-than-expected earnings have played an important role in the company’s poor stock performance as well. Jamie Zimmerman’s Litespeed Management acquired a 1.23 million-share stake in FMC Technologies Inc. (NYSE:FTI) during the second quarter.

Disclosure: None

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