Here Are This Energy Legend’s Top Stock Picks

#3 Cimarex Energy Co (NYSE:XEC)

Shares held (as of September 30): 143,967
Total Value (as of September 30): $14.75 million
Percentage of Portfolio (as of September 30): 12.75%

Andy Hall’s fund cut its holding in Cimarex Energy Co (NYSE:XEC) by 60% from June 30 to September 30 but still had a stake of 143,967 shares, equal to 12.75% of Astenbeck’s equity portfolio. Despite not having much in the way of hedges, Cimarex Energy has actually done well this year, with its stock up by 7.96% year-to-date. Other investors, such as Ken Griffin‘s Citadel Investment Group like the stock because the company has quality assets in the Permian that will be worth a lot more if the company sells itself or if WTI/natural gas prices rally. Because of cost cutting and efficient production, analysts expect Cimarex to earn $0.94 per share next year.

#2 EOG Resources Inc (NYSE:EOG)

Shares held (as of September 30): 261,872
Total Value (as of September 30): $19.06 million
Percentage of Portfolio (as of September 30): 16.47%

Although many investors believe WTI and natural gas prices will stay ‘lower for longer’, energy bulls still believe demand growth will outstrip supply increases over the next few years as low crude prices cure low crude prices. Capital expenditures are falling across the industry and the U.S. oil production is slowly leveling off. In addition, a number of geopolitical events could occur that would force OPEC to curtail its production. If WTI prices rise, EOG will rise along with its peers. So far, EOG hasn’t done too badly with its shares down by only 11.9% year-to-date, as the smart money favors the company for its relatively clean balance sheet (the company isn’t very levered) and its quality assets. Ric Dillon‘s Diamond Hill Capital increased its position by 24% to 2.66 million shares, while Astenbeck pared its exposure by 63% in the quarter.

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