Jet Capital Investors Betting Against Exxon Mobil Corporation (XOM) In Favor Of These Two Energy Stocks

Exxon Mobil Corporation (NYSE:XOM) is an oil super-giant with a market capitalization of around $351 billion at the current share price of $84.64. It is involved in the manufacturing of petroleum products, and the transportation and sale of crude oil, natural gas, and petroleum products. It also manufactures and markets petrochemicals. Jet Capital Investors opened a stake of put options underlying 1.95 million shares of Exxon, with a value of $165.8 million during the first quarter. The year-to-date returns of Exxon Mobil Corporation (NYSE:XOM) come in at a loss of 8.44%, while the company has made dividend payments of $1.42 per share, with the company currently boasting a dividend yield of 3.45%. The reason for such a drop is widely known: the huge slump in oil prices which happened at the end of 2014. For now, as compared to its major competitors, the company looks very strong, having the largest ROE, at 9.7%, and ROA, at 18.7%. The consensus of analysts reveals the mean target price for the shares being equal to $92.53, which suggests  slight upward potential from where the shares stand now, of 9.2%. Besides Jet Capital Investors, billionaire Ken Griffin’s Citadel Investment Group also has a large position of put options underlying shares of Exxon.

The last company in our list is Black Hills Corp (NYSE:BKH), in whom Jet Capital Investors increased its holding by 3% during the first quarter, to 2.22 million ordinary shares valued at $112.01 million. Black Hills Corp (NYSE:BKH) provides natural gas and electric services to customers in South Dakota, Wyoming, Montana, and Colorado, while it conducts energy exploration and development in the Rocky Mountains region. The company was founded in 1941 and has over 2,000 employees. Black Hills Corp (NYSE:BKH) is known for its impressive dividend history: the company has been increasing its dividend payment every year since 1972. On a year-to-date basis, shares have declined by 16.01%, with the company trading at $44.46, and providing a 3.64% dividend yield. Among the other funds that we track, 526,060 shares of Black Hills Corp (NYSE:BKH) are held by Mario Gabelli’s GAMCO Investors and 500,000 are held by Phill Gross and Robert Atchinson’s Adage Capital Management as of March 31.

Disclosure: None