John Scully’s SPO Advisory Corp Finds Value In Three Key Energy Stocks

Furthermore, SPO Advisory Corp augmented its stake in Oasis Petroleum Inc. (NYSE:OAS) by 12.64 million shares during the first quarter, which marked an increase of 163% to its stake in the company. This move enlarged the hedge fund’s overall position in Oasis Petroleum to 20.37 million shares, which are worth $289.73 million as of March 31. The stock is down marginally year-to-date, by 2%, despite improving crude prices. However, there are expectations of a global oil supply glut, as Saudi Arabia, the world’s top crude exporter, intends to increase its output to new record highs. Therefore, Oasis Petroleum might suffer from oil prices declining once more. The hedge fund firm managed by John Paulson, named Paulson & Co, is one of the top hedge funds from our database that remains bullish on Oasis Petroleum Inc. (NYSE:OAS), owning 8.81 million shares.

Last but not least, SPO Advisory Corp enlarged its position in Range Resources Corporation (NYSE:RRC) by 596,200 shares, reporting a stake of 5.39 million shares worth $280.62 million at the end of the first quarter. The shares of Range Resources Corporation have decreased by 4% since the beginning of 2015 and are now trading at $51 per share. Just recently, Wolfe Research, which is a well-known and trustworthy research boutique, upgraded the stock to an “Outperform” rating from a “Peer Perform” rating, which might signal a potential turnaround for Range Resources Corporation. The company is planning on releasing its second quarter financial results on July 28 after the close of trading on the NYSE, so only then will it be clearer as to which direction the independent oil and natural gas producer is heading. Alan Fournier’s Pennant Capital Management is among the largest investors from our database in Range Resources Corporation (NYSE:RRC), owning 2.37 million shares.

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