Oasis Petroleum Inc. (OAS): Dmitry Balyasny Bets on Another Energy Stock and Discloses New Position

Balyasny Asset Management, a multistrategy hedge fund launched and managed by Dmitry Balyasny has initiated a stake in Oasis Petroleum Inc. (NYSE:OAS). As a filing with the Securities and Exchange Commission showed, Balyasny Asset Management owns 5.31 million shares of the company, which represent 5.24% of the company’s common stock.

Dmitry Balyasny

Balyasny Asset Management was launched in 2001 and since then it has grown to more than $12 billion held in equities. The fund focuses on macro investing and often prefer to invest in what is often called misunderstood sitations. In October, Balyasny went bullish on another energy stock, NuStar GP Holdings, LLC (NYSE:NSH) of which it reported holding 2.15 million shares, from just 25,000 shares held earlier. Since Balyasny upped its stake in NuStar, its stock fell by around 9%, but as it is the case currently with the majority of oil-related stocks they are more long-term plays. Also in October, the fund raised its stake in Churchill Downs, Inc. (NASDAQ:CHDN) by 45% to 909,724 shares, as the stock lost around 7% since then.

Oasis Petroleum Inc. (NYSE:OAS) is another stock that might be included in the category of “misunderstood situations” as its stock fell by more than 73% since the beginning of the year. As with other oil stocks, the decline of this $1.30 billion exploration and production company is mainly caused by a significant drop in oil prices in the last several months. However, investors keep raising their stakes in oil stocks betting on prices to rebound. However, the near future does not hold much optimism, since the demand in oil is still expected to remain low next year, even though since it is currently winter in the northern hemisphere, the demand for oil might still go up in the next couple of months, even for a short period. However, in the longer-run oil prices will most certainly recover, and investors betting on oil stocks now will shine.

Moreover, Orange Capital has raised its stake in Oasis Petroleum Inc. (NYSE:OAS) just before the company released its expectations and forecasts for the next year. The company plans to have total capital expenditures between $750 and $850 million and it expects a production growth between 5% and 10% on the year in 2015. Moreover, the company added that it has around $1.6 billion in liquidity, including $2.0 billion borrowing base.

In fact, we have seen an increase in bullish sentiment for oil stocks recently. Earlier today we have reported that Steven Cohen‘s Point72 Asset Management has initiated a stake in Jones Energy Inc (NYSE:JONE), of which it owns 642,000 class A shares. Also recently Ken Griffin’s Citadel Investment Group has raised its stake in C&J Energy Services Inc (NYSE:CJES) to 2.84 million shares, while Daniel Lewis‘ Orange Capital increased its position in Bellatrix Exploration Ltd (NYSE:BXE) to 25.8 million shares.

Disclosure: none