10 oil and gas stocks to buy according to Phill Gross’s Adage Capital


In this article, we discuss the 10 oil and gas stocks to buy according to Phill Gross’s Adage Capital. If you want to skip our detailed analysis of the history, investment philosophy and performance of Gross hedge funds, go straight to the page 5 oil and gas stocks to buy according to Phill Gross’s Adage Capital.

Former Harvard Foundation executive Phill Gross oversees Boston-based hedge fund firm Adage Capital Management. Gross co-founded the portfolio management company with Robert Atchinson in 2001. The fund’s assets under management have grown from $ 3.8 billion since inception to $ 50.7 billion as of September 30, 2021.

The hedge fund has a diversified portfolio and invests in a variety of sectors including technology, healthcare, industrials, finance, utilities, consumer goods and energy. Phill Gross, who spent 18 years as a health analyst at Harvard Management Company, now manages the health sector at Adage Capital. In this article, we will discuss the major oil and gas stocks of Gross.

Adage Capital Management by billionaire Phill Gross focuses on managing S&P 500 assets for endowments and foundations. Some of the largest oil and gas stocks in Adage Capital’s portfolio in the third quarter of 2021 include Exxon Mobil Corporation (NYSE:XOM), ConocoPhillips (NYSE:COP), Pioneer Natural Resources Company (NYSE:PXD) and Chesapeake Energy Corporation (NYSE: CHK).

Phill Gross Adage Capital Phillip Gross

Phillip Gross from Adage Capital

Our methodology

We have selected these oil and gas stocks from the Adage Capital Management Q3 portfolio of Phillip Gross. Insider Monkey’s data on 867 hedge funds was used to gauge hedge fund sentiment towards each stock.

Let’s start our list of 10 oil and gas stocks to buy according to Phill Gross’s Adage Capital.

Oil and gas stocks to buy according to Phill Gross’s Adage Capital

10. Royal Dutch Shell plc (NYSE:RDS)

Number of hedge fund holders: 33

Royal Dutch Shell plc (NYSE: RDS), an integrated oil and gas company, is one of the oil and gas stocks in billionaire Phill Gross’s portfolio. In addition to oil and gas exploration and production, the Netherlands-based energy company also markets petrochemicals internationally.

In early December, Deutsche Bank analyst James Hubbard maintained a buy rating on Royal Dutch Shell plc (NYSE: RDS). Hubbard raised his target price for the share to 2,038 GBP from 1,871 GBP. In the third quarter of 2021, 33 hedge funds listed in Insider Monkey’s database reported holding stakes in Royal Dutch Shell plc (NYSE: RDS), up from 38 in the previous quarter.

Adage Capital Management owns 350,000 shares of Royal Dutch Shell plc (NYSE: RDS) in the third quarter, valued at approximately $ 15.6 million. The company represented 0.03% of Phill Gross’s portfolio.

Here’s what Goehring & Rozencwajg Associates has to say about Royal Dutch Shell plc in their Q3 2021 letter to investors:

“Royal Dutch Shell’s ESG challenges continue unabated. A Dutch court ruled in May that Royal Dutch Shell must reduce its CO2 production by 45% by 2030 to align its policies with the Paris Climate Agreement. In a statement released after the verdict, a Shell spokesperson acknowledged that “urgent action is needed on climate change and the company is stepping up efforts to reduce emissions.” If the pressure from the Dutch court system was not enough, an activist shareholder proposed to separate the company to address ESG concerns. On October 27, Third Point Management announced the following.

“If Shell pursues this type of strategy, it would probably lead to an acceleration in carbon dioxide reduction. […] Dividing Shell into two operational units would create a self-sustaining energy company (upstream, refining and chemicals) that could slow down investments beyond what has already been promised, sell assets and prioritize return of money to the company. ‘shareholder who can be reassigned to low carbon market sectors.

Shell has already cut spending considerably over the past decade. After peaking at $ 39 billion in 2013, upstream capital spending fell to just $ 17 billion in 2020, a drop of almost 60%. Spending barely recovered in the three quarters of 2021. A lack of spending has already impacted production. Proforma of the acquisition of BG Group in 2016, Shell’s total production has declined 13% since capital spending peaked in 2013. These trends are accelerating: Shell production in the first nine months of 2021 was down 7% from the same period last year.

If Royal Dutch Shell’s upstream capital expenditure remains at today’s depressed levels, we estimate that the company will only be able to replace 30% of production with new reserves and that production will fall by 40% over the course of the next nine years. If spending is cut further (as proposed), Shell’s oil and natural gas production would collapse – something that may have already started. “

9. Phillips 66 (NYSE:PSX)

Number of hedge fund holders: 34

Phillips 66 (NYSE: PSX) is a diversified energy company engaged in the refining, midstream, and marketing of crude oil and gas products. In the third quarter of 2021, Phillips 66 (NYSE: PSX) represented 0.03% of the total holdings of Adage Capital Management. Although investor Phillip Gross reduced his stake in the oil company by 50%, the fund still owns 281,501 shares of the company at the end of the September quarter.

Phillips 66 (NYSE: PSX) has a global refining capacity of 2.2 million barrels of crude oil per day, with 13 refineries in Europe and the United States.

JPMorgan analyst Phil Gresh is bullish on Phillips 66 (NYSE: PSX) as he moved the energy company to Overweight Neutral on December 8. Gresh enjoys the company’s in-demand refinery segment. Phil Gresh raised his target price for the stock to $ 93 from $ 83.

The number of hedge funds tracked by Insider Monkey with stakes in Phillips 66 (NYSE: PSX) rose to 34 at the end of September 2021, from 26 in the previous quarter.

8. Antero Resources Corporation (NYSE:RA)

Number of hedge fund holders: 41

At the end of the third quarter of 2021, 41 hedge funds tracked by Insider Monkey reported holding stakes in Antero Resources Corporation (NYSE: AR), up from 33 in the previous quarter. These holdings are valued at over $ 973 million.

Adage Capital Management returned to its position in Antero Resources Corporation (NYSE: AR) after removing the oil and gas company’s stock from its holdings in the fourth quarter of 2014. Phillip Gross spent $ 19.7 million over $ 1, 04 million shares of Antero Resources Corporation (NYSE: AR) in the third quarter of 2021.

Oil and gas company Antero Resources Corporation (NYSE: AR) operates 542,000 net acres in the southwest central Marcellus and Utica shales. The Colorado-based company produces 160,000 barrels of natural gas liquids per day and 12,000 barrels of oil per day.

Despite missing third-quarter analyst revenue expectations, Antero Resources Corporation (NYSE: AR) sales grew 40% year-over-year to $ 534 million.

Ken fisher Fisher Asset Management was the largest shareholder of Antero Resources Corporation (NYSE: AR) in the third quarter, with a stake worth $ 115 million.

Analysts are watching Antero Resources Corporation (NYSE: AR) along with Exxon Mobil Corporation (NYSE: XOM), ConocoPhillips (NYSE: COP), Pioneer Natural Resources Company (NYSE: PXD) and Chesapeake Energy Corporation (NYSE: CHK).

7. Marathon Petroleum Corporation (NYSE:MPC)

Number of hedge fund holders: 43

Marathon Petroleum Corporation (NYSE: MPC) is a downstream energy company focused on the refining, marketing and transportation of petroleum products. The Ohio-based oil company also offers industrial petroleum products such as asphalt and petrochemicals.

In mid-November, Wells Fargo analyst Roger Read expressed optimism about the US refining market in 2022, raising his price target for Marathon Petroleum Corporation (NYSE: MPC) to $ 87 from $ 73 while maintaining an overweight rating on the stock.

Adage Capital Management increased its stake in the company in the third quarter, bringing its total stake to 1.32 million shares. In the third quarter, the oil company accounted for 0.16% of the fund’s total holdings.

In the third quarter, 43 hedge funds tracked by Insider Monkey held stakes in Marathon Petroleum Corporation (NYSE: MPC), up from 48 in the previous quarter. These holdings are worth more than $ 2.68 billion.

6. Chesapeake Energy Corporation (NYSE:CHK)

Number of hedge fund holders: 44

Chesapeake Energy Corporation (NYSE: CHK) has been one of the most successful shale oil producers in recent months, as demand for energy recovered from the pandemic crisis and prices hit multi-year highs . In November, the Oklahoma-based oil and gas company reported third-quarter revenue of $ 1.17 billion, $ 361 million more than expected.

Chesapeake Energy Corporation (NYSE: CHK) is among the oil and gas stocks chosen by Phillip Gross in the third quarter of 2021. Adage Capital Management held 1.33 million shares of the oil company between June and September. The total value of this stake is $ 81.9 million.

On December 12, Johnson Rice analyst Charles Meade upgraded his rating on Chesapeake Energy Corporation (NYSE: CHK) to buy from Accumulate. Meade maintained a price target of $ 115 for the stock.

At the end of the third quarter of 2021, 44 hedge funds listed in Insider Monkey’s database reported holding stakes in Chesapeake Energy Corporation (NYSE: CHK), up from 43 in the previous quarter. The total value of these holdings is over $ 2.17 billion.

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Disclosure. Nothing. 10 oil and gas stocks to buy according to Phill Gross’s Adage Capital was originally published on Insider Monkey.


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