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Get to Know These Oil E&P Picks

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July 27, 2011 – Comments (0) | RELATED TICKERS: DVN , SD , CNQ

We recently covered some great oil service stocks, and now its the exploration and production time to shine. There are some major funds that are investing in oil E&P right now, which is a good sign for these stocks, and for investors as a whole. Ganazi Small Cap Movers reported the top stocks according to the large investments made by these large funds. 

 

 "Buy Canadian Natural Resources Ltd. (CNQ): CNQ is engaged in oil and gas exploration and production in western Canada, the North Sea and offshore West Africa. It has a significant presence in the Athabasca oil sands deposits in northeastern Alberta, Canada. Colloquially known as tar sands, due to their similar appearance, odor and color to tar, they are more costly to extract than conventional oil and until recently, were not even considered to be part of the world’s oil reserves.

However, the recent strength and long-term optimistic outlook of the price of crude have made it very profitable to extract oil from the deposits. Seven guru funds own 0.7% of CNQ, and they added a net $10 million to their $281 million prior quarter position. Three guru funds that are over-concentrated in the oil and gas exploration group hold CNQ in their portfolio, including Wintergreen Advisors LLC ($107 million) and RS Investment Management ($114 million) and BP Capital Management ($15 million).

Buy Sandridge Energy Inc. (SD): SD is engaged in the exploration and production of crude oil and natural gas. SD is headquartered in Oklahoma City, and focuses its exploration and production activities in West Texas, the Cotton Valley Trend in East Texas and the Gulf Coast. SD also owns oil and gas properties in the Piceance Basin of Colorado, the Gulf of Mexico and the Anadarko and Arkoma Basins.

 

A total of eight guru funds own 10.6% of SD, including three that are concentrated in the sector. They bought a net $40 million during the quarter, adding to their $413 million from the prior quarter. Prem Watsa ofFairfax Financial Holdings owns $273 million or 6% of SD. Furthermore, at $25 million, SD is the fifth largest holding of T. Boone Pickens’ BP Capital Management LP that has 94% of its funds invested in the energy sector. Other funds with major SD holdings include Weitz Wallace R & Co. ($73 million), SAC Capital Advisors LP ($39 million), Ruane Cunniff & Goldfarb Inc. ($19 million) and Bruce & Co. ($13 million)."

 Find additional research and charts here: http://turnkeyoil.com/2011/07/27/get-to-know-these-oil-e-p-picks/

 

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