According to current portfolio statistics, a Premium feature of GuruFocus, energy stocks in Leon Cooperman (Trades, Portfolio)’s fourth-quarter 2022 13F equity portfolio included Devon Energy Corp. (DVN, Financial), Coterra Energy Inc. (CTRA, Financial), Energy Transfer LP (ET, Financial), Pioneer Natural Resources Co. (PXD, Financial) and Enterprise Products Partners LP (EPD, Financial).
Crude oil prices surge as OPEC+ slashes oil output
On Monday, West Texas Intermediate crude oil prices traded at an intraday high of $81.69 per barrel, approximately 7.95% above the previous close of $75.67 per barrel. Likewise, Brent crude oil prices traded at an intraday high of $82.59 per barrel, approximately 6% above the previous close of $77.91 per barrel.
Oil prices surged on the heels of OPEC+ announcing it will reduce crude oil output by 1.16 million barrels per day starting in May and going throughout 2023. The voluntary cuts come after other nations and OPEC member states announced similar cuts to “stabilize” the oil market.
The U.S. Energy sector increased 4.39% for the day, with the oil & gas sector increasing by 4.57%.
According to the S&P 500 Aggregate Chart, a Premium feature of GuruFocus, the mean day’s change of the 23 energy stocks in the Standard & Poor’s 500 Index is 4.37% with a median of 4.42%.
Cooperman profile
Prior to founding Omega, Cooperman was chairman of Goldman Sachs Asset Management. The guru converted his hedge fund into a family office in 2018.
As of December 2022, Omega’s $1.99 billion 13F equity portfolio contains 56 stocks with a quarterly turnover ratio of 4%. The energy sector has the second-largest weight in the portfolio at 13.91%.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Devon Energy
Omega owns 2,721,469 shares of Devon Energy (DVN, Financial), giving the stake 6.02% equity portfolio weight.
Shares of Devon Energy traded around $53.31 on Monday, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.87.
The Oklahoma City-based energy exploration and production company has a GF Score of 79 out of 100 based on a profitability rank of 6 out of 10, a growth rank of 5 out of 10 and a rank of 7 out of 10 for momentum, GF Value and financial strength.
Other gurus with holdings in Devon Energy include Ken Fisher (Trades, Portfolio)’s Fisher Investments and Yacktman Asset Management (Trades, Portfolio).
Coterra Energy
The firm owns 3.2 million shares of Coterra Energy (CTRA, Financial), giving the position 3.05% equity portfolio weight.
Shares of Coterra Energy traded around $25.12 on Monday. GuruFocus’ GF Value Line labeled the Houston-based oil exploration and production company a possible value trap due to the company’s low price-to-GF Value ratio of 0.52 and poor momentum rank of 2 out of 10.
Coterra’s low momentum rank is driven by a 14-day relative strength index of 52.63, which underperforms approximately 73% of global competitors. Additionally, the company’s 6-1 month momentum index of -4.4% underperforms approximately 60% of global energy companies.
Despite having low momentum, Coterra Energy has a GF Score of 87 out of 100 based on a rank of 9 out of 10 for growth and profitability, a GF Value rank of 8 out of 10 and a financial strength rank of 7 out of 10.
Coterra’s high profitability rank is driven by several positive investing signs, which include a high Piotroski F-score of 7 out of 9 and an operating margin that has increased by approximately 13.3% per year on average over the past five years and outperforms more than 90% of global competitors.
Energy Transfer
Omega owns 7 million shares of Energy Transfer (ET, Financial), giving the position 2.89% equity portfolio weight.
Shares of Energy Transfer traded around $12.82 on Monday, showing the stock is fairly valued based on its price-to-GF Value ratio of 1.02.
The Dallas-based oil and gas company has a GF Score of 79 out of 100 based on a momentum rank of 10 out of 10, a profitability rank of 7 out of 10, a growth rank of 6 out of 10, a GF Value rank of 5 out of 10 and a financial strength rank of 4 out of 10.
Pioneer Natural Resources
Omega owns 140,000 shares of Pioneer Natural Resources (PXD, Financial), giving the holding a 1.28% equity portfolio weight.
Shares of Pioneer Natural Resources traded around $213.37, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.90.
The Irving, Texas-based oil exploration and production company has a GF Score of 90 out of 100 based on a growth rank of 9 out of 10, a profitability rank of 8 out of 10, a momentum rank of 5 out of 10 and a rank of 7 out of 10 for financial strength and GF Value.
Enterprise Products Partners
The firm owns 216,150 shares of Enterprise Products Partners (EPD, Financial), giving the position 0.24% equity portfolio weight.
Shares of Enterprise Products Partners traded around $26.11 on Monday, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.70.
The Houston-based natural gas transportation company has a GF Score of 89 out of 100 based on a GF Value rank of 10 out of 10, a financial strength rank of 5 out of 10 and a rank of 8 out of 10 for momentum, growth and profitability.
