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Five Billionaire-Owned Energy Stocks That Could Double On A Wave Of M&A

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At Billionairesportfolio.com we are always looking to align ourselves with stocks owned by billionaire investors that have the potential to double on a fundamental catalyst.

One of the best and immediate catalysts for a revaluation in a stock is a takeover.  And following the sharp sell-off in oil earlier this year, there is perhaps no better sector ripe for takeovers than energy.

In fact, according to a survey by Ernst & Young (EY) released this week, the outlook for mergers and acquisitions activity in the energy industry is piping hot.  Almost 57% of global oil and gas executives surveyed said they were ready to make a deal in the next 12 months, with 60% of those expecting to make at least two deals. E&Y found nearly every respondent in the oil and gas industry expected the deal market to good over the next 12 months.

With this in mind, we put together a list of five energy stocks that, not only, have the potential to be acquired for a huge premium, but also happen to be owned by a top billionaire investor or hedge fund.

1)   Penn Virginia (PVA) – Billionaire George Soros owns almost 9% of PVA and the company has officially put itself up for sale, hiring an investment bank to find a buyer for the company.

2)   Whiting Petroleum (WLL) – Billionaire John Paulson owns more than 6% of Whiting Petroleum.  Paulson is an expert at M&A and merger speculation, and Whiting has also officially put itself up for sale, hiring consultants and investment banks to sell the company or assets.

3)   Seventy Seven Energy (SSE) – Billionaire Carl Icahn owns almost 9% of SSE.  The company was recently spun off from Chesapeake Energy (CHK).  According to a recent study in Barron’s, 21% of all spinoffs since 1999 have been acquired.

4)   Oasis Petroleum (OAS) – Not only does billionaire John Paulson own 6% of Oasis, but the activist hedge fund SPO Advisory owns almost 15% of the stock, and SPO has gone activist.  In its 13D filing, SPO said they will be discussing strategic alternatives for Oasis, which could include a sale of the company or some its assets.

5)    Key Energy Services (KEG) – Activist investor Dr. Mark Rachesky and protégé of billionaire Carl Icahn, owns more than 11% of $KEG. Rachesky is one of the most successful activist investors, holds an MD and MBA from Stanford.  According to Bloomberg, 90% of his activist campaigns over the past 12 years have been profitable. Furthermore, Rachesky has a history of pushing the companies he owns to sell themselves to the highest bidder.

Billionairesportfolio.com, run by two veterans of the hedge fund industry, helps self-directed investors invest alongside the world’s best billionaire investors.  By selecting the best ideas from the best billionaire investors and hedge funds, our exited stock investment recommendations have averaged a 31% gain since 2012.

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