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.