- Is Invesco S&P MidCap 400 Pure Growth ETF (RFG) a Strong ETF Right Now?
Jan 1, 2026
Designed to provide broad exposure to the Style Box - Mid Cap Growth category of the market, the Invesco S&P MidCap 400 Pure Growth ETF (RFG) is a smart beta exchange traded fund launched on 03/01/2006.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Invesco. RFG has been able to amass assets over $355.63 million, making it one of the average sized ETFs in the Style Box - Mid Cap Growth. Before fees and expenses, RFG seeks to match the performance of the S&P MidCap 400 Pure Growth Index.
The S&P MidCap 400 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P MidCap 400 Index.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.35% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.74%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
RFG's heaviest allocation is in the Consumer Discretionary sector, which is about 22.10% of the portfolio. Its Industrials and Energy round out the top three.
Looking at individual holdings, Celsius Holdings Inc (CELH) accounts for about 2.59% of total assets, followed by Southwestern Energy Co (SWN) and Cnx Resources Corp (CNX).
RFG's top 10 holdings account for about 22.7% of its total assets under management.
Performance and Risk
The ETF has added roughly 18.57% so far this year and is up about 33.55% in the last one year (as of 06/06/2024). In the past 52-week period, it has traded between $36.89 and $50.70.
RFG has a beta of 1.15 and standard deviation of 23.23% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 84 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap 400 Pure Growth ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Mid-Cap Growth ETF (VOT) tracks CRSP U.S. Mid Cap Growth Index and the iShares Russell Mid-Cap Growth ETF (IWP) tracks Russell MidCap Growth Index. Vanguard Mid-Cap Growth ETF has $13.05 billion in assets, iShares Russell Mid-Cap Growth ETF has $13.99 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco S&P MidCap 400 Pure Growth ETF (RFG): ETF Research Reports
Southwestern Energy Company (SWN) : Free Stock Analysis Report
CNX Resources Corporation. (CNX) : Free Stock Analysis Report
iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports
Vanguard Mid-Cap Growth ETF (VOT): ETF Research Reports
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Chili's® Sets the Queso Standard with All-New Southwestern Queso
Oct 2, 2025 · prnewswire.com
Launching nationwide on Oct. 7, Chili's new Southwestern Queso delivers distinct, bold flavors — and it's free to try for a limited time DALLAS , Oct. 2, 2025 /PRNewswire/ -- Chili's® Grill & Bar is introducing a standout addition to its menu with the new Southwestern Queso, a must-try for queso fans everywhere. After nearly two years in development, Southwestern Queso will replace two previous iterations, Skillet Beef and White Skillet Queso, with a new recipe that finally gives guests the queso they deserve, starting Tuesday, Oct. 7.
- CHILI'S® SETS THE QUESO STANDARD WITH ALL-NEW SOUTHWESTERN QUESO
Oct 2, 2025
LAUNCHING NATIONWIDE ON OCT. 7, CHILI'S NEW SOUTHWESTERN QUESO DELIVERS DISTINCT, BOLD FLAVORS — AND IT'S FREE TO TRY FOR A LIMITED TIME DALLAS , OCT. 2, 2025 /PRNEWSWIRE/ -- CHILI'S® GRILL & BAR IS INTRODUCING A STANDOUT ADDITION TO ITS MENU WITH THE NEW SOUTHWESTERN QUESO, A MUST-TRY FOR QUESO FANS EVERYWHERE. AFTER NEARLY TWO YEARS IN DEVELOPMENT, SOUTHWESTERN QUESO WILL REPLACE TWO PREVIOUS ITERATIONS, SKILLET BEEF AND WHITE SKILLET QUESO, WITH A NEW RECIPE THAT FINALLY GIVES GUESTS THE QUESO THEY DESERVE, STARTING TUESDAY, OCT. 7.
- Viets Joshua J. buys Expand Energy shares worth $184,320
Aug 18, 2025
Expand Energy (EXCHANGE:EXE) EVP & COO, Viets Joshua J., reported purchasing 2,000 shares of Common Stock on August 18, 2025, in a transaction valued at $184,320.
The shares were bought at a price of $92.16. Following the transaction, Viets directly owns 61,676 shares of Expand Energy Corp. According to InvestingPro data, analysts maintain a bullish outlook on the stock, with price targets ranging from $108 to $170. For deeper insights into Expand Energy’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Expand Energy Corp reported its Q2 2025 earnings, revealing a revenue of $3.69 billion, which significantly exceeded the forecast of $2.57 billion. This marked a 43.58% surprise, although the earnings per share (EPS) slightly missed expectations at $1.10 compared to the forecast of $1.13. Additionally, Mizuho raised its price target for Expand Energy to $154 from $142, maintaining an Outperform rating due to the company’s strong quarterly results. The firm highlighted the company’s operational and financial performance, noting volumes at the high end of guidance and a reduction in fiscal 2025 capital guidance by approximately $100 million. In personnel changes, Expand Energy announced the departure of Executive Vice President and Chief Financial Officer Mohit Singh. Brittany Raiford, previously Vice President - Treasurer, has been named Interim Chief Financial Officer and principal financial officer. Raiford’s appointment follows her previous roles at Southwestern Energy (NYSE:SWN), where she served in various capacities. These developments indicate significant activity within Expand Energy, with impacts on both leadership and financial outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
- DT Midstream upgraded to BBB- by S&P on improved scale
Jul 8, 2025
Investing.com -- DT Midstream Inc. (NYSE:DTM) has been upgraded by S&P Global Ratings to ’BBB-’ from ’BB+’ with a stable outlook, following successful integration of three Midwestern pipelines acquired in December 2024.
The credit rating agency cited DTM’s increased scale and reduced leverage as key factors in the upgrade decision. The company has expanded its EBITDA to a forecast $1.1 billion in 2025, representing almost a 50% increase from $745 million in 2021.
S&P also upgraded DTM’s senior unsecured debt to ’BBB-’ from ’BB+’, in line with the issuer credit rating. The rating agency expects all of DTM’s notes outstanding will be ranked pari passu as security provisions on senior secured notes are falling away.
The integration of the Midwestern pipelines acquired from Oneok Inc. is progressing according to plan, with key employees fully onboarded and financials integrated within 90 days after closing. These assets are expected to contribute an estimated $11 million-$120 million of incremental EBITDA.
DTM has already begun construction on the Midwestern Gas Transmission lateral to serve AES (NYSE:AES) Indiana’s Petersburg Generating Station.
Since its spinoff in 2021, DTM has demonstrated consistent growth through both acquisitions and organic expansion. In 2022, the company acquired a 26.25% stake in Millennium Pipeline from National Grid (LON:NG) plc, strengthening its pipeline segment. The company has also completed a series of expansions at its Blue Union asset and Louisiana Energy Access Project.
The pipeline segment now represents 70% of revenue in 2025, up from 55% in 2021. S&P views this segment as more stable and less vulnerable to fluctuations in gas producer drilling activities.
DTM’s financial discipline has resulted in S&P Global Ratings-adjusted debt to EBITDA of 3.0x-3.2x forecast for 2025 and 2026, a significant improvement from 4.0x in 2021. The company has primarily used operating cash flow to fund growth capital expenditures.
The company’s contract profile has also strengthened, with 95% of revenue coming from Minimum Volume Commitment contracts, demand charges, and flowing gas contracts. The average contract length is approximately seven years, and 80% of counterparties are rated investment-grade, compared to 40% in 2021.
DTM has reduced its reliance on a single customer, with its largest customer, Expand Energy, now representing about 35% of revenues, down from almost 50% in 2021 when Southwestern Energy (NYSE:SWN) was the former customer.
S&P indicated that a negative rating action could occur if adjusted debt leverage approaches 4.0x, while an upgrade would be considered if DTM significantly increases its scale and footprint while maintaining debt leverage below 3.0x.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
- Goldman Sachs resumes coverage on Expand Energy with buy, cuts Occidental to sell
Jan 31, 2025
Investing.com -- Goldman Sachs reinstated coverage on Expand Energy Corp (NASDAQ:EXE) with a "Buy" rating and a $121 price target, citing operational efficiency and strategic exposure to key natural gas basins following its merger with Chesapeake Energy (NYSE:CHK) and Southwestern Energy (NYSE:SWN).
The bank highlighted EXE’s balanced presence in both Appalachia and Haynesville, which offers a cost-effective core business with growth potential to meet rising LNG export demand. Goldman expects the company’s focus on disciplined capital management to drive long-term value.
While the brokerage downgraded Magnolia Oil&Gas (NYSE:MGY) to "Neutral," trimming its price target to $26, and Occidental Petroleum Corporation (NYSE:OXY) to "Sell," citing weaker capital returns and balance sheet concerns.
“While we see longer-term catalysts for OXY to achieve its debt target and return to focusing on capital returns to shareholders, in the near-term as the company continues to focus on deleveraging the balance sheet, we believe that share price improvement will remain more limited,” analyst added.
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- John Paulson's Strategic Moves in Q3 2024: A Focus on Anglogold Ashanti PLC
Nov 15, 2024
Insights into the Investment Shifts of a Hedge Fund Titan
John Paulson (Trades, Portfolio), the President and Portfolio Manager of Paulson & Co. Inc., is renowned for his strategic investment approaches, particularly in merger, event, and distressed strategies. With a robust background as a mergers and acquisitions banker, Paulson has shaped his firm into a leading entity in the hedge fund industry, managing significant assets and focusing on merger arbitrage. His educational accolades from Harvard Business School and New York University, combined with his professional tenure at Gruss Partners and Bear Stearns, underscore his expertise in finance and investments.
Warning! GuruFocus has detected 3 Warning Signs with MDGL.John Paulson's Strategic Moves in Q3 2024: A Focus on Anglogold Ashanti PLC
Summary of New Buys
During the third quarter of 2024, John Paulson (Trades, Portfolio) made a notable new addition to his portfolio:
Southwestern Energy Co (NYSE:SWN) was the significant new buy with 2,200,000 shares, representing 1.1% of the portfolio and a total value of $15.64 million.
Key Position Increases
Paulson also strategically increased his stakes in several companies:
Madrigal Pharmaceuticals Inc (NASDAQ:MDGL) saw an addition of 192,000 shares, bringing the total to 2,042,000 shares. This adjustment increased the share count by 10.38%, impacting the portfolio by 2.59% with a total value of $392.61 million. Tellurian Inc (TELL) experienced a substantial increase of 24,659,337 shares, totaling 30,000,000 shares. This represents a 461.73% increase in share count, with a total value of $29.04 million.
Summary of Sold Out Positions
Paulson completely exited positions in two companies in this quarter:
Anglogold Ashanti PLC (NYSE:AU): All 1,932,905 shares were sold, impacting the portfolio by -3.59%. Everbridge Inc (EVBG): All 1,225 shares were liquidated, resulting in a negligible impact on the portfolio.
Key Position Reductions
Reductions were also part of Paulson's Q3 strategy:
Altice USA Inc (NYSE:ATUS) saw a reduction of 586,313 shares, a 50.53% decrease, impacting the portfolio by -0.09%. The stock traded at an average price of $1.93 during the quarter and has returned 61.11% over the past three months and -19.69% year-to-date.
Portfolio Overview
As of the third quarter of 2024, John Paulson (Trades, Portfolio)'s portfolio comprised 15 stocks. The top holdings were:
27.55% in Madrigal Pharmaceuticals Inc (NASDAQ:MDGL) 16.25% in Perpetua Resources Corp (NASDAQ:PPTA) 15.95% in BrightSphere Investment Group Inc (NYSE:BSIG) 15.14% in Bausch Health Companies Inc (NYSE:BHC) 7.84% in Novagold Resources Inc (NG)
Story Continues
These holdings are primarily concentrated in five industries: Healthcare, Basic Materials, Financial Services, Energy, and Communication Services.John Paulson's Strategic Moves in Q3 2024: A Focus on Anglogold Ashanti PLCJohn Paulson's Strategic Moves in Q3 2024: A Focus on Anglogold Ashanti PLC
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
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- Chesapeake And Southwestern Become Expand Energy
Oct 9, 2024 · seekingalpha.com
Expand Energy, built from Chesapeake's acquisition of Southwestern, is a $19.5 billion market cap company paying a 2.7% base dividend. Chesapeake acquired Southwestern for $7.4 billion, and the merger closed Oct. 1, 2024. Despite a rough year for natural gas, the company is well-positioned to supply natural gas to Midwest and mid-Atlantic utilities via its Marcellus production, and gas for LNG from Haynesville.
- Is Southwestern Energy Company (SWN) the Best Stock Under $15 To Buy Now?
Oct 1, 2024
We recently compiled a list of 10 Best Stocks Under $15 To Buy Now. In this article, we will look at where Southwestern Energy Company (NYSE:SWN) ranks among the best stocks under $15.
While September is usually the toughest month for the stock market, it is delivering solid results this time. Stocks are soaring after the Federal Reserve announced a half-point cut this month to bring interest rates between 4.75% and 5%. This has led to the market racking up records again as investors look to move from riskier investments to stocks, reported CNN.
The broader market marked its 42nd record-high close in 2024 this past Thursday. The index, which has a history of September dips, is on track for a 1.3% gain this month, which will take its quarterly advance close to 5%. The Dow Jones Industrial Average surged 0.4% a day later to reach its 32nd record high for the year after investors received encouraging economic data regarding inflation, which has raised hopes for further interest rate cuts.
According to the Personal Consumption Expenditures Price Index, inflation rose 2.2% in August this year, which marked the lowest inflation rate in the United States since February 2021. Overall inflation in the country is crawling back to the Federal Reserve’s goal of a two percent annual rate. The easing of consumer prices is expected to result in further interest rate cuts to prevent a spike in unemployment rates, say economic experts. This has raised hopes among investors about the American economy returning to solid footing.
However, Fundstrat Global Advisors’ co-founder, Tom Lee, in an interview with CNBC this week cautioned against diving into stocks after interest rate cuts, citing election uncertainty.
This Fed cut cycle I think is setting the stage for markets to be really strong over the next one month or next three months. But, what the stocks do between now and let’s say election day, I think is still a lot of uncertainty. And that’s the reason why I’m a little hesitant for investors to dive in.
In the weeks leading to the cuts, Lee, who is generally bullish on the stock market, warned investors that stocks could fall 10% during the coming eight weeks amid nervousness around the presidential elections, and added that the dip should viewed as a buying opportunity.
Liz Young Thomas, the head of investment strategy at SoFi, has also acknowledged the risk of stock market volatility associated with the presidential elections. While talking to the Business Insider, she noted how thinner trading volumes between June and August, when traders are on summer vacations, drive strong market performance, and the market turns volatile when stock activity picks up after traders return to their desks in September. According to Young Thomas, a two percent shift in share prices has become the norm in September. However, during the election year, volatility peaks around mid-October instead of September, and the market returns to normalcy after the results are announced.
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Methodology
We scanned Insider Monkey’s database of 912 hedge funds for the second quarter of 2024 to look for stocks with a share price of under $15 and then picked the top 10 companies with the highest number of hedge funds having stakes in them. We ranked them in ascending order of hedge fund holders in each company. In the case where two or more stocks had the same number of hedge fund holders, we used market capitalization as a tie-breaker and placed the stock having a greater market capitalization at a higher ranking.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Southwestern Energy Company (NYSE:SWN)
Number of Hedge Fund Holders: 49
Share Price as of the close of September 27: $7.15
Southwestern Energy Company (NYSE:SWN) is a natural gas exploration and production company headquartered in Spring, Texas. The company’s operations are focused on the development of unconventional natural gas reservoirs in the Appalachian Basin and Haynesville Shale.
During Q2 2024, the company reported operational revenues of $1.08 billion, with an EPS of $0.10 which beat analysts’ estimates by a penny. This was the third in the last four quarters in which the gas giant surpassed earnings expectations. According to analysts, the stronger-than-expected results were likely driven by higher oil and gas price realization.
Production metrics for Southwestern Energy Company (NYSE:SWN) were also noteworthy, with total net production reaching 379 Bcfe, which reflected a day output of 4.2 Bcfe. This included gas production of 3.6 Bcf per day and 101 MBbls per day of liquids. The company also made $430 million in capital investments that went into the drilling of 30 wells, completion of 23 wells, and the placement of 22 wells for sale.
Southwestern Energy Company (NYSE:SWN) had a total debt of $4.2 billion with a net debt to adjusted EBITDA (non-GAAP) of 2.1x at the end of the second quarter, which hinted at a manageable leverage profile. Moreover, 49 hedge funds have investments in the company, according to Insider Monkey’s database, as of Q2 2024, making it one of the best stocks under $15 to buy now.
Chesapeake Energy has been eying an acquisition of Southwestern Energy for some while now. It has already been delayed once this year after the U.S. Federal Trade Commission requested for further information from the two companies. According to a recent report in Reuters, the $7 billion acquisition is now expected to happen in Q4. Street analysts expect an 11.61% upside in the Southwestern’s current share price and have maintained consensus on its Hold rating.
Overall SWN ranks 6th on our list of the best stocks under $15. While we acknowledge the potential of SWN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SWN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published on Insider Monkey.
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- Is Southwestern Energy Company (SWN) on the Path to Recovery Post-Merger?
Oct 1, 2024
We recently published a list of 7 Best Oil Stocks under $20. In this article, we are going to take a look at where Southwestern Energy Company (NYSE:SWN) stands against the other best oil stocks under $20.
The oil industry has long been criticized for its contributions to greenhouse gas emissions and global warming. Despite these concerns, oil remains a critical commodity in today’s world as it has historically played a pivotal role in the global industrial, household, and power sectors.
The dynamics of the oil market shifted dramatically two years ago following Russia’s invasion of Ukraine. Western sanctions on Russia, combined with efforts by European nations to reduce reliance on Russian crude, disrupted global supply chains and drove oil prices to record highs. As mentioned in our previous article ‘10 Best Oil Stocks Under $20’, prices soared to $119 per barrel in March 2023. The impact of sanctions remains, as Russia’s monthly revenue from seaborne crude oil registered a significant 15% decline in May 2024 compared to the previous month, as reported by The Centre for Research on Energy and Clean Air.
Demand and Supply in the Oil Market
According to the International Energy Agency, the global oil industry faces a challenging landscape, with slow demand growth coupled with supply chain disruptions. In the first half of 2024, the demand grew by just 800,000 barrels per day (kb/d), which is the slowest increase since 2020. The main contributor to this declining demand is the consistent drop in China’s consumption in the past four months. The trend in 2024 contrasts with the 2.1 million barrels per day (mb/d) surge in demand seen in 2023. The slowdown in China’s economy, combined with the shift towards electric vehicles, has driven the decline in global consumption.
On the other hand, the global supply increased in August by 80 kb/d, jumping to 103.5 mb/d. This surge was bolstered by high outputs from countries including Brazil and Guyana. This high demand balanced the production outages in Libya as well as maintenance-related slowdowns in Norway and Kazakhstan. However, OPEC+ countries are expected to face challenges, with supply projected at 810 kb/d by the end of 2024.
Although weaker-than-expected performance in China and falling margins in Europe are putting pressure on refinery activities, refinery output is expected to increase by 440 kb/d in 2024. Moreover, oil prices have declined, with Brent falling by over $10 per barrel in August and early September. This was mainly driven by concerns about Chinese demand, coupled with oversupply fears, according to IEA.
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Despite challenging circumstances, companies are positioning themselves to align with shifting market dynamics. As a result, the crude oil industry is expected to surge at a compound annual growth rate (CAGR) of 1.8% until 2030, with an expected valuation of $1.6 trillion, according to Maximize Market Research.
Performance of Oil Stocks
Following the decline in oil prices, energy sector stocks have also delivered a mixed performance. The Energy sector surged by 13.3% on a year-to-date basis through July 2024. However, it still lagged behind the broader index by 3%. Thus, with a rapidly changing global scenario, energy sector stocks are expected to see swift movements in the near future.
Methodology
For this list, we scanned the Finviz screener and selected companies involved in the oil industry, focusing on areas relevant to oil production and its products. From that list, we selected companies with share prices under $20 as of September 24, 2024.
Among those, we chose seven companies with the highest number of hedge fund holdings and ranked them in ascending order based on these holdings, as of Q2 2024. Hedge fund data was sourced from Insider Monkey’s hedge fund database, which tracks the activity of 912 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up view of an oil rig, its structure illuminated against the setting sun.
Southwestern Energy Company (NYSE:SWN)
Number of Hedge Funds Holders: 49
Share Price: $6.72
Southwestern Energy Company (NYSE:SWN) is an energy firm that explores and produces natural gas, oil, and natural gas liquids in the U.S. The company operates through two segments: Exploration and Production and Marketing. It also develops unconventional reservoirs in Pennsylvania, Ohio, and West Virginia.
Southwestern Energy Company (NYSE:SWN) reported a net loss of $608 million in Q2 2024, down substantially from a net income of $231 million in Q2 2023. The company’s adjusted net income was $113 million after accounting for the impact of several one-time items and a cost ceiling test impairment. While adjusted net income improved, adjusted EBITDA declined from $484 million to $413 million year-over-year.
Southwestern Energy Company produced a total of 379 Bcfe (Billion cubic feet equivalent) with an average production of 4.2 Bcfe per day during the quarter. However, the average price declined from $1.84 to $1.70 per Mcfe (thousand cubic feet equivalent) on a year-over-year basis, due to the impact of fluctuating commodity prices.
The company invested $430 million in capital projects during the quarter. It completed 22 wells, 19 in Appalachia and 3 in Haynesville. Moreover, the company optimized its production capabilities to align with fluctuating commodity prices.
Southwestern Energy Company (NYSE:SWN) announced a merger with Chesapeake Energy in a $7.4 billion deal. The merger is expected to be completed by the first week of October. Following the completion, the combined value of the new company is expected to be $24 billion, with Southwestern shareholders owning 40% of the company. Upon completion of the deal, the merged entity will be the largest natural gas producer in the U.S.
However, the company’s debt stood at $4.2 billion, with a net debt-to-adjusted EBITDA ratio of 2.1 times. This reflects significant financial pressure on the company due to its high leverage. Thus, investors must monitor how the company’s debt position works out following the merger. The stock has surged by nearly 7% in the past month.
As of Q2 2024, 49 hedge funds have collectively invested $941 million in the company, according to Insider Monkey’s database, placing it on our list of the best energy stocks to buy.
Overall SWN ranks 1st on our list of best oil stocks to buy under $20. While we acknowledge the potential of SWN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SWN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.
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