Energy Exploration Attracts

A number of hedge funds have invested in companies that look for oil and gas or acquire properties with proven reserves. Among the favorites is Plains Exploration & Production Company but big producers like Exxon Mobil continue to attract investors as well.

Louis Bacon’s firm, Moore Capital, is among the buyers of  Plains Exploration. George Soros’ Soros Fund Management owns more than 5% of Plains Exploration, having recently increased its holding.

Energy in general looms large in portfolios, but there are many ways to buy energy, even when you just consider stocks. Some prefer small explorers with a potentially rich property but little or no current output. Others go for established diversified companies— Goldman Sachs’ funds apparently like Chevron Corp. as well as Exxon.

Why did Plains Exploration appeal to Messrs. Bacon and Soros?  Perhaps the new deals it made look promising. It acquired Eagle Ford Shale lands and sold its shallow water shelf assets to McMoRan Exploration Co.   One oil company used to be a portfolio mainstay but no longer seems to be—-BP.  Shows how fast the energy field can change.

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