Dow Jones – Citadel Advisors beefed up stake in struggling supermajor Exxon throughout Q3

Embattled oil and fuel supermajor Exxon Mobil Corp. topped Citadel Advisors LLC’s listing of greatest power and utilities sector holdings on the finish of the third quarter of 2020 after the fund supervisor added almost 6.5 million shares to its place within the firm.

Citadel’s 0.2% stake in Exxon was valued at simply $246 million as of Sept. 30, based on the fund supervisor’s newest Kind 13F submitting. The driller, which was the world’s greatest firm in 2011, exited the Dow Jones Industrial Common index in August and posted a third-straight quarterly earnings loss for the third quarter because it continued to reel from the oil price crash. Exxon additionally warned it may write down as much as $30 billion in pure fuel holdings within the U.S. and Canada, with one trade analyst not too long ago calling the agency “trapped provided that they’re chopping prices and [capital expenditures] as arduous as potential.”

Citadel’s complete power and utilities portfolio, in the meantime, rose almost 33% from $3.24 billion to $4.31 billion on the finish of the earlier quarter.

The fund supervisor’s high purchase by the variety of shares through the third quarter was unbiased oil and fuel producer Noble Vitality Inc., which Chevron Corp. acquired Oct. 5 for $12.82 billion. That listing additionally included U.S. shale drillers Apache Corp., Antero Sources Corp. and Southwestern Vitality Co., in addition to Occidental Petroleum Corp.

Citadel added 43 new power and utilities stocks to its portfolio, with a 0.2% stake in utility Dominion Vitality Inc. worth $121.2 million as the largest addition. The fund supervisor additionally invested in fuel pipeline big Williams Cos. Inc., which not too long ago introduced a purpose of net-zero greenhouse fuel emissions by 2050, and in oil producer Whiting Petroleum Corp., which emerged from Chapter 11 chapter Sept. 1.

Citadel’s greatest stake sale through the third quarter by the variety of shares was 10.9 million positions in utility PG&E Corp., which shut off energy to a whole bunch of 1000’s of shoppers in August when a heatwave prompted California’s first rolling blackouts in nearly 20 years.

The fund supervisor additionally slashed its stake in Marathon Oil Corp. by over 81% as the corporate’s dividend remained suspended.

Citadel Advisors bought off its stakes in 69 power and utilities corporations. The most important exit was Eversource Vitality, the place the fund supervisor held a stake valued at $17.Three million on June 30.

Citadel additionally unloaded its positions in utilities Avangrid Inc. and Southern Co.