Insider Buying

The Energy Sector Continues to See Insider Buying

The energy sector has been the best-performing sector in 2022 so far. With oil and gas prices exploding to the upside on the back of supply shortage concerns, revenues and cash flows across the sector have risen dramatically.

Back in March, we noted that there had been a considerable level of insider buying in the energy sector in the first few months of the year. And what’s interesting is that energy industry insiders have continued to buy stock in recent months, despite the fact that share prices across the sector have risen significantly over the last 12 months. This suggests that insiders believe the uptrend has further to run. With that in mind, here’s a look at five energy stocks that have seen notable insider buying recently.

Occidental Petroleum

Let’s start with integrated energy company Occidental Petroleum Corp (OXY:US), which has operations in the US, the Middle East, Africa, and Latin America.

Here, President and CEO Vicki Hollub bought 14,191 shares at a price of $56.24 per share on March 28. This trade cost the insider just under $800,000 and increased her holding to 467,282 shares.

Price Chart of Occidental Petroleum with buy and sell events highlighted
We thought this trade was interesting due to the fact that Ms. Hollub has extensive company experience. During her 35-year career with Occidental, she has held a range of top-level positions across multiple continents, and before becoming President and CEO, she served as President and Chief Operating Officer. This means she is likely to know the company very well.

Additionally, this trade came shortly after Warren Buffett spent several billion dollars on OXY stock.

In hindsight, Ms. Hollub’s trade was timed well. In late May, Occidental’s share price hit $74 – its highest level since 2018.

Suncor Energy

Next up is Canadian firm Suncor Energy (SU:CN), which is focused on developing one of the world’s largest petroleum resource basins – the Athabasca oil sands in northeastern Alberta, Canada.

Here, two board members, Russ Girling and Mike Wilson, purchased stock between May 12 and May 16 at prices of between CAD $44.94 and CAD $48.04 per share. In total, the two insiders spent a little over CAD $1 million on Suncor stock.

Suncor Energy's price over last year displayed on chart
We were particularly interested in Mr. Girling’s trading activity here, as he has considerable experience in the energy industry (he previously served as President and CEO of TransCanada Pipelines Limited and TC Energy Corporation) and has demonstrated the ability to make well-timed stock purchases in the past. He also spent nearly $700,000 on stock and increased the size of his holding significantly.

Since this insider trading activity, the stock has continued to rise, hitting CAD $53.60 at one point earlier in June.

HF Sinclair

Diversified energy company HF Sinclair (DINO:US), which manufactures and sells products such as gasoline, diesel fuel, jet fuel, and renewable diesel, has also seen some notable insider buying recently.

Here, Chairman Franklin Myers bought 10,700 shares at a price of $46.27 per share on May 24. This trade cost the insider $495,089 and increased his holding to 94,915 shares.

HF Sinclair price over last year shown with significant trade events highlighted
We highlighted this trade at the time due to the fact that Mr. Myers made a number of well-timed purchases in 2021. Our data showed that the insider added to his holding on several occasions last year when the stock was trading between $30 and $35.

His latest purchase, at $46.27, was timed well too. Since this trade, the stock has risen as high as $58.50.

Repsol

Turning to Europe, we recently spotted some interesting insider buying at Repsol (REP:SM). It has an integrated business model that ranges from oil and gas exploration and production to the commercialization of energy solutions for the home and mobility.

Here, CEO Josu Jon Imaz purchased 10,000 shares at a price of €14.95 per share on May 31. This trade cost the insider just under €150,000 and increased his holding to 559,846 shares.

Chart displaying price of Repsol over last year
This is another insider that has made well-timed purchases in the recent past. In February 2022, for example, Mr. Imaz picked up 10,000 shares when Repsol was trading at €11.45 – about 30% below the recent high of €16.23.

His latest purchase, of another 10,000 shares, suggests that he believes the stock is set to keep rising.

Topaz Energy

Finally, in the small-cap space, we recently observed some bullish insider buying at Topaz Energy Corp (TPZ:CN). Topaz Energy is a Canadian royalty and energy infrastructure company that was established in November 2019 through its key counterparty, Tourmaline Oil Corp.

Here, both CEO Marty Staples and CFO Cheree Stephenson bought TPZ stock between May 31 and June 10. The former picked up 4,200 shares at a price of CAD $23.82 per share, while the latter acquired 10,750 shares at a price of CAD $23.57 per share. Combined, the two insiders spent around CAD $350,000 on the stock.

Meanwhile, earlier in May, Mike Rose, Chairman, President, and CEO of Tourmaline picked up 10,000 shares at a price of CAD $23.31 per share, spending roughly CAD $233,000 on the stock.

Increase in Topaz Energy's stock price displayed on a chart
We highlighted this insider buying due to the fact that both Mr. Staples and Ms. Stephenson are top-level insiders with extensive industry experience. This means that they are likely to have a very good understanding of the company, and its prospects.

Since these purchases, Topaz Energy’s share price has experienced a pullback. Insiders here clearly believe it’s set to move higher though.

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