Steven Cohen Buys Stake in Texas Oil Company

Author's Avatar
Dec 17, 2014
Article's Main Image

Steven Cohen (Trades, Portfolio) has invested in a Texas-based oil and gas company, Jones Energy Inc. (JONE, Financial), according to GuruFocus RealTime Picks.

Cohen purchased 641,600 shares of the company, equating to 5.1% of its outstanding shares. He invested primarily through Point72 Asset Management, the new name of his hedge fund that was formerly called SAC Capital Advisors LP and which manages only his personal fortune after settling insider-trading allegations in March. Cohen also purchased 598 shares under Cubist Systematic Strategies LLC, the new name of his quantitative business.

03May20171228421493832522.png

Jones Energy operates oil and natural gas wells in the Anadarko and Arkoma basins of Texas and Oklahoma. For the three months ended Sept. 30, 2014, Jones Energy reported $99.7 million in oil and gas sales, a 45.3% increase from $68.6 million in sales for the same period the prior year. Average daily production increased to 24,478 barrels per day, compared to 17,380 Boe in the same period a year ago as crude oil, natural gas and natural gas liquids production all increased.

Jones Energy also reported $52.2 million in net income for the third quarter, compared to a net loss of $15.5 million a year ago. The increase was driven by increases in volume and minor increase in average price, offset by a rise in lease operating expenses, and depletion, depreciation and amortization expenses.

03May20171228431493832523.png

The company also increased its capital expenditures budget from $350 million at Dec. 31, 2013, to $460 million at the end of its second quarter. Of the $350 million slated at the end of 2013, $310 was allocated to drill and complete new wells.

In the third quarter, the company spent $120 million of its $131.2 capital expenditure budget on drilling and completing new wells.

03May20171228431493832523.png

Jones Energy shares have declined 16.4% in the past year. Shares gained 17.5% on Monday, to close at $12.35 per share.

For more stock trades of Gurus in real time, visit GuruFocus’ Real Time Picks, a Premium Feature. Not a Premium Member of GuruFocus? Try it free for 7 days here.