Billionaire fund manager George Soros now owns 964,000 shares of Pioneer Natural Resources (NYSE: PXD), one of the biggest players in the Texas Permian Basin.
Soros’s stake is worth about $180 million.
Other investors including Stanley Druckenmiller and John Paulson are buying Pioneer stock as well, the Motley Fool said.
“For those of you unfamiliar with this name, Pioneer is one of the country’s largest independent oil and gas companies. The firm was the first non-integrated player to produce oil from Alaska’s North Slope. Today, the company boasts a great set of high-quality assets in the Eagle Ford, Barnett Shale, and other fields,” the Motley Fool, a value-investor site, said.
Pioneer also has assets in the West Texas Spraberry Wolfcamp. The company estimates Wolfcamp holds 50 billion barrels of recoverable crude oil.
“If accurate, that would make the Wolfcamp one of the largest oil finds ever, seconded in size only to Saudi Arabia’s Ghawar,” the Motley Fool said.
“In some parts of the field, the pay zone is up to 3,500 feet thick. That’s like having six Eagle Fords or eight Bakkens stacked on top of one another.
And assuming $95 crude oil and $4 natural gas prices, each well can generate an internal rate of return between 60% and 150%,” the site said.
Pioneer’s revenues have increased at a 26% compounded annual rate and it expects production to grow 15% per year through 2015, the report said.
“If the Spraberry Wolfcamp can live up to a fraction of the hype, it could be the biggest investment opportunity of 2014,” the Motley Fool said.