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Because of the recent economic turmoil, most investors are bearish about the market, thus betting against it by increasing their short positions. But there are still a few stocks that experienced decreasing short interest, indicating that the majority of investors are increasingly optimistic about these stocks.

Below, we compiled a list of energy stocks with declining short interest. Market data are sourced from Fidelity. All companies in this list have at least 1% open interest and have experienced a decline in their short interest over the past month. These stocks are in energy sector and have at least $6 billion market caps.

Company Name

Symbol

Open interest

Change in short interest

Return since June

KINDER MORGAN INC.

KMI

1.35%

-20.46%

-12.56%

NEXEN INC.

NXY

1.17%

-13.68%

-13.10%

EQT CORP

EQT

2.13%

-33.87%

12.80%

WEATHERFORD INTL

WFT

2.27%

-27.29%

-14.99%

SOUTHWESTERN ENERGY

SWN

2.47%

-21.45%

-16.25%

TRANSOCEAN LTD

RIG

1.91%

-9.17%

-14.74%

BAKER HUGHES INC

BHI

1.57%

-5.84%

-21.57%

LINN ENERGY LLC

LINE

1.20%

-3.17%

-3.05%

CAMERON INTL

CAM

2.55%

-11.76%

-4.00%

ENCANA CORP

ECA

2.53%

-5.65%

-25.66%

NOBLE CORP

NE

2.82%

-5.72%

-13.72%

HALLIBURTON CO

HAL

2.71%

-2.55%

-22.07%

CONTINENTAL RES

CLR

2.93%

-1.35%

-21.98%

DIAMOND OFFSHORE

DO

7.03%

-9.48%

-11.31%

PIONEER NATURAL RES

PXD

8.07%

-11.65%

-18.83%

RANGE RESOURCES

RRC

7.33%

-10.16%

13.15%

Average

-11.74%

These 16 stocks have an average return of -11.74% vs. -12.16% for SPY since the end of June. 5 stocks – RRC, EQT, LINE, CAM, and DO – outperformed the market. RRC and EQT even have double-digit positive returns.

Here are the 16 energy stocks with declining short interest.

Kinder Morgan Inc (NYSE:KMI): Kinder Morgan is one of the largest pipeline transportation and energy storage companies in North America. KMI has an open interest of 1.35%, and its short interest decreased by 20.46% last month. It has a market cap of $20.20B and a P/E ratio of 48.84. KMI has lost 12.56% since the end of June.

Nexen Inc (NXY): Nexen is an independent, Canada-based global energy company. It operates in two segments: Oil & Gas, and Energy Marketing. NXY has an open interest of 1.17%, and its short interest decreased by 13.68% last month. It has a market cap of $10.11B and a P/E ratio of 25.61. NXY has lost 13.10% since the end of June. Thomas E. Claugus holds the biggest position in NXY.

EQT Corp (NYSE:EQT): EQT Corporation produces natural gas, provides gathering, transmission and storage services for the gas, and distributes and sells natural gas to residential, commercial and industrial customers. EQT has an open interest of 2.13%, and its short interest decreased by 33.87% last month. It has a market cap of $8.69B and a P/E ratio of 27.27. EQT has a return of 12.80% since the end of June. Michael Kaufman holds the biggest position in EQT.

Weatherford International Ltd (NYSE:WFT): Weatherford is a provider of equipment and services used in the drilling, evaluation, completion, production and intervention of oil and natural gas wells. WFT has an open interest of 2.27%, and its short interest decreased by 27.29% last month. It has a market cap of $12.07B and a P/E ratio of 69.02. WFT lost 14.99% since the end of June.

Southwestern Energy Co (NYSE:SWN): Southwestern Energy Company is an independent energy company engaged in natural gas and oil exploration, development and production. SWN has an open interest of 2.47%, and its short interest decreased by 21.45% last month. It has a market cap of $12.51B and a P/E ratio of 20.46. SWN lost 16.25% since the end of June. Richard Chilton holds the largest position in SWN.

Transocean Ltd (NYSE:RIG): Transocean is an international provider of offshore contract drilling services for oil and gas wells. RIG has an open interest of 1.91%, and its short interest decreased by 9.17% last month. It has a market cap of $17.57B and lost 14.74% since the end of June. John Paulson holds the largest position in RIG (check out Paulson’s top stock picks here).

Baker Hughes Inc (NYSE:BHI): Baker Hughes is a supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. BHI has an open interest of 1.57%, and its short interest decreased by 5.84% last month. It has a market cap of $25.17B and a P/E ratio of 19.21. BHI has lost 19.21% since the end of June. Jason Capello holds the largest position in BHI.

Linn Energy LLC (NASDAQ:LINE): LINN Energy is an independent oil and natural gas company. Its mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets. LINE has an open interest of 1.20%, and its short interest decreased by 31.7% last month. It has a market cap of $6.56B and has lost 3.05% since the end of June. Leon Cooperman holds the largest position in LINE (check out Cooperman’s top stock picks here).

Cameron International Corp (NYSE:CAM): Cameron provides flow equipment products, systems and services to global oil, gas and process industries, CAM has an open interest of 2.55%, and its short interest decreased by 11.76% last month. It has a market cap of $12.08B and a P/E ratio of 21.38. CAM has lost 4.00% since the end of June. Dmitry Balyasny holds the largest position in CAM.

Encana Corp (NYSE:ECA): Encana is a high-growth, low-cost leader in unconventional natural gas production. It provides a clean, affordable, abundant resource for future generations. ECA has an open interest of 2.53%, and its short interest decreased by 5.65% last month. It has a market cap of $16.76B and a P/E ratio of 47.27. ECA lost 25.66% since the end of June. Jonathon Jacobson holds the largest position in ECA.

Noble Corp (NYSE:NE): Noble is an offshore drilling contractor for the oil & gas industry. NE has an open interest of 2.82%, and its short interest decreased by 5.72% last month. It has a market cap of $8.55B and a P/E ratio of 29.36. NE lost 13.72% since the end of June. David Gallo holds the largest position in NE.

Halliburton Co (NYSE:HAL): Halliburton provides a range of services and products for the exploration, development, and production of oil and natural gas around the world. HAL has an open interest of 2.71%, and its short interest decreased by 2.55% last month. It has a market cap of $36.38B and a P/E ratio of 15.37. HAL has lost 22.07% since the end of June. Ken Fisher holds the largest position in HAL (check out Fisher’s top stock picks).

Continental Resources Inc (NYSE:CLR): Continental Resources is an independent crude oil and natural gas exploration and production company. CLR has an open interest of 2.93%, and its short interest decreased by 1.35% last month. It has a market cap of $9.02B and a P/E ratio of 101.55. CLR lost 21.98% since the end of June. Peter J. Eichler Jr. holds the largest position in CLR.

Diamond Offshore Drilling Inc (NYSE:DO): Diamond Offshore is a global offshore oil and gas drilling contractor. DO has an open interest of 7.03%, and its short interest decreased by 9.48% last month. It has a market cap of $8.60B and a P/E ratio of 8.99. DO lost 11.31% since the end of June. Israel Englander holds the largest position in DO.

Pioneer Natural Resources Co (NYSE:PXD): Pioneer Natural Resources is an independent oil & gas exploration and production company with existing operations in the United States and South Africa. PXD has an open interest of 8.07%, and its short interest decreased by 11.65% last month. It has a market cap of $8.52B and a P/E ratio of 31.54. PXD has lost 18.83% since the end of June. John H. Scully holds the largest position in PXD.

Range Resources Corp (NYSE:RRC): Range Resources Corporation explores, develops and acquires natural gas and oil properties, mostly in the Appalachian and Southwestern regions of the United States. RRC has an open interest of 7.33%, and its short interest decreased by 10.16% last month. It has a market cap of $10.11B and has a return of 13.15% since the end of June. John Griffin holds the largest position in RRC.

Source: 16 Energy Stocks With Declining Short Interest Despite The Volatile Market