Halliburton’s broad portfolio of products and services caters to various segments of the oil and gas industry, from exploration and drilling to production and reservoir optimization. This diversification allows the company to capture opportunities across different market segments and adapt to changing industry dynamics. Its share price has risen 50% to $25 in the last year as the price of crude oil has climbed. In addition to the share price appreciation, other reasons to like MRO stock include its 1.42% dividend yield, $3 billion stock buyback program, and its low P/E ratio of 4.88. Plus, Wall Street analysts, on average, forecast that the company’s earnings more than tripled in 2022.
Share
- As a further nod to the future, Eni is also undergoing a significant transition away from fossil fuels as it targets an 80% reduction in its carbon footprint by 2040.
- Another great attribute of XOM stock is that it is a Dividend Aristocrat.
- It charges transportation fees to the oil and gas companies that use its pipelines.
- One of the main pressing points in the conference was the need for lower oil prices and the new president’s demand for interest rates to be lowered immediately, leaving investors with a couple of conclusions to make.
- While different segments of the industry come with their own set of risks, factors such as economic growth, geopolitics, and capital allocation can impact the industry as a whole.
So, not only will the top and bottom lines improve if energy rallies, but so will the balance sheet. Investors will likely reward the stock very well if energy markets rebound in 2025. Ultimately, while the oil and gas sector presents opportunities for growth and stability, investors should approach it with caution and diligence.
Oilfield services
- Analysts are increasingly bullish on oil stocks in the refinery sector as we approach summer, and one of the players they like best is Phillips 66 (PSX, $77.94).
- Lastly, we dug into research, fundamental factors, valuation, analysts’ estimates and other data on the top names.
- These are the five oil and natural gas stocks in the S&P 500 Index with the best one-year performance.
- It expects to ramp its annual repurchase rate from $5 billion to $7 billion in 2025, putting it on track to retire all the equity it issued to acquire Marathon Oil over the next two to three years.
This should make any investors cautious and looking to diversify, despite dividend yields that beat almost every other stock on the market. Generally speaking, it is relatively risky to buy individual stocks rather than index funds that provide broader exposure to the market. If you believe oil and gas companies will do well but aren’t sure which ones to pick, you could also consider investing in an exchange-traded fund linked to oil.
Here’s why this is a deal you can’t afford to pass up:
Finally, keep in mind that Enbridge is a midstream company, and not necessarily affected by gas prices. It charges transportation fees to the oil and gas companies that use its pipelines. This makes Enbridge stock slightly less volatile than other oil company stocks.
Should You Invest $1,000 in Exxon Mobil Right Now?
Oilfield services companies can also see big swings in profitability driven by oil prices. If oil prices go down, drilling becomes less profitable, and producers are less likely to spend money on equipment and services. If the price goes up, producers may spend more on oilfield services as they try to reach reserves that are more difficult to extract. Companies that look and drill for oil are among the most volatile stocks in the oil space, Jones says, and their prices are very responsive to short-term trends. This can be a benefit if you buy at the right time or if the company you’re investing in makes a significant discovery of natural resources.
Go the integrated route with Chevron and ExxonMobil
He has more than 15 years of experience as a reporter and editor covering business, government, law enforcement and the intersection between money and ideas. In these roles, Andy has seen cryptocurrency develop from an experimental dark-web technology into an accepted part of the global financial system. Enbridge owns extensive midstream assets that transport hydrocarbons across the U.S. and Canada. Its pipeline network consists of the Canadian Mainline system, regional oil sands pipelines, and natural gas pipelines. The company also owns and operates a regulated natural gas utility and Canada’s largest natural gas distribution company.
It currently controls a resource portfolio of more than 10 billion barrels of oil equivalent that can generate an average direct after-tax rate of return above 55% at $45 oil. Industry leaders like ConocoPhillips (COP 0.96%), Devon Energy (DVN -0.07%), and EOG Resources (EOG -0.13%) can produce prodigious cash flows at $70 crude oil. Because of that, they are great oil stocks to buy right now for those seeking to cash in on the current environment. Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. Exxon Mobil, AltC Acquisition, GE Vernova, Constellation Energy, ServiceNow, Procter & Gamble, and Chevron are the seven Oil stocks to watch today, according to MarketBeat’s stock screener tool.
Diamondback is one of the best-performing independent oil and gas companies on Wall Street. Diamondback Energy’s business is fairly straightforward, extracting onshore oil and natural gas reserves, mostly in the Permian Basin in and around West Texas. Shell is a familiar brand to American motorists and indeed to consumers in 70 countries and territories globally. In fact, if it were a domestic stock it would be the third largest component of the S&P 500 energy sector— just behind giant $273-billion market capitalization Chevron (CVX). And in fiscal 2022, Shell’s $381 billion in total revenue was close behind the $399 billion posted by megacap leader Exxon Mobil (XOM). The price of oil is headed higher and with it some of the big oil stocks that benefit from the action.
The company is also dedicated to environmental sustainability and technological innovation, bolstering its long-term outlook. However, challenges like commodity price volatility, regulatory changes and environmental concerns loom. President-elect Donald Trump advocates for reducing regulations on the oil sector to boost U.S. production, a move that could exert downward pressure on oil prices. However, with U.S. crude output already near record highs, questions arise about the industry’s capacity to increase production further. Even if they could, companies may hesitate, as ramping up output could drive prices down, potentially impacting profits and shareholder returns. Most notably, however, Trump has vowed to revoke China’s most-favored-nation trading status and impose tariffs exceeding 60% on Chinese imports—far surpassing the levels enacted during his first term.
Its portfolio is split roughly 50/50 between oil and natural gas (and natural gas liquids). The company has roughly a decade’s worth of inventory on which to drill additional wells in support of long-term growth. Even if energy prices fall, Devon Energy as a company is highly likely to muddle through.
In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap. While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes. We believe everyone should be able to make financial decisions with confidence. No, Oil stocks can represent R&D, refining, sales, lateral oil products and many more segments of the industry.
That further enhanced ConocoPhillips’ resource portfolio, which has over 20 billion barrels of resources with an average cost of supply at $32 per barrel. Since getting oil out of the ground is ConocoPhillips’ only revenue source, there are some important things that investors need to understand before buying this or any pure-play upstream stock. Halliburton is a leading global provider of products and services to the energy industry, serving customers in more than 80 countries. With a history dating back to 1919, the company has established itself as a trusted partner in the exploration, development and production of oil and natural gas resources.
“Estimates have been broadly trending upward for the stock, and the magnitude Best oil stock of these revisions looks promising,” notes Zacks Equity Research, which rates shares at Strong Buy. “We expect an above-average return from the stock in the next few months.” Analysts’ average target price of $47.00 gives PDCE implied upside of about 33% over the next year or so.
