Oil stocks are a type of stock that represents ownership in oil companies. These stocks can be bought and sold on the stock market, and they offer investors a way to profit from the oil industry. Generally. oil stocks are categorized as either exploration & production, or refinery. In detail, oil companies focused on exploration and production represent oil companies that are involved in the process of finding and extracting oil. Meanwhile, oil companies focused on refineries represent oil companies that refine crude oil into finished products like gasoline.
For example, exploration and production companies are names like Devon Energy Corporation (NYSE: DVN) and Occidental Petroleum (NYSE: OXY). Meanwhile, an example of refinery companies are firms like Phillips 66 (NYSE: PSX) and CVR Energy Inc. (NYSE: CVI). Both types of oil stocks can offer investors a way to profit from the oil industry. So, whether you’re looking for stability or upside potential, oil stocks may be worth considering as part of your investment portfolio. Now, here are three top oil stocks to watch this week in the stock market.
Oil Stocks To Watch This Week
- Exxon Mobil Corporation (NYSE: XOM)
- Chevron Corporation (NYSE: CVX)
- Marathon Oil Corporation (NYSE: MRO)
1. Exxon Mobil (XOM Stock)
First up, Exxon Mobil (XOM) is an American oil and gas corporation. It is headquartered in Irving, Texas, and is engaged in the business of exploration, production, transportation, and sale of crude oil, natural gas, and petroleum products.
XOM Recent Stock News
Currently, XOM has a current annual dividend yield of 3.66%. At the end of July, XOM announced its Board of Directors has declared its third quarter cash dividend of $0.88 per share on common stock. What’s more, Exxon Mobil has increased its annual dividend payment to its shareholders for the last 39 straight years.
Separate from that, also in July, Exxon Mobil reported better-than-expected second quarter of 2022 fiscal results. In the report, the company reported earnings of $4.14 per share and revenue of $115.7 billion for the quarter. For context, Wall Street’s consensus estimates for Q2 2022 were earnings of $3.80 per share, with revenue of $120.2 billion. With that, the company notched in a 70.8% increase in revenue on a year-over-year basis.
Moreover, Darren Woods, chairman, and CEO at Exxon Mobil had this to say about the quarter, “Earnings and cash flow benefited from increased production, higher realizations, and tight cost control. “Strong second-quarter results reflect our focus on the fundamentals and the investments we put in motion several years ago and sustained through the depths of the pandemic.“
XOM Stock Chart
So far in 2022, shares of XOM stock have outperformed the broader markets as they are up over 34.44% year-to-date. On Monday morning, Exxon Mobil stock is trading at $85.63 per share. Considering this, do you think XOM stock is good oil stock to buy right now?
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2. Chevron (CVX Stock)
Next, Chevron Corporation (CVX) is one of the world’s largest energy companies. For a sense of scale, the company has operations in more than 180 countries worldwide. In addition, Chevron is engaged in every aspect of the oil and gas industry. This includes exploration and production to refining and marketing. Chevron is also a major manufacturer of petrochemicals, and it has interests in coal, alternative energy sources, and power generation. Today, Chevron shareholders enjoy an annual dividend yield of 3.59%.
CVX Recent Stock News
Aside from that, also in July, Chevron reported stronger-than-expected results for its second quarter 2022 financials. Getting straight to it, Chevron reported earnings of $5.82 per share, along with revenue for the quarter of $68.8 billion. This came in stronger than analysts’ consensus estimates for Q2 2022, which was earnings of $5.02 per share, and revenue of $55.1 billion. What’s more, the second quarter’s revenue figures represent a growth of 83% on a year-over-year basis. Additionally, Chevon reported that its cash flow from operations came in at $13.8 billion while notching in a free cash flow of $10.6 billion for Q2 2022.
Moving along, Mike Wirth, CVX Chairman & CEO commented in his letter to shareholders, “We more than doubled investment compared to last year to grow both traditional and new energy business lines. With Permian production more than 15 percent higher than a year ago and now as one of the leading renewable fuel producers in the United States, Chevron is increasing energy supplies to help meet the challenges facing global markets.”
CVX Stock Chart
Meanwhile, year-to-date CVX stock is up over 20% as of Monday morning’s trading session at $143.80 per share. With all the buzz around oil right now, could Chevon Corporation be a good addition to your list of oil stocks to watch this week?
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3. Marathon Oil (MRO Stock)
Last but not least, Maraton Oil Corporation (MRO) is an American petroleum and natural gas exploration and production company. The company is engaged in oil and gas exploration and production in the United States, Canada, Europe, the Middle East, and Africa. Also, Marathon also operates a refining business in the United States through wholly owned Marathon Petroleum Corporation (NYSE: MPC). Aside from that, MRO has an annual dividend yield of 1.25% for shareholders.
MRO Recent Stock News
In July, Marathon Oil reported its 2nd quarter 2022 fiscal results. Diving right into the report, the company announced earnings of $1.32 per share, along with revenue of $2.3 billion for Q2 2022. These results came in stronger-than-estimated compared to the consensus estimates of $1.23 earnings per share, and $1.9 billion in revenue. These revenue numbers signify a 101.5% increase in revenue during the same period, in 2021. What’s more, Marathon Oil Corporation notched in a record quarterly adjusted free cash flow of over $1.2 billion at a 24% reinvestment rate.
Chairman, President, and CEO Lee Tillman commented in his letter to shareholders, “Our commitment to providing investors with the first call on cash flow through our unique percentage of operating cash flow framework is delivering truly compelling results, including generating over $2 billion of adjusted free cash flow and returning over $1.7 billion of capital to shareholders year-to-date, while also driving significant per share growth. Despite ongoing macro and equity market volatility, we remain well positioned to continue delivering financial results that compete with the best companies in the S&P 500.“
MRO Stock Chart
Continuing on, so far this year MRO stock has advanced by over 29% as of Monday morning’s trading session at $21.88 per share. After reading about its most recent quarterly report, is now the time to add Marathon Oil Corporation to your radar in the stock market today?
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