Oil stocks are an important part of any portfolio. For starters, oil stocks are a type of investment that can provide exposure to the energy sector. Energy stocks, which include oil and gas companies, are typically more volatile than the overall market and can be subject to large swings in price. Oil stocks tend to do well when the economy is growing and the demand for energy is high.
However, oil stocks can also be volatile due to geopolitical factors such as tensions in the Middle East. As a result, oil stocks can be a risky investment, but one that can offer significant rewards for those who are willing to take on the risk. If you’re keen on investing in the energy sector, check out these three large-cap oil stocks in the stock market today.
Oil Stocks To Invest In [Or Avoid] Today
- Diamondback Energy Inc. (NASDAQ: FANG)
- Chevron Corporation (NYSE: CVX)
- Occidental Petroleum Corporation (NYSE: OXY)
1. Diamondback Energy (FANG Stock)
First, Diamondback Energy (FANG) is an independent oil and gas producer in the United States. For starters, Diamondback Energy operates exclusively in the Permian Basin. Meanwhile, as of the end of the fiscal year 2021, the company announced net proven reserves of 1.8 billion barrels of oil equivalent. Currently, FANG has an annual dividend yield for stockholders of 2.07%.
FANG Recent Stock News
Earlier this month, Diamondback Energy released its 3rd quarter of 2022 financial and operating results. In the report, FANG notched in earnings of $6.48 per share to go along with revenue of $2.4 billion for Q3 2022. Meanwhile, analysts’ consensus estimates for Q3 2022 were an EPS of $6.51 per share and revenue of $2.4 billion. What’s more, Diamondback Energy reported a 27.6% increase in revenue on a year-over-year basis.
Furthermore, Travis Stice, Chairman and Chief Executive Officer of Diamondback commented, “The third quarter was another solid quarter for Diamondback. We focused on cost control, working to mitigate inflationary pressures associated with the variable components of our cost structure through improved operational techniques. By doing so, we continue to be the leader in low-cost operations, maximizing returns for our stockholders.“
FANG Stock Chart
Year-to-date shares of FANG stock are still up 29.08%, outperforming the broader markets so far in 2022. While, on Monday, Diamondback Energy stock is trading down 7.59% at $144.16 per share.
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2. Chevron (CVX Stock)
Second, we have Chevron Corporation (CVX). In brief, the company is an integrated energy company with global operations specializing in exploration, production, and refining operations. For a sense of scale, Chevron is the second-biggest oil company in the United States, with a production of 3.1 million barrels of oil equivalent a day.
CVX Recent Stock News
At the end of last month, Chevron reported better-than-expected 3rd quarter 2022 financial results. In detail, the energy giant announced Q3 2022 earnings of $5.56 per share and revenue of $66.6 billion. This revenue figure represents a 49.1% increase in revenue versus the same period, a year prior. What’s more, the company also announced it paid dividends of $2.7 billion, which represents a 6% increase per share on a year-over-over basis.
Moreover, Mike Wirth, Chevron’s chairman, and CEO said, “We delivered another quarter of strong financial performance with return on capital employed of 25 percent. At the same time, we’re increasing investments and growing energy supplies, with our Permian production reaching another quarterly record.“
CVX Stock Chart
Separate from that, shares of Chevron Corporation are up 47.74% so far in 2022. As of Monday’s trading session, CVX stock is trading lower by 3.72% at $176.20 a share.
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3. Occidental Petroleum (OXY Stock)
Last but not least, Occidental Petroleum (OXY) is an independent exploration and production company. The company currently has operations in the United States, Latin America, and the Middle East. For a sense of scale, as of the end of the fiscal year 2021, OXY reported net proved reserves of 3.5 billion barrels of oil equivalent. Today, OXY offers its shareholders an annual dividend yield of 0.77%.
OXY Recent Stock News
Just this month, Occidental Petroleum announced its third-quarter 2022 financial and operating results. Diving in, OXY reported Q3 2022 earnings of $2.44 per share, along with revenue for the quarter of $9.5 billion. Additionally, OXY notched in a 39.4% increase in revenue versus the same period, in 2021. Also in the report, the company announced it repurchased over 28.4 million shares, equating to $1.8 billion in share repurchases for the quarter.
President and CEO at OXY Vicki Hollub commented, “The excellent operational performance of our businesses in the third quarter was a key driver of our strong financial results, enabling us to raise our full-year guidance for all of our business segments and generate free cash flow to advance our shareholder returns and deleverage our balance sheet.“
OXY Stock Chart
Year-to-date, OXY has outperformed the broader markets, as shares are up 115.71%. Meanwhile, on Monday, OXY stock is trading lower by 5.67% at $67.22 a share.
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