Are These The Best Oil Stocks To Buy Right Now?
It’s no secret that oil stocks have had a strong year so far in the stock market. Sure, there are a lot of macroeconomic conditions that sent oil prices upward this year. But there’s no doubt that the Russian invasion of Ukraine has been a huge catalyst. Meanwhile, President Joe Biden called on Congress to pass a three-month suspension of the federal gas tax to help combat record oil prices. I’m not sure about you, but it appears to me that this is only going to spur more demand. For this reason, I’m not surprised why oil prices edged higher today. Thus, it could make sense for investors to put up a list of best oil stocks to buy right now.
What’s more, Schlumberger (NYSE: SLB) Chief Executive Olivier Le Peuch said that spending in the global oil exploration and production industry is set to accelerate broadly and drive an increase in output. “The need for reliable energy supply and reinvestment in our industry remain very compelling, and will ultimately extend the growth cycle, both in terms of duration and magnitude,” Le Peuch said. Thus, even though oil seems to be at its peak these days, there are still some great opportunities for investors to consider. Considering all these, let’s take a look at some of the top oil stocks in the stock market today.
Oil Stocks To Buy [Or Sell] Today
- Occidental Petroleum Corporation (NYSE: OXY)
- Exxon Mobil Corporation (NYSE: XOM)
- The ConocoPhillips Company (NYSE: COP)
- Chevron Corporation (NYSE: CVX)
- Marathon Oil Corporation (NYSE: MRO)
Occidental Petroleum
Occidental Petroleum is an international energy company that has assets primarily in the U.S., Middle East, and North Africa. Impressively, the company is one of the largest oil producers in the U.S. and a leading producer in the Permian and DJ basins, and the offshore Gulf of Mexico. Its midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas products. The company also has its Oxy Low Carbon Ventures subsidiary that is advancing leading-edge technologies and business solutions that economically grow its business.
According to SEC filings on Wednesday, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) bought another 9.6 million shares of OXY stock. With this move, Berkshire has now raised its stake in OXY to 16.3%. In particular, the purchases were made over the past week and cost about $529 million. This comes after a $336 million share purchase by Berkshire last month and a whopping $7 billion earlier this year. Through all this, Berkshire now owns about 152.7 million shares in OXY. Given this investment by Berkshire, is OXY stock a buy?
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ExxonMobil
Another top oil stock investors may be watching right now is ExxonMobil. As most would know, ExxonMobil is among the largest players in the global energy and petrochemical market today. Through its vast portfolio, the company serves the energy needs of the world. Among ExxonMobil’s core divisions would be its Upstream, Product Solutions, and Low Carbon Solutions. Through this, the company produces energy, chemicals, lubricants, and low-emission tech.
On Tuesday, ExxonMobil and QatarEnergy announced that they have entered into an agreement to further develop Qatar’s North Field East (NFE) project. Under the terms of the agreement, the two will become partners to form a new joint venture company (JV). In detail, QatarEnergy will hold a 75% interest with ExxonMobil holding the remaining 25% interest. Overall, the JV will own 25% of the entire NFE project, including four LNG trains with a combined nameplate capacity of 32 million tons per year. Considering this partnership, should you invest in XOM stock?
ConocoPhillips
Following that, we will be looking at the independent exploration and production company, ConocoPhillips. For the uninitiated, this is a company that explores, produces, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. With operations in 14 countries around the world, while boasting $87 billion worth of total assets, I could see why investors may be interested in investing in COP stock.
Similar to ExxonMobil, QatarEnergy also awarded ConocoPhillips a key stake in its NFE project. Specifically, a 25% interest in a new JV. The joint venture will hold a 12.5% stake in the 32 million tonnes per annum NFE development, according to QatarEnergy. In other news, ConocoPhillips last month reported its first-quarter 2022 earnings. The company’s earnings for the quarter were $5.8 billion, or $4.39 per share. This is a huge leap compared to its prior year’s quarter of $1.0 billion, or $0.75 per share. Given these developments, should you add COP stock to your watchlist?
Chevron
Chevron is an integrated energy and chemicals giant with operations in the upstream and downstream segments. The company has been active in its expansion on the liquefied natural gas (LNG) front. This is apparent from two of its latest transaction announcements revealing LNG purchases from two U.S. exporters yesterday. For starters, the company now expects to receive 2 million tonnes per annum (mtpa) from Cheniere Energy (NYSEAMERICAN: LNG). According to the company, the full delivery of this will begin in 2027 and span 15 years.
What’s more, Chevron is also expecting an order of LNG from Venture Global, a private LNG developer. Similar to its agreement with Cheniere, Chevron has a 2mtpa order here that spans 20 years. In the larger scheme of things, this would indicate that Chevron continues to expand the diversity of its oil offerings. Ideally, by signing these LNG offtake agreements, Chevron would be getting into the LNG game. This would be, of course, without the risks and costs of initial development efforts. Considering all these, would CVX stock make your list of top oil stocks to buy right now?
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Marathon Oil
Marathon Oil is an exploration and production company that focuses on four of its most competitive resource plays in the U.S. Namely, they include the Eagle Ford in Texas, the Bakken in North Dakota, Stack and Scoop in Oklahoma, and the Permian in New Mexico. It also boasts a world-class integrated gas business in Equatorial Guinea. Its portfolio is oil-weighted but well balanced with an approximate 50% oil and 50% gas/NGL production mix.
On May 4, Marathon posted its earnings for the first quarter of the year. Jumping in, the company’s total revenues and other income amounted to $1.75 billion, representing an increase of 63.5% year-over-year. Meanwhile, the company reported a net income of $1.3 billion, or $1.78 per diluted share. In the same earnings report, the company said it expects over $4.5 billion of adjusted free cash flow this year. This would put the company in a prime position to continue delivering an encouraging return on capital. Considering its quarterly performance, is MRO stock worth adding to your portfolio?
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