Oil and gas are essential to the global economy. They are used to produce a variety of products, including plastics, fuel, and pharmaceuticals. In addition, they are used to power vehicles, homes, and businesses. The oil and gas industry is therefore a vital part of the global economy. In addition, it provides jobs for millions of people and generates trillions of dollars in revenue each year.
What’s more. oil and gas are also important to the world’s energy mix. Together, they account for approximately 80% of the world’s energy consumption. Oil is especially important, as it is the world’s most traded commodity. The oil and gas industry is therefore crucial to the global economy and will continue to be so in the future.
What Are Oil And Gas Stocks?
Oil and gas stocks are a type of equity securities that give investors a stake in companies involved in the exploration, production, refinement, or distribution of oil and gas. Oil and gas stocks can offer investors exposure to a variety of energy-related businesses, from major international oil companies (IOCs) to small exploration and production firms.
While oil and gas stocks may be impacted by a number of factors, including geopolitical risk and commodity prices, they can provide investors with the potential for long-term capital growth. Oil and gas stocks may be suitable for investors with a high tolerance for risk who are looking for exposure to the energy sector. Keeping this on top of mind, here are four trending oil and gas stocks to watch in the stock market today.
Oil And Gas Stocks To Invest In [Or Sell] Today
- Devon Energy Corporation (NYSE: DVN)
- Occidental Petroleum Corporation (NYSE: OXY)
- Kinder Morgan Inc. (NYSE: KMI)
- Cheniere Energy Inc. (NYSEAMERICAN: LNG)
1. Devon Energy (DVN Stock)
Devon Energy Corporation (DVN) is an American energy company with operations in the United States and Canada. In short, Devon Energy is one of the largest independent oil and gas producers in the world. For a sense of scale, as of the second quarter of 2022, Devon Energy has a daily production rate of approximately 616,000 barrels of oil equivalent. Furthermore, the company has a diverse portfolio of assets, including both crude oil and natural gas. Today, DVN shareholders enjoy an annual dividend yield of 7.27%.
DVN Recent Stock News
Just last week, the company announced the completion of its previously announced acquisition of Validus Energy, an Eagle Ford operator. In detail, the deal is valued at a total cash consideration of $1.8 billion. With this acquisition, Devon Energy has added 42,000 net acres, adjacent to the company’s existing leasehold in the basin. Moreover, it gives the company an estimated 35,000 Barrels of Oil Equivalent (BOE), and the company said it estimates this to increase to an average daily Boe of 40,000 over the next year.
Separate from that, also in September, Devon Energy announced they will be releasing its 3rd Quarter of 2022 financial results. Specifically, the company reported it will be announcing its Q3 2022 results after the close of markets on Tuesday, November 1, 2022.
DVN Stock Chart
Shares of DVN stock are up over 40.44% year-to-date outperforming the broader markets. As of Monday’s closing bell, Devon Energy stock jumped 8.50% at $65.33 a share. Given how DVN stock has performed so far this year, do you think it’s worth adding to your oil and gas stocks watchlist today?
[Read More] 2 EV Stocks To Watch Right Now
2. Occidental Petroleum (OXY Stock)
Next, let’s take a look at Occidental Petroleum (OXY). Occidental Petroleum is an American multinational oil and gas exploration and production company. In brief, the company currently has operations in the United States, the Middle East, and Latin America. Additionally, Occidental is one of the largest oil and gas producers in the United States, with nearly 1.2 million barrels of oil equivalent per day of production as of the second quarter of 2022. As of the end of July 2022, OXY has a regular quarterly dividend of $0.13 per share on common stock.
OXY Recent Stock News
In recent news, Occidental and its subsidiary 1PointFive announced they plan to start the engineering and construction for their first large-scale Direct Air Capture (DAC) plant. The plant will be built in Ector County, Texas, and will be an important piece of the company’s low-carbon strategy. In the news announcement, the company said, that once this plant is operational it’s estimated to capture up to 500,000 metric tons of carbon dioxide per year. What’s more, the plant will be the ability to increase that capacity to an estimated 1 million metric tons per year.
The company’s President & Chief Executive Officer commented, “The construction of Oxy’s first DAC plant is an important milestone on the pathway to achieving our net-zero ambitions and helping the world meet the Paris Agreement’s climate goals. We are fortunate to partner with Carbon Engineering and Worley, who share our vision in creating a carbon removal industry that can accelerate the path to net zero.”
OXY Stock Chart
Meanwhile, so far in 2022 shares of OXY stock are up over 109.24%. On Monday, shares of Occidental Petroleum stock gained 4.20% on the day at $64.06 per share. With all this in mind, do you think now is the right time to add OXY stock to your long-term portfolio?
3. Kinder Morgan (KMI Stock)
Kinder Morgan Inc. (KMI) is one of the largest energy infrastructure companies in North America. They own and operate an extensive network of pipelines that transport oil, natural gas, and other petroleum products. Kinder Morgan also owns and operates terminals, storage facilities, and coal mines. For a sense of scale, the company owns an interest or operates approximately 83,000 miles of pipelines, 141 terminals, and 700 billion cubic feet of working natural gas storage capacity. Aside from that, KMI shareholders currently enjoy an annual dividend yield of 6.48%.
KMI Recent Stock News
Last week, Kinder Morgan announced that it has sold its equity interest in Elba Liquefaction Company L.L.C. Diving in, the company reported it has closed on the sale for its 25.5% equity interest in the amount of nearly $565 million. In addition, KMI said these proceeds from the sale will help lower the company’s short-term debt.
Furthermore, Kinder Morgan Interstate Natural Gas President Kimberly Watson said this in the release to shareholders, “We are pleased to welcome a new partner into the ELC joint venture. Recent geopolitical events have proven how critical liquefied natural gas (LNG) infrastructure is to meeting global energy demand. We believe this investment further shows the value of LNG and demonstrates the important role it will play for decades to come.“
KMI Stock Chart
In the last 6 months of trading action, shares of KMI stock have fallen over 11%. However, year-to-date Kinder Morgan stock has still outperformed the overall broader markets as shares are up over 4% so far this year. As of Monday’s closing bell, KMI stock is trading higher up 2.76% at $17.10 per share. Considering all of this, could right now be an ideal time to add Kinder Morgan to your radar?
[Read More] Cheap Stocks To Buy Now? 2 Tech Stocks To Watch In 2022
4. Cheniere Energy (LNG Stock)
Last but not least is Cheniere Energy (LNG). For the uninitiated, Cheniere Energy is an American-based energy company that is primarily engaged in the business of liquefied natural gas (LNG). For a sense of scope, Cheniere Energy has one of the largest liquefaction platforms in the world. Specifically, it consists of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast. Currently, the company has a total production capacity of approximately 45 million tonnes per annum (MTPA) of LNG in operation.
LNG Recent Stock News
In August, the company reported its second quarter 2022 financial results. In the report, LNG announced it raised its 2022 fiscal year forecast. Diving in, Cheniere Energy reported Q2 2022 earnings of $2.90 per share, along with revenue of $8 billion. This revenue figure represents a 165.4% increase during the same period, in the prior year.
In regards to its fiscal 2022 outlook, LNG said in the release it now estimates 2022 Adjusted EBITDA of $9.8 billion to $10.3 billion. For context, previously the company provided an EBITDA outlook for full-year 2022 of $8.2 billion to $8.7 billion.
Moreover, Jack Fusco, Cheniere’s President, and CEO of the company had this to say about Q2 2022’s financial results, “Our achievements across our operations, execution, capital allocation, and sustainability efforts continue to position Cheniere as a leader in the global LNG market for decades to come.” He continued, “Today we are once again raising our 2022 financial guidance, which is driven by the improved margin environment in the LNG market – underscoring the need for additional investment in natural gas infrastructure globally.“
LNG Stock Chart
In 2022 thus far, Cheniere Energy has seen its stock price increase by over 65%. Meanwhile, LNG closed Monday’s trading day slightly in the green at 0.86% at $167.33 a share. All in all, do you think LNG is a good oil and gas stock to invest in right now?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!
