On this page, neither the author nor The Motley Fool have chosen a “top stock” by personal opinion. Suncor recently announced its 2024 Q4 production rose to a record 874,000 b/d, a quarterly record (and a total operational production record in all of 2024). Suncor stock has increased as well, trading near its 5-year high of $40. Suncor has a respectable dividend yield of 4.04% and pays out quarterly.
- Even if they could, companies may hesitate, as ramping up output could drive prices down, potentially impacting profits and shareholder returns.
- This makes Enbridge stock slightly less volatile than other oil company stocks.
- There are several online brokers that can help you buy stock in oil companies.
- Meanwhile, management is committed to paying a fixed dividend and even expects to increase it in the near term.
- It expects to grow its free cash flow by more than 10% annually through 2027 (assuming Brent averages $60 a barrel), fueled by high-return capital investments into its existing resource portfolio.
Top Canadian oil stocks
Oil stocks are shares of ownership in companies involved in the exploration, extraction, refining, or distribution of oil. Buying these stocks provides investors a way to gain exposure to the oil industry and its financial performance. These companies had the highest dollar trading volume of any Oil stocks within the last several days. These catalysts should combine with ConocoPhillips’ already strong base business to produce more free cash flow over the coming years as long as oil prices cooperate.
The Street projects the firm to generate average annual EPS growth of 8% over the next three to five years, and yet shares change hands at less than 11 times estimated earnings for 2022. “Devon has a highly productive portfolio of top-tier assets, mostly located in shale-rich basins with relatively low extraction costs,” writes Argus Research analyst William Selesky, who rates DVN at Buy. “This provides the company with a competitive advantage, especially with oil prices above $50 per barrel.” The transaction will also be immediately accretive to its earnings, cash flow, and return of capital to shareholders. ConocoPhillips expects to capture over $1 billion in cost and capital synergies in its first year of ownership (up from its initial expectations of Best oil stock $500 million).
Of the 34 analysts covering PXD tracked by S&P Global Market Intelligence, 19 rate it at Strong Buy, nine say Buy and six have it at Hold. Their average target price of $192.81 gives shares implied upside of about 30% over the next 12 months or so. Devon continues to generate strong cash flows fueled by rising production and its recent acquisition. In Q3, Devon generated $786 million in free cash flow (FCF), up more than 30% sequentially. It returned nearly 55% of the FCF to shareholders in the form of dividends and share buybacks.
That positions the company to produce a lot of cash, even if oil prices fall. The process began with research and analysis of various factors impacting the oil and gas sectors, including industry trends, macroeconomic conditions, company financials and competitive positioning. In summary, crude oil prices exert a multifaceted influence on the oil and gas sectors, shaping companies’ revenues, investment decisions, production costs, consumer demand and stock market performance. As such, investors in oil and gas stocks must closely monitor crude oil price dynamics to navigate market volatility and identify potential investment opportunities.
- In fact, in April 2022, it became the first TSX-listed oil and gas company to surpass a $100 billion market capitalization.
- On this page, neither the author nor The Motley Fool have chosen a “top stock” by personal opinion.
- But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.
- At the top of our list of best oil stocks, Exxon is one of the largest oil companies in the world by market cap, only behind the mostly state-owned Saudi Aramco.
- DVN stock is up 28% in the past 12 months but currently sits 25% below its 52-week high of $79.40.
Services
Oil stocks have been pretty slick in 2021, rising sharply in anticipation of a massive recovery in global economic activity as the COVID-19 pandemic fades. By focusing on the top 50% of Zacks Ranked Industries, you can dramatically improve your stock picking success. The industry with the best average Zacks Rank would place in the top 1% of Zacks Ranked Industries, while the industry with the worst average Zacks Rank would place in the bottom 1%. Roughly half of a stock’s price movement can be attributed to the group that it’s in. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
Slick Oil Stocks to Buy Now
The acquisition would also bolster its U.S. onshore operations by adding the oil-rich resources of Bakken in North Dakota to its portfolio. In addition, it would add complementary positions in the Gulf of Mexico and Southeast Asia. As always, remember that when investing, the value of your investment may rise or fall, and your capital is at risk.
If crude oil is included, it could squeeze the margins of U.S. refiners reliant on imported oil. Additionally, it may harm U.S. exports of crude and refined products if other nations respond with retaliatory tariffs. In light of this, Goldman Sachs Research economists have modestly lowered their 2025 growth forecast for China, attributing the adjustment to anticipated tariff increases under a Trump administration. Chief economist Jan Hatzius further cautioned that more substantial downgrades could follow if the trade conflict intensifies. In conclusion, investors actively seek opportunities in the oil and gas sector amid rising crude oil prices. The five top picks highlighted in this article offer compelling options for those looking to capitalize on the current market conditions.
Of The Best Oil And Gas Stocks To Buy For High Crude Prices
This led to a mass wave of bankruptcies for the entire offshore drilling sector. At its lowest point, when the survival of the company was in question, the stock fell to $0.67/share, or 1/253th of its peak value in 2007. US oil production was once considered to be in a terminal decline starting in the 1980s.
Industry analysts are busy figuring out how much of this has to do with the Israel-Hamas ceasefire deal, how much it has to do with the incoming Trump administration and how much it has to do with other world events. Oil ETFs are baskets of securities that track the price of oil as a commodity, or contain oil stocks. They are an easy way to invest in oil markets, but they do carry risk. The oil giant agreed to buy Hess in a $60 billion all-stock deal in October 2023. The transaction would significantly upgrade and diversify Chevron’s already world-class portfolio.
Notably, the downstream often benefits from low energy prices because oil and natural gas are key inputs. As a refinery versus an energy exploration company, Valero is more dependent on the “spread” between unrefined oil and higher-valued refined products that it takes to market. Interestingly enough, this means that the reduction in Brent crude oil prices from their 2022 highs of about $122 a barrel to just over $90 at present allows for lower input costs. This Nasdaq-traded oil and gas exploration company has a market capitalization of $2.37 billion. EOG Resources has built a low-cost oil and gas producer from the ground up. The company has focused on exploring for additional low-cost resources throughout the U.S.
None of the information in our articles is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, company, or fund. With a focus on ultra-deepwater production and newer generation drillships, Transocean has consistently managed to show among the highest day rates (the standard metric for the industry) for new contracts in 2022. The company is planning to boost its gas production, thanks to expected gas fields in the South China Sea (“Trillion-Cubic-Meters-Level Gas Fields”) and “China Onshore 100 billion cubic meters Shale Gas Resources”. The costs of decarbonization plans and expanding the petrochemical activities could reduce the company’s profitability in the long term.
While Exxon Mobil currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. It’s also worth noting that Whiting was the first major oil-and-gas company to file for bankruptcy during the pandemic. The company entered restructuring on April 1, 2020, and emerged from bankruptcy protection in September.
Earnings this year are down by 2.83% and there’s no five-year earnings record yet since it hasn’t been around that long. Most analysts expect more of the same in 2025, with the consensus that crude prices will remain in the $70s this year. Because of that, oil stocks can’t rely on oil prices to pump up their share prices this year. But for those who know where to look, it can still be a profitable enterprise. If you’re considering adding Canadian oil companies to your investment portfolio, here’s what you should know.
