Warren Buffett Oil Stock Dominates 10 Top Winners in S&P 500 This Year

The company’s full-year capex guidance is between $10.7 billion and $11.3 billion. The Lower 48 is COP’s largest business segment based on oil production, with 10.8 million net acres. Indeed, even in Q4, EOG’s production of oil, natural gas and natural gas liquids was well above its midpoint guidance. Additionally, capital expenditures of $1.36 billion was within 1% of the midpoint of its outlook.

Transocean stock opened the day at $8.35 after a previous close of $8.22. Transocean is listed on the NYSE, has a trailing 12-month revenue of around USD$2.6 billion and employs 5,040 staff. Patterson-UTI Energy stock opened the day at $13.93 after a previous close of $13.74. Patterson-UTI Energy is listed on the NASDAQ, has a trailing 12-month revenue of around USD$2.9 billion and employs 6,500 staff. Kinder Morgan stock opened the day at $17.41 after a previous close of $17.25. Kinder Morgan is listed on the NYSE, has a trailing 12-month revenue of around USD$18.8 billion and employs 10,525 staff.

Analyzing oil stocks

Companies with total returns over 1,000% were excluded as outliers. Oil and gas stocks as a group, measured by the benchmark Energy Select Sector SPDR ETF (XLE), have climbed by 10% in the past year, outperforming the broader market. However, declining oil and gas prices in the second half of 2022 and into 2023 could pressure margins and revenues in the sector. LNG is another one of Wall Street’s favorite energy stocks, as evidenced by the consensus Strong Buy rating and $197 price target. This average price target indicates that even after being up more than 10% in the past year, Wall Street pros see additional upside of roughly 25% for the shares. EOG is another of the Strong Buy-rated energy stocks featured here, thanks to 15 Buys and just three Holds among analysts who have released notes over the past three months.

Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. You should conduct your own analysis, taking in such things as the environment in which it trades and your risk tolerance. Exxon Mobil’s stock on the New York Exchange (NYSE) hit a 52-week high at $105.57 in early June. It has since fallen over the past month to close at $84.83 on 13 July.

Recent oil Headlines

Shares of SLB are up more than 16% over the past year, driven by higher oil prices and solid quarterly results. The energy sector finished the year up nearly 60% – easily outperforming the broader equities market. Importantly, with U.S. producers prioritizing returning cash to shareholders over expanding production, the OPEC+ cuts will have real bite, note Stifel analysts Derrick Whitfield and Nate Pendleton. Specifically, Devon paid 86 cents per share in its fiscal 2013 but has already paid $1.61 so far in 2023 with half the year left to go.

Enter your email address below to receive the latest headlines and analysts’ recommendations for your stocks with our free daily email newsletter. Chevron has accelerated its plan to grow its renewable fuels business and has agreed to acquire US-based biodiesel producer Renewable Energy Group. In addition, it plans to build 30 hydrogen fuelling stations in California by 2026 in a joint-venture project with Iwatani Corporation of America. Oil and gas penny stocks are generally represented by an exchange-traded fund—the Invesco S&P SmallCap Energy ETF (PSCE)—though, the fund also includes microcap and small-cap stocks that are not considered penny stocks. PSCE declined by 6% in the last year while the small-cap Russell 2000 Index has fallen 10%.

Diamondback Energy

In addition, EOG declared a quarterly dividend of 82.5 cents per share, along with a special dividend of $1.00 per share. The Street is also bullish on one of the best energy stocks to buy, with a 11 Buys and one Hold among analysts that have sounded off over the past three months. Meanwhile, the Street’s average price target of $172.97 gives FANG implied price upside of about 23% in the next 12 months or so. Add in the generous dividend yield of 8%, and FANG’s implied total return comes to more than 30%. Diamondback Energy (FANG) is an independent oil and natural gas company with production focused in the Permian Basin of West Texas.

It is involved in refining, supply and trading of oil products, as well as operation of electric vehicle charging facilities. Next on this list of top Canadian oil and gas dividend stocks is Peyto Exploration & Development, which conducts unconventional natural gas exploration, development and production in the Deep Basin in Alberta, Canada. However, analysts remain optimistic about the sector, and there are signs that oil and gas companies in Canada may be in a multi-year bull market. The top oil and gas stocks on the TSX and TSXV have been posting gains despite volatile market conditions, and many companies offer strong payouts for dividend investors.

Southwestern Energy Company Technical View

Last year was phenomenal for oil and gas stocks but even the top performers have struggled to gain further ground so far in 2023. Here are the top three oil and gas penny stocks with the best value, the fastest growth, and the most momentum. The Oracle of Omaha has been buying shares of the U.S. oil company hand over fist https://g-markets.net/helpful-articles/complete-forex-trading-for-beginners-guide/ since last spring. His total investment now stands at 188.4 million shares, or 20.2% of the company, worth $11.3 billion. As of this writing, WTI crude oil is trading at $77 a barrel, down from more than $90 per barrel at the start of November. Brent crude oil, the international benchmark, is hovering near $83 per barrel.

• Also like Berkshire, Occidental Petroleum is using its profits to buy back its own stock, as it has announced a $3 billion share repurchase program.
• The result is a lot of volatility in distributions in the short-term, based on the amount DVN drills and the price it commands in the current marketplace.
• Importantly, with U.S. producers prioritizing returning cash to shareholders over expanding production, the OPEC+ cuts will have real bite, note Stifel analysts Derrick Whitfield and Nate Pendleton.
• It has diversified operations across several low-cost, oil-rich basins.
• A slide in crude oil prices has weighed on the Club’s three energy holdings.

This gentle dance of supply and demand is one of the most important reasons for oil stock price fluctuations. Borr Drilling Limited operates as an offshore drilling contractor to the oil and gas industry worldwide. It serves oil and gas exploration and production companies, such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies.

How we make money

Diversification can help protect you from a company-specific risk (such as bad management), but it won’t protect you from industry-specific risk (such as declining oil prices). So whether you’re investing in companies or funds, understand the drivers of your investment returns. Investing in individual stocks, particularly in the energy sector, can be difficult. You need to understand the dynamics of the industry but also the specific exposure that each energy company has, including the quality of its producing assets. For those who have the time and willingness, investing in individual stocks can be rewarding, but it’s important to understand that energy stocks are some of the most volatile and some of the most prone to bankruptcy. Because of that volatility, a list of the best performers won’t tell you which stocks will do well in the future, but many of the top energy stocks remain the “best of breed” for years.

Like other oil stocks on this list, CTRA has a fixed-plus-variable dividend structure. And as a sign of general company health, that fixed portion has continued to move significantly higher lately. Coterra is an independent oil and gas company focused on hydraulic fracturing of shale to extract fossil fuels, a process known as fracking. It has operations across the U.S., from the Marcellus Shale region that spans the northeast U.S. around Pennsylvania to the Permian Basin of New Mexico and west Texas and the Anadarko Basin around Oklahoma. The result is a lot of volatility in distributions in the short-term, based on the amount DVN drills and the price it commands in the current marketplace.

Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Also like Berkshire, Occidental Petroleum is using its profits to buy back its own stock, as it has announced a $3 billion share repurchase program. Chevron has also boosted its share buybacks this year, lifting them to $15 billion. “Our refineries operated at a 97 percent capacity utilization rate in the fourth quarter, which is the highest utilization rate for our system since 2018,” said Joe Gorder, Valero’s chairman and CEO.

Of the 31 analysts covering the stock tracked by S&P Global Market Intelligence, 16 rate it at Strong Buy, eight say Buy and seven have it a Hold. That works out to a consensus recommendation of Buy, with high conviction. EOG, which generated a total return of 57% last year, is off by about 6% so far in 2023. However, the stock has rallied 8% since hitting a year-to-date closing low in mid-March, and the Street sees more outperformance ahead.

Phillips 66 also intends to ramp up its adjusted EBITDA through its interest in DCP Midstream, which is engaged in the business of gathering, processing, transporting, storing and marketing natural gas. In January, Phillips increased its economic interest in this venture to 86.8%. DCP Midstream is a master limited partnership between PSX and Enbridge. The company reported Q4 revenues of $7.9 billion, up 27% year-over-year, driven by a jump in its international revenues, which grew 26%.

Are oil and gas companies a good investment?

CPG has operations in Saskatchewan, Alberta, British Columbia, Manitoba in Canada, and North Dakota and Montana in the United States. Yes, buying oil stocks may be good today, but what about 20 years from now? However, oil companies have been asking themselves that same question for the better part of 30 years. And that’s why some of the largest oil companies continue to make significant investments in renewable energy.

If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit. A financial advisor can help you understand the advantages and disadvantages of investment properties. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. The company posted record 2022 earnings, along with the biggest profit in the 114-year history of the company.