Wall Street’s Favorite Oil Stocks for 2022 Including an Obscure One

Patterson-UTI Energy stock opened the day at $13.87 after a previous close of $13.89. 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 $17.56 after a previous close of $17.54. Kinder Morgan is listed on the NYSE, has a trailing 12-month revenue of around USD$18.8 billion and employs 10,525 staff. Shell stock opened the day at $39.18 after a previous close of $39.15.

This includes natural gas pipelines, offshore wind energy in Europe, and hydrogen. These investments position Enbridge for the future of energy even as it remains vital to supporting the oil market’s current needs. MRO is a separate business that is involved in oil exploration and production.

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It has invested heavily in hydrogen as part of a goal of being net-zero on emissions by 2050. In fact, SUN is currently the largest producer as well as the largest consumer of hydrogen in all of Canada. CNQ has outperformed the market handily over the last five years, delivering total returns of more than 80%. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

• It then continued to fall and is now also below the 50-day moving average.
• Tools to customize searches, view specific data sets, study detailed documentation, and access time-series data.
• As a result, all three components of a balanced energy equation—energy security, supply diversification, and low-carbon transition—are now facing a “trilemma” of concerns.
• It tackles the oil industry from the angle of developing new technologies to serve existing oil businesses.
• Higher oil prices boost company earnings which often leads to higher investor returns.

However, it fell just as quickly and struggled to gain traction again. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.

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These are the oil and gas stocks that had the highest total return over the past 12 months. 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. 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.

The energy sector is undergoing a massive transition to renewable energy. Even so, that doesn’t mean there are few opportunities in the oil patch. Here’s a closer look at some of the top oil stocks and factors to consider before buying oil stocks. When it comes to oil stocks, you’ll have to understand that they’re volatile and subject to the swings in the price of the commodity itself.

It bulked up its position in that low-cost, oil-rich region in 2021 by acquiring Concho Resources and Shell’s assets in the area. With average costs of about $40 per barrel and many of its resources even cheaper, it can make money in almost any oil market environment, enabling the company to generate lots of cash flow. It’s a good idea to have some exposure to energy stocks in any portfolio.

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In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see /about to learn more about our global network of member firms. We believe everyone should be able to make financial decisions with confidence. The chart below from the IEA shows how world demand and supply for crude oil have been growing steadily since 1971. We can also see in the histogram the net difference in supply less demand throughout those years.

In fact, the company slashed its payout in half a few years ago during the volatility seen across the energy sector during the pandemic. Distributions are now back above where they were in 2019 before that mess, however, and ET is showing strong operational and value metrics right now that make it a standout among other oil stocks. Collectively this allows for a bit more certainty than you would find in a laser-focused oil stock that specializes in only one part of the supply chain.

Gear Energy (TSX:GXE)

Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio. Before you decide to purchase any of these stocks, do plenty of research to ensure they are aligned with your financial goals and risk tolerance. This has created a strong tailwind for payouts lately, including a total distribution of $25.44 per share in 2022—almost four times https://g-markets.net/helpful-articles/how-to-trade-triangle-chart-patterns-in-forex/ the $6.83 it paid the year prior. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Marathon bought back $334 million worth of shares in the first quarter of 2020 alone, and it has increased its dividend seven times over the past two years.

• DTTL and each of its member firms are legally separate and independent entities.
• Borr Drilling is listed on the NYSE, has a trailing 12-month revenue of around USD$533.8 million and employs 1,504 staff.
• Canadian Natural Resources discovers and develops crude oil and natural gas fields.
• Petroleum-based fuels and natural gas usually have a cost advantage over other heating and transportation fuels, and they have a massive infrastructure advantage over emerging clean energy fuels.

If the company manages to keep its quarterly profits flowing, the upward momentum of its stock should continue as well. Nonetheless, geopolitical tensions, continued easing of Chinese lockdowns, and/or an economic rebound could boost oil prices next year. 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. Meanwhile, the Street’s average target price of $144.87 gives EOG stock implied upside of about 23% in the next year or so. To that end, we screened the S&P 500’s oil & gas sector for oil stocks with the highest consensus Buy recommendations, based on S&P Global Market Intelligence data.

Reasons to Invest in Small-Cap Oil Stocks

We may receive payment from our affiliates for featured placement of their products or services. We may also receive payment if you click on certain links posted on our site. Ensco Rowan is listed on the PINK, has a trailing 12-month revenue of around USD$1.4 billion and employs 4,500 staff.

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail. Get advice on achieving your financial goals and stay up to date on the day’s top financial stories. Investing apps and online brokers typically have research you can review to learn more about companies and funds you’re interested in investing in. If you don’t already have a brokerage account, you’ll have to open one and fund it via a wire or electronic transfer from a bank account or payment app. It supplies fuels for both retail and marine customers and creates chemical products and asphalt pavings.

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We forecast higher oil prices in the second half of 2023 and into 2024 on the back of moderate but persistent inventory drawdowns in our most recent Short-Term Energy Outlook (STEO). We expect production cuts from OPEC members and forecast higher petroleum consumption to lead to an average inventory drawdown of 0.4 million barrels per day (b/d) from July 2023 through the end of 2024. Our forecast supports the Brent crude oil price rising to the mid-$80 per barrel (b) range by the end of 2024, up from the June 2023 average of $75/b (Figure 1). We forecast the West Texas Intermediate crude oil price will follow a similar path and maintain a $5/b discount to Brent.

When a barrel of oil sells for more than the sum of all these costs, oil companies turn a profit. Oil is a commodity and like all commodities, its price is fundamentally driven by supply and demand. The production cut announced by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) has dramatically changed the outlook for oil prices in 2023 and beyond, analysts say. U.S. benchmark West Texas Intermediate crude oil spot prices topped out at $121.52 a barrel back in early June 2022 – and then went on to lose 45% of their value through mid-March 2023. The world’s largest oil-exporting nations include members of OPEC (Organization of the Petroleum Exporting Countries), a cartel that works to coordinate members’ oil policies. It can withhold supply to push prices higher or increase its output to drive them lower.

Explore the five trends below that will likely influence the direction of the industry over the next 12 months. A slide in crude oil prices has weighed on the Club’s three energy holdings. In my opinion, the future of fossil fuels is practically guaranteed, and with companies like Exxon (XOM) achieving high ESG rankings they won’t be short of investors either. So, the matter remains more in corporate affairs, and how a company can turn its business into a profitable one for its shareholders. Following the hottest stocks can be a good way to track what the market likes right now. You’ll end up chasing yesterday’s performers and miss out on tomorrow’s.