3 Top Oil Stocks to Buy in December The Motley Fool
That combination of earnings growth and increased shareholder returns should give Phillips 66’s stock the fuel to head higher over the next few years. That makes it a great oil stock to buy before the end of this year so that investors can capitalize on this upside opportunity. Given that backdrop, it’s difficult to know what will happen in the oil patch in 2023. However, a few Fool.com contributors believe that some oil stocks stand out as great buys heading into the new year. Here’s why they think investors should scoop up shares of Kinder Morgan (KMI 0.46%), Phillips 66 (PSX 1.16%), and Chevron (CVX 1.24%) before the end of this year.
- For investors looking for a source of passive income, Enbridge might be a good stock to start with.
- The company has initiated its previously announced $10bn buyback programme, repurchasing shares totalling $2.1bn in the first quarter this year.
- On a corporate level, CNQ’s break-even part is around ~$40/barrel – the lowest among Canadian oil sands producers.
- However, as the year advanced, these concerns diminished, and data from China also turned positive.
Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Treasury Bills are fixed-income assets with maturities of less than one year. Energy stocks and ETFs did well in 2022 as the market rotated back to cyclical and value sectors. It has an annual production rate of about 133, ,000 barrels of oil per day for 2022. It owns approximately 25% of Syncrude, which is one of the largest oil sands in the world.
It operates in every segment of the oil and gas industry, including E&P, midstream, petrochemical manufacturing, refining, and, even further downstream, marketing refined and petroleum products to customers. They run the gamut from pure-play exploration and production companies (E&Ps), midstream businesses, service providers, and refiners https://forex-review.net/ to integrated oil majors that do a little bit of everything. Additionally, investors must consider the implications of climate change on the long-term prospects of oil and gas. The energy sector is undergoing a massive transition to renewable energy. Here’s a closer look at some of the top oil stocks and factors to consider before buying.
Finder’s top picks for buying Canadian oil stocks in the US
Despite those challenges, Wall Street is decidedly bullish on oil stocks in general, and really has the hots for a short list of names in particular. If you’re investing in energy for income, it’s very attractive to find an explorer, such as Coterra, that offers a consistent payout but still has the potential for big distributions when times are good. Valero refines and markets fuels and petrochemical products worldwide. And Canada, that collectively adds up to 3.2 million barrels per day. BP provides nearly three times the dividend yield of the S&P 500 index, as measured by popular S&P 500 Index tracking fund Vanguard 500 Index (VFIAX). And BP has a rock-bottom price-to-earnings ratio, which makes it a real bargain right now.
Notably, NuVista generated $228.5 million in cash flow from operating activities — a 123% climb from last year. Given its 2022 budget, management anticipates achieving significant production and cash flow growth while materially reducing net debt. An active dividend and growth investor, Dan has been involved with the website since its inception.
Will oil prices go up in 2022?
The company entered restructuring on April 1, 2020, and emerged from bankruptcy protection in September. As for valuation, FANG changes hands at 7.9 times analysts’ 2022 earnings estimate. They expect the company to deliver average annual EPS growth of 3% over the next three to five years, per S&P Global Market Intelligence.
Should You Buy Enbridge Stock for its 7.7% Yield Today?
It also engages in producing conventional crude oil, natural gas, and natural gas liquids in Alberta. Canadian Natural Resources is a Calgary-based oil https://forex-reviews.org/ and natural gas company. In fact, in April 2022, it became the first TSX-listed oil and gas company to surpass a $100 billion market capitalization.
Cenovus Energy
We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course.
It also stands out because of its qualitative strength, not just its size. Of the 23 energy sector stocks in the S&P 500, only two—Marathon Petroleum (MPC) and Targa Resources (TRGP)—have performed as well as or better than the benchmark index year-to-date. An early morning recovery in commodity prices could lift the main TSX index at the open today. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. Learn how to research stocks and find the right investment opportunities in 4 steps.
In the third quarter, for example, Chevron’s production from the Permian Basin was up 12% year over year. In between, Chevron also invested in its new energy, low-carbon businesses to adapt to the changing times. As such, you’ll see a mix of Canadian pipeline and oil stocks, and our winner on this list is a Canadian natural gas producer. The market dynamics for natural gas appear to be more stable than that of oil.
ConocoPhillips benefits from scale and access to some of the lowest-cost oil on earth, which includes significant exposure to the Permian Basin. 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. The oil industry is coming off one of its best years in quite some time. Oil prices rebounded sharply as the global economy recovered from the pandemic and producers maintained a tight lid on supply.
S&P Global Market Intelligence counts 12 Strong Buy calls, three Buys and one Hold rating on the stock. « 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 https://forexbroker-listing.com/ a competitive advantage, especially with oil prices above $50 per barrel. » With that, have a look at analysts’ absolute favorite oil stocks to buy now. To find analysts’ favorite oil stocks to buy now, we screened the Russell 3000 for oil stocks with the highest analyst recommendations, per data from S&P Global Market Intelligence.
