Do You Have These Oil Stocks On Your Watchlist Right Now?
As we start a new trading week, it seems that oil stocks could make for a viable play in the stock market today. There’s no question that Russia’s invasion of Ukraine has sent shock waves in the energy markets. That sent oil prices up to triple digits for the first time in years. Because of this, many oil stocks are cashing in on surging crude prices. As such, investors may be looking to make a list of the best oil stocks to buy to capitalize on the trend we are seeing today.
Of course, not all oil companies will benefit to the same extent. Some have more upside exposure to rising crude oil than their competitors. And one of the oil companies with unlimited upside potential to rising crude prices is ConocoPhillips (NYSE: COP). Unlike many oil producers, ConocoPhillips does not utilize any oil hedging contracts. Instead, it prefers to take market prices for its crude oil production. And because of this, the company has much higher leverage to higher oil prices.
While some might choose to enjoy the ride of higher crude prices, we shall not forget the boom and bust patterns of oil. Not to mention, the push toward green energy could mean lower demand for oil over the long run. However, if you have decided to ride on the surging crude prices, here’s a closer look at some of the top oil stocks to watch today.
Oil Stocks To Watch Right Now
- Chevron Corporation (NYSE: CVX)
- ExxonMobil Corporation (NYSE: XOM)
- Phillips 66 (NYSE: PSX)
- Hess Corporation (NYSE: HES)
Starting us off today is Chevron. The company is among the leading players in the global energy industry today. For the most part, the company focuses on producing crude oil and natural gas. These resources then act as crucial components in the manufacturing of a wide array of fuel sources. Among the key products Chevron makes would be transportation fuels, lubricants, additives, and petrochemicals to name a few. In the past year, CVX stock has seen gains of almost 50%.
Last Friday, the company reported its earnings for the first quarter of 2022. For starters, Chevron reported a revenue of $54.37 billion, up from $32.03 billion during the same period last year. As for the company’s profits, it raked in earnings of $6.26 billion for the quarter, a massive increase over last year’s $1.38 billion. Accordingly, diluted earnings per share for the quarter was $3.22 per share, an increase from $0.72 in the prior year. Besides that, the company’s Permian Basin unconventional production grew to a record 692,000 barrels of oil equivalent per day during the quarter. Given the quarterly results, should you invest in CVX stock?
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Another top oil company to watch right now is ExxonMobil. For those unfamiliar, it is one of the world’s largest publicly traded energy providers and chemical manufacturers. The company develops and applies next-generation technologies to help safely meet the world’s growing demand for energy. Exxon’s fuels, lubricants, and chemicals are marketed around the world under four brands, Esso, Exxon, Mobil, and ExxonMobil. Just like Chevron, Exxon reported earnings last Friday as well.
Diving in, the company brought in total revenues of $90.5 billion, up by more than 50% over last year’s revenue of $59.1 billion. Looking at its earnings, Exxon raked in $5.48 billion this year, double the amount it earned in 2021. As such, earnings per share were $1.28 per share, rising from the $0.64 per share the year before. Financials aside, the company made some notable achievements during the quarter. Namely, it achieved first oil at the Liza Phase 2 development in Guyana and announced five new discoveries. These discoveries will increase the estimated recoverable resource base for the Stabroek block to nearly 11 billion oil-equivalent barrels. Given Exxon’s achievements for the quarter, should you buy XOM stock?
Following that, we have Phillips 66, an energy manufacturing and logistics company with midstream and refining businesses among others. With over 140 years of experience, the company is well-positioned to fulfill global energy needs. Its Midstream segment provides crude oil and refined petroleum transportation, terminaling, and processing services. Whereas, its Refining segment refines crude oil and other raw materials.
On April 29, Phillips announced its first-quarter 2022 financial results. In the first quarter, the company brought in revenues of $36.72 billion, an improvement from the $21.93 billion it pulled in 2021. Next to that, earnings for the quarter were reported to be $582 million, or $1.29 per share. Phillips also generated $1.1 billion of operating cash flow. CEO Greg Garland added, “While first-quarter results were lower quarter-on-quarter, we saw substantially improved financial results from our operations in March and expect continued strong performance in the second quarter. We believe current market conditions will allow us to increase shareholder returns by restarting share repurchases and increasing the dividend.” Looking ahead, would you consider adding PSX stock to your watchlist?
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Finally, we have Hess Corporation or Hess for short. In essence, it is a global independent energy company involved in the exploration and production of crude oil and natural gas. The company has an industry-leading position in a key U.S. shale play, the Bakken in North Dakota. Additionally, the company is engaged in exploration and development activities offshore Guyana, one of the industry’s largest oil discoveries in the past decade. Along with that, the company is also one of the largest producers in the deep-water Gulf of Mexico.
On Wednesday last week, Hess reported its first-quarter financials. Total revenues were $2.37 billion, up 24% from last year’s $1.92 billion. Along with that, earnings came in at $417 million, or $1.34 per share. For comparison, during the same period in 2021, earnings were $252 million, or $0.82 per share. Besides that, the company last Tuesday announced three new discoveries on the Stabroek Block. Specifically, at the Barreleye, Lukanani and Patwa wells. At the same time, it also announced an increase in the gross discovered recoverable resource estimate for the Stabroek Block. A bump to approximately 11 billion barrels of oil equivalent, up from the previous estimate of more than 10 billion. This updated estimate includes three new aforementioned discoveries. Given these developments, are you keen on HES stock?