Do You Have These Oil & Gas Stocks On Your Watchlist?
When looking for stocks with the most momentum in the stock market today, oil and gas stocks would be among those on the top of the list. For various reasons, there has been an increasing demand for oil and gas around the world. It first started with the easing of COVID-19 restrictions and the rapid rebound of the economy. Furthermore, there are also pandemic-related supply chain disruptions that have exacerbated the situation. And to top it off, Russia’s ongoing invasion of Ukraine has caused oil supply disruptions, leading to a sharp increase in oil prices. To highlight the severity of the situation, even President Joe Biden has ordered a major release of oil from the country’s reserves. The recent attempt to bring down fuel costs is the largest effort since the reserve was created in 1974.
However, the consensus among analysts remains that the release of 1m barrels a day may not fully resolve the issue. As such, some of the biggest names in the industry such as Shell (NYSE: SHEL) and ConocoPhillips (NYSE: COP) are among the most bullish stocks in the stock market today. SHEL stock has climbed more than 40% over the past year. Meanwhile, COP stock has almost doubled its value within the period. With that said, it should not be surprising that many investors are watching oil and gas stocks. So, here are some of the top oil and gas stocks in the stock market today.
Oil & Gas Stocks To Watch Right Now
- Equinor ASA (NYSE: EQNR)
- Exxon Mobil Corp (NYSE: XOM)
- Murphy Oil Corporation (NYSE: MUR)
- Delek Logistics Partners LP (NYSE: DKL)
Equinor is a Norway-based energy company that engages in oil and gas exploration and production activities. The company’s Development and Production Norway (DPN) segment is responsible for its upstream activities on the Norwegian continental shelf and exploration of crude oil, and natural gas. Meanwhile, Development and Production International manages any upstream activities that are not included in the DPN and Development and Production USA business areas. EQNR stock has climbed more than 40% since the start of the year.
Earlier this month, the company announced that Canada has approved its proposed Bay du Nord offshore oil project. The project is estimated to cost $12 billion and will involve the construction of a floating production unit for storage and offshore offloading. It will then be used to drill an estimated 300 million barrels of light crude oil in the Atlantic Ocean. Moreover, Equinor and its partners also made a new discovery in the Kveikje prospect in the Norwegian North Sea. It appears that the partners identified a filled reservoir of ‘excellent quality’ in the Kveikje primary Eocene target. Given these exciting developments, could EQNR stock be a top oil and gas stock to watch
Exxon Mobil is an energy company that needs no introduction. It is the largest oil and gas company in the U.S. by market capitalization. In brief, the company operates through Upstream, Downstream, and Chemical segments. On one hand, its Upstream segment operates to explore for and produce crude oil and natural gas. On the other hand, the Downstream segment manufactures, trades, and sells petroleum products. Impressively, XOM stock has been on strong bullish momentum, rising more than 55% over the past year.
Investors should also note that Exxon emphasizes innovation for long-term growth. Last week, the company announced that it is undertaking early front-end engineering design studies to determine the potential for carbon capture and storage. The project aims to capture up to 2 million metric tons of carbon dioxide per year. If all goes according to plan, the South East Australia carbon capture and storage (SEA CCS) hub could be operational by 2025. Considering these factors, would you buy XOM stock?
Following that, we have another global oil and gas exploration and production company, Murphy Oil. In the U.S., the company produces crude oil, natural gas liquids, and natural gas primarily from fields in the Gulf of Mexico and Eagle Ford Shale area of South Texas. It is noteworthy that the Board of Directors of the company recently declared a quarterly cash dividend of $0.175 per share. This is an increase of 17% from the previous quarter and a 40% increase from the prior year’s quarter. Similar to most oil and gas companies right now, MUR stock has been riding on strong bullish momentum. The stock has soared more than 150% within the past year.
Furthermore, Murphy announced last week that it has achieved first oil from the Khaleesi, Mormont, and Samurai field development project in the deepwater Gulf of Mexico. Achieving this on schedule and within budget is a testament to the company’s ability as it navigates through the challenges of the pandemic. Besides that, it also highlights the company’s competitive advantage in offshore execution. Hence, there are plenty of reasons for optimism around Murphy Oil right now. So, would you consider adding MUR stock to your watchlist today?
Unlike the other entries, Delek operates logistics and marketing assets for crude oil, and refined products in the U.S. Essentially, the company operates through three segments, Pipelines and Transportation, Wholesale Marketing and Terminalling, and investment in Pipeline Joint Ventures. Despite trading sideways since the start of the year, DLK stock has found some momentum lately. In the past month, the stock has jumped more than 20% and is showing no signs of slowing down.
In fact, Delek just recently announced that one of its subsidiaries has signed a definitive purchase agreement for the 100% acquisition of 3Bear Delaware Holding. For those unaware, 3Bear is a premier crude, gas, and water gathering, processing, and disposal business. Its assets are anchored by approximately 350,000 dedicated acres and long-term fixed-fee contracts. This is a significant development as it will enhance its third-party revenue while further diversifying its customer and product mix.
Additionally, it will also expand its footprint into the Delaware basin and bolster environmental, social, and governance options through carbon capture opportunities. All things considered, should investors keep a closer tab on DLK stock?