4 Trending Oil & Gas Stocks To Keep An Eye On Right Now
Amid the escalating tensions between Russia and Ukraine, the stock market sentiment has been rather gloomy. President Vladimir Putin’s decision to send the Russian military to act as “peacekeepers” in two breakaway regions in Ukraine has sent shivers down the spine of many investors. After all, any major event such as a potential war or a pandemic could affect the stock market considerably. However, with every looming crisis, rises a new opportunity. For instance, crude oil prices have hit their highest since 2014 and appear to be pushing its prices to near $100 a barrel. Hence, oil and gas stocks would likely be in the limelight yet again.
Well, companies within the industry have also backed up their stock performance with strong financial showings. Take APA Corp’s (NASDAQ: APA) recent fourth-quarter earnings as an example. The company’s total revenue skyrocketed to $2.29 billion, representing an increase of 88.5% year-over-year. Meanwhile, it continues to impress with its production of 386,000 barrels of oil equivalent (BOE) per day.
Furthermore, APA also announced an oil discovery at the Krabdagu-1 (KBD-1) that is located on Block 58 offshore Suriname. APA holds 50% working interest in the block, while TotalEnergies (NYSE: TTE) holds the other 50% working interest. Overall, there are plenty of positives that are driving the industry forward right now. Given all this, I can understand why some investors are turning to some of the top oil and gas stocks in the stock market today.
Oil & Gas Stocks To Buy [Or Avoid] Right Now
- Exxon Mobil Corp (NYSE: XOM)
- Devon Energy Corp (NYSE: DVN)
- ConocoPhillips (NYSE: COP)
- Phillips 66 (NYSE: PSX)
Starting off the list, we have one of the largest companies in the energy business, Exxon Mobil. Essentially, it engages in the exploration, production, and sale of crude oil and natural gas. As with most oil and gas companies, the company has Upstream and Downstream segments. The Upstream segment is responsible for the exploration and production of crude oil and natural gas. Meanwhile, the Downstream segment manufactures, trades, and sells petroleum products. XOM stock has climbed more than 40% over the past year.
After years of uncertainty over the project, Exxon finally signed an agreement with its partners and the Papua NewGuinea government to clear the way for the development of the P’nyang gas field. The plant produced 8.4 million tonnes of liquefied natural gas for export last year.
So, the gas from P’nyang will feed Exxon’s PNG LNG plant when its existing gas sources are depleted. Although some may argue that it is just a matter of time, the signing of the agreement is still a major milestone for the project. With that in mind, would you buy XOM stock now?
Similar to Exxon, Devon is another oil and gas company that should not be overlooked. The company’s operations are focused onshore in the U.S. with five core areas. This includes Delaware Basin, Eagle Ford, Powder River Basin, Anadarko Basin, and Williston Basin. Investors should be delighted to know that Devon prides itself on delivering a consistently competitive shareholder return. Not to mention, DVN stock has also skyrocketed by more than 150% just within the past year.
Last week, Devon announced its fourth-quarter and full-year 2021 earnings report. The company reported net earnings of $935 million, or $1.39 per diluted share for the quarter. Meanwhile, its operating cash flow for the full year of 2021 soared to $4.9 billion, a more than three-fold increase year-over-year. This represents the highest total in the company’s 50-year history.
All in all, the company exceeded most analysts’ expectations on multiple important metrics. Also, it has surpassed consensus EPS for four quarters in a row. Keeping this in mind, would DVN stock be a top oil and gas stock to buy now?
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Another goliath in the industry right now would be ConocoPhillips. Put simply, it is an independent exploration and production company. It explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. With operations in 14 countries around the world, while boasting $87 billion of total assets, ConocoPhillips deserves the recognition that it gets within the oil and gas industry. So, it should not come as a surprise that COP stock has been on a strong bullish trend. An investor who jumped in a year ago would have seen gains of over 75% by now.
Investors who are keen on the company stock should note that ConocoPhillips is not one that easily rests on its laurels. Recently, the company announced that it has completed the purchase of an additional 10% shareholding interest in Australia Pacific LNG (APLNG) from Origin Energy for $1.65 billion.
With this in place, it now owns a 47.5% interest in APLNG. Well, this development is a huge boost for the company as APLNG has served as a reliable and efficient supplier of natural gas to the growing Asia Pacific, and Australia’s East Coast. All things considered, would you be adding COP stock to your portfolio?
Last but not least, we have the energy manufacturing and logistics company, Phillips 66. It primarily deals with midstream, chemicals, refining, and marketing and specialties businesses. The Midstream segment provides crude oil and refined petroleum product transportation, terminals, and processing services. For those unaware, Phillips 66 is a result of the split of ConocoPhillips into two stand-alone publicly traded companies back in 2012. Since the start of the year, PSX stock has risen by over 12%.
Earlier this month, the company and H2 Energy Europe announced their commitment to developing up to 250 retail hydrogen refueling stations across Germany, Austria, and Denmark. This will be a 50-50 joint venture between their subsidiaries with a target timeline of 2026.
Both companies consider hydrogen and fuel cell technology as an important enabler of the energy transition. Hence, it will aid in the company’s efforts in expanding access to hydrogen to achieve a lower-carbon future. Given this exciting development, would PSX stock be a viable investment right now?