Are These The Best Oil and Gas Stocks To Buy This Week?
For a variety of reasons, oil and gas stocks have been heating up in the stock market lately. These range from the reopening of economies following the pandemic, to sanctions on Russian oil. In fact, there may be doubts that a higher output target by OPEC+ producers would ease the current tight supply. Thus, it is no surprise that many investors are paying close attention to the industry’s movement right now.
Soaring oil prices aside, oil and gas companies are constantly on the move to make their mark within the industry. We saw Shell (NYSE: SHEL) acquiring nearly 200 gas stations in Texas under the Timewise brand earlier this month. The deal will likely bring the company closer to its customers. It goes without saying, the acquisition will also open more opportunities to sell vehicle fueling options such as electric vehicle charging, hydrogen, biofuels, and lower-carbon premium fuels at its new gas stations. With all the developments in the industry, here are five of the top oil and gas stocks in the stock market today.
Oil & Gas Stocks To Watch Right Now
- Chevron Corporation (NYSE: CVX)
- BP plc (NYSE: BP)
- Marathon Oil Corporation (NYSE: MRO)
- ConocoPhillips (NYSE: COP)
- Petróleo Brasileiro (NYSE: PBR)
Chevron is a company that engages in integrated energy and chemical operations. In detail, it operates through two business segments, Upstream and Downstream. On one hand, its Upstream segment is responsible for exploring, developing, and producing crude oil and natural gas. On the other hand, the Downstream segment refines crude oil into petroleum products, markets crude oil, and manufactures renewable fuels.
During the company’s annual stockholder meeting in May, CEO Michael Wirth provided an overview of the company’s plans. He stated, “Our strategy is clear: leverage our strengths to deliver lower carbon intensity energy to a growing world. Our capabilities, assets, and customers are distinct advantages. We’re building on these strengths as we aim to lead in lower carbon intensity oil, products, and natural gas, and to advance new products and solutions that reduce the carbon emissions of major industries.” With that in mind, would you consider adding CVX stock to your portfolio?
Another top oil and gas company to note today is BP. Essentially, the company runs a global energy business with operations in Europe, Australasia, Asia, Africa, and both North and South America. Not to mention, BP is working towards becoming a net-zero company by 2050. Much like its peers, BP continues to gain traction among investors as oil prices continue to gain momentum. BP stock has risen more than 20% since the start of the year.
Last month, the company and Linde announced plans to advance a major carbon capture and storage (CCS) project in Texas. The project aims to enable low carbon hydrogen production at Linde’s existing facilities. Also, it will support the storage of carbon dioxide captured from other industrial facilities. Hence, paving the way for large-scale decarbonization of the Texas Gulf Coast industrial corridor. Overall, this is another step that the company is taking toward its goals of a low carbon business. So, do you think BP stock will have more room to grow?
Unlike the previous two entries, Marathon Oil is an oil and gas company that focuses on downstream activities. It engages in petroleum product refining, marketing, retail, and several midstream businesses in the U.S. Besides that, the company also boasts a world-class integrated gas business in Equatorial Guinea. Its portfolio is oil-weighted but well balanced with an approximate 50% oil and 50% gas/NGL production mix. Impressively, MRO stock has more than doubled its value over the past year.
Well, Marathon Oil has also been firing on all cylinders to start fiscal 2022. During its first quarter, the company’s total revenues and other income amounted to $1.75 billion, representing an increase of 63.5% year-over-year. Meanwhile, the company reported a net income of $1.3 billion, or $1.78 per diluted share. Moving forward, Marathon expects over $4.5 billion of adjusted free cash flow this year. This would put the company in a prime position to continue delivering encouraging financial results and return on capital. Thus, would you consider jumping on the MRO stock bandwagon?
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Following that, we will be looking at the independent exploration and production company, ConocoPhillips. For the uninitiated, this is a company that explores, produces, 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 is a force to be reckoned with in the oil and gas industry. Similar to most oil and gas companies now, COP stock has been on a strong bullish trend. An investor who jumped in a year ago would have seen gains of over 90% by now.
In May, ConocoPhillips reported its first-quarter 2022 earnings. The company’s earnings for the quarter were $5.8 billion, or $4.39 per share. This is a huge leap compared to its prior year’s quarter of $1.0 billion, or $0.75 per share. Investors should also note that the company announced a $2 billion increase in expected 2022 returns of capital to $10 billion. All things considered, is COP stock a buy right now?
To sum up the list, we have the Brazil-based oil and gas company, Petróleo Brasileiro, better known as Petrobras. Its technology that is meant for deepwater and ultra-deepwater applications has gained worldwide recognition with its American offshore operations in the Gulf of Mexico. Furthermore, the company also has an extensive background in oil refining. Its Research Center is by far the biggest in Latin America and still growing. PBR stock has climbed more than 20% since the start of the year.
Earlier this month, the company signed a deal to buy the remaining stake in electric company Ibiritermo. This will allow Petrobras to take full control of the firm’s power plant. On top of that, the company also said that it is kicking off a new effort to sell a fertilizer project in Mato Grosso do Sul state. According to a securities filing, the company claims that the “teaser” process was aimed to promote the sales of nitrogen fertilizer industrial units. Given all this, would you invest in PBR stock today?