3 Top Oil Stocks To Watch In August 2022
Oil stocks represent a significant portion of the overall stock market and can be a good investment for those looking to diversify their portfolio. When considering an investment in oil stocks, it is important to do your research and understand the risks involved. The price of oil is notoriously volatile, and this can have a major impact on oil stocks. For example, if the price of oil drops sharply, it is likely that oil stocks will also decline in value. However, if the price of oil increases, oil stocks are generally seen as a good investment. Evidently, oil companies such as Occidental Petroleum Corporation (NYSE: OXY), and ConocoPhillips (NYSE: COP) have seen significant increases in their share price of over 107% and 36%, respectively.
Another factor to consider when investing in oil stocks is the political stability of the countries where the companies operate. If there is instability in a country, it could have a negative impact on the company’s operations and, as a result, the value of its stock. Finally, it is also important to keep in mind that oil stocks can be a more speculative investment than other types of stocks. This means that they may not be suitable for all investors. If you are considering investing in oil stocks, here are three to check out in the stock market today.
Oil Stocks To Watch Right Now
- Marathon Oil Corporation (NYSE: MRO)
- Chevron Corporation (NYSE: CVX)
- Exxon Mobil Corporation (NYSE: XOM)
Marathon Oil is an American exploration and production company with a diverse portfolio of high-quality assets. The company has a strong track record of delivering shareholder value through disciplined execution, operational excellence, and a commitment to health, safety, and the environment.
Just this month, the company reported its Q2 2022 quarterly earnings results. In the report, Marathon Oil notched in earnings of $1.32 per share on revenue of $2.3 billion. This beat wall street consensus estimates of $1.23 per share on revenue of $1.9 billion. The oil company saw an impressive 101.5% increase in revenue on a year-over-year basis. Additionally, the company posted a record quarterly adjusted free cash flow of over $1.2 billion at a 24% reinvestment rate.
“Second quarter represents another quarter of comprehensive delivery on our Framework for Success, including strong corporate returns, sustainable free cash flow generation, significant return of capital to shareholders, and ESG excellence,” stated Chairman, President, and CEO Lee Tillman. In the last month of trading, shares of MRO stock are up over 8%. They closed Monday’s trading session at $23.39 per share. Considering all of this, will you be putting MRO stock on your watchlist this week?
Chevron (CVX) is another oil major that is well-positioned to benefit from higher oil prices. Chevon is a leading oil and gas producer with a strong presence in the upstream, midstream, and downstream sectors of the industry. 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. The company has a diversified portfolio of assets and operations in over 30 countries. Currently, Chevon is one of the largest publicly traded companies in the world.
Continuing on, last month CVX reported its second quarter 2022 earnings results. Diving in, Chevon reported better-than-expected estimates. In detail, the oil company reported earnings per share of $5.82 on revenue of $68.8 billion. This is in comparison with the consensus earnings estimate of $5.02 per share on revenue of $55.1 billion. Chevon also posted an 82.9% increase in revenue Revenue on a year-over-year basis.
Mike Wirth, Chevron’s chairman, and CEO stated, “We more than doubled investment compared to last year to grow both traditional and new energy business lines,” Wirth added. “With Permian production more than 15 percent higher than a year ago and now as one of the leading renewable fuel producers in the United States, Chevron is increasing energy supplies to help meet the challenges facing global markets.” Shares of CVX are up over 12% in the last month of trading activity, despite closing Monday’s trading session down 1.90% at $156.81 a share.
Last but not least, let’s look at ExxonMobil (XOM). ExxonMobil is the largest oil company in the world and one of the best positioned to benefit from higher oil prices. For starters, ExxonMobil Corporation is an American multinational oil and gas corporation headquartered in Irving, Texas. Next, the company produces a wide range of products, including gasoline, diesel, jet fuel, natural gas, chemicals, and lubricants. XOM also explores for and produces oil and natural gas.
In July, ExxonMobil reported better-than-expected second-quarter 2022 earnings results. In the report, the company posted earnings of $4.14 per share on revenue of $115.7 billion. For context, the consensus estimates were earnings per share of $3.80 and revenue of $120.2 billion. Next, the company reported a 70.8% increase in revenue on a year-over-year basis.
Chairman and CEO Darren Woods commented in his letter to shareholders, “Earnings and cash flow benefited from increased production, higher realizations, and tight cost control. Strong second-quarter results reflect our focus on the fundamentals and the investments we put in motion several years ago and sustained through the depths of the pandemic.” In the last month of trading action shares of XOM are up over 7%, and they closed Monday’s trading day at $93.32 a share.