Do You Have These Oil And Gas Stocks On Your May 2022 Watchlist?
As investors lookout for the most active stocks in the stock market today, oil and gas stocks continue to shine. Overall, some of the biggest names in the space are on the uptrend now. By and large, this is likely the result of soaring oil prices and dwindling global energy supplies. All of which are mainly stemming from the ongoing Ukraine-Russia war in Eastern Europe. Pair all this with supply chain pressures and oil and gas firms would be busier than ever.
Evidently, we could take a look at the likes of ConocoPhillips (NYSE: COP). Earlier today, the company released overall solid figures in its latest quarterly financial update. In it, ConocoPhillips saw earnings of $3.27 per share, topping Wall Street estimates of $3.22. Moreover, the company also announced a $2 billion increase in its expected 2022 returns of capital. This would bring it up to a whopping $10 billion. If that wasn’t enough, the company is also declaring an ordinary dividend of $0.46 per share alongside a third-quarter variable return of cash payment of $0.70 per share. Across the board, ConocoPhillips is making steady efforts to return value to its shareholders.
At the same time, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) recently added to its position in the industry. Namely, the Oracle of Omaha is doubling down on its investments in Occidental Petroleum (NYSE: OXY). Through the purchase of 5.9 million additional shares, the firm now has a 15.2% stake in Occidental. Evidently, there is no shortage of exciting developments in the oil and gas space today. On that note, here are three other top oil and gas stocks to watch in the stock market now.
Oil And Gas Stocks To Watch Today
- Shell PLC (NYSE: SHEL)
- BP PLC (NYSE: BP)
- ExxonMobil Corporation (NYSE: XOM)
Shell plc
Starting us off today, we have Shell, a multinational oil and gas company that has operations all around the globe. In fact, the company has over 80,000 employees in more than 70 countries. It also uses advanced technologies and continues to take an innovative approach to meeting today’s energy demands. In addition to its main Shell brand, the company also owns the Jiffy Lube and Pennzoil brands. Today, the company reported its first-quarter financials for 2022.
Diving in, the company reported strong adjusted earnings at $9.1 billion, 41% higher compared to the previous quarter. This comes despite a volatile geopolitical and macroeconomic environment. To address this, Shell CEO, Ben van Beurden had this to say, “The war in Ukraine is first and foremost a human tragedy, but it has also caused significant disruption to global energy markets and has shown that secure, reliable, and affordable energy simply cannot be taken for granted. The impacts of this uncertainty and the higher cost that comes with it are being felt far and wide. We have been engaging with governments, our customers, and suppliers to work through the challenging implications and provide support and solutions where we can.”
The company also increased its dividend by about 4% to $0.25 per share for the quarter. Of the $8.5 billion share buyback program announced for the first half of 2022, $4 billion has been completed to date. The remaining $4.5 billion in share buybacks are expected to be completed before the second quarter of 2022. All things considered, is SHEL stock worth investing in right now?
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BP plc
Following that, we have BP, one of the biggest oil producers in the world. The company continues to reimagine energy for the masses as well and has operations across Europe, North and South America, Asia, and Africa. Also, it is striving to be a net-zero company by 2050 or sooner. Its notable brands include Castrol and Aral. On May 3, 2022, the company also reported its first-quarter earnings.
The company reported one of its strongest operational performances in more than a decade on the back of rocketing oil prices. This has helped it step up share buyback despite a $24 billion writedown from exiting Russia. The energy company said that its underlying profit soared to $6.2 billion from $2.6 billion in the same period last year. Oil prices have shot up by nearly 40% since the start of the year after all. This rise in oil prices was primarily driven by fears of a global supply issue following Russia’s invasion of Ukraine.
For its guidance, the company expects the short-term outlook for gas prices to remain heavily dependent on Russian pipeline flows to Europe. For its full-year 2022, the company expects reported upstream production to be broadly flat compared with 2021 despite the absence of production from its Russia incorporated joint ventures. It also expects 2025 adjusted EBITDA from resilient hydrocarbons and group to be around $31 billion and $38 billion respectively. With that being said, is BP stock a buy today?
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ExxonMobil Corporation
Another name to consider among the oil and gas titans of today would be ExxonMobil. In essence, ExxonMobil is among the largest international energy and petrochemical firms in the market. Similar to our earlier entries, the company develops and employs cutting-edge tech to better serve the world’s growing energy demands. Through its portfolio, ExxonMobil has exploration efforts spanning six continents.
Alongside its industry peers, ExxonMobil is also riding the earnings wave this quarter. Just last week, the company reported total earnings of $5.5 billion, up by 103% year-over-year. Aside from that, ExxonMobil’s total revenue came in at a whopping $90.5 billion, up by 53% year-over-year. Not forgetting, these commendable results are despite ExxonMobil experiencing losses of $3.4 billion from its Russian operations.
Not to mention, the company is actively streamlining its operations. As of this week, ExxonMobil is selling its Romanian upstream affiliate, ExxonMobil Exploration and Production Romania for over $1 billion. According to the company, the current sale will allow ExxonMobil to better focus its investments on its more advantaged assets. Speaking on this is Liam Mallon, president of ExxonMobil Upstream Company. Mallon states, “ExxonMobil continues to evaluate our portfolio of opportunities, focusing our investments in advantaged assets with a low cost of supply.” As such, would XOM stock be a top pick in your books?
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