QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)
QQQ   337.27 (+1.86%)
AAPL   175.05 (+1.37%)
MSFT   318.52 (+1.44%)
META   246.85 (+1.80%)
GOOGL   122.83 (+1.65%)
AMZN   118.15 (+2.29%)
TSLA   176.89 (+1.74%)
NVDA   316.78 (+4.97%)
NIO   7.82 (-2.62%)
BABA   85.77 (-5.41%)
AMD   107.93 (+4.03%)
T   16.55 (-0.66%)
F   11.64 (+1.22%)
MU   67.57 (+4.08%)
CGC   1.05 (+0.00%)
GE   104.01 (+0.52%)
DIS   93.76 (+1.07%)
AMC   5.07 (-0.59%)
PFE   36.48 (-0.73%)
PYPL   61.27 (-0.31%)
NFLX   371.29 (+9.22%)

Oil and Gas Stocks

An oil and gas stock is public company involved in the exploration, drilling, and refinement of oil and natural gas. What is an oil and gas stock?

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
Available with a MarketBeat All Access Subscription
MarketRank™Upgrade to All Access to use the All Ranks Filter
Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
Exxon Mobil Co. stock logo
Exxon Mobil
7.16$427.63 billion11.97 million16.41 millionEx-Dividend
Analyst Report
Chevron Co. stock logo
8.32$291.79 billion7.46 million8.16 millionAnalyst Report
Options Volume
Shell plc stock logo
4.98$209.33 billion5.67 million4.83 millionAnalyst Report
TotalEnergies SE stock logo
7.33$148.94 billion1.20 million1.64 millionAnalyst Report
ConocoPhillips stock logo
8.06$121.90 billion5.50 million6.43 millionAnalyst Report
Short Interest ↓
Analyst Revision
Caterpillar Inc. stock logo
15.87$110.66 billion2.60 million3.26 millionAnalyst Report
Short Interest ↓
Analyst Revision
BP p.l.c. stock logo
4.31$105.75 billion10.47 million9.44 millionAnalyst Report
BHP Group Limited stock logo
BHP Group
10.52$86.28 billion2.09 million3.05 million
Petróleo Brasileiro S.A. - Petrobras stock logo
Petróleo Brasileiro S.A. - Petrobras
2.17$76.37 billion18.47 million22.87 millionAnalyst Report
Enbridge Inc. stock logo
41.63$75.02 billion3.98 million3.46 millionAnalyst Report
Options Volume
EOG Resources, Inc. stock logo
EOG Resources
7.01$65.52 billion2.46 million3.62 millionAnalyst Report
Schlumberger Limited stock logo
16.67$63.70 billion8.37 million9.65 millionAnalyst Report
Canadian Natural Resources Limited stock logo
Canadian Natural Resources
8.68$61.49 billion1.20 million2.10 millionAnalyst Report
O'Reilly Automotive, Inc. stock logo
O'Reilly Automotive
27.22$57.34 billion347,245429,367Analyst Downgrade
Insider Selling
Analyst Revision
Enterprise Products Partners L.P. stock logo
Enterprise Products Partners
10.27$56.71 billion3.49 million4.61 millionAnalyst Report
Occidental Petroleum Co. stock logo
Occidental Petroleum
6.67$51.94 billion11.21 million12.79 millionAnalyst Report
Insider Buying
Analyst Revision
Pioneer Natural Resources stock logo
Pioneer Natural Resources
7.23$47.68 billion1.76 million2.45 millionAnalyst Report
Positive News
Marathon Petroleum Co. stock logo
Marathon Petroleum
3.34$47.09 billion3.35 million3.98 millionAnalyst Report
Phillips 66 stock logo
Phillips 66
3.72$44.18 billion4.39 million3.60 millionAnalyst Upgrade
TC Energy Co. stock logo
TC Energy
32.06$40.98 billion1.27 million1.89 millionAnalyst Report
Options Volume
Hess Co. stock logo
19.07$40.87 billion1.11 million1.72 millionDividend Cut
Analyst Report
Energy Transfer LP stock logo
Energy Transfer
9.49$39.96 billion9.98 million12.16 millionInsider Buying
Positive News
Suncor Energy Inc. stock logo
Suncor Energy
6.31$37.60 billion6.42 million4.62 millionAnalyst Report
Options Volume
Kinder Morgan, Inc. stock logo
Kinder Morgan
14.62$37.02 billion12.06 million12.74 millionAnalyst Report
The Williams Companies, Inc. stock logo
Williams Companies
13.71$35.58 billion6.38 million6.89 millionAnalyst Upgrade
Devon Energy Co. stock logo
Devon Energy
5.26$31.58 billion6.07 million9.48 millionAnalyst Report
Cenovus Energy Inc. stock logo
Cenovus Energy
7.90$31.31 billion6.90 million7.62 millionAnalyst Report
Short Interest ↓
Analyst Revision
Cummins Inc. stock logo
12.10$30.39 billion825,0201.01 millionAnalyst Report
LyondellBasell Industries stock logo
LyondellBasell Industries
9.74$29.29 billion1.14 million2.00 millionAnalyst Report
Short Interest ↓
Imperial Oil Limited stock logo
Imperial Oil
5.16$27.17 billion315,796445,229Analyst Report
Halliburton stock logo
13.83$26.95 billion10.85 million9.43 millionDividend Announcement
Analyst Report
Short Interest ↑
Quanta Services, Inc. stock logo
Quanta Services
50.71$24.95 billion820,373876,174Analyst Report
Insider Selling
Albemarle Co. stock logo
6.74$24.66 billion2.01 million2.04 millionAnalyst Upgrade
Insider Buying
Analyst Revision
News Coverage
Diamondback Energy, Inc. stock logo
Diamondback Energy
5.33$23.31 billion1.20 million2.26 millionAnalyst Report
Analyst Revision
Woodside Energy Group Ltd stock logo
Woodside Energy Group
N/A$22.25 billion422,615633,483Positive News
Coterra Energy Inc. stock logo
Coterra Energy
4.86$19.28 billion11.13 million8.50 millionAnalyst Report
Short Interest ↓
Ecopetrol S.A. stock logo
2.41$19.16 billion1.41 million2.33 millionAnalyst Report
Pembina Pipeline Co. stock logo
Pembina Pipeline
8.24$17.06 billion835,244682,119Analyst Report
Tenaris S.A. stock logo
4.95$15.75 billion2.84 million2.32 million
Targa Resources Corp. stock logo
Targa Resources
18.04$15.74 billion2.32 million1.61 millionAnalyst Report
Analyst Revision
Marathon Oil Co. stock logo
Marathon Oil
5.66$14.03 billion9.92 million10.57 millionAnalyst Report
Analyst Revision
Watsco Inc stock logo
22.20$13.27 billion4265
Watsco, Inc. stock logo
22.19$13.26 billion147,520308,877Analyst Report
Graco Inc. stock logo
27.63$13.03 billion629,404931,213Analyst Report
Stanley Black & Decker, Inc. stock logo
Stanley Black & Decker
18.60$12.73 billion1.46 million1.80 millionAnalyst Report
Magellan Midstream Partners, L.P. stock logo
Magellan Midstream Partners
11.37$12.67 billion2.23 million1.07 millionAnalyst Report
Options Volume
High Trading Volume
Chesapeake Energy Co. stock logo
Chesapeake Energy
1.71$11.01 billion2.34 million1.56 millionOptions Volume
Texas Pacific Land Co. stock logo
Texas Pacific Land
23.98$10.40 billion18,13342,957Analyst Report
Positive News
Western Midstream Partners, LP stock logo
Western Midstream Partners
9.60$10.23 billion763,893926,145Analyst Report
APA Co. stock logo
5.32$10.09 billion5.71 million5.98 millionAnalyst Report
Short Interest ↓
Plains All American Pipeline, L.P. stock logo
Plains All American Pipeline
8.88$9.42 billion3.52 million4.19 millionAnalyst Report
MasTec, Inc. stock logo
N/A$7.79 billion812,604606,607Analyst Report
Analyst Revision
Clean Harbors, Inc. stock logo
Clean Harbors
17.38$7.58 billion192,142382,132Analyst Report
Insider Selling
OGE Energy Corp. stock logo
OGE Energy
17.34$7.33 billion1.59 million1.12 millionAnalyst Report
Positive News
Range Resources Co. stock logo
Range Resources
3.46$7.12 billion7.51 million4.74 millionAnalyst Report
Insider Selling
Negative News
ITT Inc. stock logo
17.50$6.79 billion276,955471,242Analyst Report
RBC Bearings Incorporated stock logo
RBC Bearings
109.15$6.51 billion149,567155,583Analyst Report
NOV Inc. stock logo
18.08$5.98 billion3.31 million4.36 millionDividend Announcement
Analyst Report
Options Volume
Analyst Revision
TechnipFMC plc stock logo
N/A$5.97 billion4.95 million5.56 millionAnalyst Report
Southwestern Energy stock logo
Southwestern Energy
0.93$5.97 billion32.84 million24.40 millionAnalyst Report
Positive News
MDU Resources Group, Inc. stock logo
MDU Resources Group
15.76$5.90 billion1.92 million920,877Analyst Report
High Trading Volume
PDC Energy, Inc. stock logo
PDC Energy
2.77$5.68 billion430,745817,990Analyst Report
Insider Selling
Analyst Revision
News Coverage
Murphy Oil Co. stock logo
Murphy Oil
4.39$5.53 billion1.25 million1.73 millionAnalyst Report
Insider Selling
ChampionX Co. stock logo
31.48$5.48 billion997,3711.56 millionDividend Announcement
Matador Resources stock logo
Matador Resources
4.58$5.32 billion774,3301.30 millionAnalyst Report
Permian Resources Co. stock logo
Permian Resources
4.97$5.19 billion6.96 million7.17 millionEx-Dividend
PBF Energy Inc. stock logo
PBF Energy
1.47$4.77 billion2.02 million2.94 millionAnalyst Upgrade
Analyst Revision
Denbury Inc. stock logo
8.72$4.62 billion799,671604,516
EnLink Midstream, LLC stock logo
EnLink Midstream
12.52$4.61 billion2.42 million2.34 millionAnalyst Report
Short Interest ↓
Driven Brands Holdings Inc. stock logo
Driven Brands
123.14$4.54 billion1.08 million508,370High Trading Volume
Kinetik Holdings Inc. stock logo
24.46$4.52 billion169,825248,322Positive News
Transocean Ltd. stock logo
N/A$4.45 billion9.62 million21.43 millionAnalyst Report
Analyst Revision
Viper Energy Partners LP stock logo
Viper Energy Partners
11.99$4.43 billion283,068403,485Analyst Report
Analyst Revision
Valaris Limited stock logo
16.85$4.37 billion569,6671.02 millionAnalyst Report
YPF Sociedad Anónima stock logo
YPF Sociedad Anónima
1.96$4.28 billion1.21 million2.49 millionAnalyst Report
News Coverage
Weatherford International plc stock logo
Weatherford International
24.14$4.23 billion431,719746,957Positive News
Magnolia Oil & Gas Co. stock logo
Magnolia Oil & Gas
4.56$4.17 billion1.69 million1.92 millionAnalyst Report
Fluor Co. stock logo
N/A$4.07 billion1.39 million1.65 millionAnalyst Report
Short Interest ↑
Crescent Point Energy Corp. stock logo
Crescent Point Energy
9.46$3.65 billion2.80 million5.50 millionDividend Cut
Analyst Report
Black Stone Minerals, L.P. stock logo
Black Stone Minerals
5.93$3.44 billion1.05 million698,215Analyst Report
Euronav NV stock logo
7.74$3.26 billion1.19 million2.02 millionAnalyst Report
Options Volume
Frontline plc stock logo
6.74$3.23 billion3.15 million3.57 millionUpcoming Earnings
Analyst Report
Enerplus Co. stock logo
3.36$3.11 billion972,6971.14 millionAnalyst Report
Short Interest ↑
Analyst Revision
Moog Inc stock logo
18.22$3.06 billion200400Gap Up
C3.ai, Inc. stock logo
N/A$3.01 billion31.29 million20.58 millionOptions Volume
Kosmos Energy Ltd. stock logo
Kosmos Energy
9.66$2.89 billion4.06 million6.02 millionAnalyst Report
Short Interest ↓
Worthington Industries, Inc. stock logo
Worthington Industries
13.77$2.87 billion87,286169,769Analyst Report
California Resources Co. stock logo
California Resources
3.02$2.81 billion308,170731,241Analyst Report
Short Interest ↓
Plains GP Holdings, L.P. stock logo
Plains GP
12.76$2.73 billion3.10 million2.75 millionAnalyst Report
News Coverage
Comstock Resources, Inc. stock logo
Comstock Resources
2.11$2.69 billion4.03 million4.77 millionAnalyst Report
Analyst Revision
CNX Resources Co. stock logo
CNX Resources
2.24$2.65 billion4.56 million3.15 millionAnalyst Report
Short Interest ↓
Analyst Revision
Northern Oil and Gas, Inc. stock logo
Northern Oil and Gas
2.05$2.64 billion1.94 million1.69 millionAnalyst Report
Analyst Revision
Innospec Inc. stock logo
19.03$2.46 billion66,93692,327Analyst Report
Alliance Resource Partners, L.P. stock logo
Alliance Resource Partners
3.35$2.37 billion535,670515,926
Patterson-UTI Energy, Inc. stock logo
Patterson-UTI Energy
8.44$2.28 billion2.61 million3.46 millionAnalyst Report
Analyst Revision
TORM plc stock logo
3.24$2.23 billion369,574398,085Dividend Increase
Liberty Energy Inc. stock logo
Liberty Energy
4.18$2.23 billion1.81 million2.98 millionShort Interest ↓
Positive News
Biglari Holdings Inc stock logo
7.65$2.09 billion64160Positive News
Delek Logistics Partners, LP stock logo
Delek Logistics Partners
13.01$2.05 billion35,03034,566Analyst Report
Short Interest ↓
Callon Petroleum stock logo
Callon Petroleum
1.44$2.01 billion844,5471.49 millionAnalyst Report
Short Interest ↓
Oil Stocks

Every investor should have some exposure to oil for the simple reason that it powers the world. The global economy uses oil in many different ways including the gasoline that powers our cars, diesel fuel that’s essential in the trucking industry, jet fuel required for air travel. Oil is also necessary to heat and cool our homes as well as to power factories.

That’s not a complete list by any measure. And that’s the point. Oil and its derivate products (e.g. gasoline) are still essential to the global economy.

This statement remains true even as renewable energy sources are becoming cost competitive with oil. The simple fact is that the world will still be using oil for the near future.

And that means that oil stocks belong in your portfolio. Oil stocks contain less risk than trying to buy and sell oil on the options or futures markets. And most oil stocks pay a dividend which gives investors a predictable income stream that can make up for the volatility that is inherent in these stocks.

In this article, we’ll review why you should consider investing in oil; we’ll review your investment options, and more directly the different types of oil companies that you can invest in.  

Oil is a commodity and like all commodities, its price is fundamentally driven by supply and demand. Simply put when demand for crude oil is high, prices go up. Conversely when demand decreases, so do prices.

For decades, particularly since World War II, demand for oil was high. Many nations were building a new infrastructure of roads and bridges. Air travel was making the world smaller and businesses became truly international. And powering all of it was oil.

However, even during periods of strong growth, the price of oil is affected by seasonal events. As any driver will tell you, the price of gasoline goes up in the summer months because the amount of driving increases.

And the price of oil is also affected by macroeconomic events. For example, when the Covid-19 pandemic caused millions of offices and businesses to close, it had a devastating effect on the oil and gas sector. In fact, at one point, the futures contract for a barrel of oil turned negative.

Understanding how oil supply and demand impacts oil makes it a reliable indicator of economic activity. When analysts and institutional investors forecast decreasing demand for oil, they bid down the price of crude oil. This in turn affects oil stocks which as we said tend to move with the market.

And as we mentioned in the introduction, despite the continuing growth of alternative energy sources, oil will remain a worthwhile investment. And oil stocks can be a way for risk-averse investors to have exposure to the oil sector without dabbling in the commodities market.

Oil is expensive to bring to market. It’s more than just the cost of extracting it from the ground. Oil has to be transported, stored, and in many cases refined into gasoline or other products. And those costs are usually fixed.

This is a double-edged sword for the oil companies. When a barrel of oil sells for more than the sum of all these costs, oil companies turn a profit. And stocks of oil companies will go up as well.

However, the opposite is also true. When oil sells for less than, many of these companies will lose money. During these times, stocks of oil companies will go down.

Investing in oil stocks would be easier if all oil companies were affected the same way by rising or falling crude prices. But, in fact, the oil sector is very diverse and each sector may be affected slightly differently by rising or falling oil prices.

Here is a brief description of different kinds of oil companies and their role in the production of oil:

  • Upstream companies – These are the companies investors most frequently think about as an oil stock. These companies are involved in exploration and production. As the name implies, this means these companies explore locations looking for oil. When they find a promising location, they drill wells to extract the oil. However as you might imagine, these companies are affected most by changes in the price of crude oil. The largest upstream company in the United States is ConocoPhillips (NYSE:COP).

  • Midstream companies – These companies transport crude oil through pipelines that is then stored in terminals that they own. The oil stays there until it is sent to be refined or exported. Some of these companies will even transport the newly refined company through its own pipeline networks. Midstream companies are slightly more insulated from oil price fluctuations because they usually operate on long-term contracts with fixed terms. One of the leading midstream companies is Enterprise Products Partners (NYSE: EPD). A unique aspect of EPD stock is that the company is a master limited partnership. This has tax advantages for individual shareholders but can increase the risk of larger losses.

  • Downstream companies – These companies refine oil into other products such as gasoline and petrochemicals. In many cases, these companies are also part of selling this refined product to consumers. Two examples of downstream companies are gas station operators and refinery operators. Although these companies are not directly affected by a drop in crude prices, their stock still tend to fall when oil prices fall. One of the major downstream companies is Phillips 66 (NYSE: PSX).

  • Integrated companies – These companies do business in more than one of the fields mentioned above. When you hear a reference to “Big Oil” companies, it is a reference to companies such as ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) that have large upstream and downstream operations with some midstream business.

  • Oilfield services companies – Another way to invest in oil stocks is through the companies that provide equipment, operational support, and logistics to other oil companies, typically upstream companies. Oilfield services companies are hurt when oil prices fall because one of the first things upstream companies will do is cut their service costs.

Although oil stocks generally move in concert with the price of a barrel of crude, the correlation is not always exact. For example, many oil companies will talk of a “break even” point. This can allow the price of crude to fall a little while these companies can still be profitable. This makes oil stocks a slightly less risky option than trading oil in the options or futures market.

But perhaps the most important reason to own oil stocks is that many oil stocks pay a dividend. For example, prior to the pandemic some oil companies had increased their dividends for decades. These companies know that preserving its dividends has to be a priority because of the volatility associated with the underlying price of oil.

However, it’s important that you focus less on a company’s dividend yield (which can move up or down with the share price), but also on how the yield compares to the company’s free cash flow (FCF). In general investors want to find companies that can pay their entire dividend obligation out of its FCF. This “payout ratio” should be at least 1.1.

ETFs Are a Different Way to Invest in Oil Stocks

The easiest and more popular way to invest in oil stocks is to buy stocks of individual companies. However, investing in an exchange-traded funds (ETFs) can be a smart way to manage the risk of this sector. An oil ETF allows investors to invest in one or more of the sectors listed above at one time. For example, the SPDR Oil and Gas Exploration & Production ETF (NYSEARCA: XOP) tracks the upstream sector.

Buy-and-hold investors may be reading this thinking. Yes, buying oil stocks may be good today, but what about 20 years from now? However, oil companies have been asking themselves that same question for the better part of 30 years. And that’s why some of the largest oil companies continue to make significant investments in renewable energy.

  • ExxonMobil (NYSE: XOM) is investing up to $1 billion per year to conduct research in low-carbon technologies. This may not have a payoff for decades.

  • Chevron (NYSE: CVX) has small investments in wind, solar, and geothermal projects that could potentially power over 110,000 U.S. homes. The company is also a leader in renewable diesel and liquefied natural gas.

  • P. (NYSE: BP) was a pioneer in this area in the early 1990s and currently owns 1.4 gigawatts (GW) of American wind power and solar leader Lightsource BP. The company is also part of a 50-50 joint venture with DuPont (NYSE: DD) in next-generation renewable fuels.

Not surprisingly many of these companies are also among the best performing oil stocks with regard to total return (i.e. share price growth combined with dividends).

Although they remain highly cyclical in nature, oil stocks are still an attractive investment opportunity. The fortunes of oil companies depend to a greater or lesser extent on the price of crude oil. That’s why investors should understand what role a company plays in the production and/or delivery of oil to the market.

However, the benefit of having multiple options is that investors have many options including buying shares of ETFs that add even more diversity. And because oil and gas companies are taking an increased interest in renewable energy many of the most profitable oil stocks today will continue to be good investments in the future.

More Stock Ideas from MarketBeat

My Account -