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what stocks to own based on rising oil prices

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10 Best Crude Oil Stocks To Buy Today

In this article, nosotros discuss the 10 all-time crude oil stocks to purchase today. If you want to skip our detailed analysis of these stocks, go direct to the 5 All-time Rough Oil Stocks To Buy Today .

After experiencing the pandemic-led slump in early 2020, the energy sector has had ane of its best years in 2021. The energy sector, specially oil and gas, outperformed in the past year and was named the best-performing sector in 2021, with a total render of 53.3% as of early January.

The cost of crude oil has risen dramatically since Russia's invasion of Ukraine, causing market disruption. In response to Russian federation's invasion of Ukraine, President Joe Biden announced a ban on Russian fossil imports, including oil, on March 8. Following this, the US crude oil alphabetize WTI jumped as much as 7% to trade above $128 per barrel, while Brent rough oil, the international criterion, jumped 7.vii% to $132.75 before trading off the highs.

In January, market analysts predicted that crude oil would hitting $100 per barrel in the last 2 quarters of 2022 before the disharmonize between Russia and Ukraine erupted. At present, JPMorgan strategists believe that oil prices may increase to $185 per barrel, while Banking company of America believes that if most of Russian federation's oil exports are cut off, prices might hitting $200 per barrel.

As of March 10, Energy Select Sector SPDR Fund (XLE) is up 45.07% year to appointment. Among the rough oil stocks that are currently outperforming in the market are Exxon Mobil Corporation (NYSE: XOM ), Chevron Corporation (NYSE: CVX ), and Crush plc (NYSE: SHEL ).

Our Methodology

We analyzed the crude oil stocks that recently received positive analyst ratings, have strong financial statements and concern growth potential. Using Insider Monkey data, nosotros ranked these crude oil stocks based on the number of hedge funds that held positions in them at the end of the quaternary quarter of 2021.

10 Best Crude Oil Stocks To Buy Today
x All-time Rough Oil Stocks To Buy Today

Photo by David Thielen on Unsplash

Best Rough Oil Stocks To Purchase Today

10. Matador Resource Company (NYSE: MTDR )

Number of Hedge Fund Holders: 26

Matador Resources Company (NYSE:MTDR) is an independent energy visitor that explores rough oil and natural gas assets. The Texas-based oil and gas company has operations in the Delaware Basin, Eagle Ford shale, and Haynesville shale. Matador Resources Company (NYSE:MTDR) reported full oil and gas production of 31.v meg barrels of oil equivalent in 2021.

Matador Resource Company (NYSE:MTDR) reported a 4th-quarter cyberspace income of $214.8 one thousand thousand, or $1.80 earnings per share, a 6.vi% increase from Q3 2021. In Oct, the company increased its quarterly dividend by 100% to $0.025 per share. Currently, Matador Resources Company (NYSE:MTDR) pays its shareholders an annual dividend of $0.twenty per share.

Analysts and hedge funds are bullish virtually the Texas-based oil company. MKM Partners analyst John Gerdes raised Matador Resources Company's (NYSE:MTDR) price target to $56 from $50 in Feb. Gerdes kept his Purchase recommendation on the oil stock. On the other hand, Millennium Management , a New York-based investment direction firm, increased its interest in Matador Resources Company (NYSE:MTDR) by 26% in the quaternary quarter, bringing its full holdings to 1.74 meg shares worth $64.5 million.

9. Marathon Petroleum Corporation (NYSE: MPC )

Number of Hedge Fund Holders: 41

Just like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Trounce plc (NYSE:SHEL), Marathon Petroleum Corporation (NYSE:MPC), is one of the rough oil companies to wait into for income investors as it has a generous shareholder reward programme. The Ohio-based oil firm now provides a $2.32 per share yearly dividend, yielding iii.04%. The five-year annualized dividend growth rate for Marathon Petroleum Corporation (NYSE:MPC) is 11.27%.

Marathon Petroleum Corporation (NYSE:MPC) also returned $3 billion to shareholders in the fourth quarter through share repurchases and completed more than half of the $10 billion repurchase program at the finish of January 2022. Marathon Petroleum Corporation (NYSE:MPC) announced an additional $5 billion share repurchase authorization in early Feb.

Marathon Petroleum Corporation (NYSE:MPC) is a marketplace analyst and hedge fund favorite considering the company is currently expanding its renewable energy operations through an affordable free energy transition plan. Cowen annotator Jason Gabelman increased his cost target for Marathon Petroleum Corporation (NYSE:MPC) to $90 from $83 on Feb three, while keeping an Outperform rating on the shares. As of the end of Dec 2021, Elliott Management is the biggest shareholder of the Ohio-based rough oil refiner, owning 10.5 million shares worth $676 million.

Here is what Clark Street Value has to say almost Marathon Petroleum Corporation in its Q4 2021 investor alphabetic character:

"During the worst of covid, I bought some LEAPs on Marathon Petroleum (MPC) as a proxy for Par Pacific (PARR) since long-dated options weren't available on the later. Those MPC calls expire adjacent calendar month and I'll take profits, with PARR I've reduced my position throughout the year and might sell the rest early next twelvemonth, I've owned it for 6-7 years and it has gone nowhere, they haven't touched the NOLs, just a hard business that I probably don't understand likewise as I should."

8. Shell plc (NYSE: SHEL )

Number of Hedge Fund Holders: 41

Shares of European oil giant Crush plc (NYSE:SHEL) jumped 3.10% at the end of the kickoff week of March. As a effect of the ongoing invasion of Russia in Ukraine, the London-based energy firm recently announced its complete withdrawal from Russian oil partners, too equally a suspension on future Russian oil purchases. Shell plc (NYSE:SHEL) is as well closing its service stations, aviation fuels, and lubricants operations in Russia.

Shell plc (NYSE:SHEL) reported adjusted earnings of $six.4 billion in the quaternary quarter of 2021. Equally profits soared in the quarter due to higher contributions from higher LNG trading and an increase in commodity prices, the London-based oil and gas company boosted its quarterly dividend past approximately 4%. Crush plc's (NYSE:SHEL) stockholders will receive a $0.25 per share dividend starting time in Q1 2022. Furthermore, the corporation disclosed an $8.5 billion share repurchase plan for the first half of 2022.

On February 4, Cowen annotator Jason Gabelman maintained an Outperform rating on Shell plc (NYSE:SHEL) and increased his price target for the crude oil stock to $58 from $53. Gabelman anticipates the company's improvement to its cash return framework, which could also occur with the company's Q2 earnings. During the fourth quarter of 2021, 41 hedge funds held stakes in Shell plc (NYSE:SHEL), up from 33 in Q3 2021.

Here is what Goehring & Rozencwajg Assembly has to say virtually Shell plc (NYSE:SHEL) in its Q3 2021 investor letter:

" Purple Dutch Shell 'southward ESG challenges proceed unabated. A Dutch court ruled in May that Majestic Dutch Shell must cut its CO2 output by 45% by 2030 to align their policies with the Paris Climate Accord. In a statement issued after the verdict, a Shell spokesperson acknowledged that "urgent activity is needed on climate alter and the company is accelerating efforts to reduce emissions." If the pressure level from the Dutch court system was not plenty, an activist shareholder has proposed breaking the visitor autonomously to accost ESG concerns. On Oct 27th, Third Point Management appear the following.

"If Shell pursues this type of strategy it would probably lead to an acceleration of carbon dioxide reduction. […] Breaking Beat out into ii operating units would create a standalone legacy energy concern (upstream, refining, and chemicals) that could boring capex beyond what is has already promised, sell assets, and prioritize render of cash to shareholder which tin exist reallocated into low-carbon areas of the market place."

Shell has already cut spending dramatically over the last decade. Subsequently having peaked at $39 bn in 2013, upstream majuscule spending barbarous to only $17 bn in 2020 – a drop of nearly 60%. Spending has barely recovered in the three quarters of 2021. A lack of spending has already impacted production. Proforma for the 2016 acquisition of BG Grouping, Shell's full production has fallen 13% since capital spending peaked in 2013. These trends are accelerating: Trounce's product over the outset ix months of 2021 have fallen 7% compared with the same menses last year.

If Majestic Dutch Beat'southward upstream capital spending remains at today's depressed levels, we estimate the company will simply exist able to replace 30% of production with new reserves and that production volition fall 40% over the next 9 years. If spending is farther curtailed (as is being proposed), Crush's oil and natural gas production would plummet – something that may have already started."

7. Phillips 66 (NYSE: PSX )

Number of Hedge Fund Holders: 41

Phillips 66 (NYSE:PSX) is a crude oil and petroleum product midstream company. The Texas-based energy company also engages in refining, chemicals, and oil marketing. Phillips 66 (NYSE:PSX) sells refined petroleum products and renewable fuels through 7,110 branded outlets in the United States and i,700 branded outlets worldwide.

Phillips 66 (NYSE:PSX) generated $1.8 billion in operating greenbacks menstruation in the fourth quarter of 2021, with the company returning $403 1000000 in dividends to stockholders. In addition, the company increased its quarterly dividend by 2.2% to $0.92 in October. As of March 8, shares of Phillips 66 (NYSE:PSX) increased 26% in value in the by six months.

Every bit of the finish of the December quarter, 41 hedge funds had positions in Phillips 66 (NYSE:PSX), upward from 34 in the previous quarter. Phillips 66'southward largest stakeholder, New York-based investment management business firm Millennium Management , boosted its stake in the crude oil retailer past 145% in the fourth quarter of 2021, bringing its total holdings to 3.fifteen million shares.

6. Pioneer Natural Resources Company (NYSE: PXD )

Number of Hedge Fund Holders: 43

Pioneer Natural Resources Company (NYSE:PXD), along with Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and Shell plc (NYSE:SHEL), is one of the crude oil companies profiting from the ongoing oil toll recovery. The Texas-based independent oil and gas exploration and production firm generated $1.i billion in the fourth quarter and $three.2 billion in full-year 2021 free cash flow. As a result of this, Pioneer Natural Resource Visitor (NYSE:PXD) was able to return $1.9 billion to shareholders in dividends and share repurchases.

The Texas-based oil business firm provides a unique payout construction to its stockholders, which draws more than investors. Pioneer Natural Resources Company (NYSE:PXD) issued a quarterly base-plus-variable dividend of $three.78 per share in February, giving the stock an annualized full base-plus-variable dividend yield of almost 7%.

On February 23, Piper Sandler's Mark Lear raised his price target on Pioneer Natural Resource Company (NYSE:PXD) from $256 to $274. Pioneer is "passing the initial test on promised capital discipline" through price cycles, according to Lear. In comparison, at the end of Dec 2021, 43 hedge funds tracked by Insider Monkey held stakes in the independent oil and gas company, compared to 48 in Q3 2021.

Here is what ClearBridge Investments has to say about Pioneer Natural Resources Visitor (NYSE:PXD) in its Q3 2021 investor alphabetic character:

"Over the concluding yr, nosotros have also added a position in Pioneer Natural Resource Company (NYSE:PXD) , a all-time-in-class producer in the Permian Basin. We added Pioneer equally we anticipated rising article prices and sought more than direct leverage to that trend. Our overweight to energy has benefited our operation this year, in item through the first half of the year, and we believe the sector, still less than iii% of the Southward&P 500, remains underinvested and bonny going forward."

Click to keep reading and see 5 Best Crude Oil Stocks To Buy Today.

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Disclosure. None. 10 All-time Crude Oil Stocks To Buy Today is originally published on Insider Monkey.

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Source: https://finance.yahoo.com/news/10-best-crude-oil-stocks-161116181.html

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