The global oil and gas market is valued at $7.62 trillion and is projected to reach $9.34 trillion in 2028, representing a CAGR of 5.2%. Critical components of this rapid growth include modernization, urbanization and geopolitical tensions spiking oil prices. These oil and gas stocks to buy will set your portfolio up for success now.
Cenovus Energy (CVE)
Cenovus Energy (NYSE:CVE) is an oil and natural gas company that operates in crude oil. CVE has shown immense financial growth, demonstrated by its market cap of $38.58 billion. In addition, return on total assets showed promise at 7.62%, 14.33% more than the sector median. EPS FWD long term growth was impressive at 24% or a colossal 446.60% more than the sector median. These metrics demonstrate CVE’s long and short-term profitability while discussing its immense growth prospect.
CVE has announced an investment of $1.5 billion towards oil refineries in Ohio over the next 5 years. This includes expanding projects and improving reliability, translating into a solid public image. It also indicates that CVE is set on expanding operations and has the capital to do it, making it likely that this isn’t the only project they will announce in the coming years. Overall, I am fully confident CVE is one of the oil and gas stocks you will want to buy now.
Diamondback Energy (FANG)
Diamondback Energy (NASDAQ:FANG) is an American-based oil and natural gas company focused on developing natural oil reserves in Texas.
Overall, Diamondback Energy had a promising Q4 2023, with ups and downs noted in their latest earnings call. In the past quarter, FANG brought in $2.12 billion in revenue, which equated to a YoY increase of 11.26%. Furthermore, FANG reported $960 million in net income and $5.34 in diluted EPS. Although these figures were net reductions year-over-year (YOY), these metrics outperformed industry forecasts for this quarter by 1.89% for EPS.
The most significant bonus behind FANG’s upside is located in its overall industry performance. Especially when comparing their past quarter to other competitors in the oil and gas industry. Looking at EOG Resources (NYSE:EOG), EOG lost 6.97% of its Q4 revenue year-over-year. Likewise, Pioneer Natural Resources (NYSE:PXD) reported a revenue this past quarter of a 1.89% loss in profit. With FANG blazing the trail with YOY grosses of 11.26%, expect revenue to surge during an overall down period of the market.
Occidental Petroleum (OXY)
Occidental Petroleum (NYSE:OXY) is an American hydrocarbon exploration and petrocarbon manufacturer. OXY stock is a favorite of Warren Buffet, who holds over 25% of the company’s stock. OXY is already up 14.45% YTD, but the legendary investor believes Occidental will experience further growth and continue to return value to shareholders.
His optimism is not unfounded, as the company’s latest earnings showed remarkable performance. In Q4 2023, Occidental reported operating cash flow of $3.2 billion and cash flow from operations before working capital of $2.5 billion. This strong performance is a highly positive sign, enabling management to invest in growth opportunities. Occidental also saw net income reach $1 billion. Furthermore, the company demonstrated its commitment to shareholder value by increasing its quarterly dividend by 22% to 22 cents per share. Overall, Occidental exceeded expectations, a testament to its resilience and operational efficiency.
The most significant catalyst behind Occidental’s success was a $12 billion deal for Permian basin driller CrownRock. Announced in December, this acquisition significantly expands the company’s Permian operations and dramatically increases its share of the U.S. shale market. Management expects CrownRock to strategically bolster the company’s performance and provide leverage during oil price downturns. With an impressive cash flow and strategic expansion plans place OXY among oil and gas stocks to buy now.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.