Texas Pacific Land (NYSE:TPL)
Founded in 1888, Texas Pacific Land Trust is among the largest landowners in Texas. Its revenue streams consist of oil and gas royalties, easements, commercial leases, material sales and land sales. Texas Pacific Land Trust also provides water services such as water sourcing, water treatment, infrastructure development, water disposal and water tracking.
The oil stock has a market cap of $3.9 billion and has an EPS of 25.83. It has an annual dividend yield of $10 per share. Texas Pacific Land Trust trades more than 32,500 shares per day. It generated revenue of $490 million in 2019.
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| Open347.650 | Close352.670 |
| Vol / Avg.1.355M / 374.363K | Mkt Cap24.279B |
| Day Range346.080 - 360.590 | 52 Wk Range269.233 - 547.200 |
TotalEnergies (NYSE:TTE)
TotalEnergies is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2020, it produced 1.5 million barrels of liquids and 7.2 billion cubic feet of natural gas per day. At year-end 2020, reserves stood at 12.3 billion barrels of oil equivalent, 43% of which are liquids. The company operates refineries with capacity of nearly 2.0 million barrels a day, primarily in Europe, distributes refined products in 65 countries, and manufactures commodity and specialty chemicals. It also holds a 19% interest in Russian oil company Novatek.
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| Open90.550 | Close90.820 |
| Vol / Avg.986.715K / 1.642M | Mkt Cap200.072B |
| Day Range90.460 - 91.250 | 52 Wk Range57.390 - 94.170 |
EOG Resources (NYSE:EOG)
EOG Resources is an oil and gas producer with acreage in several U.S. shale plays, including the Permian Basin, the Eagle Ford, and the Bakken. At the end of 2020, it reported net proved reserves of 3.2 billion barrels of oil equivalent. Net production averaged 754 thousand barrels of oil equivalent per day in 2020 at a ratio of 72% oil and natural gas liquids and 28% natural gas.
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| Open145.080 | Close144.230 |
| Vol / Avg.8.275M / 3.345M | Mkt Cap76.367B |
| Day Range143.890 - 145.680 | 52 Wk Range101.594 - 154.160 |
Baker Hughes (NASDAQ:BKR)
Baker Hughes in its current form originated in 2017 from the merger of Baker Hughes with GE Oil & Gas. Baker Hughes’ history of oilfield innovation stretches back over a century, and with the combination with GE, the company now can offer the full spectrum of services to oil and gas companies, from upstream to downstream.
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| Open56.350 | Close57.250 |
| Vol / Avg.21.057M / 8.500M | Mkt Cap57.049B |
| Day Range56.060 - 57.570 | 52 Wk Range43.920 - 70.410 |
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Africa Oil Corp is an international oil and gas exploration company. It is an exploration stage enterprise that participates in oil and gas projects located in emerging markets, in sub-Saharan Africa. The company operates in the business segment of international oil and gas exploration, and geographically, it operates in Kenya and Ethiopia.
Devon Energy (NYSE:DVN)
Devon Energy, based in Oklahoma City, is one of the largest independent exploration and production companies in North America. The firm’s asset base is spread throughout onshore North America and includes exposure to the Delaware, STACK, Eagle Ford, Powder River Basin, and Bakken plays. At year-end 2021, Devon’s proved reserves totaled 1.6 billion barrels of oil equivalent, and net production that year was 572 thousand boe/d, of which oil and natural gas liquids made up 74% of production, with natural gas accounting for the remainder.
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| Open48.570 | Close48.610 |
| Vol / Avg.39.692M / 11.792M | Mkt Cap56.051B |
| Day Range48.175 - 49.000 | 52 Wk Range31.474 - 52.710 |
Enbridge (NYSE:ENB)
Enbridge owns extensive midstream assets that transport hydrocarbons across the U.S. and Canada. Its pipeline network consists of the Canadian Mainline system, regional oil sands pipelines, and natural gas pipelines. The company also owns and operates a regulated natural gas utility and Canada’s largest natural gas distribution company. Finally, the firm has a small renewables portfolio primarily focused on onshore and offshore wind projects.
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| Open48.700 | Close48.730 |
| Vol / Avg.4.067M / 4.862M | Mkt Cap106.934B |
| Day Range48.500 - 48.915 | 52 Wk Range45.025 - 58.450 |
Enterprise Prods Partners (NYSE:EPD)
Enterprise Products Partners is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products and petrochemicals. It is one of the largest midstream companies, with operations servicing most producing regions in the Lower 48 states. Enterprise is particularly dominant in the NGL market and is one of the few MLPs that provide midstream services across the full hydrocarbon value chain.
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| Open38.700 | Close38.890 |
| Vol / Avg.4.892M / 2.890M | Mkt Cap84.004B |
| Day Range38.358 - 39.100 | 52 Wk Range30.010 - 40.165 |
Oil has made headlines during this coronavirus crisis, although not for reasons investors want to see. In addition to issues caused by international events, especially those that impede the safe transport of natural resources. Even in a perfect work, this sector can be quite volatile as supply and demand are constantly shifting. That's why it's important to learn all you can about oil assets, how they can impact your portfolio and the manner in which petroleum maintains hold on the financial sector.
Despite any problems that might arise, remember that the oil market tends to be a safe place to hold assets for long periods of time. There is quite a lot of growth potential in this sector, and you should keep your eye on the oil industry even as renewable energy becomes a powerful force worldwide.
Quick Look at the Best Oil Stocks:
- Texas Pacific Land Trust
- TotalEnergies
- EOG Resources
- Baker Hughs
- Africa Oil Corp
- Devon Energy
- Enbridge
- Enterprise Products Partners
Overview: Oil Stocks
Oil companies like ExxonMobil and BP are some of the oldest and largest publicly-traded firms in the petroleum industry, but there are many more with which you must contend as they handle crude oil and a range of petroleum products.
Despite environmental headwinds, the oil and gas industry is still a multi-trillion dollar business composed of several different subsectors and business models, despite popular assumptions about both the price of oil and the function of the industry. Oil companies are split into 3 distinct groups based on where they function in the pipeline. The 3 different groups are:
- Upstream: Companies in the upstream subsector are involved in finding oil and pulling it out of the earth. Upstream companies search the globe for new oil reservoirs and assemble drill sites for extraction. Yes, the oil they retrieve could become fuel or some other petroleum product, but they generally make money from retrieval via drilling on an oil rig or fracking in gas field—not sales. Upstream companies often face significant financial hurdles since drilling and mining equipment is cumbersome and expensive. Occidental Petroleum (NYSE: OXY) and Whiting Petroleum (NYSE: WLL) are upstream firms that recently suffered severe debt issues.
- Midstream: Midstream companies are transportation and storage firms. At this part of the process, the raw product needs to be treated, stored and shipped to suppliers. Companies that run pipelines or own oil tankers are often referred to as midstream since they bridge the gap between the drillers and the companies refining and selling the product to the public. For example, a midstream firm brings gas products to the gas company or oil products to the refinery, etc.
- Downstream: Finally, we have the refiners and suppliers. Downstream companies remove imperfections from the raw product and turn it into engine oil, gasoline, heating oil, etc. Many downstream companies also have operations in the midstream sector as well, allowing them to hold the inventory they ship. In some cases, crude oil production can lead to a transportation network and retail system.
Many of the largest oil companies like ExxonMobil are known as integrated oil producers since they have branches involved in upstream, midstream and downstream operations, meaning that their stock price can be impacted by OPEC restrictions, current events everywhere from Oklahoma to South America and the Middle East and/or the rise and decline of demand (for example, the summer travel season in America.) When buying oil companies, be sure to understand what sector of the industry they reside in. Plus, the sector of the industry where the company works changes the way they operate and adjust to market shifts. For example, a smaller downstream company might have more room to adjust to a shifting market where a larger midstream company might not. Carefully considering your options and monitoring their performance is the best way to keep your portfolio in good condition.
Best Online Brokers for Oil Stocks
Before investing in any oil stocks, you need to find the right brokerage account for your investments, even if you have your finger on the pulse of crude oil prices. Most major online discount brokers have access to the oil company shares you’re looking
- Good Fit For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
- Good Fit For:Leveraged TradingVIEW PROS & CONS:securely through Plus500 Yield's website
- Good Fit For:Commission-Free Mobile TradingVIEW PROS & CONS:securely through Robinhood's website
- Good Fit For:Active Short SellersVIEW PROS & CONS:securely through TradeZero [SPONSORED]'s website
Features to Look for in Oil Stocks
- Manageable debt load: Oil companies are usually burdened with large amounts of debt, especially upstream companies that require expensive equipment to operate. Excessive leverage can easily cause oil companies to falter, but debt is a way of life for oil producers, so make sure the companies you buy can manage theirs. Yes, global demand is high, but there’s no guarantee that a plentiful oil well and an assumption of demand is enough to make a profitable business.
- Stable dividend: Oil stocks are known for their fat dividends and investors have enjoyed steady income from the industry for years. However, with oil stocks in the bargain bin and no end in sight to the headwinds pressuring the industry, dividends are on the chopping block. Energy firms like Williams Companies (NYSE: WMB) currently sport high dividends, but that does not mean those dividends will last forever. Don’t chase high dividends when the industry is facing uncertainty, especially as infrastructure changes, the energy market diversifies and global oil production can change on a dime.
- Sufficient cash reserves: Cash is king, especially when an unrelated crisis has driven demand into the ground. The energy sector is going to see some ugliness in the next few months as cash flow dries up, so companies with extra cash to deploy will be better positioned when the crisis subsides. If these businesses want to remain in the supply chain, they need to be ready for capital expenditure projects (CAPEX), changing climate policy and regulations, etc.
Considerations When Buying Oil Assets
Aside from “what to look for in an oil asset”, you need to know what to consider as you invest in the broader oil industry. Be on the lookout for:
- Geopolitical issues: The greatest risk in the petroleum industry is geopolitical unrest. Energy economics shift with the tide of protests, regime changes and more. A despot could take over an oil-producing nation, take a significant role in OPEC, increase or decrease oil product and gas production and much more. Protests can tank a cheap oil stock when a refinery is shut down, and investors could become wary when they realize current events are cutting into their bottom line.
- Market dynamics: The market is shifting every day, and you need to be aware of what the market wants, likes and needs. If you don’t know what the market thinks, do your research with Benzinga so that you can get a better idea of what’s happening out there.
- Health and safety: Health and safety concerns can slow down production, cause greater regulation and scrutiny and impact oil prices.
- Environmental considerations: The world will eventually run out of oil and most nations are under pressure to diversify their energy assets, meaning that oil prices and assets could suffer, depending on how flexible and innovative they are. If these companies don’t address climate change, they could suffer in the long-term.
Trading Oil Stocks During a Price War
There’s no sugarcoating this — oil can be a tough investment. Prices keep fluctuate often and there's pressure on the industry from both short-term and long-term headwinds. Renewable energy was gaining traction before the crisis hit and while cheap oil may boost demand once the world gets back to normal, it becomes a tougher and tougher industry to navigate, especially for capital intensive operations in the Upstream sector.
However, it's hard to resist buying quality companies when prices reach historic lows like these. The price of crude oil won’t stay low or high forever, but you can be sure that the price of a barrel is trending up over the long term. Nation worldwide don’t want to cut into their emergency reserves, and you cannot expect a massive dividend yield all the time when the market fluctuates as it does. Oil is a finicky industry - be sure to do your homework before investing in a sector facing unprecedented uncertainty.
Frequently Asked Questions
Are oil stocks profitable?
Oil has long been a store of wealth as its price has continued to rise over time. However, all investments come with risk, and you should research each oil stock you choose prior to trading.
Are all oil stocks the same?
No, Oil stocks can represent R&D, refining, sales, lateral oil products and many more segments of the industry.
Can you diversify with oil stocks?
Yes. You can diversify your portfolio with oil stocks and even diversify amongst other oil stocks to protect yourself that much more.
Continue reading: BEST OIL PENNY STOCKS
About Dan Schmidt
Dan Schmidt is a finance writer passionate about helping readers understand how assets and markets work. He has over six years of writing experience, focused on stocks. His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial. Dan lives in Bucks County, PA with his wife and enjoys summers at Citizens Bank Park cheering on the Phillies.
Facts Only
* Texas Pacific Land Trust was founded in 1888.
* Texas Pacific Land Trust revenue sources include oil and gas royalties, easements, commercial leases, material sales, land sales, and water services.
* Texas Pacific Land Trust generated $490 million in revenue in 2019.
* TotalEnergies produced 1.5 million barrels of liquids and 7.2 billion cubic feet of natural gas per day in 2020.
* TotalEnergies holds a 19% interest in Novatek.
* EOG Resources reported net proved reserves of 3.2 billion barrels of oil equivalent at the end of 2020.
* Baker Hughes originated in 2017 from a merger between Baker Hughes and GE Oil & Gas.
* Africa Oil Corp operates in Kenya and Ethiopia.
* Devon Energy reported proved reserves of 1.6 billion barrels of oil equivalent at year-end 2021.
* Enbridge owns the Canadian Mainline system and a natural gas distribution company in Canada.
* Enterprise Products Partners is a master limited partnership.
* The oil industry is categorized into upstream (extraction), midstream (transportation/storage), and downstream (refining/supply).
Executive Summary
The oil and gas industry operates through a segmented value chain consisting of upstream exploration and extraction, midstream transportation and storage, and downstream refining and retail. Companies may specialize in one segment or operate as integrated producers, managing the entire process from the wellhead to the consumer. This structural diversity allows different firms to respond variably to market shifts; for instance, downstream entities may possess more agility than capital-intensive midstream operators.
Investment in this sector is characterized by high volatility driven by geopolitical unrest, shifting global demand, and the transition toward renewable energy. While the industry has historically provided significant dividends, current environmental headwinds and market uncertainty have placed these payouts at risk. Successful navigation of the sector requires evaluating a company's debt management, cash reserves for capital expenditures, and ability to innovate amid tightening climate regulations.
Full Take
The strongest version of this narrative presents the oil sector as a resilient, multi-trillion dollar pillar of the global economy that offers long-term growth and income despite short-term volatility and the rise of renewables. It positions the industry as a "safe place to hold assets" provided the investor understands the structural nuances of the supply chain.
The content functions as a hybrid of educational primer and promotional lead-in. It employs a specific persuasive vector by juxtaposing the "historic lows" of the market with the "hard to resist" nature of buying quality companies, effectively framing a high-risk environment as a strategic opportunity. By blending general industry definitions with specific stock tickers and brokerage recommendations, it steers the reader from general curiosity toward specific financial actions.
Patterns detected: ARC-0043 Motte-and-Bailey (The piece argues the industry is a "safe place" for long-term assets—the Bailey—but when addressing current risks, it retreats to the more defensible claim that oil prices "trend up over the long term"—the Motte).
The underlying paradigm is one of traditional resource capitalism, assuming that global energy demand will maintain the primacy of hydrocarbons regardless of climate policy. The beneficiary is the retail investor who enters the market based on historical trends, while the cost is borne by those who may underestimate the systemic shift toward decarbonization.
Bridge Questions:
1. How does the timeline of the global energy transition realistically affect the "long-term" viability of upstream assets?
2. What metrics, beyond cash reserves, indicate a company's genuine ability to pivot toward renewable energy?
Counterstrike Scan: A coordinated campaign to inflate specific energy stocks would use "educational" content to lure retail investors into volatile assets by emphasizing historical safety while minimizing the permanence of environmental shifts. This content shares some structural similarities with that pattern due to the integrated brokerage links and specific stock lists, though it remains largely a general investment guide.