Oil stocks are in the news after US-Iran tensions and attacks on Saudi Oil tankers near the Strait of Hormuz roiled the commodity markets. Oil stocks remain the best long-term investment for beginner investors. In this article, we mention the best oil stocks you should invest in.
EOG Resources (EOG)
EOG Resources (NYSE: EOG) is a Texas-based oil company that is often known as the “Apple of Oil” due to its use of technology and Big Data for exploration and drilling. The company’s net income in the first quarter came in at $635 million, or $1.10 per share, compared with first quarter 2018 net income of $639 million. EOG also increased its dividend to $1.15 per share. On May 6, EOG Resources stock was upgraded by investment firm Susquehanna to “Positive” from “Neutral” with a price target of $115. Susquehanna’s Biju Perincheril thinks that the company could achieve oil growth close to the higher end of its 14%-16% guidance range. The analyst also said that EOG could generate $1.7 billion to $1.8 billion FCF in 2019 and 2020.
Occidental Petroleum Corporation (OXY)
Texas-based Occidental Petroleum is in the news after the company outbid Chevron and won the deal for Anadarko Petroleum (NYSE: APC). It is important to note that Occidental was able to clinch the deal because of the help from billionaire investor Warren Buffett. According to some reports, Berkshire Hathaway promised a whopping $10 billion investment to help Occidental grab Anadarko. This shows the level of confidence Buffett has in the company. Occidental is one of the best oil stocks for beginner investors. The company’s foothold in the Permian Basin is getting stronger. The company is eyeing to increase its production in the Permian to 600,000 Barrels of Oil Equivalent Per Day (BOEPD) within five years.
Exxon Mobil Corporation (XOM)
Exxon Mobil Corporation (NYSE: XOM) is my favorite oil stock for long-term gains. Recently, HSBC, while giving a near-term bearish rating for Exxon, said that it still believes the stock is a great long-term investment. The company has a history of 36 consecutive years of annual dividend increases. In the fourth quarter of last year, Exxon’s upstream and downstream business continued to grow. In the year, the company added a whopping 1.3 billion oil-equivalent barrels, which included additions from discoveries and strategic acquisitions primarily in Guyana and Brazil. The company projects to grow its annual earnings to increase by more than 140% percent by 2025.
The author does not own any of the stocks discussed in this article.