S&P 500   3,901.36
DOW   31,261.90
QQQ   288.68
S&P 500   3,901.36
DOW   31,261.90
QQQ   288.68
S&P 500   3,901.36
DOW   31,261.90
QQQ   288.68
S&P 500   3,901.36
DOW   31,261.90
QQQ   288.68

3 Oil-And-Gas Stocks Holding Up During Market Pullback

Wednesday, January 26, 2022 | Kate Stalter
3 Oil-And-Gas Stocks Holding Up During Market Pullback The S&P energy sector took the lead Tuesday, advancing nearly 4%, as heavily weighted components Chevron (NYSE: CVX), Exxon Mobil (NYSE: XOM) and ConocoPhillips (NYSE: COP) notched strong gains. 

One factor behind the increase: West Texas Intermediate crude settled $2.29 higher Tuesday, bouncing back from losses in the previous two sessions. 

So far this year, the energy sector is up 13.28%, making it the only S&P sector showing a positive return.

Despite the prominence of “big oil,” there are lesser-known or smaller companies from the sector that have also held up well despite the broad-market correction. 

MPLX (NYSE: MPLX) has been finding support above its 50-day moving average in the past three weeks, and is outperforming more than 90% of other stocks. The stock has been less volatile than the broader market recently, with a beta of 0.88.

The Ohio-based company is a limited partnership with a market capitalization of $32.26 billion. It owns, operates, acquires and develops midstream energy infrastructure assets. 

The company was formed by Marathon Petroleum Corporation (NYSE: MPC) which is engaged in the refining and marketing of petroleum products in the midwest. 

MPLX focuses on gathering and processing energy assets in the Appalachian region, as well as refining. The company derives revenue through minimum-volume contracts, which help smooth the revenue stream. 


Revenue growth slowed in 2020, but has risen year-over-year in the past three quarters. Earnings declined in 2020 but rebounded last year. When MPLX reports fourth-quarter results in early February, analysts expect earnings of $0.75 per share on revenue of $2.48 billion. Both would be increases over the year-earlier quarter. 
3 Oil-And-Gas Stocks Holding Up During Market Pullback

Rattler Midstream (NASDAQ: RTLR) is currently forming a cup-with-handle base below a $12.66 buy point. This stock has also held nicely above its 50-day line as the wider market plummeted. Rattler is a small cap, with a market capitalization of just $1.8 billion. 

The company owns, operates, acquires and develops midstream infrastructure assets to deliver crude oil and natural gas. It operates in the Midland and Delaware Basins of the Permian region. Like Marathon, this company was formed by a larger oil-and-gas producer; in this case, the parent company was Diamondback Energy (NASDAQ: FANG).  

Rattler has long-term contracts to provide services to Diamondback, so that’s a steady stream of revenue.  

Like many other companies in the energy sector, Rattler saw earnings decline in 2020, then a rebound last year. The company is due to report its fourth-quarter and full-year results on February 23, with Wall Street eyeing earnings of $0.25 per share on revenue of $103.94 million. If the company meets or beats on the top-and-bottom lines, both would be gains over 2020’s fourth quarter. 
3 Oil-And-Gas Stocks Holding Up During Market Pullback

Enterprise Products Partners (NYSE: EPD) has been forming a double-bottom base since June of 2021. The current buy point would be above the October 20 high of $24.76. While the stock retreated into the second leg down of the double bottom, its 50-day line pulled below its 200-day line. 

Another buy indication would be the point at which the 50-day line crosses above the 200-day, but that does not appear to be something that will happen in the next few days. 

At this point, the stock is 18% above its December 20 session low of $20.52. It advanced 2.28% in Tuesday’s session, while the S&P 500 finished lower on the day, despite advancing from intraday lows. 

The company is acquiring Navitas Midstream from private equity firm Warburg Pincus  for $3.25 billion in cash, with the deal expected to close before the end of this quarter. Navitas will add natural-gas gathering capabilities to Enterprise, and be an entry to the Midland gas processing business. 

Enterprise is due to report its fourth quarter on February 1, with analysts expecting earnings of $0.55 per share on revenue of $10.05 billion. Both would be gains over the year-earlier quarter. 
3 Oil-And-Gas Stocks Holding Up During Market Pullback

Should you invest $1,000 in Mplx right now?

Before you consider Mplx, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Mplx wasn't on the list.

While Mplx currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Mplx (MPLX)
2.3514 of 5 stars
$30.55+2.1%9.23%10.32Buy$36.71
Rattler Midstream (RTLR)
1.6282 of 5 stars
$14.59flat8.22%15.69Hold$14.00
Enterprise Products Partners (EPD)
2.6944 of 5 stars
$26.76+0.6%6.95%12.87Buy$29.14
Compare These Stocks  Add These Stocks to My Watchlist 

Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.