QQQ   317.08 (-1.13%)
AAPL   164.92 (+0.03%)
MSFT   282.30 (+0.71%)
META   168.53 (-1.01%)
GOOGL   116.63 (-0.57%)
AMZN   137.83 (-1.13%)
TSLA   850.00 (-2.44%)
NVDA   170.86 (-3.97%)
NIO   19.17 (-4.96%)
BABA   91.19 (+0.39%)
AMD   95.54 (-4.53%)
MU   59.15 (-3.74%)
T   18.10 (+0.56%)
CGC   2.87 (-12.50%)
GE   74.93 (-0.33%)
F   15.19 (-3.74%)
DIS   108.13 (-0.90%)
AMC   22.45 (-6.30%)
PYPL   94.48 (-1.85%)
PFE   49.78 (+0.42%)
NFLX   229.94 (-1.52%)
QQQ   317.08 (-1.13%)
AAPL   164.92 (+0.03%)
MSFT   282.30 (+0.71%)
META   168.53 (-1.01%)
GOOGL   116.63 (-0.57%)
AMZN   137.83 (-1.13%)
TSLA   850.00 (-2.44%)
NVDA   170.86 (-3.97%)
NIO   19.17 (-4.96%)
BABA   91.19 (+0.39%)
AMD   95.54 (-4.53%)
MU   59.15 (-3.74%)
T   18.10 (+0.56%)
CGC   2.87 (-12.50%)
GE   74.93 (-0.33%)
F   15.19 (-3.74%)
DIS   108.13 (-0.90%)
AMC   22.45 (-6.30%)
PYPL   94.48 (-1.85%)
PFE   49.78 (+0.42%)
NFLX   229.94 (-1.52%)
QQQ   317.08 (-1.13%)
AAPL   164.92 (+0.03%)
MSFT   282.30 (+0.71%)
META   168.53 (-1.01%)
GOOGL   116.63 (-0.57%)
AMZN   137.83 (-1.13%)
TSLA   850.00 (-2.44%)
NVDA   170.86 (-3.97%)
NIO   19.17 (-4.96%)
BABA   91.19 (+0.39%)
AMD   95.54 (-4.53%)
MU   59.15 (-3.74%)
T   18.10 (+0.56%)
CGC   2.87 (-12.50%)
GE   74.93 (-0.33%)
F   15.19 (-3.74%)
DIS   108.13 (-0.90%)
AMC   22.45 (-6.30%)
PYPL   94.48 (-1.85%)
PFE   49.78 (+0.42%)
NFLX   229.94 (-1.52%)
QQQ   317.08 (-1.13%)
AAPL   164.92 (+0.03%)
MSFT   282.30 (+0.71%)
META   168.53 (-1.01%)
GOOGL   116.63 (-0.57%)
AMZN   137.83 (-1.13%)
TSLA   850.00 (-2.44%)
NVDA   170.86 (-3.97%)
NIO   19.17 (-4.96%)
BABA   91.19 (+0.39%)
AMD   95.54 (-4.53%)
MU   59.15 (-3.74%)
T   18.10 (+0.56%)
CGC   2.87 (-12.50%)
GE   74.93 (-0.33%)
F   15.19 (-3.74%)
DIS   108.13 (-0.90%)
AMC   22.45 (-6.30%)
PYPL   94.48 (-1.85%)
PFE   49.78 (+0.42%)
NFLX   229.94 (-1.52%)

Oil and Gas Stocks

An oil and gas stock is public company involved in the exploration, drilling, and refinement of oil and natural gas. What is an oil and gas stock?

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
Available with a MarketBeat All Access Subscription
MarketRank™Upgrade to All Access to use the All Ranks Filter
Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent PricePE RatioMarket CapVolumeAverage VolumeIndicator(s)
Exxon Mobil Co. stock logo
Exxon Mobil
9.91$377.55 billion19.05 million29.72 millionInsider Buying
Analyst Revision
Chevron Co. stock logo
10.37$305.35 billion5.78 million13.41 millionAnalyst Report
Analyst Revision
Shell plc stock logo
5.53$200.89 billion4.10 million5.11 millionAnalyst Revision
Gap Up
TotalEnergies SE stock logo
6.57$135.10 billion1.38 million2.66 millionAnalyst Revision
Gap Up
ConocoPhillips stock logo
7.89$123.54 billion7.46 million8.43 millionEarnings Report
Dividend Announcement
Equinor ASA stock logo
Equinor ASA
7.38$120.66 billion1.56 million3.86 millionAnalyst Revision
Petróleo Brasileiro S.A. - Petrobras stock logo
Petróleo Brasileiro S.A. - Petrobras
3.23$100.70 billion33.71 million32.25 millionDividend Cut
BP p.l.c. stock logo
N/A$98.53 billion9.56 million14.72 millionDividend Increase
Analyst Revision
ServiceNow, Inc. stock logo
535.67$98.47 billion982,3641.82 million
Caterpillar Inc. stock logo
14.88$98.21 billion2.43 million3.51 millionEarnings Report
Analyst Report
The Estée Lauder Companies Inc. stock logo
Estée Lauder Companies
29.06$94.92 billion1.04 million1.58 millionAnalyst Report
Analyst Revision
News Coverage
Enbridge Inc. stock logo
22.85$87.92 billion2.37 million4.29 million
Brookfield Asset Management Inc. stock logo
Brookfield Asset Management
20.66$82.41 billion1.50 million1.75 millionUpcoming Earnings
News Coverage
Positive News
PetroChina Company Limited stock logo
5.11$81.66 billion154,204190,105Gap Up
BHP Group Limited stock logo
BHP Group
N/A$79.51 billion2.40 million4.52 millionUpcoming Earnings
Waste Management, Inc. stock logo
Waste Management
33.18$70.23 billion1.17 million1.86 million
EOG Resources, Inc. stock logo
EOG Resources
11.10$63.43 billion2.56 million4.56 millionEarnings Report
Dividend Increase
General Dynamics Co. stock logo
General Dynamics
19.26$62.42 billion878,2821.41 millionDividend Announcement
Canadian Natural Resources Limited stock logo
Canadian Natural Resources
6.91$59.93 billion2.32 million3.36 millionDividend Announcement
Gap Up
Occidental Petroleum Co. stock logo
Occidental Petroleum
6.15$58.49 billion22.21 million29.48 millionEarnings Report
Insider Buying
Analyst Revision
Gap Up
ABB Ltd stock logo
13.56$57.53 billion1.41 million2.39 million
Enterprise Products Partners L.P. stock logo
Enterprise Products Partners
11.77$56.95 billion2.96 million6.88 millionEarnings Report
China Petroleum & Chemical Co. stock logo
China Petroleum & Chemical
4.81$56.70 billion170,570175,068Analyst Upgrade
News Coverage
Pioneer Natural Resources stock logo
Pioneer Natural Resources
9.02$52.79 billion2.05 million2.63 millionEarnings Report
Dividend Increase
Analyst Revision
Gap Up
Emerson Electric Co. stock logo
Emerson Electric
18.12$51.43 billion4.36 million3.14 millionEarnings Report
Dividend Announcement
News Coverage
Gap Down
TC Energy Co. stock logo
TC Energy
19.24$47.88 billion2.59 million1.87 million
O'Reilly Automotive, Inc. stock logo
O'Reilly Automotive
22.65$47.13 billion667,212588,362Insider Selling
Marathon Petroleum Co. stock logo
Marathon Petroleum
6.31$46.55 billion4.29 million6.56 millionEarnings Report
Valero Energy Co. stock logo
Valero Energy
6.37$43.60 billion3.53 million4.97 million
Freeport-McMoRan Inc. stock logo
9.13$43.55 billion12.86 million19.84 million
AutoZone, Inc. stock logo
19.71$43.31 billion110,676184,411
Eni S.p.A. stock logo
3.05$42.38 billion641,015591,746Analyst Revision
Suncor Energy Inc. stock logo
Suncor Energy
5.89$42.00 billion6.69 million8.11 millionDividend Increase
TE Connectivity Ltd. stock logo
TE Connectivity
17.11$41.91 billion854,4601.70 million
Phillips 66 stock logo
Phillips 66
7.37$41.14 billion1.98 million4.20 million
Kinder Morgan, Inc. stock logo
Kinder Morgan
16.86$40.64 billion11.67 million17.32 million
The Williams Companies, Inc. stock logo
Williams Companies
25.65$40.00 billion4.28 million9.01 million
Nucor Co. stock logo
4.25$36.87 billion1.52 million3.10 millionAnalyst Upgrade
Waste Connections, Inc. stock logo
Waste Connections
52.93$35.93 billion823,7761.10 millionDividend Announcement
Analyst Report
Analyst Revision
News Coverage
TransDigm Group Incorporated stock logo
TransDigm Group
44.82$35.17 billion273,341322,992Earnings Report
Dividend Announcement
News Coverage
Energy Transfer LP stock logo
Energy Transfer
8.78$33.86 billion15.48 million22.21 million
Apollo Global Management, Inc. stock logo
Apollo Global Management
N/A$33.26 billion1.97 million3.51 millionEarnings Report
Dividend Announcement
Analyst Report
Analyst Revision
Cenovus Energy Inc. stock logo
Cenovus Energy
10.65$33.22 billion10.61 million11.99 million
Hess Co. stock logo
22.63$33.00 billion1.31 million2.65 million
Mplx Lp stock logo
9.96$31.54 billion1.20 million2.14 millionEarnings Report
Cummins Inc. stock logo
15.27$30.75 billion567,8871.09 millionEarnings Report
KKR & Co. Inc. stock logo
KKR & Co. Inc.
40.43$30.67 billion1.68 million3.50 millionEarnings Report
Dividend Announcement
Fastenal stock logo
29.78$30.63 billion2.18 million3.46 million
AMETEK, Inc. stock logo
26.56$28.66 billion775,0961.07 millionEarnings Report
Dividend Announcement
Analyst Report
Albemarle Co. stock logo
110.21$28.66 billion752,5401.23 millionEarnings Report
Analyst Report
News Coverage
LyondellBasell Industries stock logo
LyondellBasell Industries
5.32$28.46 billion1.34 million2.33 million
Rockwell Automation, Inc. stock logo
Rockwell Automation
42.79$28.30 billion788,319899,412
Imperial Oil Limited stock logo
Imperial Oil
7.04$27.46 billion677,940642,270
ONEOK, Inc. stock logo
18.21$27.41 billion3.12 million2.85 millionEarnings Report
News Coverage
Continental Resources, Inc. stock logo
Continental Resources
8.39$24.51 billion569,1641.87 million
Baker Hughes stock logo
Baker Hughes
N/A$24.30 billion7.33 million10.84 million
Coterra Energy Inc. stock logo
Coterra Energy
7.81$22.38 billion6.76 million10.34 millionEarnings Report
Dividend Announcement
Ecopetrol S.A. stock logo
7.33$22.16 billion1.12 million1.41 millionUpcoming Earnings
Diamondback Energy, Inc. stock logo
Diamondback Energy
5.82$21.60 billion2.72 million2.88 millionBuyback Announcement
Genuine Parts stock logo
Genuine Parts
19.70$21.51 billion925,197771,990
CGI Inc. stock logo
18.07$20.23 billion104,284184,148Analyst Downgrade
Pembina Pipeline Co. stock logo
Pembina Pipeline
17.83$20.20 billion666,0911.15 millionEarnings Report
Dividend Increase
Citizens Financial Group, Inc. stock logo
Citizens Financial Group
9.41$18.41 billion2.51 million5.72 million
FLEETCOR Technologies, Inc. stock logo
FLEETCOR Technologies
19.34$17.41 billion367,597558,979Analyst Report
Analyst Revision
News Coverage
Teck Resources Limited stock logo
Teck Resources
3.86$16.23 billion3.87 million5.76 million
Evergy, Inc. stock logo
19.59$15.96 billion1.11 million1.35 millionEarnings Report
Dividend Announcement
News Coverage
EQT Co. stock logo
N/A$15.87 billion5.12 million8.89 millionOptions Volume
Gap Up
Tenaris S.A. stock logo
8.45$15.55 billion1.75 million2.73 millionAnalyst Revision
Marathon Oil Co. stock logo
Marathon Oil
5.20$15.54 billion12.51 million20.70 million
LKQ Co. stock logo
12.95$14.96 billion1.35 million1.78 million
Centrais Elétricas Brasileiras S.A. - Eletrobrás stock logo
Centrais Elétricas Brasileiras S.A. - Eletrobrás
N/A$14.87 billion1.13 million2.00 millionUpcoming Earnings
Analyst Upgrade
News Coverage
Bunge Limited stock logo
8.38$14.79 billion1.04 million1.60 million
Stanley Black & Decker, Inc. stock logo
Stanley Black & Decker
14.84$13.55 billion2.59 million2.02 millionAnalyst Downgrade
Texas Pacific Land Co. stock logo
Texas Pacific Land
34.89$13.21 billion14,63929,466Dividend Cut
Sasol Limited stock logo
N/A$13.19 billion113,508343,089Upcoming Earnings
Analyst Downgrade
The Carlyle Group Inc. stock logo
The Carlyle Group
6.24$12.33 billion5.90 million2.62 millionAnalyst Downgrade
News Coverage
High Trading Volume
Advance Auto Parts, Inc. stock logo
Advance Auto Parts
21.36$11.63 billion397,612821,368
Darling Ingredients Inc. stock logo
Darling Ingredients
17.41$11.61 billion1.61 million1.48 millionPositive News
Hubbell Incorporated stock logo
22.03$11.45 billion242,956322,902
Chesapeake Energy Co. stock logo
Chesapeake Energy
N/A$11.44 billion2.86 million2.07 million
Chesapeake Energy Co. stock logo
Chesapeake Energy
9.89$11.44 billion2.86 million2.07 millionDividend Cut
Analyst Revision
Positive News
Antero Resources Co. stock logo
Antero Resources
13.88$11.43 billion5.35 million8.59 millionGap Up
Graco Inc. stock logo
26.38$11.33 billion1.13 million655,069Analyst Report
HF Sinclair Co. stock logo
HF Sinclair
14.50$11.00 billion1.48 million2.35 millionEarnings Report
Dividend Announcement
News Coverage
CNA Financial Co. stock logo
CNA Financial
10.58$10.96 billion264,631166,158Dividend Announcement
Watsco, Inc. stock logo
20.86$10.95 billion212,442247,474
APA Co. stock logo
N/A$10.67 billion6.25 million9.35 millionGap Up
APA Co. stock logo
3.68$10.67 billion6.25 million9.35 millionEarnings Report
Analyst Revision
Gap Up
Magellan Midstream Partners, L.P. stock logo
Magellan Midstream Partners
10.63$10.31 billion709,8141.17 million
Ares Capital Co. stock logo
Ares Capital
9.12$10.00 billion1.55 million3.66 million
Watsco Inc stock logo
17.94$9.42 billion5272
Gerdau S.A. stock logo
2.71$8.53 billion14.83 million14.26 millionDividend Increase
Range Resources Co. stock logo
Range Resources
16.58$8.46 billion5.50 million5.69 millionGap Up
Plains All American Pipeline, L.P. stock logo
Plains All American Pipeline
13.71$7.92 billion3.80 million5.51 millionEarnings Report
Analyst Report
Ritchie Bros. Auctioneers Incorporated stock logo
Ritchie Bros. Auctioneers
26.47$7.75 billion627,755502,832Dividend Increase
Analyst Report
News Coverage
Southwestern Energy stock logo
Southwestern Energy
N/A$7.56 billion26.71 million34.98 millionEarnings Report
Analyst Revision
Gap Up
RBC Bearings Incorporated stock logo
RBC Bearings
118.35$7.00 billion182,578154,453Earnings Report
Analyst Report
Analyst Revision
News Coverage
Polaris Inc. stock logo
27.12$6.95 billion563,319733,399
NOV Inc. stock logo
N/A$6.91 billion2.17 million4.54 million
Matador Resources stock logo
Matador Resources
6.31$6.49 billion892,0891.89 million
The How And Why of Investing in Oil Stocks

For a long time having exposure to oil was a no-brainer for any investor. From air travel and commuting to heating our homes and powering factories, oil truly powered the world.

And oil and its derivative products (e.g. gasoline) still does to a great extent. However, the fallout of the novel coronavirus may have begun a process in which the impact of oil on global markets is becoming less and less. That’s because renewable energy sources were already becoming cost-competitive with oil, and that price gap is lessening as time goes on.

Nevertheless, the world will still be using fossil fuels for the near future. And that means that oil stocks belong in your portfolio. Oil stocks contain less risk than trying to buy and sell oil on the options or futures markets. And most oil stocks pay a dividend which gives investors a predictable income stream that can make up for the volatility that is inherent in these stocks.


The most important thing to remember about investing in oil stocks is that your investment is fundamentally driven by supply and demand. Simply put when demand for crude oil is high, prices go up. Conversely when demand decreases, so do prices.

For decades, particularly since World War II, the demand for oil was high. Many nations were building a new infrastructure of roads and bridges. Air travel was making the world smaller and businesses became truly international. And powering all of it was oil.

You can invest in oil by trading the commodity directly by trading options in the futures market. Some investors will also choose to invest in an exchange-traded fund (ETF) that is tied to the price of oil or includes a basket of companies with exposure to the oil sector.

However, a more indirect (and slightly less risky) way to play the oil market is to buy oil stocks. An oil stock can cover many areas of oil production. In this article, we’ll review why you should consider investing in oil; we’ll review your investment options, and more directly the different types of oil companies that you can invest in.   

Why should you invest in oil today?

The pandemic brought on by the novel coronavirus has been devastating for the oil and gas sector. As we mentioned above, this is a supply and demand business. And the first hint that the virus was worse than we thought was when oil futures began falling in February.

This is an important thing to know about investing in oil. Oil has been a reliable indicator of economic activity. When analysts and institutional investors forecast decreasing demand for oil, they bid down the price of crude oil. This in turn affects oil stocks which as we said tend to move with the market.

Due to the severe demand restriction during the pandemic, several oil companies have gone bankrupt. And the share price of most oil stocks has fallen dramatically. And when the notion of a “V-shaped” recovery did not materialize, it has put further pressure on oil prices.

Nevertheless, despite several near-term headwinds, oil will remain a worthwhile investment. And oil stocks can be a way for risk-averse investors to have exposure to the oil sector without dabbling in the commodities market.

The basics of oil production

Oil is expensive to bring to market. It’s more than just the cost of extracting it from the ground. Oil has to be transported, stored, and in many cases refined into gasoline or other products. And those costs are usually fixed.

This is a double-edged sword for the oil companies. When a barrel of oil sells for more than the sum of all these costs, oil companies turn a profit. And stocks of oil companies will go up as well.

However, the opposite is also true. When oil sells for less than, many of these companies will lose money. During these times, stocks of oil companies will go down.

Why buy oil stocks?

Although oil stocks generally move in concert with the price of a barrel of crude, the correlation is not always exact. For example, many oil companies will talk of a “break-even” point. This can allow the price of crude to fall a little while these companies can still be profitable. This makes oil stocks a slightly less risky option than trading oil in the options or futures market.

But perhaps the most important reason to own oil stocks is that many oil stocks pay a dividend. For example, prior to the pandemic some oil companies had increased their dividends for decades. These companies know that preserving its dividends has to be a priority because of the volatility associated with the underlying price of oil.

However, it’s important that you focus less on a company’s dividend yield (which can move up or down with the share price), but also on how the yield compares to the company’s free cash flow (FCF). In general, investors want to find companies that can pay their entire dividend obligation out of its FCF. This “payout ratio” should be at least 1.1.

Different types of oil stocks

Investing in oil stocks would be easier if all oil companies were affected in the same way by rising or falling crude prices. But, in fact, the oil sector is very diverse and each sector may be affected slightly differently by rising or falling oil prices.

Here is a brief description of different kinds of oil stocks:

  • Upstream companies – These are the companies investors most frequently think about as an oil stock. These companies are involved in exploration and production. As the name implies, this means these companies explore locations looking for oil. When they find a promising location, they drill wells to extract the oil. However as you might imagine, these companies are affected most by changes in the price of crude oil. The largest upstream company in the United States is ConocoPhillips (NYSE:COP).

  • Midstream companies – These companies transport crude oil through pipelines that is then stored in terminals that they own. The oil stays there until it is sent to be refined or exported. Some of these companies will even transport the newly refined company through its own pipeline networks. Midstream companies are slightly more insulated from oil price fluctuations because they usually operate on long-term contracts with fixed terms. One of the leading midstream companies is Enterprise Products Partners (NYSE:EPD). A unique aspect of EPD stock is that the company is a master limited partnership. This has tax advantages for individual shareholders but can increase the risk of larger losses.

  • Downstream companies – These companies refine oil into other products such as gasoline and petrochemicals. In many cases, these companies are also part of selling this refined product to consumers. Two examples of downstream companies are gas station operators and refinery operators. Although these companies are not directly affected by a drop in crude prices, their stock still tend to fall when oil prices fall. One of the major downstream companies is Phillips 66 (NYSE:PSX).

  • Integrated companies – These companies do business in more than one of the fields mentioned above. When you hear a reference to “Big Oil” companies, it is a reference to companies such as ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) that have large upstream and downstream operations with some midstream business.

  • Oilfield services companies – Another way to invest in oil stocks is through the companies that provide equipment, operational support, and logistics to other oil companies, typically upstream companies. Oilfield services companies are hurt when oil prices fall because one of the first things upstream companies will do is cut their service costs.

ETFs are a different way to play oil stocks

The easiest and more popular way to invest in oil stocks is to buy stocks of individual companies. However, investing in exchange-traded funds (ETFs) can be a smart way to manage the risk of this sector. An oil ETF allows investors to invest in one or more of the sectors listed above at one time. For example, the SPDR Oil and Gas Exploration & Production ETF (NYSEARCA: XOP) tracks the upstream sector.

The final word about investing in oil stocks

Oil stocks have been battered in 2020. But the near-term outlook for oil makes oil stocks an attractive investment opportunity. The fortunes of oil companies are impacted to a greater or lesser extend to the price of crude oil. And that’s why it’s important for investors to understand what subsector of the oil industry the company they are interested in investing in is engaged in.

However the benefit of having multiple options is that investors have many options including buying shares of ETFs that add even more diversity.

More Stock Ideas from MarketBeat

MarketBeat 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 | contact@marketbeat.com | (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 | Privacy Policy | 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 Barchart's disclaimer.