Top 5 Oil Stocks To Invest In Right Now

The Permian basin space is becoming overcrowded, resulting in a situation where survival and growth are increasingly difficult, according to Bernstein. 

The Permian basin is a large oil-producing basin situated in the western part of Texas and the southeastern part of New Mexico, and comprises of several component basins, including the Midland and Delaware basins. 

Given the evolving scenario, Bernstein identified a pair trade in the North American oil and gas exploration sector. 

The Analyst

Analyst Bob Brackett upgraded shares of ConocoPhillips (NYSE: COP) from Market Perform to Outperform with a $82 price target.

The analyst downgraded shares of Concho Resources Inc (NYSE: CXO) from Outperform to Market Perform and lowered the price target from $180 to $130.

ConocoPhillips: FCF Growth, Low Permian Exposure Turn Bernstein Bullish

ConocoPhillips' global portfolio and Brent pricing will insulate it from congestion that's impacting other E&Ps, with its scope of operations acting as a natural hedge, Brackett said in a Friday note.

The company has a low exposure to the Permian, with the basin accounting for only 4-5 percent of its overall production, the analyst said. 

Top 5 Oil Stocks To Invest In Right Now: Whiting Petroleum Corporation(WLL)

Advisors’ Opinion:

  • [By Max Byerly]

    TCW Group Inc. raised its stake in Whiting Petroleum Corp (NYSE:WLL) by 21.9% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 25,733 shares of the oil and gas exploration company’s stock after purchasing an additional 4,618 shares during the period. TCW Group Inc.’s holdings in Whiting Petroleum were worth $871,000 as of its most recent SEC filing.

  • [By Logan Wallace]

    Penn Capital Management Co. Inc. purchased a new stake in shares of Whiting Petroleum Corp (NYSE:WLL) in the 1st quarter, HoldingsChannel reports. The fund purchased 318,157 shares of the oil and gas exploration company’s stock, valued at approximately $10,783,000.

  • [By Dan Caplinger]

    Friday was a down day on Wall Street, but losses were generally small, and the market closed well above its lowest levels of the session. Initially, investors seemed concerned about further trade tensions between the U.S. and China, but upon further reflection, they appeared to draw comfort from considerable fundamental strength from key sectors of the industrial economy. Even with the overall market recovering from earlier weakness, some stocks still posted substantial declines. Whiting Petroleum (NYSE:WLL), Global Blood Therapeutics (NASDAQ:GBT), and First Solar (NASDAQ:FSLR) were among the worst performers on the day. Here’s why they did so poorly.

  • [By Jon C. Ogg]

    Whiting Petroleum Corp. (NYSE: WLL) was reiterated as Overweight and the target price was raised to $56 from $45 (versus a $50.78 close) at KeyBanc Capital Markets.

  • [By Max Byerly]

    Foundry Partners LLC acquired a new stake in Whiting Petroleum Corp (NYSE:WLL) in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 108,476 shares of the oil and gas exploration company’s stock, valued at approximately $3,671,000. Foundry Partners LLC owned about 0.12% of Whiting Petroleum at the end of the most recent quarter.

Top 5 Oil Stocks To Invest In Right Now: Halliburton Company(HAL)

Advisors’ Opinion:

  • [By ]

    Energy sector earnings season starts rolling later this week, and as always, the party will kick off with the so-called big three oilfield services providers: Schlumberger Ltd. (SLB) , General Electric Co.’s (GE) Baker Hughes (BHGE) , and Halliburton Co. (HAL) . 

  • [By Max Byerly]

    Halliburton (NYSE:HAL)’s share price gapped up prior to trading on Friday . The stock had previously closed at $42.90, but opened at $44.92. Halliburton shares last traded at $46.22, with a volume of 15095300 shares traded.

  • [By ]

    Though an under-the-radar name, KBR was the construction arm of oilfield services giant Halliburton (NYSE: HAL) before being spun off. With a consolidated market cap of $2.6 billion, KBR describes itself, per its website, as a “global provider of differentiated professional services and technologies… within the Government Services and Hydrocarbon sectors.”

  • [By Stephan Byrd]

    SemGroup (NYSE: SEMG) and Halliburton (NYSE:HAL) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Top 5 Oil Stocks To Invest In Right Now: Transocean Inc.(RIG)

Advisors’ Opinion:

  • [By Jon C. Ogg]

    Transocean Ltd. (NYSE: RIG) started as Overweight with a $15 price target, which represented an implied upside call of 25% compared with the prior day’s $11.93 closing price. Elsewhere, Wells Fargo raised it to Outperform from Market Perform with an even more aggressive $16 price target, and BTIG initiated Transocean with a Buy rating and with an $18 price target just a day earlier. The stock closed up 2.9% at $11.93 on Tuesday, and it was up 3.3% at $12.33 in Wednesday’s midday trading. The 52-week range is $8.70 to $14.34, and the prior consensus price target of $12.61 ticked up to above $13 after the calls.

  • [By Tyler Crowe]

    Three stocks on my watchlist that look incredibly cheap and will likely be high up on my next buy list are LGI Homes (NASDAQ:LGIH), U.S. Silica Holdings (NYSE:SLCA), and Transocean (NYSE:RIG). Here’s why they look compelling to me now and why Wall Street seems to be assigning them such modest valuations. 

  • [By Tyler Crowe, Matthew DiLallo, and Reuben Gregg Brewer]

    While we aren’t prognosticators on crude oil prices, there does appear to be a lot of value in the energy sector at this price level. So we asked three Motley Fool investors to highlight a stock in the sector they like this month. Here’s why they picked Enterprise Products Partners (NYSE:EPD), Enbridge (NYSE:ENB), and Transocean (NYSE:RIG). 

  • [By Stephan Byrd]

    An issue of Transocean LTD (NYSE:RIG) debt rose 2.5% against its face value during trading on Wednesday. The high-yield debt issue has a 6.8% coupon and will mature on March 15, 2038. The bonds in the issue are now trading at $85.45. Price moves in a company’s debt in credit markets sometimes anticipate parallel moves in its share price.

Top 5 Oil Stocks To Invest In Right Now: Magellan Midstream Partners L.P.(MMP)

Advisors’ Opinion:

  • [By John Bromels]

    Speaking of debt, energy infrastructure MLPs tend to take on high levels of it to fund their large infrastructure development projects. That means taking on additional debt to fund a distribution isn’t always feasible. Luckily, in the case of Magellan and Enterprise, their conservative management teams have kept them at comparatively good debt ratings and low levels of debt relative to their peers:

    Company Debt Rating Debt-to-EBITDA Ratio (TTM)  Debt-to-Adjusted-EBITDA Ratio (TTM)
    Magellan Midstream Partners (NYSE:MMP) BBB+/Baa1 3.5 3.3
    Enterprise Products Partners (NYSE:EPD) BBB+/Baa1 4.3 3.7
    Buckeye Partners BBB-/Baa3 5.0 4.3
    Energy Transfer Partners BBB-/Baa3 5.2 N/A

    Data sources: Company presentations and YCharts. TTM = trailing 12 months.

  • [By Matthew DiLallo]

    In addition to those pipelines already under construction, companies continue to pitch new projects to shippers in hopes of locking in the next wave of growth. The latest entry into this building boom is the proposed Permian Gulf Coast pipeline, which is a joint venture between Energy Transfer Partners (NYSE:ETP), Magellan Midstream Partners (NYSE:MMP), MPLX (NYSE:MPLX), and Delek US Holdings (NYSE:DK). The line could be in service as soon as mid-2020 if everything goes according to plan.

  • [By Tyler Crowe, Reuben Gregg Brewer, and Travis Hoium]

    With these interesting trends emerging, there’s no doubt that investors are looking at this industry. To help investors start their search for great energy investments, we asked three of our investing contributors to each highlight a stock they see as a great buy now. Here’s why they picked Magellan Midstream Partners (NYSE:MMP), Brookfield Renewable Partners (NYSE:BEP), and SunPower (NASDAQ:SPWR).

  • [By Leo Sun, John Bromels, and Dan Caplinger]

    September is generally considered a tough month for stocks due to a combination of investors returning from vacations, mutual funds dumping losers before the end of the fiscal year, and tax loss selling. However, there are still plenty of income-generating stocks that are worth buying in this volatile month. Let’s take a look at three stocks that fit that bill: American Eagle Outfitters (NYSE:AEO), Coca-Cola (NYSE:KO), and Magellan Midstream Partners (NYSE:MMP).

  • [By Jason Hall]

    Let’s start with Magellan Midstream Partners (NYSE:MMP), ticker MMP. First thing to note here, distributable cash flow up 7% year over year. You notice I’m talking about cash flow. I’m not talking about earnings, I’m not talking about revenue. That’s because cash is king in this particular segment of the industry.

  • [By Matthew DiLallo]

    Another wave of pipelines is already underway for 2020 and beyond. A joint venture between Energy Transfer Partners (NYSE:ETP), Magellan Midstream Partners (NYSE:MMP), and two other companies recently approved the construction of the Permian Gulf Coast pipeline. The 600-mile line should be operational by the middle of 2020 and transport crude to Energy Transfer’s Nederland terminal as well as Magellan’s East Houston terminal. Meanwhile, Plains All American Pipeline and oil giant ExxonMobil (NYSE:XOM) are teaming up on a joint venture to build a new oil pipeline in the Permian. The partners are planning a more-than-1 million-BPD pipeline that would ship oil produced by Exxon and others to the coast. The project is part of Exxon’s long-range planning to ensure that nothing derails its ambitious strategy to grow its Permian output fivefold by 2025.

Top 5 Oil Stocks To Invest In Right Now: Marathon Oil Corporation(MRO)

Advisors’ Opinion:

  • [By Tyler Crowe]

    Back in 2011, Marathon Oil (NYSE:MRO) elected to spin off Marathon Petroleum. At the time, much of the reasoning for the split was that both entities would garner higher valuations than as an integrated company. Also, by separating them, both could best allocate capital to grow shareholder value. 

  • [By ]

    Presto, West Texas Intermediate crude rose 3% to $71.18, the highest since December 2014, boosting shares of oil companies including Occidental (OXY) , which gained 4.8%, Marathon (MRO) , up 3.8%, and Apache (APA) , which gained 2.5%. Spot gasoline also rose 2.7% to $2.17 a gallon, boding ill for the summer driving season in the U.S. and potentially eroding any gains middle-class Americans received from the Trump tax cuts.

  • [By Matthew DiLallo]

    Marathon Oil (NYSE:MRO), likewise, said it would stick with its $2.3 billion drilling budget, which is enough money to grow oil and gas production in the U.S. by 25% to 30% versus last year. Because of that capital discipline, Marathon is on pace to produce more than $500 million in excess cash this year, and that’s assuming crude averages $60 a barrel.

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