Oil Stocks To Buy Before Oil Rallies Over $100 Again ($APA $APC $BP $COP $CVX $HAL $RDS.A $RIG $XOM)
Oil touched its lowest point since October of 2011. And the last time oil’s price breached the October 2011 low? May 2009. The oil futures have had a similar trajectory over the same time period, climbing 47.5% from its most recent bottom and falling 29.1% from the most recent high of $110.55. These stocks are a great way to gain exposure to the upcoming oil rebound / rally.
Exxon Mobil Corporation (XOM): The principle business of XOM, a Texas-based company, is the exploration and production of crude oil and natural gas. The company has hundreds of affiliates that operate internationally. XOM has one of the largest market caps listed on U.S. exchanges, currently at around $370 billion with a current dividend yield of 2.3%.
British Petroleum PLC (BP): Founded in 1889, this oil and gas company is headquartered in London but runs operations all over the world. The two segments the company operates in are the exploration and production and the refining and marketing of oil and natural gas. It is estimated the company produces around 3.8 million barrels of oil equivalent per day. The stock trades hands over 9.3 million times per day and pays a dividend of 3.9%.
Chevron Corporation (CVX): CVX is a multinational corporation that operates in more than 180 countries. It operates in all aspects of the oil, gas, and geothermal energy industry. The two segments of the company are broken up into Upstream and Downstream. The Upstream portion is responsible for the exploration, development, and production of crude as well as transportation through pipelines. The Downstream portion is responsible for refining crude and marketing of crude oil.
ConocoPhillips (COP): COP is another integrated energy company, meaning it is engaged in the exploration, production, transportation, marketing and sales of crude oil. The company was founded in 1875, headquarters in Houston, Texas. ConocoPhillips is ranked as the fifth largest private sector energy corporation in the world and pays out a dividend yield of 3.6%.
Royal Dutch Shell PLC (RDS-A): RDS is a fully integrated oil and gas company included as one of the six large oil and gas players. The vertically integrated company operates in all aspects of crude oil. RDS is estimated to produce 3.1 million barrels of oil equivalent per day.
Transocean Ltd. (RIG): The main segment of RIG is contracting drilling services for oil and gas wells. The company also participates in the exploration and production of oil and gas. The market cap of the company currently around $15 billion is significantly smaller than that of the major players in the oil and gas industry, but still represents a large cap play. Value investors will be particularly attracted by the robust yield of 7%.
Anadarko Petroleum Corporation (APC): Headquartered in Texas, APC is another large player in oil and gas exploration and production. As of December 31, 2010, the company held 2.4 billion barrels of oil equivalent of proved reserves.
Halliburton Company (HAL): One of the biggest names in oil, this stock features a market cap of approximately $30.5 billion and an average daily volume nearing 19 million. Based in Houston, Halliburton has its hands in the global market for both crude oil and natural gas.
Apache Corporation (APA): Apache is best known for its exploration and production of crude in various locations around the world, including the Gulf of Mexico, Western Canada, and Egypt among others. The stock offers a dividend yield of about 0.60% and trades over 3.5 million shares each day.
Crude oil has neared a multi-year low, and investors have an opportunity to begin accumulating a position that could lead to tremendous gains by the end of 2012 and into 2013.
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