Oil just hit a five month high as supply risks from the Middle East and attacks on key energy facilities push energy markets back into the spotlight. When crude prices get this much attention, the largest integrated producers and pipeline giants can draw fresh investor interest. This article walks through three leading global oil and gas stocks and explains why they sit on many watchlists today.
The three oil and gas stocks covered below are a starting sample. The full screen surfaced 32 more producers, refiners, and pipeline operators with equally compelling narratives that are not included in this article.
To size up the wider field and identify potential high conviction ideas for your own watchlist, head straight into the Oil and Gas screener where you can filter and analyze the full list on your own terms.
Chevron (CVX)
Chevron is one of the biggest integrated energy groups in the Oil and Gas theme, with global crude and natural gas production feeding into refining, petrochemicals, and fuels that reach consumers across multiple continents.
Chevron generates most of its income from oil and gas activities. Upstream operations in the United States and internationally contribute about US$52.6b and US$55.1b respectively, while Downstream activities add roughly US$82.5b in the US and US$78.8b abroad, supporting a market value near US$444.7b.
For investors focused on large scale producers, Chevron’s Upstream engine and integrated footprint give it meaningful leverage to the Oil and Gas cycle, with current projects and cost programs setting the stage for the next chapter.
“Record production growth, especially in the Permian and from the Hess acquisition in areas such as Guyana and the Bakken, now sits on top of capital and drilling programs that aim to keep Permian volumes around 1 million barrels per day with lower CapEx per barrel, which supports future revenue and free cash flow.”
What matters next for Chevron is how one pressure on future margins and cash generation resolves as these projects mature.
As that margin question hangs over the next phase, read the full narrative for Chevron to see how Chevron’s project pipeline, capital discipline, and risks interact.
Ovintiv (OVV)
Ovintiv is a pure play upstream producer in the Oil and Gas theme, drilling for oil, natural gas, and NGLs across the Permian, Anadarko, and Montney. The business generates about US$6.0b from USA Operations and US$3.6b from Canadian Operations, with a market value near US$19.1b.
For investors focused on production driven exposure to oil and gas, Ovintiv offers a concentrated way to tap the big North American shale plays, with its earning power closely tied to how efficiently it can pull hydrocarbons out of the ground.
