5 popular oil stocks in 2021
Companies involved in the exploration and production (E&P) of oil, transportation, and storage, and refining and distribution are known as oil companies. Increasing competition, legislative laws amidst rising environmental concerns, and innovation could be a cause of concern for such companies. Though oil companies are going through difficulties in conducting business, there are some companies worth investing in. We bring you a list of the five best oil stocks in 2021.
ConocoPhillips
The company is deeply focused on exploration and production (E&P) and is one of the largest in the world. It has operations in more than 12 countries. A diversified, low-cost portfolio is what adds to this corporation’s wealth.
Phillips 66
A top-tier oil refining company, Phillips 66 operates in the country and Europe. It also has midstream investments, and a marketing and specialties business to produce and distribute refined and specialty products. Phillips 66 invests in profit-improving projects, has vertically integrated its large-scale operations, and focuses on higher-margin products. This makes it a viable low-cost producer. The company also boasts a well-planned balance sheet that will ensure its liquidity, and ensure rich dividends to its shareholders.
Enbridge
As the entire oil industry heads towards a transition, Enbridge promises a decent investment.
Chevron Corporation
Despite its business being affected by winter storm Uri, Chevron Corporation showed impressive earnings in Q1 2021. The company was left with $850 million in excess cash after capital expenditures and dividends. It also has raised its dividends and continues to have an impressive balance sheet.
Exxon Mobil Corporation
Exxon had a good first-quarter earnings report, which was partly due to its presence in the chemicals sector and also because it cut costs by roughly a billion in 2020. In recent deals, Exxon also rid itself of inactive assets. Saved costs and profits from asset sales have provided the company a buffer in paying off debt and in maintaining its 6% dividend.
