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Best Oil Stocks Right Now

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Texas Pacific Land (NYSE: TPL)

Founded in 1888, Texas Pacific Land Trust is among the largest landowners in Texas. Its revenue streams consist of oil and gas royalties, easements, commercial leases, material sales and land sales. Texas Pacific Land Trust also provides water services such as water sourcing, water treatment, infrastructure development, water disposal and water tracking.

The oil stock has a market cap of $3.9 billion and has an EPS of 25.83. It has an annual dividend yield of $10 per share. Texas Pacific Land Trust trades more than 32,500 shares per day. It generated revenue of $490 million in 2019.

834.50 -6.79 (-0.81%)
Volume 0.00K Market Cap 6.47B
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295.0489 - 895
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Total (NYSE: TOT)

Total is a French-integrated oil and gas company with over 100,000 employees and a market cap of $90 billion. The company has hands in every aspect of the industry: exploration, drilling, refining and production. It also works to provide renewable energy solutions like wind, solar and hydroelectric power. Total is also sitting on a massive cash position and has increased earnings in each of the last 4 years.

45.25 0 (0%)
Volume 1.00K Market Cap 118.95B
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22.13 - 54.17
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Valero Energy (NYSE: VLO)

Valero specializes in midstream oil production through its transportation, refining and bulk selling operations. Based in San Antonio, Texas, Valero produces gasoline, jet fuel, diesel, petrochemicals and lubricants through 15 different refineries and employs over 10,000 people. The company has a strong cash position on its balance sheet and a manageable debt load, plus a renewed interest in more environmentally-friendly fuels like renewable diesel.

60.56 -0.025 (-0.04%)
Volume 0.00K Market Cap 24.70B
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31 - 92.09
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Teekay Tankers (NYSE: TNK)

Founded in 1973, Teekay Tankers is among the world’s largest marine energy transportation companies. It owns and operates more than 80 vessels and runs a large fleet of Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) vessels.

The energy stock has a market cap of $ and has an EPS of $. It has a 52-week low of $ and a 52-week high of $. Teekay Tankers has high liquidity and trades more than 488,480 shares per day. It generated revenue of $943 million in 2019.

11.30 0.02 (0.18%)
Volume 0.00K Market Cap 380.81M
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8.9 - 26.92
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ConocoPhillips (NYSE: COP)

Based out of Houston, Texas, ConocoPhillips is among the largest independent E&P companies in the world. It explores, produces, transports and markets crude oil, natural gas and liquefied natural gas. ConocoPhillips runs its operations globally in North America, Europe, Africa, Asia and the Middle East.

ConocoPhillips has a market cap of $36 billion and an EPS of $2.03. It has an annual dividend yield of $1.68 per share. The oil stock has high liquidity, with a daily average trade volume of 1.9 million shares.

45.36 -0.02 (-0.04%)
Volume 0.00K Market Cap 61.45B
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20.84 - 65.43
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Biggest Oil Movers of the Day

Oil stocks have been volatile during the coronavirus crisis due to a host of different reasons. Here are the biggest movers from today’s session.

The data provided below is intended for educational purposes only, we have included the session dates for your reference.

Premarket Oil Stocks
Symbol Last Price Change % Change Trade
Symbol Last Price Change % Change Trade
Market Oil Stocks
Symbol Last Price Change % Change Trade
Symbol Last Price Change % Change Trade
After Hours Oil Stocks
Symbol Last Price Change % Change Trade
Symbol Last Price Change % Change Trade

Oil has made headlines during this coronavirus crisis, although not for reasons investors want to see. In addition to a lack of demand due to the virus shutdowns, Russia and Saudi Arabia entered a price war that sent the price of WTI crude futures under $12. Yes, the pizza you ordered for dinner last Friday cost more than 1 barrel of oil does at the time of this writing. 

But, despite crises forcing the price down, both are hopefully temporary disruptions. Lockdowns won’t last forever and demand for travel will eventually return. The price war between Saudi Arabia and Russia might be vicious now, but neither side wants to see oil prices continue to plummet the way they have so far in 2020.

If you’re betting on an oil rebound, plenty of downtrodden stocks are currently trading at a discount. Here’s a few to keep an eye on.

Overview: Oil Stocks

Oil companies like ExxonMobil and BP are some of the oldest and largest publicly-traded firms in the market. Despite environmental headwinds, the oil and gas industry is still a multi-trillion dollar business composed of several different subsectors and business models. Oil companies are split into 3 distinct groups based on where they function in the pipeline. The 3 different groups are:

  • Upstream: Companies in the upstream subsector are involved in finding oil and pulling it out of the earth. Upstream companies search the globe for new oil reservoirs and assemble drill sites for extraction. Upstream companies often face significant financial hurdles since drilling and mining equipment is cumbersome and expensive. Occidental Petroleum (NYSE: OXY) and Whiting Petroleum (NYSE: WLL) are upstream firms that recently suffered severe debt issues.
  • Midstream: Midstream companies are transportation and storage firms. At this part of the process, the raw product needs to be treated, stored and shipped to suppliers. Companies that run pipelines or own oil tankers are often referred to as midstream since they bridge the gap between the drillers and the companies refining and selling the product to the public. 
  • Downstream: Finally, we have the refiners and suppliers. Downstream companies remove imperfections from the raw product and turn it into engine oil, gasoline, heating oil, etc. Many downstream companies also have operations in the midstream sector as well.

Many of the largest oil companies like ExxonMobil are known as integrated oil producers since they have branches involved in upstream, midstream and downstream operations. When buying oil companies, be sure to understand what sector of the industry they reside in. When prices are as low as they are currently, exploration and drilling companies could struggle under their heavy debt loads.

Best Online Brokers for Oil Stocks

Before investing in any oil stocks, you need to find the right brokerage account for your investments. Most major online discount brokers have access to the oil company shares you’re looking for, but beware of fees and commissions. Almost all brokers are commission-free for stocks and ETFs now, and most require no minimums to open an account. Paying a flat fee on every trade is a thing of the past — if your current broker isn’t commission-free, consider finding a new one.

Best For
Intermediate Traders and Investors
Overall Rating
Get started securely through Webull’s website
Best For
Intermediate Traders and Investors
N/A
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in mutual funds, bonds or OTC stocks
Best For
Futures Trading
Overall Rating
Get started securely through TradeStation’s website
Best For
Futures Trading
N/A
1 Minute Review

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Best For
  • Advanced traders
  • Options and futures traders
  • Active stock traders
Pros
  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
Cons
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
Best For
Options Trading
Overall Rating
Get started securely through TD Ameritrade’s website
Best For
Options Trading
N/A
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Best For
  • Novice investors
  • Retirement savers
  • Day traders
Pros
  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates
Best For
Advanced traders
Overall Rating
Get started securely through Moomoo’s website
Best For
Advanced traders
N/A
1 Minute Review

Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.

Get started right away by downloading Moomoo to your phone, tablet or another mobile device.

Best For
  • Cost-conscious traders
  • Novice traders
  • Active/Advanced traders
Pros
  • Free Level 2 market data for all users who open an account
  • Commission-free trading in over 5,000 different stocks and ETFs
  • Over 8,000 different stocks that can be sold short
  • $0 contract fee for trading options, no commission either
  • Strong market data and analysis tools with over 50 technical indicators
  • Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
  • No minimum deposit to open an account.
  • Active trading community with more than 100,000 app users
Cons
  • No phone or chat support

Features to Look for in Oil Stocks

  • Manageable debt load: Oil companies are usually burdened with large amounts of debt, especially upstream companies that require expensive equipment to operate. Excessive leverage has already caused a few oil companies to fail so far in 2020 and more will follow if prices continue to crash. Debt is a way of life for oil producers, so make sure the companies you buy can manage theirs.
  • Stable dividend: Oil stocks are known for their fat dividends and investors have enjoyed steady income from the industry for years. However, with oil stocks in the bargain bin and no end in sight to the headwinds pressuring the industry, dividends are on the chopping block. Energy firms like Williams Companies (NYSE: WMB) currently sport an 8.8% dividend that’s likely to be slashed in the near future. Don’t chase high dividends when the industry is facing this much uncertainty.
  • Sufficient cash reserves: Cash is king, especially when an unrelated crisis has driven demand into the ground. The energy sector is going to see some ugliness in the next few months as cash flow dries up, so companies with extra cash to deploy will be better positioned when the crisis subsides.

Trading Oil Stocks During a Price War

There’s no sugarcoating this — oil is a rough trade right now. Prices keep dropping and there’s pressure on the industry from both short-term and long-term headwinds. On April 20th, the price of WTI futures plummeted 40% in overnight trading alone. Renewable energy was gaining traction before the crisis hit and while cheap oil may boost demand once the world gets back to normal, it becomes a tougher and tougher industry to navigate, especially for capital intensive operations in the Upstream sector. 

However, it’s hard to resist buying quality companies when prices reach historic lows like these. Buying oil stocks might seem like a bad idea right now, but if demand snaps back sooner than expected, OPEC’s supply limitations could be effective. Oil won’t stay below $20 a barrel forever and many investors will want to buy in now when reputable companies are trading at such steep discounts. Oil is a finicky industry – be sure to do your homework before investing in a sector facing unprecedented uncertainty.

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