Companies like NextEra Energy and Iberdrola are expanding wind, solar, and energy storage technologies, aligning with ESG investing in energy and long‑term sustainable energy investments. Furthermore, Halliburton’s focus on technology and innovation sets it apart in the industry. The company continually invests in research and development to develop cutting-edge solutions that address the evolving needs of its customers. The company’s diverse operations include drilling services, well construction, hydraulic fracturing, cementing and reservoir characterization. Halliburton’s expertise in these areas enables it to address the evolving challenges and requirements of the energy industry, from unconventional resource development to deepwater exploration. Qualitative factors were considered to evaluate each company’s competitive advantages, strategic initiatives and management effectiveness.
EOG Resources (EOG)
In between, Chevron is confident about closing its $52 billion all-stock Best oil stock acquisition of Hess in the near future, having received an antitrust-review clearance from the Federal Trade Commission in September last year. The transaction will also be immediately accretive to its earnings, cash flow, and return of capital to shareholders. ConocoPhillips expects to capture over $1 billion in cost and capital synergies in its first year of ownership (up from its initial expectations of $500 million).
These giants have also been pursuing carbon capture and hydrogen technologies to enhance the relevance of fossil fuel assets. Although they have the advantage of greater agility and adaptation speed, these smaller players have lower margins, which makes them vulnerable to industry consolidation as the market matures. However, it’s hard to resist buying quality companies when prices reach historic lows like these. The price of crude oil won’t stay low or high forever, but you can be sure that the price of a barrel is trending up over the long term. Nation worldwide don’t want to cut into their emergency reserves, and you cannot expect a massive dividend yield all the time when the market fluctuates as it does.
- The Canadian Natural Resource(CNQ) Limited is one of North America’s most efficient energy companies.
- Tracking an oil company’s revenue and cash flow gives you a sense of its financial health and its ability to fund its operations, invest in growth, and provide returns to shareholders.
- It recently boosted its dividend by 34% and intends to deliver dividend growth in the top 25% of all companies in the S&P 500 going forward.
Is it wise to invest in energy?
London-headquartered Shell is a great example of a dominant integrated energy company with which U.S. investors are comfortable, despite the company being based outside the U.S. Simultaneously, China’s factory output growth slowed, and persistent weakness in its property sector added to investor concerns about the economic health of the world’s largest crude importer. Gibson is a mid-cap, midstream company with a modest 500 km pipeline network and a sizable 14 million barrel storage capacity. Thanks to its strong income, the stock is quite undervalued despite the post-COVID bullish growth that pushed the stock up to a 130% premium on the pre-pandemic peak. The company has also been growing its dividends at a decent pace without negatively impacting its financial stability. The bulk of its revenues come from midstream services, almost 70% of which follows the take-or-pay (fine) model, making the revenue quite stable against market headwinds and oil price fluctuations.
Revenue and Cash Flow in Oil Companies
Oil has long been a store of wealth as its price has continued to rise over time. However, all investments come with risk, and you should research each oil stock you choose prior to trading. 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.
Simply put, oil stocks are still viable investments, and they will likely remain so for decades to come. This has made the stock incredibly attractive from a valuation perspective as it’s currently one of the most undervalued stocks in the energy sector, while its revenues normalize after a temporary boost. In the ten years of operating in Colombia (between 2012 and 2022), the company grew its assets by about 280% and net income by over 15 times.
Oil Stocks in the Public Markets
- Net production averaged 754 thousand barrels of oil equivalent per day in 2020 at a ratio of 72% oil and natural gas liquids and 28% natural gas.
- Just remember—energy isn’t one-size-fits-all, and neither are oil investments.
- The push for cleaner energy and falling costs of renewable technologies are the main driving factors.
It plans to pay a steadily growing dividend, repurchase shares, and pay a variable return of cash based on its excess cash. ConocoPhillips benefits from scale and access to some of the lowest-cost oil on earth, which includes significant exposure to the Permian Basin. It bulked up its position in that low-cost, oil-rich region in 2021 by acquiring Concho Resources and Shell’s assets in the area. With average costs of about $40 per barrel and many of its resources even cheaper, it can make money in almost any oil market environment, enabling the company to generate lots of cash flow. Despite any problems that might arise, remember that the oil market tends to be a safe place to hold assets for long periods of time.
Chevron’s stock performed impressively well in Q reaching a peak of $168.51 in March. Integrated companies offer some of the best oil ETFs to buy in 2025. Because they operate across the entire supply chain (upstream, midstream, and downstream), these companies offer stocks that are generally more stable than those of specialized oil companies. The diversified operations make them less sensitive to the volatility of single oil and gas industry segments. These stocks are offered by companies that provide the specialized equipment, workforce, and technical expertise needed by E&P companies to explore, develop, and maintain oil and gas fields. As a result, their performance is tied to drilling activity levels rather than directly to oil prices.
Today, ExxonMobil is vertically integrated, which means it offers services across all three supply chain categories. Although this oil behemoth struggled during the pandemic, its financial discipline has seen it achieve major economic growth and recovery since 2020. Because of how they’re structured, MLPs must distribute most of their cash flow to shareholders. As a result, MLP stocks offer high dividend yields and are less exposed to commodity price volatility.
The company prioritizes investments in technology and innovation to enhance efficiency, reduce emissions, and meet evolving regulatory requirements. And note that it can be especially risky to purchase volatile investments using high-interest debt such as credit cards. If your investments decline in value, you’ll still owe interest on the price you paid for them — deepening your losses.
Services
This hybrid strategy allows investors to ride out profits from traditional oil while positioning for renewables growth. Chevron might seem like the “safe choice” in the oil sector—and that’s exactly what makes it valuable. Their steady hand and rock-solid balance sheet make them one of the most reliable options for oil investors. In 2025, they’re maintaining low production costs while expanding upstream assets.
A New Dawn is Coming to U.S. Stocks
However, for those looking for a multinational operator with a diversified business, ExxonMobil could be a top choice. A robust economy can support rising oil prices and oil producer profitability. However, geopolitics and capital allocation also play crucial roles in the industry. The company has been a dividend growth superstar and a share buyback dynamo over the past decade. The company’s focus on making smart investments and returning cash to investors should enable Phillips 66 to continue enhancing shareholder value in the coming years.
However, midstream leaders such as Enterprise Products Partners charge the same amount to transport liquids through their pipelines no matter what commodity costs are. Investors can make energy sector stocks a valuable part of their long‑term strategy by targeting steady income, adding exposure to the clean energy transition, and participating in global infrastructure expansion. While some dividend-paying energy stocks offer high yields, not all payouts are sustainable. Energy stocks for income investors should be assessed for balance between yield, reinvestment, and long‑term stability.