5 Of The Best Oil And Gas Stocks To Buy For High Crude Oil Prices in July 2025

ConocoPhillips, Devon Energy, and EOG Resources built oil companies that can thrive at low oil prices. Because of that, they’re cashing in as crude hovers around $70 a barrel. That puts them in strong positions to produce above-average total returns for their investors, making them great oil stocks to buy to cash in on the current environment. Financial markets have reflected this turbulence, as energy stocks moved in tandem with the swings in oil prices, which retracted more than 10% since the inauguration day. While refiners and midstream companies have generally performed well due to resilient transportation and processing demand, exploration and production firms have faced challenges in securing new investments. Looking forward, macroeconomic and geopolitical factors will continue to shape the crude oil market.

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The company currently pays a quarterly dividend of 91 cents per share, and its yield stands at 3.3%. Each week our editorial team keeps you up with the latest financial news, shares reading recommendations, and provides useful tips on how to make, save and grow your money. Instead of betting on oil producers, an easier way to make money from oil is simply owning the land that contains oil. Of course, this is easier said than done and involves a good deal of luck. The largest risk would be a major recession or any other event sending oil into a Best oil stock sustained lower price range, which would crush the demand for offshore drilling.

• As energy as a sector is still out of favor, oil companies are often undervalued or distributing generous dividends.
• Halliburton is involved with the entire lifecycle of oil and gas assets, including drilling, completion, production and reservoir optimization.
• In fact, if it were a domestic stock it would be the third largest component of the S&P 500 energy sector— just behind giant $273-billion market capitalization Chevron (CVX).
• In conclusion, investors actively seek opportunities in the oil and gas sector amid rising crude oil prices.

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It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other business combination with one or more businesses. The company was formerly known as Churchill Capital Corp VIII and changed its name to AltC Acquisition Corp. Whiting Petroleum (WLL, $36.65) is by far the smallest among the seven best oil stocks to buy now, but it also easily sports the strongest Strong Buy consensus recommendation. If it isn’t clear by now, the Street believes many of the best oil stocks to buy now are in the E&P industry, and few are more popular than ConocoPhillips (COP, $50.89). Indeed, COP, with a rating of 1.50, is the first of our oil stocks to get a consensus recommendation of Strong Buy. “The company’s relatively low cost of supply, balance sheet, minerals and midstream ownership are a few of the reasons it is well-positioned to outperform as activity returns,” Whitfield adds.

VanEck Oil Services ETF (OIH)

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• Each data center powering large language models like ChatGPT consumes as much energy as a small city.
• Like a number of oil stocks on this list, cautious sentiment appears to have kept PXD’s valuation in check.
• And note that it can be especially risky to purchase volatile investments using high-interest debt such as credit cards.

Analysts are increasingly bullish on oil stocks in the refinery sector as we approach summer, and one of the players they like best is Phillips 66 (PSX, $77.94). With that, have a look at analysts’ absolute favorite oil stocks to buy now. The best oil stocks to pursue, for now, are primarily those that have positioned themselves to withstand even more headwinds in the future. ConocoPhillips expects to return a meaningful percentage of its excess cash to shareholders in the future. 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.

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. 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. It is an exploration stage enterprise that participates in oil and gas projects located in emerging markets, in sub-Saharan Africa.

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That will enable Chevron to continue increasing its dividend (which it has done every year for over three decades) and repurchase shares at the top end of its $10 billion to $20 billion annual target range. This is where integrated energy giants like Chevron (CVX 1.42%) and ExxonMobil (XOM 1.21%) come in. They operate across the entire energy landscape, from the upstream through the midstream (pipelines) and into the downstream (chemicals and refining). Although oil prices are still a huge determinant of their financial success, adding the other two segments to the mix helps to soften the ups and downs.

Halliburton is involved with the entire lifecycle of oil and gas assets, including drilling, completion, production and reservoir optimization. Crude oil prices play a pivotal role in shaping the landscape of the oil and gas sectors, influencing various aspects of companies operating within these industries. One of the most significant impacts of crude oil price movements is on the revenue and profitability of oil and gas companies. When crude oil prices rise, companies involved in exploration, production and refining typically experience an uptick in revenue and margins. Conversely, falling oil prices can squeeze profitability, particularly for higher-cost producers. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.

Within a single day, OPEC can punish oil stocks by withholding barrels of oil produced, or help these stocks by producing more. Despite the uncertainties facing the industry, oil companies still dominate the energy sector. In 2024 alone, the oil and gas sector brought in around $3.58 trillion in revenue. “COP is one of these companies, as it benefits from its size, scale and combination of major long-cycle and unconventional short-cycle projects.” Like a number of oil stocks on this list, cautious sentiment appears to have kept PXD’s valuation in check.

They rallied more than 20% at one point — topping $85 per barrel — before cooling off toward the end of the year. In addition to hiking its dividend, BP has been buying back stock with a vengeance, recently announcing that it is boosting its share buybacks by $2.5 billion to further reward shareholders. Also like Berkshire, Occidental Petroleum is using its profits to buy back its own stock, as it has announced a $3 billion share repurchase program. Learn all about the 12 valuation ratios that allow investors to quickly estimate a business’s value relative to its … We did a little mythbusting on one of the burning questions of the moment.

Best Banking Stocks & ETFs to Watch

The Upstream segment explores for and produces crude oil and natural gas. On the whole, the pros see Diamondback as one of the best oil stocks you can buy now. Of the 33 analysts covering FANG tracked by S&P Global Market Intelligence, 20 rate it at Strong Buy, seven say Buy and six have it at Hold. Their average target price of $94.19 gives this oil stock implied upside of about 21% over the next year or so. CFRA’s Glickman is very much in the majority when it comes to his stance on the oil stock.

Devon expects to invest up to $4 billion to maintain and grow its production this year. That positions it to produce more than $3 billion of free cash flow at $70 oil. Devon Energy has followed a very similar blueprint as ConocoPhillips by selling off higher-cost assets and recycling the proceeds into low-cost operations. It most recently bought Grayson Mill Energy to bolster its position in the Williston Basin of North Dakota. The company has large-scale resource positions across several key U.S. oil and gas production basins, led by the Delaware Basin of Texas and New Mexico, where it has an average breakeven level of $40 oil. Several factors are supporting this oil price, including OPEC’s decision to hold back supplies, continued economic growth, and war-driven concerns about potential future supply disruptions.

Long-term, Cenovus’s investments into oil sands serves as a hedge for its natural gas business. The low price and a valuation discount compared to the industry will allow investors to tap into double-digit upside. Occidental Petroleum stock trades at a price-to-book (P/B) multiple of 2.0x today, less than half the energy sector’s average 4.4x valuation today.

The 50-day moving average last week crossed above the 200-day moving average, a sign of the strength in the stock. ConocoPhillips has already closed its needle-moving deal, and Chevron should be able to wrap up its transaction this year. Those acquisitions should provide these oil stocks with a big boost in 2025. The pandemic caused ExxonMobil to cut costs, reevaluate where it’s investing its money, and reprioritize high-value products.

In fact, as 2024 draws to a close, the yield is more attractive than it has been in several years. Another great attribute of XOM stock is that it is a Dividend Aristocrat. Specifically, ExxonMobil has increased its dividend payout to shareholders for 39 consecutive years.