It saddens my heart regarding events coming from Eastern Europe and I hope this warfare won't be here for long. However, major events such as war can adversely affect stock markets worldwide. But as some analysts say: “There’s money to be made when there’s blood on the streets.” The Russian invasion of Ukraine will present numerous opportunities for some investors and stocks. For instance, Crude oil has been at its all-time high since 2014 and has crossed the $100 a barrel mark. The energy sector stands to benefit from this crisis, especially the oil and gas sector.
Already, stocks in this sector are announcing stellar results. For example, APA Corp’s (NASDAQ: APA) recent fourth-quarter earnings results showed a total revenue that skyrocketed to $2.29 billion, an 85% increase year over year. It has also revved up its production to 386,000 barrels per day.
That is just an example of what the Russia-Ukraine crisis can produce. In that light, this article will highlight some oil and gas stocks that will gain from the opportunities presented by the crisis.
1. Exxon Mobil
Exxon Mobil (NYSE: XOM) is among the largest oil companies in the world. It engages in sales, exploration, and oil production with upstream and downstream segments. This stock has seen a 40% climb over the past year on rising costs of oil and gas.
Recently, it signed an agreement with the government of Papua New Guinea to develop the P’nyang gas fields. The plant at the gas field has produced 8.4 million tonnes of liquefied natural gas, which the country exported last year.
These developments herald the company's foray into the gas sector after being a leader in the oil sector. Is it a good buy right now? You bet it is. Rising oil and gas prices will place Exxon Mobile in a good position for incredible revenue.
2. Devon Energy Group
Devon Energy Corp (NYSE: DVN) is another major player in the oil and gas industry. The company’s operations are focused on the U.S, and it has five primary areas of operation: Delaware Basin, Powder River Basin, Eagle Ford, Williston Basin, and Anadarko Basin. Over the years, Devon has been proud to be delivering consistent shareholder returns. Within the past year, the stock skyrocketed more than 150%.
Recently, fourth-quarter and full-year earnings for 2021 were announced by the company. It reported net earnings of $935 million, representing $1.39 per diluted share for Q4 2021. In addition, its operating cash flow grew to $4.9 billion, which is a more than 300% increase over the past year.
Overall, the company has consistently exceeded expectations in earnings and earnings per share (EPS). With this in mind, Devon is a brilliant stock to have in your portfolio right now.
3. ConocoPhillips
ConocoPhillips (NYSE: COP) is another giant in the oil and gas industry. It explores, produces, markets, and transports crude oil, natural gas, bitumen, liquefied natural gas, and natural gas oils. It boasts about $87 billion in assets that encompass 14 countries worldwide. Therefore, it is not a surprise that ConocoPhillips has reaped many gains from soaring oil and gas prices.
ConocoPhillips is not even resting on its laurels. Recently, it announced it had purchased an additional 10% shareholding interest in Australia Pacific LNG (APLNG). The shares were bought from Origin Energy for $1.65 billion. Therefore, it now holds about 47.5% controlling interest in APLNG. This will result in a massive boost to ConocoPhillips' balance sheet because Australia Pacific LNG is a major natural gas supplier to the Asia Pacific region and Australia's East Coast.
For these reasons and many more, you should be buying ConocoPhillips stock at this time when we anticipate increased oil and gas prices due to the invasion of Ukraine by Russia.
Rate this article