If a brand is a referral partner, we’re paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. CNQs’ growth strategy centers on the optimization of existing assets, thermal oil sands expansion, emission reduction initiatives, and strategic consolidation of adjacent properties to extend its development runway. Their scale and logistics infrastructure give them a huge advantage in this low-cost, high-return region, and 2025 will likely continue that dominance. Optimize inventory, streamline production workflows, and reduce errors with real-time data and mobile solutions, enhancing efficiency and boosting profitability. The Motley Fool has positions in and recommends Chevron and Enbridge.

This financial strength has seen Chevron maintain its position as a “Dividend Aristocrat,” having increased its dividend payout for 37 consecutive years – an extraordinary achievement in the cyclical energy sector. Chevron Corp, founded in 1879 as the Pacific Coast Oil Company, is the US’s second largest integrated energy company. The company has evolved through mergers and acquisitions, including a $45 billion acquisition of Texaco and the $13 billion acquisition of Noble Energy. These successor entities needed capital to fund operations independently. Consequently, many began listing their shares on the New York Stock Exchange, allowing everyday folks to participate in the industry’s growth for the first time.

Best-performing oil and gas stocks

On top of that, Marathon’s retail operations—they own a huge network of gas stations—add another stable revenue stream. They have expansive holdings across U.S. shale plays, including the Eagle Ford and Bakken formations. Efficient operations, smart acquisitions, and strict cost control allow them to return big chunks of profit to shareholders via dividends and share buybacks. The oil market can be quite fragile, with even a slight imbalance between supply and demand often causing it to go haywire. That was abundantly evident in early 2020 as the COVID-19 pandemic sent the sector into a tailspin. No, Oil stocks can represent R&D, refining, sales, lateral oil products and many more segments of the industry.

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  • Halliburton is involved with the entire lifecycle of oil and gas assets, including drilling, completion, production and reservoir optimization.
  • In 2024, Pioneer is poised to shine as a standout energy stock, largely thanks to its solid oil and gas sector position.
  • Occidental is regarded as a high-quality energy firm with robust operations in the Permian and an improving free cash flow.
  • We believe everyone should be able to make financial decisions with confidence.

If you’re looking to dive into energy investments, this guide to the 9 best oil stocks of 2025 breaks down exactly where to look. This cash flow should continue to protect ExxonMobil’s dividend and its status as a Dividend Achiever. Given the growth of renewables, many investors are choosing to avoid oil stocks entirely. However, ExxonMobil is making investments in lower-carbon fuel sources, including carbon capture and storage, as well as biofuels, which may enable it to continue supplying the economy with fuel for years to come.

  • Enbridge expects to be able to generate over 500 megawatts from its solar power facilities by the end of 2025.
  • It dominates in at least two countries, i.e., Ireland, where it’s the second largest on-shore gas producer, and France, where it is responsible for two-thirds of the domestic oil produced.
  • ConocoPhillips expects to return a meaningful percentage of its excess cash to shareholders in the future.
  • The company’s bold acquisition of Anadarko a few years back added high-quality reserves, and now it’s paying off.
  • The company expects its legacy business to generate $10 billion in incremental cash next year, while the recent acquisition of Hess will boost that number by an additional $2.5 billion.
  • It would also be a sign that Suncor will likely build on its impressive track record of consistent and growing dividends.

Shift Towards Renewable Energy & Utilities

For the foreseeable future, oil stocks remain an attractive way to invest in the overall health of the global economy because so much of what we do — from transportation to industry to petrochemicals — relies on oil. Because of this dynamic, investors need to be careful when choosing oil stocks. Best oil stock They should focus on companies that can survive rough patches since they’ll be better positioned to thrive when markets turn healthy again.

Energy stocks are in focus in 2025, spanning oil and gas producers, renewable energy stocks, utilities, and energy infrastructure companies. Global energy companies are balancing the clean energy transition with strong demand for fossil fuels, offering investors a mix of growth, dividends, and diversification. This directly translates into increased profitability and, consequently, fatter dividends from top oil companies for investors.However, black gold stocks aren’t without their pitfalls.

Additionally, we included hedge fund sentiment for each stock, as of Q3 2024, to offer readers deeper insights. It also runs the largest natural gas operation in North America (though the consumer base is purely Canadian) by volume and has the largest market cap in the sector. Its magnitude, market penetration, and strong financial history make it the “bluest” blue chip among Canadian oil stocks. The appeal of Occidental stems from its operations, discipline, and strong backing. The Permian Basin is a source of high-margin production due to faster and more cost-effective drilling. The company is prioritizing debt reduction over acquisitions, which helps stabilize cash flow.

The State of the Oil and Gas Market

This growth is driven by climate policies impact on energy, ESG investing in energy, and sustainable energy investments targeting a diversified global energy stocks list. Large global energy companies such as ExxonMobil and Chevron continue to invest in energy infrastructure upgrades, balancing short‑term oil price forecast 2025 dynamics with long‑term production plans. Lastly, Valero’s commitment to shareholder returns through dividends and share buybacks underscores its financial strength and commitment to creating value for investors.

Valero refines and markets fuels and petrochemical products worldwide. And Canada, that collectively adds up to 3.2 million barrels per day. By focusing on the top 50% of Zacks Ranked Industries, you can dramatically improve your stock picking success. The industry with the best average Zacks Rank would place in the top 1% of Zacks Ranked Industries, while the industry with the worst average Zacks Rank would place in the bottom 1%.

ExxonMobil (XOM)

But remember, this sector also has its uncertainties, particularly around regulations and technology advancements. Pembina is one of the few large-cap energy giants that can be bought (especially at the current discounted price) for both dividends and long-term growth potential, making its overall return potential quite attractive. Additionally, Chevron’s surging free cash flow should enable it to return more money to shareholders. The company will undoubtedly increase its dividend, continuing a 38-year streak of growth.

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This specialized business involves more technical expertise, more risk and fundamentally more up-front costs than land-based extraction. However, energy volatility over the last few years has forced companies like Suncor to figure out how to stay lean and profitable even when oil prices roll back. Petrochemicals are expected to overtake road transport as the primary driver of oil demand growth. By 2050, the IEA projects global oil demand to average 93.1 million b/d, 4.3 million b/d lower than its prior estimate under the Stated Energy Policies Scenario (STEPS). That makes the company a way to invest in both the carbon economy and the clean future of power. And you can collect an attractive 6.3% yield (U.S. investors have to pay French taxes, but a portion of that can be reclaimed come April 15) backed by a progressive dividend.