Capital Circle Group Analyst Reports- 5 Oil Stocks to buy in Q2 2022

London, UK –  The oil and gas industry consists of upstream energy firms that discover and create energy sources, midstream pipeline companies that transport and store oil and gas, and downstream energy companies that refine energy sources into finished goods. There are other firms that supply drilling equipment and services for oil fields. Some also produce and maintain production equipment. ConocoPhillips, Marathon Petroleum, Antero Resources, Exxon Mobil Corp, and Phillips 66, all located in the Netherlands, are among the industry’s top players.

An oil company is a business that engages in at least one of the three activities listed below.:

  • Upstream exploration and production (E&P): Oil, natural gas, and natural gas liquids are discovered and produced by these firms (NGLs). These businesses can also offer oilfield services, as well as sell or lease equipment.
  • Midstream: Oil, natural gas, liquefied natural gas (LNG), natural gas liquids (NGLs) including ethane and propane, and refined petroleum products are all transported, processed, stored, and exported by these companies.
  • Downstream: These businesses refine oil into products like gasoline, diesel, and jet fuel, and then sell them to clients. These businesses refine oil into products like gasoline, diesel, and jet fuel, and then sell them to clients.

Russia’s invasion of Ukraine in late February 2022, on the other hand, has interrupted the oil supply and drove prices sky-high. President Biden authorized the largest release ever from the US emergency oil reserve on March 31, 2022, in an attempt to lower gasoline prices. Starting in May 2022, the US will release 1 million barrels of crude oil per day from the Strategic Petroleum Reserve for the next six months. Tapping the reserve is only likely to bring a temporary break from rising oil prices and a supply shortage.

Meanwhile, as all of this was going on in the crude oil market, allied corporations were benefiting from higher crude oil prices. According to an expert broker at Capital Circle Group, many oil and gas equities have fared well this year, and it’s all due to Russia’s invasion of Ukraine. Conoco Phillips is one of the most popular oil stocks recently, with a price gain of 92% in 2022. Over the previous year, Marathon Petroleum’s stock increased by roughly 57%. Antero Resources has witnessed a 200 percent increase in the last year. Exxon Mobil’s stock price is about 47% higher than it was a year ago. Apart from these, Diversifies Energy, Gulf Keystone Petroleum, and Jadestone Energy are some more notable names in the oil stock market that have shown impressive growth and might be a good investment right now.

A Look at the Best Oil Stocks to Buy In Q2 2022

The price of oil has risen tenfold since the outbreak began; it doesn’t mean all companies in the business are worth adding to your portfolio. After all, oil is a very volatile asset that has traded in a fairly consistent range over the previous few decades. Furthermore, as previously said, there is usually a large discrepancy in oil pricing and oil-related businesses. So, the expert broker at Capital Circle Group suggests that determining the best oil stocks for 2022 is essential for making educated investment decisions. Consider the 5 oil stocks ranked below to get you on the right track.

1. ConocoPhillips: ConocoPhillips is the greatest oil company to buy right now for your portfolio. ConocoPhillips is a significant US-based oil business with a stock listing on the New York Stock Exchange. It was founded in 2002. The company has offices in more than a dozen countries throughout the world, including Norway, Malaysia, Australia, and Canada.

Why does ConocoPhillips stand out as the greatest oil stock to buy in for 2022? It all comes down to how well its shares have done in comparison to the broader markets.

The SPDR S&P Oil & Gas Exploration & Production, for example, has lost 7% of its value during the last five years. ConocoPhillips stock, on the other hand, has gained 103 percent during the same time period. ConocoPhillips’ stock has increased by 92 percent in the last year, compared to the SPDR S&P Oil & Gas ETF’s 70 percent increase.

ConocoPhillips also has a strong dividend pro programme thing we appreciate about this top-rated oil stock. As of this writing, the company has a 2.33 percent running dividend yield. Furthermore, ConocoPhillips may still be cheap, with a P/E ratio of 16.5 times as of this writing.

2. Marathon Petroleum: Marathon Petroleum is another oil stock situated in the United States that you should consider adding to your portfolio now. Marathon Petroleum is one of the leading wholesale providers in the business, specializing in both crude oil and gasoline. Marathon Petroleum currently can produce approximately 3 million barrels of crude oil per day, according to its most recent financial report.

This is especially important in the current economic context, where oil demand outnumbers supply by a wide margin. Marathonspecializing Petroleum shares are up approximately 70% in the last five years in terms of stock price performance. The stocks have gained 57 percent in the last year. Marathon Petroleum stock also appeals to us because of its current strong running dividend yield of nearly 2.7 percent. Perhaps the most significant disadvantage of this oil company is that, based on current pricing, Marathon Petroleum has a massive P/E ratio of approximately 42 times. As a result, this suggests that the stock may be overpriced.

3.  Antero Resources: Antero Resources was founded in 2002 and specializes in hydrocarbon exploration using fracking technology. Antero Resources is active in the extraction of natural gas, petroleum, ethane, and a variety of other natural resources.

Although Antero Resources is on the rise, it’s worth noting that the stock is still down more than 40% from when it initially debuted on the New York Stock Exchange in 2013. Furthermore, over the course of one year, this oil stock has gained about 200% in value which makes it a very attractive oil stock to buy in Q2 2022.

4. ExxonMobil Corp: This US-based stock was founded in 1999 as a result of the merging of Exxon and Mobil. It is a large oil producer and has. ExxonMobil is one of the major oil stocks in the business, with a market value of over $350 billion and an NYSE listing. ExxonMobil is likely the greatest oil company for dividends if you’re looking for income. ExxonMobil shares have grown by more than 47 percent in the last year on the stock market, which depicts a promising future for the value of its stocks.

5. Phillips 66: Phillips 66 is one of the greatest oil companies for dividend stability, as seen by its performance over the last decade. The rolling dividend yield on this top-rated oil stock is presently about 4.2 percent. We also like that Phillips 66 has conducted various share repurchase programs over the previous decade, demonstrating the company’s dedication to its shareholders.

Phillips 66 also has among of the lowest operating expenses in the refinery industry in the United States, which we appreciate. Furthermore, we think that purchasing Phillips 66 stock will provide you with exposure to the renewable energy business. Phillips 66’s stock has only increased by 5% and 11% over the last one and five years, respectively. However, still it is a very attractive oil stock to buy in Q2 2022 because of the recent oil price momentum.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find in this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

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