Top 5 Oil Stocks to Watch in 2021
Explore the top five oil stocks to consider in 2021. Featuring ConocoPhillips, Phillips 66, Enbridge, Chevron, and Exxon Mobil, this guide highlights their strengths, financial stability, and growth prospects amid sector challenges and transitions to renewables.
Oil industry companies focus on exploration, production, transportation, storage, refining, and distribution. Despite rising environmental regulations, fierce competition, and technological shifts presenting challenges, select companies still offer strong investment potential. Here is a list of five leading oil stocks to consider for 2021.
ConocoPhillips
Specialized in E&P, ConocoPhillips is one of the largest global players with operations across 12+ countries. Its diverse and cost-efficient portfolio, combined with a solid financial position, enables it to navigate sector volatility effectively.
Phillips 66
Operating mainly in the U.S. and Europe, Phillips 66 excels in refining, marketing, and midstream activities. Its focus on high-margin products, vertical integration, and strategic investments make it a resilient low-cost producer, with a strong balance sheet supporting consistent dividends.
Enbridge
As the energy landscape shifts toward renewables, Enbridge remains a stable investment. It manages North America’s largest oil pipeline network, has thriving natural gas operations, and generates most revenue from long-term agreements. Its stable cash flow and investment-grade balance sheet facilitate growth and dividend payments.
Chevron Corporation
Chevrons’s Q1 2021 results were strong despite winter storm disruptions. With a significant cash surplus post-capital expenses and dividends, the company has increased its dividend payments and maintains a healthy financial outlook.
Exxon Mobil
Exxon reported positive first-quarter earnings, partly due to its chemical segment and cost reductions in 2020. Asset divestments have improved efficiency and strengthened its balance sheet, supporting its 6% dividend commitment.
