Top 7 USA Energy Stocks to Buy Amid Rising Oil Prices
From the gas in your car to the electricity powering your home, energy is the lifeblood of modern society. And with oil prices on the rise, the energy sector is heating up in ways that investors can’t ignore. Whether you’re a seasoned investor or just dipping your toes into the stock market, energy stocks are worth a closer look. Why? Because when oil prices go up, energy companies tend to benefit, and that can mean big opportunities for your portfolio.
But with so many energy stocks out there, how do you know which ones are worth your time and money? Don’t worry—I’ve got you covered. In this article, we’ll break down the top 7 USA energy stocks to consider buying amid rising oil prices. These companies are leaders in their field, have strong financials, and are well-positioned to thrive in the current market. Plus, I’ll explain why each one stands out and what makes them a solid pick.
Before we dive in, let’s talk about why rising oil prices matter. When oil prices climb, it usually means higher revenues for energy companies. This can lead to increased profits, which often translates to higher stock prices. It’s not just about oil, though. Many energy companies are also investing in renewable energy and other innovations, making them more resilient and forward-thinking. So, even if you’re not a fan of fossil fuels, there’s still plenty to like about the energy sector.
Alright, let’s get to the good stuff. Here are the top 7 USA energy stocks to buy amid rising oil prices:
1. ExxonMobil (XOM)
When it comes to energy giants, ExxonMobil is a household name. This company has been around for over a century, and it’s one of the largest publicly traded oil and gas companies in the world. ExxonMobil is known for its massive scale, strong balance sheet, and consistent dividends.
What makes ExxonMobil stand out right now is its ability to capitalize on higher oil prices. The company has been investing heavily in its upstream operations (that’s the part of the business that focuses on exploration and production), which means it’s well-positioned to benefit from rising crude prices. Plus, ExxonMobil has been making strides in cleaner energy technologies, like carbon capture and biofuels, which could pay off in the long run.
If you’re looking for a stable, reliable energy stock with a solid track record, ExxonMobil is a great place to start.
2. Chevron (CVX)
Chevron is another heavyweight in the energy sector, and it’s often compared to ExxonMobil. But Chevron has a few unique advantages that make it a top pick. For one, the company has a strong presence in the Permian Basin, one of the most productive oil fields in the U.S. This gives Chevron a competitive edge when it comes to production costs and efficiency.
Chevron is also committed to reducing its carbon footprint, which is a big deal in today’s environmentally conscious world. The company has set ambitious goals to lower emissions and invest in renewable energy projects. This forward-thinking approach not only helps the planet but also makes Chevron a more attractive investment for the future.
With a history of strong financial performance and a dividend yield that’s hard to beat, Chevron is a solid choice for anyone looking to add energy stocks to their portfolio.
3. ConocoPhillips (COP)
ConocoPhillips is a bit different from ExxonMobil and Chevron because it’s primarily focused on exploration and production. That means it doesn’t have the same level of downstream operations (like refining and marketing) as some of its peers. But don’t let that fool you—ConocoPhillips is a powerhouse in its own right.
The company has a diverse portfolio of assets, including significant holdings in the U.S., Canada, and other parts of the world. This diversification helps ConocoPhillips manage risk and take advantage of opportunities in different markets. Plus, the company has a strong balance sheet and a commitment to returning value to shareholders through dividends and share buybacks.
If you’re looking for a pure-play energy stock with plenty of upside potential, ConocoPhillips is worth considering.
4. EOG Resources (EOG)
EOG Resources is often referred to as one of the best-managed energy companies in the U.S. The company has a reputation for being disciplined and efficient, which has helped it thrive even during tough times in the energy market.
One of EOG’s biggest strengths is its focus on high-quality assets. The company prioritizes projects with the best returns, which means it’s able to generate strong cash flow even when oil prices are volatile. EOG also has a solid track record of innovation, particularly when it comes to drilling techniques and technology.
Another thing to love about EOG is its commitment to sustainability. The company has set ambitious goals to reduce emissions and improve environmental performance, which is a big plus for socially conscious investors.
If you want a well-run energy stock with plenty of growth potential, EOG Resources is a top contender.
5. Devon Energy (DVN)
Devon Energy is another exploration and production company that’s been making waves in the energy sector. What sets Devon apart is its unique dividend policy. The company pays a fixed dividend plus a variable dividend based on its cash flow, which means shareholders can benefit directly from higher oil prices.
Devon has a strong presence in some of the most productive oil fields in the U.S., including the Permian Basin and the Eagle Ford Shale. This gives the company a competitive edge when it comes to production and profitability.
With a focus on efficiency and shareholder returns, Devon Energy is a great choice for investors looking to capitalize on rising oil prices.
6. Schlumberger (SLB)
Schlumberger is a bit different from the other stocks on this list because it’s not an oil producer. Instead, Schlumberger is the world’s largest oilfield services company. That means it provides the technology, equipment, and expertise that energy companies need to drill and produce oil and gas.
Why is Schlumberger a top pick? Because when oil prices rise, energy companies tend to ramp up their drilling activity, and that means more business for Schlumberger. The company has a global presence and a reputation for innovation, which makes it a key player in the energy sector.
Schlumberger is also investing in digital technologies and renewable energy solutions, which could open up new growth opportunities in the future.
If you’re looking for a way to invest in the energy sector without buying an oil producer, Schlumberger is a smart choice.
7. NextEra Energy (NEE)
Last but definitely not least, we have NextEra Energy. This company is a bit of an outlier on this list because it’s not an oil and gas company. Instead, NextEra is one of the largest renewable energy companies in the world, with a focus on wind and solar power.
So why include NextEra in a list of energy stocks to buy amid rising oil prices? Because higher oil prices often lead to increased interest in alternative energy sources. NextEra is a leader in this space, and it’s well-positioned to benefit from the global shift toward cleaner energy.
NextEra also has a strong track record of growth and profitability, making it a favorite among investors. If you’re looking for a way to invest in the future of energy, NextEra is a top pick.
Final Thoughts
Rising oil prices can be a double-edged sword. On one hand, they can lead to higher costs for consumers and businesses. But on the other hand, they create opportunities for investors in the energy sector. The seven stocks we’ve discussed here are all strong contenders, each with its own unique strengths and advantages.
Whether you’re drawn to the stability of ExxonMobil, the innovation of EOG Resources, or the renewable energy focus of NextEra, there’s something on this list for everyone. Just remember, investing always comes with risks, so it’s important to do your own research and consider your financial goals before making any decisions.
At the end of the day, the energy sector is full of potential, and these seven stocks are a great place to start. Happy investing!
