Top 10 Oil Stocks To Own For 2019

The beginning of summer may herald the end of a boom for the fuel that underpinned crude’s rally into a bull market last year.

Profits from turning benchmark Dubai crude into diesel are poised to shrivel in Asia — the world’s biggest oil-consuming region — as refiners from Japan to India prepare to boost processing after slowing down during spring-season maintenance while heating demand that buoyed the market in winter fades, according to a Bloomberg survey of five traders and analysts.

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The renaissance in diesel, which is used to power everything from trucks to ships and factories, over the past couple of seasons had contributed to crude’s recovery from the biggest price crash in a generation. While oil is still riding a rally and has reached levels last seen in 2014 on the back of rising geopolitical tensions, falling inventories and OPEC’s supply curbs, the potential fuel weakness adds to other threats such as record U.S. production.

Top 10 Oil Stocks To Own For 2019: Encana Corporation(ECA)

Advisors’ Opinion:

  • [By Money Morning News Team]

    Canada-based Encana Corp. (NYSE: ECA) was the eighth top oil company stock in 2016, with a 131% gain over the year. ECA and its subsidiaries focus on developing, exploring, producing, and marketing natural gas, liquefied natural gas, and oil in North America.

  • [By ]

    Already, shale companies such as Encana (ECA) , Occidental Petroleum (OXY) and Pioneer Natural Resources (PXD) , among others, are reporting higher cash flows and earnings on higher oil prices. As a result, they are paying down debt, increasing dividends and engaging in buybacks. This is a dramatic improvement in shareholder yield for the group.

  • [By WWW.THESTREET.COM]

    In the Lightning Round, Cramer was bullish on Vodafone Group (VOD) , Schlumberger (SLB) , Encana (ECA) , Arconic (ARNC) and AdvanSix (ASIX) .

    Cramer was bearish on U.S. Silica Holdings (SLCA) .

  • [By Paul Ausick]

    Encana Corp. (NYSE: ECA) is rated Buy with an unchanged price target of $16. The EPS estimate for 2017 was lowered from $0.42 to $0.34, and the 2018 estimate was also lowered, from $1.47 to $1.28. The shares ended the weekat $11.44, in a 52-week range of $4.90 to $13.85. The consensus 12-month price target is $14.95.

Top 10 Oil Stocks To Own For 2019: ONEOK Partners L.P.(OKS)

Advisors’ Opinion:

  • [By Matthew DiLallo]

    Energy infrastructure companies ONEOK (NYSE:OKE) and TransCanada (NYSE:TRP) are both emerging from the energy market downturn as stronger entities. Each made smart acquisitions, with TransCanada buying U.S. gas pipeline company Columbia Pipeline Group, while ONEOK is in the process of gobbling up its MLP,ONEOK Partners (NYSE:OKS). While these deals enhanced the growth profiles of both companies, TransCanada still stands out as the better buy for long-term income investors. Here’s why.

  • [By Garrett Cook]

    Citi maintains Buy ratings on Targa Resources (NYSE: TRGP), ONEOK (NYSE: OKE) and Oneok Partners (NYSE: OKS) citing the companies stories around natural gas liquids (NGLs).

Top 10 Oil Stocks To Own For 2019: ConocoPhillips(COP)

Advisors’ Opinion:

  • [By Chris Lange]

    The number of ConocoPhillips (NYSE: COP) shares short decreased to 23.15 million from the previous level of 24.60 million. Shares were trading at $52.55, within a 52-week range of $42.27 to $61.32.

  • [By Matthew DiLallo]

    ConocoPhillips’ (NYSE:COP) management team has worked tirelessly in recent years to transform the oil company into one that could thrive on lower prices. As a result, itcashed in during the first quarterwhen crude was well above its baseline plan. That strong showing sets the company up for continued success in the coming year — a key theme running through management’s comments on the accompanying conference call, which detailed recent achievements and how they frame what lies ahead.

  • [By WWW.THESTREET.COM]

    The contract awards are for the jack-ups West Elara and West Linus with ConocoPhillips Skandinavia AS (COP) for work in the Greater Ekofisk area. The total additional backlog for the new contract awards is estimated to be about $1.4 billion, excluding performance bonuses.

  • [By Matthew DiLallo]

    Meanwhile, ConocoPhillips (NYSE:COP) also abandoned its leases in the Chukchi Sea earlier this year. It paid $506 million for the 98 leases off Alaska’s northern coast in 2008 and had plans to drill its first exploratory well in 2014 but dropped those ambitions due to regulatory uncertainty. It has also since decided to exit deepwater exploration altogether after drilling a string of dry holes in the Gulf of Mexico, offshore Angola, and the Canadian Atlantic, Instead, ConocoPhillips plans to focus its future development efforts on lower-risk onshore shale development.

Top 10 Oil Stocks To Own For 2019: Range Resources Corporation(RRC)

Advisors’ Opinion:

  • [By Paul Ausick]

    Range Resources Corp. (NYSE: RRC) fell about 4.4% Tuesday to post a new 52-week low of $14.43 after closing at $15.09 on Monday. The 52-week high is $34.93. Volume of about 15 million was nearly double the daily average of around 7.7 million shares traded. The company had no specific news.

  • [By Matthew DiLallo]

    According to a report by PLS, producers spent more than $23 billion locking up prime positions in the Permian Basin and another $7 billion on Mid-Continent acreage acquisitions. However, most of those were smaller deals, with the top transaction weighing in at $2.5 billion. Meanwhile, the Ark-La-Tex region near the Gulf Coast quietly tied for the second hottest M&A geography in the country, largely because of Range Resources (NYSE:RRC) acquisition of Memorial Resource Development. Range Resources paid $4.2 billion, which includes the assumption of debt, to gain a leading position in the Lower Cotton Valley region of Northern Louisiana. Not only is the play saturated with natural gas, but it’s also near the Gulf Coast, which is expected to see increased demand from new petrochemical and industrial complexes as well as LNG export facilities. In other words, Range Resources made a big bet on higher gas prices along the Gulf Coast.

  • [By Ben Levisohn]

    Talk about a Barron’s bounce!Range Resources (RRC) has soared to the top of the S&P 500 today after Barron’s touted it in the pages of the magazine this weekend.

    Agence France-Presse/Getty Images

    Range Resources gained 4.1% to $28.47, while the S&P 500 slipped 0.3% to2,375.31.

    Barron’s Andrew Bary called Range Resources “an unappreciated energy play.” He explains why:

    With major market indexes at record highs, natural-gas stocks are among the few depressed industry groups. Blame a warm winter and weakening gas prices.

    Range Resources (ticker: RRC), a leading U.S. gas producer, looks undervalued. Its shares, at $27, are down 20% this year and are much below their 52-week high of $47, set last June. Range drilled the first well in the now-prolific Marcellus region of Pennsylvania more than a decade ago and amassed one of its largest land positions there610,000 acres. Its $4.2 billion purchase of Memorial Resource Development last September gave it access to what the company views as a prolific and underappreciated gas region: northern Louisiana

    Range Resources’ market capitalization rose to $7 billion today from $6.8 billion on Friday. It reported net income of $521 million on sales of $1.4 billion in 2016.

Top 10 Oil Stocks To Own For 2019: Crescent Point Energy Corp (16)

Advisors’ Opinion:

  • [By Kana Nishizawa]

    China Coal Energy Co., the countrys second-largest producer of the fuel, sank 3.1 percent after the government said it will cut coal consumption. Sun Hung Kai Properties Ltd. (16), the worlds second-biggest developer, fell 1.4 percent after trimming its sales target. Gold producers led materials companies lower as the precious metal headed for its steepest weekly loss since June amid expectations the U.S. Federal Open Market Committee will next week decide to reduce stimulus.

Top 10 Oil Stocks To Own For 2019: Marathon Oil Corporation(MRO)

Advisors’ Opinion:

  • [By Paul Ausick]

    Marathon Oil Corp. (NYSE: MRO) dropped about 1.7% Tuesday to post a new 52-week low of $11.33 after closing Monday at $11.53. The 52-week high is $19.28. Volume was nearly 50% higher than the daily average of about 13.7 million shares. The company had no specific news.

  • [By Matthew DiLallo]

    Saudi Aramco’s valuation, however, isn’t the only one that would benefit from a pop in the price of crude. Many oil producers in the U.S. restructured their operations to run on $50 oil, so if the Saudi strategy is successful, these oil companies would produce a gusher of cash flow, which could fuel high-octane gains for investors. While that rise would likely lift the entire sector, Devon Energy (NYSE:DVN) and Marathon Oil (NYSE:MRO)could outperform in that scenario.

  • [By Shanthi Rexaline]

    The bulking up strategy did not work well for the company over the years, as it saw its market share dwindle and profitability erode. In 1982, in a diversification bid, the company picked up Marathon Oil Corporation (NYSE: MRO) and renamed itself as USX.

  • [By Tyler Crowe]

    Back in 2011, Marathon Oil (NYSE:MRO) elected to spin off Marathon Petroleum. At the time, much of the reasoning for the split was that both entities would garner higher valuations than as an integrated company. Also, by separating them, both could best allocate capital to grow shareholder value.

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Wednesday was Marathon Oil Corp. (NYSE: MRO) which traded down 8.7% at $14.86. The stocks 52-week range is $9.65 to $19.28. Volume was about 108% of the daily average of around 11.32 million shares. The company had no specific news but was continuing to drop from falling crude prices.

  • [By Paul Ausick]

    Marathon Oil Corp. (NYSE: MRO) dropped about 1.6% Friday to post a new 52-week low of $11.41 after closing Thursday at $11.59. The 52-week high is $19.28. Volume was about 30% lower than the daily average of about 13.7 million shares. The company had no specific news.

Top 10 Oil Stocks To Own For 2019: Talisman Energy Inc.(TLM)

Advisors’ Opinion:

  • [By Jayson Derrick]

    On the other hand, the analysts are Underweight on Eni SpA (ADR) (NYSE: E), Repsol Oil & Gas Canada Inc (USA) (NYSE: TLM) and OMV AG given their asset bases, which offer an inferior risk to reward profile and limited differentiation in cost reductions.

Top 10 Oil Stocks To Own For 2019: Apache Corporation(APA)

Advisors’ Opinion:

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Tuesday was Apache Corp. (NYSE: APA) which traded down over 7% at $42.51. The stocks 52-week range is $38.14 to $69.00. Volume was over 14 million versus the daily average of 3.4 million shares.

  • [By WWW.THESTREET.COM]

    Cramer and the AAP team are detailing their outlook for portfolio energy names Apache (APA) and Cimarex (XEC) . Find out what they’re telling their investment club members with a free trial subscription to Action Alerts PLUS.

  • [By WWW.THESTREET.COM]

    Cramer and the Action Alerts PLUS team say they still believe in their embattled Permian names, Cimarex (XEC) and Apache (APA) , both of which have benefited from a slow rotation in recent weeks. These names can produce and profit here. Schlumberger (SLB) remains best in class and Magellan Midstream Partners just might be the best way to play oil given that the pipelines will be needed to transport the new wave of oil able to be drawn out of the ground from increasingly efficient American producers. Get in on the discussion by getting a free trial subscription to Action Alerts PLUS.

Top 10 Oil Stocks To Own For 2019: Magellan Midstream Partners L.P.(MMP)

Advisors’ Opinion:

  • [By Tyler Crowe, Reuben Gregg Brewer, and Travis Hoium]

    With these interesting trends emerging, there’s no doubt that investors are looking at this industry. To help investors start their search for great energy investments, we asked three of our investing contributors to each highlight a stock they see as a great buy now. Here’s why they picked Magellan Midstream Partners (NYSE:MMP), Brookfield Renewable Partners (NYSE:BEP), and SunPower (NASDAQ:SPWR).

  • [By WWW.THESTREET.COM]

    Cramer and the AAP team view the strength of corporations as most important in proving that stocks can handle current valuations. Find out what they’re telling their investment club members about Arconic (ARNC) , Apple (AAPL) and Magellan Midstream Partners (MMP) . Get a free trial subscription to Action Alerts PLUS.

  • [By Tyler Crowe]

    If you are an investor in Magellan Midstream Partners (NYSE:MMP), you aren’t in it for the thrills of rapid growth and skyrocketing stock prices. Instead, you’re probably looking for a consistent, reliable business that will continue to churn out cash. If that is the case, then this past quarter’s earnings report was right up your alley. By no means was it exciting, but it was another quarter of delivering consistent results.

  • [By ]

    That means pipelines are equally busy carrying all that raw crude into these refineries and then carrying out gasoline, diesel and other finished products. So you’d think these would be boon times for Magellan Midstream Partners (NYSE: MMP), which owns 10,000 miles of pipeline that connect with 50% of the nation’s refinery capacity.

  • [By ]

    Cramer and the AAP team are looking for opportunities to trim stocks into strength based out of discipline. That means trimming Magellan Midstream Partners (MMP) . Find out what they’re telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.

Top 10 Oil Stocks To Own For 2019: Transocean Inc.(RIG)

Advisors’ Opinion:

  • [By Ethan Ryder]

    D.B. Root & Company LLC acquired a new position in shares of Transocean (NYSE:RIG) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 30,040 shares of the offshore drilling services provider’s stock, valued at approximately $297,000.

  • [By Teresa Rivas]

    Transocean (RIG) is rising Thursday afternoon, thanks to an upbeat fourth quarter.

    Agence France-Presse/Getty Images

    The oilfield services company said it earned 63 cents a share (a figure that excludes $13 million in net unfavorable items), well ahead of the nickel a share in earnings analysts expected. Revenue fell 47.4% year over year to $974 million, also above the $806 million consensus estimate. Transocean said its contract backlog was $11.3 billion as of its February fleet status report. Raymond Jamess Praveen Narra and J. Marshall Adkins reiterated an Underperform rating on the stock following the report. They praised the companys ongoing cost controls and strong revenue efficiency, which they expect to continue. But still arent ready to recommend the stock amid a difficult macro backdrop. More detail from their note:

    Transocean continued to minimize costs and maximize efficiency amid a challenging offshore environment, reporting 4Q16 adjusted EBITDA of $414 million, higher than our estimate of $363 million and consensus of $394 million. The beat was driven by lower than expected costs of $344 million (adjusting for favorable litigation), which came in ~12% lower than our estimate of $385 million and guidance of guidance of $375-385 million. Total revenue efficiency came in at 100.3%, as it was boosted by bonus incentives and possibly effective results from the new contracting model, particularly in the high-spec jackup market. The beat to our estimates was also driven by higher than anticipated revenues, which came in at $805 million, above our estimate of $788 million, but below the consensus estimate of $812 million. We note, our adjusted revenue excludes $169 million in early termination fees during the quarter.

    The shares are up 6.6% to $14.16 in recent trading, although theyre down 4% year to date.

  • [By Lisa Levin]

    Check out these big penny stock gainers and losers

    Losers
    Aceto Corporation (NASDAQ: ACET) fell 41.9 percent to $4.30 in pre-market trading. ACETO board disclosed that it is taking proactive steps to address business and financial challenges. Canaccord Genuity downgraded Aceto from Buy to Sell.
    Helios and Matheson Analytics Inc. (NASDAQ: HMNY) fell 25.3 percent to $2.86 in pre-market trading after reporting an ATM offering of $150 million.
    Pier 1 Imports, Inc. (NYSE: PIR) fell 17.4 percent to $2.86 in pre-market trading after reporting a fourth quarter sales miss. Comps were down 7.5 percent in the quarter.
    Sleep Number Corporation (NASDAQ: SNBR) fell 12.4 percent to $32.00 in pre-market trading following a first quarter earnings miss.
    Paratek Pharmaceuticals, Inc. (NASDAQ: PRTK) fell 10.2 percent to $11.90 in pre-market trading on news of $125 million convertible debt offering.
    Merrimack Pharmaceuticals, Inc. (NASDAQ: MACK) shares fell 8 percent to $8.02 in pre-market trading after dropping 2.02 percent on Wednesday.
    Exponent, Inc. (NASDAQ: EXPO) shares fell 5.6 percent to $80 in pre-market trading.
    Lumentum Holdings Inc. (NASDAQ: LITE) shares fell 4.8 percent to $60.00 in pre-market trading after rising 1.78 percent on Wednesday.
    vTv Therapeutics Inc. (NASDAQ: VTVT) fell 4.6 percent to $2.10 in pre-market trading after surging 84.87 percent on Wednesday.
    Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) shares fell 4.5 percent to $40.07 in pre-market trading after the company reported Q1 results.
    Align Technology, Inc.. (NASDAQ: ALGN) fell 3.5 percent to $267.40 in pre-market trading after rising 1.61 percent on Wednesday.
    Transocean Ltd. (NYSE: RIG) shares fell 3.5 percent to $12 in pre-market trading after the company issued quarterly fleet status report.
    GoPro, Inc. (NASDAQ: GPRO) fell 3.2 percent to $4.90 in pre-market trading.
    Unilever PLC (NYSE: UL) fell 2.6 percent to $54.73 in pre-market

  • [By Todd Shriber, ETF Professor]

    None of SQZZ's equity positions account for more than 1.9 percent of the new ETF's weight. Those positions include Dow component General Electric Company (NYSE: GE), Sprint Corp (NYSE: S), Chesapeake Energy Corporation (NYSE: CHK) and Transocean LTD (NYSE: RIG).

  • [By Ben Levisohn]

    Go back a year, and offshore drillers like Noble (NE), Rowan (RDC), Transocean (RIG) and Atwood Oceanics (ATW) had been all but written off–until they weren’t anymore. Since then, investors have been rewarded for picking winners in the group from the losers, as Atwood Oceanics has more than doubled, Transocean has gained 34%, and Rowan has risen 42%, while Noble and Diamond Offshore Drilling (DO) have dropped 13%.

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