11 Best Oil Company Stocks To Buy Now

The 11 best oil company stocks to buy now have shown resilience even during the recent volatile conditions, restoring some confidence in them among investors. The last two years have been very tough on the oil industry, as low oil prices have weighed on profit and stifled growth. With improving industry fundamentals and increasing consumption, now might be a good time to invest in oil stocks.

The oil industry has been nothing short of a roller coaster ride. The U.S shale oil boom added roughly 6 million barrels per day during the 2008-2015 period and the market entered into a surplus state. That led to oil prices declining due to worldwide oversupply. However, members of the Organization of Petroleum Exporting Countries (OPEC) agreed to reduce their combined output by 1.2 million barrels per day during the final quarter of 2016, which resulted in a nominal increase in oil prices. Prices are expected to stabilize in 2017 on the backdrop of a rebalance in the supply and demand fundamentals.

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The companies behind the 11 best oil company stocks to buy now have worked hard to reduce their costs and operate far more efficiently. These companies have, therefore, positioned themselves not only to survive at lower oil prices, but to absolutely thrive should prices rise again in the future.

Several hedge funds that we track became upbeat about oil company stocks during the first quarter based on their recent wave of 13F filings. Over the next few pages, we have analyzed the best oil company stocks for investing based on that hedge fund sentiment. That’s what we do at Insider Monkey and our flagship strategy has returned 44.2% since February 2016 vs. a 29.6% gain for the S&P 500 index ETF (SPY). Our most recent stock picks, which were disclosed to our subscribers in the middle of February, beat the market by 5 percentage points in the three months that followed and our latest picks were released in the middle of May. Our system is easy for investors to implement, with just a small batch of trades to be executed once per quarter. We are also offering a 14-day money-back guarantee on our premium newsletters, plus you can get $90 off by using this link, so don’t miss this chance to check out our latest picks risk-free and see if Insider Monkey’s simple and effective small-cap strategy would make a good addition to your portfolio.

In the following list, oil companies are ranked based on their popularity amongst the cream of the crop of the hedge fund community. Check it out beginning on the next page. For further reading afterwards, don’t miss our list of the 11 best insurance companies to invest in 2017.

11. BP  Plc (ADR) (NYSE:BP)

BP Plc (NYSE:BP) is an integrated oil and gas company that engages in the exploration, production, refining, and distribution of oil, as well as related marketing activities. It is the sixth-largest oil and gas company and one of the seven oil and gas ‘supermajors’ in the world. The company has operations in over 70 countries worldwide, with total proved reserves of 17.8 billion barrels of oil equivalent. With 30 hedge funds holding shares of the company worth $529 million on March 31, BP Plc ranks 11^th on our list of the 11 best oil company stocks to buy now.

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10. Noble Energy, Inc. (NYSE:NBL)

– Number of Hedge Funds With Long Positions (as of March 31): 32
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $1.35 billion

Noble Energy (NYSE:NBL) is a leading independent crude oil and natural gas exploration and production company. The company has a diversified high-quality portfolio consisting of crude oil, natural gas, and NGLs spanning three continents. Started in 1932 as a regional crude oil and natural gas producer, Noble Energy has come a long way to become a global E&P company. Its U.S activities include operations in the DJ Basin, Permian Basin, Eagle Ford Shale, Marcellus Shale, and offshore deepwater Gulf of Mexico.

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9. Continental Resources, Inc. (NYSE:CLR)

– Number of Hedge Funds With Long Positions (as of March 31): 33
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $604 million

Continental Resources, Inc. (NYSE:CLR) is a crude oil and natural gas company. It is one of the largest leaseholders and producers in the Bakken Shale region of North Dakota and Montana, one of the largest oil plays in the U.S. Continental Resources, Inc. was amongst the first few companies to implement horizontal drilling and well stimulation. A total of 33 hedge funds in our system held shares in Continental Resources, Inc. at the end of the first quarter, down from 41 a quarter earlier.

8. Hess Corporation (NYSE:HES)

– Number of Hedge Funds With Long Positions (as of March 31): 33
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $1.4 billion

Hess Corporation (NYSE:HES) is a global Exploration and Production company incorporated in 1920. The company engages in the exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids and natural gas. The company has two operating segments: Exploration and Production, and Bakken Midstream. At the end of the first quarter, 33 hedge funds in our system held long positions in Hess Corporation, owning 9.30% of its float.

7. ConocoPhillips (NYSE:COP)

– Number of Hedge Funds With Long Positions (as of March 31): 42
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $1.22 billion

ConocoPhillips (NYSE:COP) that ranks 7th on our list of best oil company stocks to buy now is one of the world’s largest independent exploration and production companies. The company was formed as a result of the merger between Conoco Inc. and Phillips Petroleum Company in 2002. A decade later, the company spun-off its downstream business into Phillips 66 (NYSE:PSX). ConocoPhillips operates through five segments: Alaska, Lower 48, Canada, Europe and North Africa, Asia Pacific and the Middle East, and Other International. It holds over 700 active patents in 49 countries worldwide. A total of 42 hedge funds in our database held shares in ConocoPhillips worth $1.22 billion at the end of the first quarter, up from $1.08 billion in shares at the end of 2016.

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6. Devon Energy Corporation (NYSE:DVN)

– Number of Hedge Funds With Long Positions (as of March 31): 48
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $1.46 billion

With 48 hedge funds having a long position in the stock, Devon Energy Corporation (NYSE:DVN) ranks sixth on our list of the 11 best oil company stocks to buy now. Devon Energy Corporation is a leading North American oil and natural gas producer, focusing on onshore activities in the U.S and Canada. The company produces 250,000 barrels, 1.3 billion cubic feet of natural gas, and about 100,000 barrels of natural gas liquids per day. It intends to divest non-core upstream assets worth $1 billion in the future.

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5. EOG Resources, Inc. (NYSE:EOG)

– Number of Hedge Funds With Long Positions (as of March 31): 48
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $1.51 billion

We are continuing our list of best oil company stocks to buy now with the EOG Resources, Inc. (NYSE:EOG) that is one of the largest non-integrated crude oil and natural gas companies in the U.S. At the end of December, EOG Resources’ estimated proved reserves stood at 2,147 million barrels of oil equivalent, which consisted of about 55% crude oil, 19% natural gas liquids, and 26% natural gas. The company explores and markets crude oil and natural gas primarily in the U.S, The Republic of Trinidad and Tobago, and the U.K. At the end of the first quarter, 48 hedge funds in our database owned 2.70% of EOG Resources’ shares.

4. Chevron Corporation (NYSE:CVX)

– Number of Hedge Funds With Long Positions (as of March 31): 49
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $1.64 billion

Chevron Corporation (NYSE:CVX) is one of the world’s leading integrated energy companies. The company is engaged in exploring, producing and transporting crude oil and natural gas; refining, marketing and distributing fuels and lubricants, as well as manufacturing and selling petrochemicals. Chevron is a global energy company with substantial business activities in over 27 countries, including the large markets of the U.S, Asia, the UK, and Australia. Chevron Corporation’s reportable segments are Upstream (exploration and production), which accounted for 26% of its 2016 revenue, and Downstream (refining, marketing and chemical manufacturing), which accounted for 73%, and All Other ( the remaining 1%).

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3. Exxon Mobil Corporation (NYSE:XOM)

– Number of Hedge Funds With Long Positions (as of March 31): 56
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $2.29 billion

ExxonMobil Corporation (NYSE:XOM) that ranks 3rd on the list of best oil company stocks to buy now is the largest integrated oil and gas corporation in the world by value, though it’s not the most popular among hedge funds. The company engages in the exploration, refining, and marketing of crude oil, natural gas and petroleum products. ExxonMobil Corporation’s business activities can be broadly classified into three main segments – Upstream (2% of 2016 earnings), Downstream (47%) and Chemicals (51%). With over a century’s experience, the company has built an annual refining capacity of 4,907 KBD and chemical complex capacity of 23.7 million metric tons in the U.S, Canada, Europe, Asia-Pacific, and the Middle East.

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2. Pioneer Natural Resources Company (NYSE:PXD)

– Number of Hedge Funds With Long Positions (as of March 31): 57
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $2.78 billion

At the second place on our list of best oil company stocks to buy now we have the Pioneer Natural Resources Company (NYSE:PXD) that is a large U.S oil and gas exploration and production company, formed in 1997 through the merger of Parker & Parsley Petroleum Company and MESA Inc. Pioneer’s merger with Evergreen Resources, Inc., further enhanced its strong foundation in North America. The company is the largest producer in the Spraberry/Wolfcamp region in the Permian Basin and a top operator in the Eagle Ford Shale. It uses advanced technology and an integrated services model to retain its position as an industry-leading oil company. Pioneer Natural Resources has an average daily production capacity of 234,000 Barrels of Oil Equivalent. As per our database, 57 funds were long Pioneer Natural Resources at the end of the first quarter, owning 8.80% of its shares.

1. Anadarko Petroleum Corporation (NYSE:APC)

– Number of Hedge Funds With Long Positions (as of March 31): 61
– Aggregate Value of Hedge Funds’ Holdings (as of March 31): $2.44 billion

Anadarko Petroleum Corporation (NYSE:APC) is among the world’s largest independent exploration and production companies. Its proved reserves stood at 1.7 billion BOE as of December 2016, while its portfolio includes U.S onshore assets in the Lower 48 states, and international activities in Algeria, Ghana, Mozambique, Colombia, Côte d’Ivoire, and other countries. The company’s operating segments are oil and gas exploration and production, midstream and marketing. Anadarko Petroleum Corporation ranks #1 on our list of the 11 best oil company stocks to buy now, with 61 hedge funds having long positions in the stock at the end of the first quarter, down slightly from 64 at the end of December.

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Disclosure: None