In this article, we discuss the 5 best crude oil stocks to buy today. If you want to read our detailed analysis of these stocks, go directly to 10 Best Crude Oil Stocks To Buy Today.
5. Chesapeake Energy Corporation (NYSE:CHK)
Number of Hedge Fund Holders: 50
Chesapeake Energy Corporation (NYSE:CHK) is an independent exploration and production company that has been buying oil and natural gas assets in recent months. The Oklahoma-based oil company acquired natural gas firm Vine Energy in November 2021 and oil and gas producer Chief E&D Holdings, LP in January 2022. Chesapeake Energy Corporation (NYSE:CHK) closed the last quarter of 2021 with a net production rate of 539,000 boe per day.
Chesapeake Energy Corporation (NYSE:CHK) reported a net income of $1.4 billion, or $11.13 per diluted share, for the fourth quarter. In addition, the Oklahoma-based oil company paid $52 million in dividends to stockholders in Q4 2021. Chesapeake Energy Corporation (NYSE:CHK) expects to pay $900 million to $1.1 billion in total dividends in 2022 and more than $5 billion in the next five years.
Chesapeake Energy Corporation (NYSE:CHK) is considered by hedge funds to be one of the top crude oil stocks to buy today, owing to the company’s strong financial health and dividend growth. At the end of the fourth quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $2.34 billion in Chesapeake Energy Corporation (NYSE:CHK), up from 44 in the preceding quarter worth $2.17 billion.
Similarly, market analysts are bullish about the Oklahoma-based oil company’s recent acquisitions. RBC Capital analyst Scott Hanold recently increased his price target for Chesapeake Energy Corporation (NYSE:CHK) to $98 from $88, while maintaining an Outperform rating on the shares.
4. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 51
Devon Energy Corporation (NYSE:DVN) is also gaining traction amid rising commodity prices, with shares up 14% in the last month as of March 8. Devon Energy Corporation (NYSE:DVN) is one of the oil and gas companies with thousands of federal onshore drilling permits, giving it an advantage over its peers in the energy industry, which is one of the reasons the Oklahoma-based oil producer is gaining momentum.
Devon Energy Corporation (NYSE:DVN) also offers its shareholders a market-leading dividend yield of 6.68%. In 2021, the company reported $1.9 billion in dividend payments, an increase of 190% year over year. To top it all off, Devon Energy Corporation (NYSE:DVN) is looking like an appealing investment option as the oil producer increased its free cash flow of $260 million in Q1 2021 to $1.1 billion in Q4 2021.
In early March, Devon Energy Corporation (NYSE:DVN) received a Hold rating from Benchmark analyst Subash Chandra. Meanwhile, 51 out of 924 elite funds tracked by Insider Monkey held stakes worth $1.74 billion in Devon Energy Corporation (NYSE:DVN), up from 48 in Q3 2021.
3. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 53
Oil prices have skyrocketed in the previous month, as did shares of Chevron Corporation (NYSE:CVX), which increased nearly 17% as of March 8. The California-based crude oil firm, the second-largest oil and gas company in the US, reported fourth-quarter revenue of $48.1 billion, with earnings of $5.05 billion, or $2.63 per share, up from a loss of $0.33 per share on $25.2 billion in revenue in Q4 2020. The main driver of the year-over-year improvement in Chevron Corporation’s (NYSE:CVX) earnings was essentially rising oil prices, which are expected to continue as demand for oil grows due to the strong economic recovery following the lockdowns and Russia’s ongoing invasion of Ukraine.
At the end of the fourth quarter of 2021, 53 hedge funds in the database of Insider Monkey held stakes worth $6.51 billion in Chevron Corporation (NYSE:CVX), up from 51 in the previous quarter worth $4.44 billion. Warren Buffett, one of the world’s most successful value investors, is the oil company’s largest shareholder, with his conglomerate holding firm Berkshire Hathaway owning 38.2 million shares of Chevron Corporation (NYSE:CVX) in Q4 2021. In the fiscal quarter ended December 2021, Berkshire Hathaway increased its stake in Chevron by 34%.
Chevron Corporation (NYSE:CVX) is one of the best crude oil stocks to buy for income investors, as the company has raised its dividends for the past 35 years in a row. The company now pays a yearly dividend of $5.68 per share to its stockholders.
2. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 56
ConocoPhillips’ (NYSE:COP) price target was upgraded by Keybanc analysts to $106 from $98 on March 3 and kept an Overweight rating on the shares. Meanwhile, according to Insider Monkey data, more hedge funds saw ConocoPhillips’ (NYSE:COP) growth prospects in Q4 2021, with 56 funds holding stakes in the independent exploration and production company, up from 49 elite funds in Q3 2021.
The Texas-based crude oil producer closed in 2021 with a full-year production of 1.6 million barrels per day. ConocoPhillips (NYSE:COP) also outperformed analysts’ estimates, reporting earnings per share of $2.27 in the fourth quarter of 2021. The leading independent E&P firm announced a $7.2 billion capital budget for its operations in 2022. In the previous year, shares of ConocoPhillips (NYSE:COP) jumped 80.3%, as of March 7.
ConocoPhillips (NYSE:COP) completed its $9.5 billion acquisition of Shell Enterprises LLC’s approximately 225,000 net acres asset in the Delaware Basin, which includes 600 miles of operated crude, gas, and water pipelines and infrastructure, in December.
1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 71
Exxon Mobil Corporation (NYSE:XOM) is one of the world’s leading oil and gas producers, producing 3.8 million barrels of oil equivalent per day in the fourth quarter of 2021. In its fourth-quarter earnings report, the company slated a $15 billion budget for lower-emission solutions and decarbonization programs in the next six years.
One of the reasons Exxon Mobil Corporation (NYSE:XOM) is a good investment is that the oil giant recently set a record high for cash flow from operating activities of $48 billion in 2021. The Texas-based company is one of the oil and gas companies that benefited from rising commodity prices, having paid a $20 billion debt reduction last year. As of March 7, Exxon Mobil Corporation (NYSE:XOM) is up 53.4% in the past six months.
Market analysts are bullish about the oil giant’s strategic plans in the coming years. In its Investor Day webcast, Exxon Mobil Corporation (NYSE:XOM) revealed $9 billion in annual structural reductions by 2023 as part of its strategic growth plans to double earnings and cash flow potential by 2027. Following the announcement, BMO Capital analyst Phillip Jungwirth increased his price target for the stock to $86 from $73 on March 3, while maintaining a Market Perform rating on the shares. In contrast, 71 out of 924 elite funds tracked by Insider Monkey had a total stake of $5.39 billion in Exxon Mobil Corporation (NYSE:XOM) at the end of the fourth quarter of 2021.
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