In this article, we discuss the 5 biggest oil companies in Texas. To read the detailed analysis of the Texas oil industry, go directly to the 15 Biggest Oil Companies in Texas.
5. EOG Resources Inc (NYSE:EOG)
Revenue in 2022: $25.70 billion
Number of Hedge Fund Holders: 50
Headquartered in Houston, Texas, EOG Resources Inc (NYSE:EOG), with its subsidiaries, explores and develops crude oil and natural fast.
EOG Resources Inc (NYSE:EOG) owns about 137 oil and gas wells in Fort Worth Basin in Johnson County, Texas. Its oil production portfolio consists of 57,000 net acres.
In its Q4 2022 investor letter, Artisan Partners stated the following about EOG Resources, Inc. (NYSE:EOG):
“Our top three contributors for the full year were two energy holdings—Schlumberger and EOG Resources, Inc. (NYSE:EOG)—and health care company Merck. EOG is a US shale-focused E&P company. The current supportive commodity price environment and EOG’s continuing to deliver on its production goals and capex plans have led investors to bid up shares. Its commitment to return excess capital to shareholders via regular and special dividends is also highly appealing, particularly in a period of rising interest rates. The company has proven its ability to create economic value for shareholders, even over the past decade that included the toughest energy commodity environment of the last 30+ years. The company’s strong balance sheet enabled it to increase production capabilities during the downturn. EOG has a low-cost production position with a strong reserve base, giving it an advantage versus peers. Further, EOG’s management focuses on return on invested capital and cash flow generation, distinguishing it from most of the company’s competitors who prioritize growth over profitability.”
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4. Occidental Petroleum (NYSE:OXY)
Revenue in 2022: $36.6 billion
Number of Hedge Fund Holders: 71
Houston-based; Occidental Petroleum (NYSE:OXY) is one of the biggest oil companies in Texas. It controls about 2.9 million net acres in the Permian basin and New Mexico. Occidental Petroleum (NYSE:OXY) expects to produce about 560,000 to 590,000 barrels of oil a day in 2023, having allocated $2.3 to $2.6 billion for capital expenditure in the Permian basin.
Here is what Smead Capital Management had to say about Occidental Petroleum Corporation in its Q3 2022 investor letter:
“Our top-performing stocks in the quarter includes Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”
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3. Valero Energy Corporation (NYSE:VLO)
Revenue in 2022: $176 billion
Number of Hedge Fund Holders: 47
Valero Energy Corporation (NYSE:VLO) manufactures and transports petrochemical products across the United States.
The $44 billion company in Texas operates two refineries, making it one of the biggest players in the refinery business. Valero Energy Corporation (NYSE:VLO)’s Bill Greehey Refineries along the Texas Gulf Coast refines over 370,000 barrels of oil a day and employs 760 employees.
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2. Chevron Corporation (NYSE:CVX)
Revenue in 2022: $246.25 billion
Number of Hedge Fund Holders: 57
Chevron Corporation (NYSE:CVX), with a market cap of about $320 billion, is one of the largest oil and gas producers in the Permian basin in Texas. With headquarters in Houston, Texas, the company controls about 2.2 million net acres.
In 2020, Chevron Corporation (NYSE:CVX) acquired Noble Energy, strengthening its position in the Permian basin.
In its Q4 2022 investor letter, Carillon Tower Advisers stated the following about Chevron Corporation (NYSE:CVX):
“Energy performed well during the fourth quarter, with the sector up about 23%. Investors returned to the sector after the Organization of the Petroleum Exporting Countries (OPEC) signaled it would reduce production. Chevron Corporation (NYSE:CVX) reported strong quarterly results while buying back stock, paying a healthy dividend, and maintaining a strong balance sheet.”
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1. Exxon Mobil Corp (NYSE:XOM)
Revenue in 2022: $413.68 billion
Number of Hedge Fund Holders: 79
Exxon Mobil Corp (NYSE:XOM) is one of the most valuable oil and gas companies, headquartered in Irving, Texas, and employs over 10,000 staff. Exxon Mobil Corp (NYSE:XOM) controls about 1.75 million Permian basin acreage with nearly 6 billion barrels of oil equivalent.
Production in the Permian basin accounts for more than 50% of the company’s US oil and gas output, with production expected to hit over 1 million barrels of oil a day by 2027.
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