The Extraction Industry and the Department of the Interior: Hess Corp. (HES), Marathon Oil Corporation (MRO)

Hess Corp. (NYSE:HES).

Sure, you might think of Hess as a corner convenience store/gas station, but there’s more to it than that. It’s also one of the larger oil and gas extractors in the country. The firm’s exploration and production group handles a lot of oil and natural gas in many countries on five continents. The firm did recently announce that it’s getting out of the refining business to move that money to further boost its oil and gas business.

Given the way both have been going, I’d say that’s a good idea. The firm’s stock is slightly up for the year due to a real trough last summer, but since June it’s climbed by 60%. I could wish it had a better dividend but at least it has one. Hess is a good, quiet buy for an investor who wants long-term value.

Marathon Oil Corporation (NYSE:MRO)

Marathon has had more media time than Hess, but not much. The firm is different from the others on this list for its commitment to oil sands extraction. It also works hard on the natural gas angle as well as oil so that particular base is covered.

Marathon is another energy company that hit a drop last summer but it’s bounced back well this year and is up about 40% since June. A nearly 2% yield on its dividend only adds to the value investors receive.

Look, having a businesswoman who can sell national parks at Interior is a useful thing. But her business savvy is more important than her love of the outdoors. That’s a sign that the administration is taking the move to increase extraction seriously and should be seen by investors as a good thing.

The fact that Jewell’s nomination is getting qualified praise from both business and environmentalists is also a good sign. I think there’s a chance here for things in the natural resources sector to move smoothly. And anything in government these days that goes smoothly is cause for celebration.

Good luck!

The article The Extraction Industry and the Department of the Interior originally appeared on Fool.com and is written by Nate Wooley.

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