The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil, refined products and lubricants; manufacturing and marketing of renewable fuels; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It is also involved in cash management and debt financing activities, insurance operations, real estate activities and technology businesses.
The company sports a sizable 3.28% dividend. Credit Suisse has a $202 target price on Chevron stock. The consensus target is $181.30, and shares closed on Tuesday at $174.93.
ConocoPhillips
This is another large-cap company that offers strong value for investors. ConocoPhillips (NYSE: COP) explores for, produces, transports and markets crude oil, bitumen, natural gas, LNG and natural gas liquids (NGLs) worldwide.
Conoco’s portfolio includes resourceich North American tight oil and oil sands assets; lowerisk legacy assets in North America, Europe, Asia and Australia; various international developments; and an inventory of conventional and unconventional exploration prospects.
Many Wall Street analysts feel Conoco can accelerate growth from a reloaded portfolio depth in the Bakken and Eagle Ford with visibility on future growth from a sizable position in the Permian Basin.
ConocoPhillips stock investors receive a 1.53% dividend. The $150 Raymond James price target is a Wall Street high. The consensus target is $129.57, and the stock closed on Tuesday at $124.94.
Exxon Mobil
This mega-cap energy leader trades at a reasonable valuation and offers investors an excellent entry point. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
Top Wall Street analysts expect Exxon to remain a key beneficiary in this higher oil price environment, and most remain strongly positive about the company’s sharp positive inflection in capital allocation strategy, upstream portfolio, and leverage to a further demand recovery, with Exxon Mobil offering greater downstream/chemicals exposure relative to peers.
The 3.33% dividend will continue to be defended. The BofA Securities price target is $123, well above the $106.58 consensus target. Exxon Mobil stock closed at $105.88 on Tuesday.
Marathon Petroleum
This is another solid way for investors who are more conservative to play the energy sector. Marathon Petroleum Corp. (NYSE: MPC) operates as an integrated downstream energy company, primarily in the United States.
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