Goldman Sachs Still Sees $140 Oil: 8 Dividend Energy Giants On Sale Now

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 company pays investors a 4.15% dividend, which will continue to be defended. BofA Securities has set a $120 price target, and the consensus target for Exxon Mobil stock is $101.40. Shares closed on Wednesday at $83.28.

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.

Its Refining & Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast, Mid-Continent and West Coast regions of the United States. It purchases refined products and ethanol for resale. Its refined products include transportation fuels, such as reformulated and blend-grade gasolines, as well as heavy fuel oil and asphalt.

This segment also manufactures aromatics, propane, propylene and sulfur. It sells refined products to wholesale marketing customers in the United States and internationally, buyers on the spot market and independent entrepreneurs who operate primarily Marathon branded outlets, as well as through long-term fuel supply contracts to direct dealer locations primarily under the ARCO brand.

The Midstream segment transports, stores, distributes and markets crude oil and refined products through refining logistics assets, pipelines, terminals, towboats and barges. It gathers, processes and transports natural gas, and it gathers, transports, fractionates, stores and markets NGLs. As of December 31, 2021, the company operated 7,159 brand jobber outlets in 37 states, the District of Columbia and Mexico through independent entrepreneurs.

Shareholders receive a 2.75% dividend. The $135 BofA Securities price target is well above the $119.21 consensus target. Marathon Petroleum closed almost 3% lower on Wednesday at $79.31, but in aftermarket trading, the stock was up almost 5%.

Shell

This is another European energy giant that offers investors size and strength. Shell PLC (NYSE: SHEL) operates as an energy and petrochemical company in Europe, Asia, Africa, the Americas and elsewhere.

Shell explores for and extracts crude oil, natural gas and NGLs. It markets and transports oil and gas, produces gas-to-liquids fuels and other products, and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, LNG, crude oil, electricity and carbon-emission rights, and it markets and sells LNG as a fuel for heavy-duty vehicles and marine vessels.

In addition, the company trades in and refines crude oil and other feed stocks, such low-carbon fuels, lubricants, bitumen, sulfur, gasoline, diesel, heating oil, aviation fuel and marine fuel. It produces and sells petrochemicals for industrial use, and it manages oil sands activities. Further, the company produces base chemicals, comprising ethylene, propylene and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide and ethylene glycol.