EOG Resources posted outstanding first-quarter results in May, and many analysts are expecting the same again in August. The company generated a stunning $2.4 billion in free cash flow in the first quarter and rewarded shareholders with a massive special dividend of $1.80 per share, in addition to the regular $0.75 dividend.
Investors receive a 3.01% dividend. Truist Financial recently raised its $170 price target to $180. EOG Resources stock has a $149.85 consensus target, and Monday’s final print was $99.53.
Exxon Mobil
This mega-cap energy leader trades at levels printed in 2015 and offers investors an excellent entry point after the recent sell-off. 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.
Exxon Mobil stock investors receive a 4.09% dividend, which will continue to be defended. BofA Securities has set a $120 price target. The consensus target is $102.90, and shares closed at $86.10 on Monday.
Occidental Petroleum
The legendary Warren Buffett has been loading the boat and now owns a stunning 19.2% of the stock. Occidental Petroleum Corp. (NYSE: OXY) engages in the acquisition, exploration and development of oil and gas properties in the United States, the Middle East, Africa and Latin America.
The company’s Oil and Gas segment explores for, develops and produces oil and condensate, NGLs and natural gas. Its Midstream and Marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, carbon dioxide and power. This segment also trades around its assets, consisting of transportation and storage capacity, and it invests in entities.
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