While it has been a huge relief to beleaguered and inflation-battered consumers across the United States, oil prices could be set to explode higher. The Organization of the Petroleum Exporting Countries (OPEC) will meet later this week to discuss lowering production by a million barrels per day, perhaps even more. The move is an effort to support prices that have crumbled from over $120 a barrel in late June. This also would mark the second monthly cut in a row, as the cartel already reduced production in September by 100,000 barrels per day.
Despite the big Monday gains, Brent and West Texas Intermediate crude still trade well below the $100 level. That is a far cry from the intraday highs hit earlier this year. What makes sense for investors now is to grab the big dividend energy giants that are on sale, as they all trade well below their 52-week highs hit earlier this year.
We screened our 24/7 Wall St. energy research database looking for large-cap energy leaders that paid substantial and dependable dividends, and that are Buyated at top Wall Street firms. Seven companies made the grade. It is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.
Chevron
This integrated giant is a safer way for investors looking to get positioned in the energy sector. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide. The company operates through two segments.
The Upstream segment is involved in the exploration, development, production and transportation of crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas (LNG); transportation of crude oil through pipelines; and transportation, storage and marketing of natural gas, as well as operating a gas-to-liquids plant.
Chevron’s 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.
Chevron stock comes with a 3.95% dividend, and Credit Suisse has a $202 target price. The consensus target is $180.76. Shares closed on Monday at $151.73, a gain of almost 6% on the day.
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.
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