Oil has traded in a very tight range this year, and after last year’s big run higher, many investors have been disappointed. One who surely has not lost faith in the “black gold” is Warren Buffett, who recently bought an additional $130 million worth of Occidental Petroleum. Now Berkshire Hathaway owns more than 217.3 million shares of the company, valued at almost $12.7 billion. In addition, Berkshire owns close to $9.5 billion worth of Occidental preferred stock, which carries an 8% annual dividend, and has warrants to purchase $5 billion worth of Occidental common shares for $59.62 per share.

Buffett is not the only one bullish on oil. Bank of America Securities’ commodities head of research feels that the second half of the year will see a surge in pricing that finishes 2023 close to the $90 a barrel level. The Goldman Sachs energy team sees $100 per barrel by April of 2024.

The good news for investors is that the sideways trading for the two benchmarks this year, and less interest in the sector, has brought prices in. Investors looking to initiate or add to positions are in a good spot now. We screened our 24/7 Wall St. energy research database for exploration and production stocks paying solid and dependable dividends and found seven that look like outstanding ideas.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

APA

This company was long considered an industry leader when it was known as Apache, and the stock is perhaps offering one of the best entry points in the sector. APA Corp. (NYSE: APA) explores for and produces oil and gas properties. It has operations in the United States, Egypt and the United Kingdom, as well as has exploration activities offshore Suriname. It also operates gathering, processing and transmission assets in West Texas, as well as holds ownership in four Permian-to-Gulf Coast pipelines.

APA is one of the largest U.S. exploration and production companies, with 2.3 billion barrels of oil equivalent of proven reserves (63% liquids). It is an explorer, acquirer and exploiter, and a fiscally conservative company that has grown its reserves and production consistently via acquisitions and organic projects.

Shareholders receive a 3% dividend. BofA Securities has a Buy rating, and its price target for APA stock is $57. The consensus target is $47.96. The closing share price on Friday was $33.41 per share.

Chevron

This integrated giant is a safer way for investors looking to get positioned in the energy sector, and shares have backed up nicely. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide. The company operates in the following 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; transportation of crude oil through pipelines; and transportation, storage and marketing of natural gas, as well as operating a gas-to-liquids plant.