Crude has crept back above $50 a barrel in recent weeks, which is a boon for these oil stocks.
Without much fanfare, oil recently regained the $50 a barrel level. While it has wavered a bit in recent days, crude is in a better place now than it was a few months ago because the oil market has drained off some of its excess supply, which is putting it close to being back in balance. Those improving market fundamentals suggest that crude prices should at least stabilize around $50 a barrel, if not go higher.
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Either scenario would be a boon for top-tier oil stocks, which have repositioned their business to thrive at $50 crude. While that elite list continues to expand as more producers finish their turnaround plans, five oil stocks currently stand out as the cream of the crop:
Growth Rate at $50 Oil: Up to 2%, plus return 20% to 30% of cash flow to investors with dividends and buybacks
Growth Rate at $50 Oil: 60% production growth by 2021
EOG Resources (NYSE:EOG)
Growth Rate at $50 Oil: 15% annually through 2020, and pay its current dividend
Marathon Oil (NYSE:MRO)
Growth Rate at $50 Oil: 10%-12% through 2021, and pay its current dividend
Occidental Petroleum (NYSE:OXY)
Growth Rate at $50 Oil: 5% to 8% annually, plus pay a growing dividend
DATA SOURCE: EOG RESOURCES, ENCANA, CONOCOPHILLIPS, MARATHON OIL, AND OCCIDENTAL PETROLEUM.