Energy stocks delivered an underwhelming performance in 2024. For example, the Energy Select Sector SPDR Fund -- which holds the energy stocks listed in the S&P 500 -- delivered a meager 2% return last year, significantly underperforming the broader market index's 23% return. Oil prices, which initially rallied but ended the year right about where they started, kept a lid on oil stocks last year.While oil stocks performed poorly last year, they could bounce back in 2025. Devon Energy (DVN -0.53%), ConocoPhi ...

The latest trading session saw ConocoPhillips (COP) ending at $101.09, denoting a +1.01% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.26%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.77%.Heading into today, shares of the energy company had lost 4.17% over the past month, outpacing the Oils-Energy sector's loss of 5.1% and lagging the S&P 500's loss of 2.82% in that time.The investment community will be paying close attention to ...

Oil Market Overview - Crude oil prices in 2024 were volatile, with WTI closing at around $71 per barrel, nearly 20% below its April peak due to weakened demand from China and a global oversupply [1] - The oil market in 2025 is expected to remain volatile, balancing rising supply with tempered demand growth, with potential price stabilization from geopolitical developments and economic recovery [2] Supply Dynamics - US oil production reached a record 13.46 million barrels per day (bpd) in 2024, a 259,000 bpd increase from the previous year, with further growth projected to 13.52 million bpd in 2025 [3] - The growth rate of US production is moderating compared to the nearly 1 million bpd increase seen in 2023, with infrastructure constraints limiting further expansion [3] - The US remains a key driver of global supply growth alongside Brazil, Canada, and Norway [3] Demand Trends - China's oil demand is faltering due to economic slowdown and accelerated adoption of electric vehicles, with consumption expected to peak at 3.66 million bpd by 2025 [4] - Global oil demand growth is projected at a modest 1.1 million bpd in 2025, with emerging Asian economies partially offsetting China's decline [4] Geopolitical Risks - Geopolitical risks, including conflicts in Ukraine and the Middle East, have had limited impact on oil prices due to minimal supply disruptions [5] - OPEC+ extended production cuts through March 2025, and potential sanctions on Iran could tighten supply, but rising non-OPEC+ production may lead to a surplus of up to 1.4 million bpd by the end of 2025 [5] 2025 Market Outlook - Analysts forecast WTI crude to average just over $70 in 2025, with supply growth and Chinese demand uncertainties weighing on the market [6] - Economic recovery in the US and stimulus measures in China could create pockets of optimism, with the petrochemical sector driving future demand growth [6] Investment Strategy - Investors are advised to focus on resilient oil and energy companies like ExxonMobil, Diamondback Energy, and ConocoPhillips to navigate market volatility and capitalize on recovery opportunities [2][7] - These companies are well-positioned due to efficient operations and diversified portfolios, offering a hedge against fluctuating oil prices [7] Company Profiles - **ExxonMobil**: A fully integrated global oil and gas company with operations spanning production, refining, and marketing [8] - **Diamondback Energy**: An independent oil and gas exploration and production company focused on the Permian Basin, with over 490,000 net acres in key formations [9] - **ConocoPhillips**: A major global explorer and producer of oil and natural gas, headquartered in Houston, TX [10]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

The Oil/Energy sector witnessed dynamic M&A activity in 2024, driven by shifting market dynamics and strategic realignments. Although the overall deal value fell to $26 billion from $60 billion in 2023, the year stood out for its focused consolidations and transformative acquisitions. Noteworthy transactions included major players such as Diamondback Energy (FANG) , ConocoPhillips (COP) , EQT Corporation (EQT) , Expand Energy (EXE) and Sunoco LP (SUN) , demonstrating the sector's strategic focus on growth a ...

After my last review of ConocoPhillips ( COP) at hold in late 2023, I am upranking the company to buy based on its successful acquisition of Marathon Oil completed in November 2024, moderate dividend, hefty share repurchase program, good price-earnings ratio, strongLaura Starks is the founder and CEO of Starks Energy Economics, LLC (since 2007). She has a degree in chemical engineering and an MBA with a concentration in finance which she has used for many years to invest personally and to share her ideas ab ...

ConocoPhillips (COP) is currently considered relatively undervalued, trading at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 4.97x. This figure is below the broader industry average of 6.79x and lower than other major upstream companies, such as Diamondback Energy Inc (FANG) and EOG Resources Inc (EOG) , which are trading at 9.73x and 5.32x EV/EBITDA, respectively. This discounted valuation suggests that the stock may offer the potential for further price appreciation. Image Source: Zacks I ...

Industry Overview - US crude oil production is expected to increase to 13 52 million barrels per day (MMBbl/D) in 2025, up from 13 24 MMBbl/D in 2024 [4] - Net crude imports in the US are projected to decline by more than 20% to 1 9 million barrels per day in 2025, the lowest level since 1971 [2] - Global crude demand for 2025 is revised downward from 104 4 MMBbl/D to 104 3 MMBbl/D [5] - The average West Texas Intermediate (WTI) spot price is forecasted to drop to $69 12 per barrel in 2025 from $76 51 in 2024 [5] Upstream Sector - Exploration and production companies are expected to benefit from increased domestic production and reduced import volumes [4] - EOG Resources Inc (EOG) and ConocoPhillips (COP) are positioned for continued profitability due to lower breakeven WTI prices, especially for existing wells [6] - EOG Resources has an extensive inventory of high-quality drilling wells in low-cost, premium resources, ensuring a strong business outlook [9] - ConocoPhillips has a solid production outlook due to its diversified upstream asset base and efficient drilling and completion activities in key US basins [10] Midstream Sector - Higher crude production and lower imports will increase demand for transportation and storage assets, benefiting midstream companies [11] - Kinder Morgan Inc (KMI) operates a 79,000-mile pipeline network, transporting natural gas, gasoline, crude oil, and carbon dioxide [12] - Enbridge Inc (ENB) operates the world's longest and most complex crude oil and liquids transportation network, spanning 18,085 miles, and a gas transportation pipeline network covering 71,308 miles [13] Commodity Export Trends - Crude export volumes are expected to increase due to rising crude availability from refinery retirements and increased production [3]

A consolidation wave has washed over the oil patch this year. Several oil companies secured needle-moving acquisitions, including ConocoPhillips (COP -2.03%) and Devon Energy (DVN -0.90%). Those two oil companies recently closed their deals. That should give them a lot of fuel to grow shareholder value in 2025 and beyond. Those catalysts make them look like great oil stocks to buy as we head into the new year. Double the expected benefit in 2025ConocoPhillips completed its acquisition of Marathon Oil in lat ...

ConocoPhillips (COP) recently completed the acquisition of Marathon Oil Corporation, which was initially announced in May, 2024. The acquisition will enhance its deep, durable and diverse portfolio aligned with its strict financial framework. It will bolster COP's high-quality inventory at low cost alongside its prominent U.S. unconventional assets. Financial Details of COP's Acquisition Per the terms of the acquisition deal, the shareholders of Marathon Oil would have the right to receive 0.255 shares of C ...