3 Oil & Gas Stocks to Buy Now: June 2024

Core Viewpoint - The crude oil price has dipped below $80 per barrel, raising concerns about a potential economic slowdown, which has negatively impacted oil and gas stocks in 2024. However, certain energy stocks are positioned to benefit and provide substantial dividends despite these macroeconomic concerns [1][2][4]. Group 1: Oil and Gas Market Overview - Crude oil prices have not significantly risen above $80 per barrel since April, with natural gas prices remaining below $3 per British thermal unit (BTU), down from a peak of around $10 in 2022 [1]. - Oil and gas stocks have underperformed the market this year due to macroeconomic concerns, but some stocks are highlighted as potential buys [2][3]. Group 2: Canadian Natural Resources (CNQ) - Canadian Natural Resources is a major player in the Canadian energy sector, particularly in the Alberta oil sands, which are considered attractive assets under current political and economic conditions [6][7]. - Oil sands production resembles hard rock mining, offering a long production life with minimal declines, unlike shale and fracking [7]. - The company reported a netback of $37 CAD per barrel last quarter, indicating strong profit margins despite price volatility [13]. Group 3: Exxon Mobil (XOM) - Exxon Mobil is recognized as one of the world's leading energy companies, with a diversified portfolio that includes oil and gas production, refining, and renewables [15]. - The company is known for its strategic capital allocation, often investing counter-cyclically to maximize shareholder returns [16]. - Exxon Mobil's robust balance sheet provides stability for dividends, insulating it from short-term price fluctuations [11]. Group 4: Ecopetrol (EC) - Ecopetrol is Colombia's state-operated oil company, with the government controlling 88% of the firm [20]. - The company has a strong market position and is a low-cost oil producer, allowing it to pay high dividends, which are variable based on profitability [18][21]. - In 2023, Ecopetrol paid nearly $3 per share in dividends, yielding over 25%, and has announced a $1.62 dividend for 2024, resulting in a 13.9% yield based on current stock price [21].