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Getting a Tax Refund? 3 Oil Stocks to Buy With Your Refund Check.
CVXChevron(CVX) The Motley Fool·2025-03-02 15:14

Investment Opportunities - The average American tax refund is 3,138,whichpresentsanopportunityforinvestmentinsectorslikeoil[1][2]−TotalEnergies,ExxonMobil,andChevronarehighlightedastopoilstockstoconsiderforinvestment[2]TotalEnergiesOverview−TotalEnergiesisamajorintegratedenergycompanycommittedtobothcarbonfuelsandcleanerenergyoptions[4][6]−TheintegratedpowerdivisionofTotalEnergiesgrewby173,138, which presents an opportunity for investment in sectors like oil [1][2] - TotalEnergies, ExxonMobil, and Chevron are highlighted as top oil stocks to consider for investment [2] TotalEnergies Overview - TotalEnergies is a major integrated energy company committed to both carbon fuels and cleaner energy options [4][6] - The integrated power division of TotalEnergies grew by 17% in 2024, while traditional oil and gas operations faced declines [5] - The company offers a 5.8% dividend yield, allowing investors to benefit from current carbon fuel profits while transitioning to cleaner energy [6] ExxonMobil Performance - ExxonMobil produced 34 billion in earnings and 55billionincashflowfromoperationslastyear,markingitsthird−bestyearinadecade[7]−Thecompanyhasachieveda3055 billion in cash flow from operations last year, marking its third-best year in a decade [7] - The company has achieved a 30% annualized earnings growth rate over the past five years, significantly outpacing its peers [8] - Structural cost savings of over 12 billion since 2019 and high-return investments have been key to Exxon's success [9] - ExxonMobil plans to add 20billioninearningsand20 billion in earnings and 30 billion in cash flow by 2030, with an additional 7billionincostsavingsexpected[10][11]Chevron′sStrategy−Chevronisoneofthelargestoilandgascompanies,withrecordproductionandcashreturnstoshareholdersin2024[13]−Thecompanyaimstogrowproductionatacompoundannualgrowthrateofaround67 billion in cost savings expected [10][11] Chevron's Strategy - Chevron is one of the largest oil and gas companies, with record production and cash returns to shareholders in 2024 [13] - The company aims to grow production at a compound annual growth rate of around 6% through 2026 while cutting costs by 2 billion to 3billion[14]−Chevron′sacquisitionofHess,valuedat3 billion [14] - Chevron's acquisition of Hess, valued at 53 billion, is expected to enhance its growth potential, although the deal is currently stalled [15] - Even without the acquisition, Chevron anticipates a 10% average annual growth in free cash flow through 2026, supporting dividend increases [16]