Workflow
3 Top Oil Stocks to Buy With Crude Hovering Around $70 a Barrel
COPConocoPhillips(COP) The Motley Fool·2025-03-04 10:02

Core Viewpoint - Crude oil prices have remained stable around 70,supportedbyOPECsupplydecisions,economicgrowth,andgeopoliticalconcerns,makingitanidealenvironmentfortopoilstockstogeneratecashflow[1][11].CompanySummariesConocoPhillips−ConocoPhillipshastransformedintoalow−costoilproducer,sellinghigher−costassetsandacquiringlower−costresources,culminatingina70, supported by OPEC supply decisions, economic growth, and geopolitical concerns, making it an ideal environment for top oil stocks to generate cash flow [1][11]. Company Summaries ConocoPhillips - ConocoPhillips has transformed into a low-cost oil producer, selling higher-cost assets and acquiring lower-cost resources, culminating in a 22.5 billion acquisition of Marathon Oil, adding over 2 billion barrels of resources with an average supply cost below 30[3][4].−Thecompanyplanstoinvest30 [3][4]. - The company plans to invest 12.9 billion in capital projects while returning 10billiontoshareholdersthroughdividendsandsharerepurchases,anincreasefrom10 billion to shareholders through dividends and share repurchases, an increase from 9.1 billion returned last year [4][5]. Devon Energy - Devon Energy has adopted a similar strategy to ConocoPhillips, focusing on low-cost operations and recently acquiring Grayson Mill Energy, enhancing its position in the Williston Basin [6]. - The company expects to invest up to 4billionthisyear,generatingover4 billion this year, generating over 3 billion in free cash flow at 70oil,withplanstoreturnupto7070 oil, with plans to return up to 70% of this cash flow to shareholders, prioritizing share repurchases [7][8]. EOG Resources - EOG Resources has built a low-cost production model, controlling over 10 billion barrels of oil equivalent, with an average after-tax return above 55% at 45 oil [9]. - The company estimates generating 4.7billioninfreecashflowat4.7 billion in free cash flow at 70 oil after a $6.2 billion capital investment, planning to return over 100% of its free cash flow to investors through dividends and share repurchases [10]. Industry Outlook - ConocoPhillips, Devon Energy, and EOG Resources are positioned to thrive in the current oil price environment, generating substantial cash flow to support capital programs and return excess cash to shareholders, indicating strong potential for above-average total returns [11].