These Oil Stocks Can Thrive Even With Crude Prices Sinking

Core Viewpoint - Oil prices have significantly decreased this year, with WTI dropping from approximately $80 to around $60 per barrel, primarily due to concerns about tariffs slowing the global economy and reducing crude oil demand [1] Group 1: Impact of Lower Oil Prices on Companies - Lower crude prices will affect oil company cash flows, but some companies are better positioned to manage these changes due to their low-cost resources [2] - Devon Energy has a diversified resource portfolio across multiple basins, which helps mitigate risk and supports long-term growth [3] - The Delaware Basin is a key asset for Devon Energy, contributing 56% of its production, with a breakeven level of $40 per barrel, allowing profitability even at current prices [4] - Devon Energy is projected to generate over $3 billion in free cash flow this year, with plans to return about 70% to shareholders [5] - ConocoPhillips has a global portfolio with 20 billion barrels of low-cost resources, including an acquisition that added over 2 billion barrels with an average supply cost below $30 per barrel [6] - ConocoPhillips aims to return $10 billion to shareholders this year, supported by a strong cash position of $6.4 billion in cash and short-term investments [7] - Chevron's integrated business model helps mitigate the impact of lower oil prices, with forecasts indicating sufficient cash flow to cover dividends and capital spending at $50 oil through 2027 [8][9] - Chevron is enhancing its portfolio through the acquisition of Hess, which will add high-quality assets and further strengthen its low-cost resource base [10] Group 2: Resilience of Selected Companies - Devon Energy, ConocoPhillips, and Chevron are positioned to thrive in a low-price environment due to their low-cost operations and strong balance sheets, allowing them to generate cash for dividends and share repurchases [11]