3 Oil & Gas Stocks Poised to Continue Their Winning Streaks in 2024

Industry Overview - The energy sector is experiencing a transformative resurgence in 2024, driven by rising crude oil prices, which have reached a five-month peak due to geopolitical tensions in the Middle East, particularly the Iran-Israel situation [1] - The sector has entered 2024 on a strong foundation, with an 11% year-over-year increase in hydrocarbon investments, totaling approximately $580 billion [2] - The energy sector has outperformed all other U.S. market sectors with an 11.5% increase over the past 30 days, indicating its critical role in the global energy landscape [2] Oil Production Dynamics - OPEC+ has decided to continue crude oil production cuts, leading to revised forecasts for global oil production growth and a potential decrease in worldwide oil stockpiles, especially in Q2 2024, which may result in higher oil prices [3] - The U.S. Energy Information Administration (EIA) projects a rise in crude oil prices through 2024, with current West Texas Intermediate (WTI) crude prices trading above $86 per barrel, beneficial for the exploration and production sector [4] - The EIA's short-term energy outlook anticipates an average spot price of $82.15 per barrel for WTI crude in 2024, fostering a bullish atmosphere for exploration and production activities [4] Company Highlights - Diamondback Energy Inc. (FANG) focuses on horizontal development in the Permian Basin, with approximately 607,877 gross acres as of the end of fiscal 2023, and is well-positioned to benefit from higher oil prices [5][6] - Antero Resources Corporation (AR) operates in the Appalachian Basin, holding 515,000 net acres as of December 31, 2023, and employs advanced drilling technologies to enhance resource development, which will benefit from rising oil prices [7][8] - Viper Energy Inc. (VNOM) focuses on acquiring mineral and royalty interests in the Permian Basin, with significant acquisitions in 2023 totaling $834.1 million, and by the end of 2023, it had net production averaging 39,244 BOE/d and royalty income of $717.1 million, positioning it to benefit from higher oil prices [8][9]