During the spring of 2020, oil prices were actually negative for a couple of days. Things have since stabilized in the oil industry, but the collapse of oil barrel prices on a global level has unfortunately scared many investors away from putting their money into the oil and gas industry. Similarly, the global push towards sustainable, eco-friendly sources of energy has also put a damper on the future outlook some stock market predictors have for oil companies.
However, other analysts still believe that there are a range of oil and gas companies that should perform well for years to come. According to Barron’s, investors seeking out oil and gas stocks that are still worth buying in 2020 should focus on investing with established oil companies that have big enough operations to withstand price volatility.
Investors seeking an edge in the oil and gas industry should also consider putting their money into companies that are attempting to insert themselves in the transition from high-carbon to low-carbon energy sources. Some stock analysts believe that these firms will continue to flourish in our more eco-friendly future.
Cabot Oil & Gas
Headquartered in Houston, Cabot (COG) is a major player in America’s natural gas scene, as the company’s drilling operations in West Virgina and Pennsylvania supply much of America’s oil needs along the densely populated eastern seaboard. The company is well-established and has long-running contracts throughout the northeast, which means it has been able to persevere throughout the COVID-19 crisis.
Canadian Natural Resources
Based in Calgary, Canadian Natural Resources (CNQ) was hit particularly hard by the springtime stock market volatility, as the company’s stock price dropped 47%. However, despite this huge drop, CNQ has managed to make interest payments and manage its debt load. The company has also maintained a strong cash flow profile, making it a popular pick for stock market analysts who are seeking out companies that will make a strong rebound.
ConocoPhillips (COP) has recently been recognized by investing experts at Goldman Sachs as an oil and gas company to look out for during the rest of 2020. ConocoPhillips is the largest independent gas and oil producer in the United States, which is why investors believe that the company will quickly return to profitability within the next 12 months.