Best Oil Companies To Invest In 2013 | Which is the Top Oil Company ?
Invest In The Best Oil Companies In 2013
A comprehensive analysis of the best oil companies to invest in 2013 with highest return on investment is presented in this article. It's needless to mention the potential of oil stocks for coming years in the present scenario of increasing demand and price of oil worldwide. Moreover, crude-oil price is the most fundamental entity that decides the price of most of the other commodities and even currencies (dollars). The one exception to the influence of oil is gold. Investment in each of them is very much advisable. Oil and Gold companies are also the best companies to invest in during recession. On holding the stocks of such companies at recession time, will yield high returns that later on when the economy is stable. The petroleum / crude oil companies are the backbone of many nations. Even the value of dollar is influenced directly by the price of crude oil in the global market.
Ways To Invest In Oil Companies
Usually, the popular way to invest in oil company is to buy their stocks. We can consider that all of the oil companies are making profit but invest in the best oil companies that have a healthy track record. Find the ones that give dividends regularly, this indicates that the company status is very health. The price of oil depends on the market supply. If the there is a global crisis the price of oil increases. If any oil producing company comes under attack, then again the oil price increases. In such a very delicate environment, choosing a healthy company that can withstand pits and blows are very important.
Another way to invest in oil stocks is through mutual funds. This is very suitable if you don't know much about the stock market and the best oil companies. The people running the mutual funds will do it for you.They diversify your investment into the current best performing oil companies and bring you returns.
Best 5 Oil Companies To Invest In - Top Listed
The suggested Top 5 Oil companies to invest in now are listed below.
1. Plains Exploration & Production (NYSE : PXP)
PXP is a mature oil and gas exploration organization that have main operation is five centers including California, Eagle Ford Shale and Gulf Coast Region. They have shown good return for investors. The PXP have operations in several prime locations that have potential for large scale petroleum resources. It's procurement strategy and growth rate makes it one of the best oil companies for investment.
2. ExxonMobil ( NYSE : XOM )
They have managed consistent returns and stock price over the last few years and have high financial profile. They are considered as the largest company in the world by revenue.There have been no long term fall for the stock price. Their efficient corporate governance strategy of powering the U.S. oil and gas industry to deal with the finance deficit in the U.S. today assures the company has a strong vision. In the first quarter of 2012 their global revenues were $124 billion in the first quarter, which means around 7.6 cents profit for every dollar of sales.The good profit margins indicate further growth of the company along with the industry. Undoubtedly, ExxonMobil is top among the best oil companies to invest in today.
3. Occidental Petroleum ( NYSE : OXY )
According to the report from Forbes, Occidental Petroleum is among one of the the most oversold oil company stocks. They have a total market capitalization of $76 billion and have tremendous growth potential. So far, even if the stocks are oversold, they've maintained a strong balance sheet. OxyChem is a subsidiary company of Occidental Petroleum that manufacture chemicals. Their oil and gas explorations are focused in and around the United States, Latin America and North Africa/Middle East.
4. Chevron Corporation ( NYSE : CVX)
Chevron is another large oil company in the US. They're ranked the 5 largest company in the world, currently behind ExxonMobile and Apple Inc. They have operations in around 180 countries and is one of the largest 5 oil companies in the world. It's a very good oil company to invest in. They have expertise in all areas of oil, gas and geothermal energy production. Currently, it's best to invest in Chevron if you could get shares at a price lingering around ~$90 . They're excellent for long term holding .
5. VAALCO Energy (NYSE : EGY)
VAALCO Energy is comparitively a small oil company. The company is in growth mode and is an excellent buy for long term. They have a strong balance sheet and is very reliable to invest in. They oil and natural gas explorations in US, West Africa and Angola.
More Oil Companies To Invest In
The above list is not limited to itself. It's dependent on a particular time. There are some more companies that have considerably stable performance and returns. They are listed below you can conduct more study on each company and come to a wise conclusion on where to invest right now.
1. Marathon Oil Corp. ( NYSE : MRO )
Marathon Oil Corp. was formed recently after the split up of Marthon Corp into Marathon Petroleum and Marathon Oil. Although this has caused a short-term dip in the stock price, when we see medium and long term perspective its still in a good buy. One of the things that makes Marathon Oil corp the best company to invest in is it's consistent profit margin and good financial stability. They have $600 million as cash asset and over $15 billion in revenue.
2.HKN, Inc ( Amex : HKN)
HKN (previouslty known as Harken Energy Corporation) is a Texas based small oil company that's in a growing phase. Currently its in a recovery and expansion phase. They've acquired a second office in Paris and is focusing on building a strong portfolio to gain the trust of the investors.
3.Devon Energy ( NYSE : DVN )
Devon Energy is one among the Fortune 500 companies and one of the largest independent oil companies in North America. With environment friendly production starategy and good management organization, Devon Energy is a reliable oil stock to buy for long term. There are no known discrepancies on the portfolio of the company.
4.Hess Corporation ( NYSE : HES )
Hess Corporation focus both on crude oil and natural gas production. They have operations in around 20 companies and are still expanding fast. The company stocks are less hit by local changes as they have a diversified asset portfolio spread in several countries. Hess Corporation was previously known as Amerada Hess Corporation. Having a strong balance sheet and geographically diversified revenue stream, Hess Corporation is definitely one of the top oil companies to invest in.
Other Good Oil Companies To Invest In
- Apache Corporation
- Anadarko Petroleum Corporation
With rising automobiles sales and transportation cost there is always more demand for oil in every country. The oil price can be expected to rise for the coming 5 years. After that it might even slide down. Make sure that you make the maximum profit in the least amount of time. Don't think of keeping oil stocks for more than a span of five year. You don't know when other efficient technology starts replacing oil. Oil is a very volatile investment, the prices per barrel could swing around $100 up and down at times. However, this gives positive protection against inflation. Due to its volatile nature it is always suggested to diversify the investment to different companies and do not invest in one single oil company alone. Depending on your region there will be even more oil companies to invest in now. Do share these thoughts in the comment box below.
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