Highlights
- The crude oil prices in the international market jumped over 4% on Wednesday ahead of the all-important OPEC nation meeting to decide the crude oil output.
- The OPEC+ nations might rethink their plans to further boost crude oil production in January 2022 amid potential low energy demand due to the emergence of a new coronavirus variant.
The crude oil prices in the international market jumped over 4% on Wednesday ahead of the all-important Organization of the Petroleum Exporting Countries (OPEC) meeting to decide the crude oil output in upcoming months. The major oil producers will also try to assess the potential impact on energy demand due to the new variant of coronavirus, Omicron, which is rapidly transmitting to different countries.
According to an early prediction by the market experts, the OPEC+ nations might rethink their plans to further boost crude oil production from January 2022 amid potential low demand for fuel due to travel restrictions to curb the spread of the Omicron variant. In the previous meeting, the OPEC nations proposed increasing crude oil supply by 400,000 barrels per day from 2022.
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Let us dive deep into investment prospects of 3 FTSE listed oil and gas stocks:
Tullow Oil Plc (LON: TLW)
The company is engaged in the oil and gas exploration and production business. Its key assets are located in Africa and South America. The company reported a revenue of USD 727 million, while its gross profit was USD 321 million in the first half of 2021. The company’s business returned to profitability during the period reporting a profit before tax of USD 93 million. It has kept its full-year production target unchanged at 58,000-61,000 boepd.
The current market cap of the company stands at £597.3 million as of 1 December 2021.
Cairn Energy Plc (LON: CNE)
The company does the exploration and production of oil and gas through its portfolio of assets located worldwide. The company’s business witnessed strong growth in the first six months of 2021, with a revenue of USD 244.9 million. Also, the company plans to expand its business in Egypt with the acquisition of new energy assets in the country. Overall, the company has a positive business outlook and would continue to generate sustainable cash flow from its business activities.
The current market cap of Cairn Energy Plc stands at £907.31 million as of 1 December 2021.
Energean Plc (LON: ENOG)
FTSE250 listed company does the exploration and production of crude oil. Its main assets are located in Europe, Israel, Egypt. The company plans to raise USD 450 million through senior secured notes due in 2027. The company will pay fixed interest rates of 6.5% semi-annually to holders. The company plans to use net proceeds from the offering to pay off its existing debt and for general corporate purposes.
The current market cap of Energean Plc stands at £1,565.3 million as of 1 December 2021.
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