Seven energy stocks to watch as economy nurses back to health

August 04, 2021 04:16 PM PDT | By Team Kalkine Media
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  • ONEOK (NYSE: OKE) has a P/E ratio of 20.18. The stock grew 35.17% YTD. 
  • Williams Companies (NYSE: WMB) has a dividend yield of 6.55%. The stock price rose 24.46% YTD.
  • Exxon Mobil’s (NYSE: XOM) dividend yield is 6.04%. The stock grew 38.64% YTD. 

Energy sector companies are those involved in exploring, producing, and marketing energy resources like oil and gas. In 2020, the energy companies were hit hard due to the pandemic.

However, this year, the energy sector is slowly but steadily improving. Moreover, the OPEC+ countries have reached a deal to increase production from this month. The increased production may help bring down the oil prices.

The S&P 500 Energy Sector Index gave a 31.79% return YTD. The sector is likely to see growth in the coming months as the economy recovers. Currently, most sectors remain volatile due to the recent spike in covid cases.

Here, we explore seven energy stocks based on their dividend payouts and earnings per share.

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ONEOK, Inc. (NYSE: OKE) deals in natural gas and liquids. 

With a market capitalization of US$23 billion and a P/E ratio of 20.18, OKE provides dividends at a yield of 7.2% and annualized dividend of US$ 3 .74.

It announced its Q2 results on Wednesday. The net income was US$ 342.1 million, 155% more than the prior year, for the June quarter. Its diluted EPS was US$ 0.77. 

The stock grew 35.17% YTD and closed at US$ 51,43 on Aug 3, 2021.

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Source: Pixabay

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Williams Companies, Inc. (NYSE: WMB) is a midstream energy company engaged in natural gas gathering, processing, and storage assets.

Its market capitalization is US$ 30.4 billion, the P/E ratio is 26.64, the dividend yield is 6.55%, and annualized dividend is US$ 1.64.

WMB June quarter revenue was US$ 1.46 billion, a tad higher than the previous year US$ 1.44 billion for the same period. The net income for common shareholders was US$ 304 million, almost flat with US$ 303 million for the June quarter of 2020. Diluted EPS was US$ 0.25. 

The stock closed at US$ 25.12 on Aug 3, 2021. It rose 24.46% year-to-date.

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Exxon Mobil Corporation (NYSE: XOM) is engaged in exploring, producing, and refining oil and gas. It has a market capitalization of US$ 242 billion, a current dividend yield of 6.04% and annualized dividend of US$ 3.48.

In the second quarter, XOM’s revenue was US$ 67.7 billion compared to US$ 32.6 billion in the June quarter of 2020. The net income for Q2 was US$ 4.69 billion compared to the net loss of US$ 1.08 billion in the prior-year period. Earnings increased by US$ 5.8 billion YoY. Its EPS diluted was US$ 1.10. 

The stock grew 38.64% YTD and closed at US$ 58.2 on Aug 3, 2021.

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Valero Energy Corporation (NYSE: VLO) is an independent refiner and has 14 refineries in the United States, Canada, and the U.K.

Its market cap is US$ 26.7 billion, the current dividend yield is 5.85%, and annualized dividend is US$ 3.92. 

The revenue for the June quarter, 2021 was US$ 27.7 billion against US$ 10.40 billion in the previous year Q2. The net income for the same duration was US$ 162 million compared to US$ 1.25 billion in Q2 of 2020. The earnings per share diluted was US$ 0.39.

VLO stock gave a 14.64% return YTD and closed at US$ 69.01 on Aug 3, 2021.

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Chevron Corporation (NYSE: CVX) explores oil and gas and has refineries in the US and Asia.

The company has a P/E ratio of 53.77, a dividend yield of 5.26%, annualized dividend of US$ 5.36 and a market cap of US$ 193.87 billion.

The revenue for the second quarter was US$ 36 billion, a 125% increase YoY. The net income was US$ 3.08 billion compared to the net loss of US$ 8.27 billion in Q2, 2020. Its EPS diluted was US$ 1.60. 

The stock grew 18.90% YTD and closed at US$ 102.6 on Aug 3, 2021. 

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Source: Pixabay

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ConocoPhillips (NYSE: COP) is an independent exploration and production firm. Its market capitalization is US$ 74.88 billion, the current dividend yield is 3.07%, and annualized dividend is US$ 1.72.

COP’s second-quarter earnings were US$ 2.1 billion compared with Q2 2020 earnings of US$ 0.3 billion. Its EPS was US$ 1.55. Its cash from operating activities was US$ 4.3 billion, and free cash flow was approximately US$ 2.8 billion. The company produced 1,547 thousand barrels of oil equivalent a day (MBOED), excluding Libya.

The stock rose 38.70% YTD and closed at US$ 56.64 on Aug 3, 2021.

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EOG Resources, Inc. (NYSE: EOG) is engaged in oil and gas production. Its market capitalization is US$ 41.5 billion, and its P/E ratio of 711.2. Its dividend yield is 2.26% and annualized dividend is US$1.65. 

The company will declare its second-quarter results on Aug 5, 2021. 

For the March quarter, its booked revenue of US$ 3.69 billion, compared to US$ 4.72 billion in the same quarter in 2020. The net income for Q1 was US$ 677 million or diluted earnings per share of US$ 1.16 compared to US$ 10 million or diluted earnings per share of US$ 0.02 in a year-ago period. 

The stock price increased around 48% YTD and closed at US$ 73.68 on Aug 3, 2021. 

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

The reference data in this article has been partly sourced from Refinitiv.


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