5 US stocks to explore in September amid volatile crude oil prices

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5 US stocks to explore in September amid volatile crude oil prices

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 5 US stocks to explore in September amid volatile crude oil prices
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  • The OXY stock rocketed about 197 per cent YoY.
  • Hess Corporation's (NYSE: HES) total revenue was over US$ 2.90 billion in Q2 FY22.
  • The DVN stock jumped over 145 per cent one year.

Occidental Petroleum Corporation (NYSE: OXY), Hess Corporation (NYSE: HES), Devon Energy Corporation (NYSE: DVN), Marathon Petroleum Corporation (NYSE: MPC), and Exxon Mobil Corporation (NYSE: XOM) are among the top companies in the oil and gas sector.

On Monday, August 29, the WTI crude oil was up about 3.37 per cent to US$ 96.20 at 12:50 pm ET, while brent oil price soared 3.12 per cent to US$ 102.1.

The oil prices continued to extend their last week's surge as potential Organization of the Petroleum Exporting Countries (OPEC) trimmed production rates have attracted attention. However, on Tuesday, August 30, the oil prices have slightly declined as inflation fears continue to impact the investor sentiment.

The tensions in Libya might help the market in shrugging off concerns over a strong US dollar and a gloomy outlook for US economic growth.

The leading producer in the OPEC+ members, Saudi Arabia, fuelled possibilities last week over output trimming. The news reportedly could reflect Iran's oil supply boost if it could secure a nuclear deal with the West.

Here we explore the recent stock performance and financial highlights of the oil and gas firms curated by Kalkine Media® amid volatile oil market.

Occidental Petroleum Corporation (NYSE: OXY)

Occidental Petroleum is a leading chemical industry firm that specializes in hydrocarbon exploration. It is one of the top-performing energy stocks in the S&P 500 index this year, as evidenced by the jump in its stock price.

The OXY stock skyrocketed nearly 197 per cent year-over-year (YoY) while adding over 162 per cent in the current year. In the ongoing quarter, its price surged by over 29 per cent. The OXY stock touched its 52-week high of US$ 76.10 on August 25, 2022.

The US$ 71.77 billion market cap firm posted a total revenue and other income of US$ 10.73 billion in the latest quarter of fiscal 2022, an increase from US$ 6.01 billion in the preceding year's period.

Its net income totalled US$ 3.75 billion in the second quarter of fiscal 2022, noting a significant jump from an income of US$ 103 million in Q2 FY21.

During its second-quarter earnings release, Occidental Petroleum said it had repurchased more than 18 million shares for around US$ 1.1 billion.

It also announced a regular quarterly dividend of US$ 0.13 per share on common stock on July 27. The dividend would be payable on October 17 this year.

Hess Corporation (NYSE: HES)

Hess Corporation is an independent energy firm that explores and produces crude oil and natural gas. The New York-based firm had a dividend yield of 1.2 per cent, and its annualized dividend stood at US$ 1.50.

The HES stock showed gains of over 82 per cent in the last 12 months while soaring over 72 per cent year-to-date (YTD). It gained more than 20 per cent in the current quarter.

In the intraday session on August 29, it traded about 92 per cent above its 52-week low of US$ 66.20, noted on September 20, 2021.

The US$ 40 billion market cap energy firm commenced a share buyback in the second quarter of about 1.8 million shares worth US$ 190 million. The total cash returned to the stockholders in Q2 FY22 totalled US$ 306 million, including the dividends.

Hess Corporation posted a total revenue and non-operating income of US$ 2.98 billion in Q2 FY22, up from US$ 1.59 billion in the year-ago quarter. Its net income improved significantly to US$ 754 million in the latest quarter, from an income of US$ 13 million in Q2 FY21.

Devon Energy Corporation (DVN) Q2 FY22 VS Q2 FY21 earnings highlightsSource: ©Kalkine Media®; © Canva via Canva.com

Devon Energy Corporation (NYSE: DVN)

Devon Energy is an energy firm that engages in hydrocarbon exploration. At the time of drafting, the company's RSI was about 72, according to Refinitiv data. Some analysts believe that RSI over 70 suggests that the stock could be in an overbought condition.

The DVN stock jumped more than 145 per cent in the last 12 months while gaining about 68 per cent in the ongoing year. On a quarter-to-date (QTD) basis, it added about 35 per cent.

The US$ 49.43 billion market cap firm had a dividend yield of 6.98 per cent. Devon Energy announced a fixed-plus-variable dividend of US$ 1.55 apiece based on its latest quarterly earnings results, noting an increase of 22 per cent from the prior quarter.

As part of the Q2 dividend announcement, the company's board announced an increase of 13 per cent in its fixed dividend of US$ 0.02 per share, payable on September 30, 2022.

The company reported a revenue of US$ 5.62 billion in Q2 FY22, up from a revenue of US$ 2.41 billion in the year-ago quarter. Its net earnings were US$ 1.93 billion in Q2 FY22, a notable jump from US$ 261 million in Q2 FY21.

Marathon Petroleum Corporation (NYSE: MPC)

The petroleum refining, marketing, and transportation firm Marathon Petroleum holds a market cap of US$ 57.49 billion. It had a dividend yield of 2.22 per cent.

The MPC stock gained nearly 77 per cent YoY while increasing over 66 per cent YTD. Its price surged over 29 per cent QTD and the company had an RSI value of over 71.

Marathon Petroleum reported total revenue of US$ 54.23 billion in Q2 FY22, up from US$ 29.82 billion in the same quarter of the prior year. However, its net income declined to US$ 6.21 billion in Q2 FY22, from an income of US$ 8.8 billion in Q2 FY21.

Exxon Mobil Corporation (NYSE: XOM)

Exxon Mobil Corporation is one of the leading oil and gas firms based in Irving, Texas. The XOM stock gained more than 81 per cent YoY while soaring about 65 per cent YTD.

Exxon Mobil's total revenue and other income were US$ 115.68 billion in Q2 FY22, up from US$ 67.74 billion in the second quarter of fiscal 2021. Its attributable net income was US$ 17.85 billion in Q2 FY22, a significant jump from an income of US$ 4.69 billion in Q2 FY21.

Bottom line:

Fed Chair Jerome Powell indicated that the central bank might stay on track to raise the interest rates in the coming months to tame the red-hot inflation.

Meanwhile, the market would also closely watch OPEC+, comprising OPEC, Russia, and its allied producers' policy meeting, which is scheduled for September 5.

Due to the soaring oil prices, the S&P 500 energy sector rose nearly 75 per cent YoY while gaining about 49 per cent YTD.

On the other hand, the S&P 500 index fell about nine per cent YoY while slipping around 14 per cent YTD. Investors must do their research before selecting a stock for their portfolios as stock market investing comes along with associated risks.


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