These oil stocks have the right strategy to prosper on higher oil prices.
Oil prices have been scorching hot this year. Crude is up by more than 30%, fueled by the gradual reopening of the global economy and OPEC’s support by holding back supplies. Those higher prices have been a boon for most oil stocks.
Some oil companies are thriving more than others thanks to their lower operating costs and unique strategies.
Three companies to look at are Allied Energy Corp. (OTCMKTS:AYGP), Devon Energy, Inc. (NYSE: DVN), and Petrobras (NYSE:PBR).
Allied Energy Corporation (OTCMKTS:AGYP), an energy company focused on leasing and reworking oil and gas reserves in the most prolific hydrocarbon areas of the United States.
Here’s why that last sentence is important, some investors are a bit shy about oil and gas investments due to sustainability concerns. AGYP’s business model is about as green as you can be as an oil exploration company.
Allied Energy announced last week the leasing of five additional wells at the 300 Acre Annie Gilmer Lease.
The Annie Gilmer lease is located in Crystal Falls, Texas. There were six wells drilled on the lease starting in the mid 70’s with the last being drilled in 1989. Since the initial well, the lease has produced over five hundred thousand (500,000) barrels of high gravity oil and over five hundred million (500,000,000) cubic feet of very rich natural gas. There are two permitted saltwater injection wells on the lease. One of the injection wells will be re-converted to an active oil and gas producer.
AGYP made a 6,500% move from .0095 to .62 at the end of 2020, so it’s safe to say when this stock gets some momentum it can really run.
Investors naturally took profits and the stock has settled around a 50% retracement at its current level. Now is a great time to start your research on AGYP because it could be set for a run that might even break through its 52 week high. Even if it were to reach its 52 week high of 62 cents that would be a nearly 100% gain!
AGYP is well positioned to breakout, just like it has in the past and with oil prices set to surge, the timing couldn’t be better.
Devon Energy, Inc. (NYSE: DVN) is another upstream investment opportunity exploring the oil rich state of Texas. DVN just celebrated its 50 year or “golden” anniversary Devon grew organically and by acquisition over the years and stepped into its place on the S&P 500 in 2000. Today it is a leading producer of oil and gas in the U.S.. Something companies like AGYP aspire to be.
Devon Energy has been on fire this year. Shares of the oil producer are up 66% in 2021. Devon spent the past several years reshaping its operations. It repositioned around the lowest-cost production basins in the U.S. while taking additional steps to reduce costs, including merging with WPX Energy. These strategic moves have driven down Devon’s cost structure so that it can generate a gusher of cash flow now that oil prices are higher.
Petrobras (NYSE:PBR) Petroleo Brasileiro ADR Reptg 2 has gained around 17% since its first-quarter earnings announcement on Apr 27. While the company missed top and bottom-line estimates, investors were encouraged by its steep debt reduction and turnaround from the year-ago loss.
Petróleo Brasileiro SA (Petrobras), or also known as Brazilian Petroleum Corporation, is a Brazilian multinational corporation in the petroleum industry headquartered in Rio de Janeiro, Brazil. It was founded on October 3, 1953, as a result of a popular campaign “O petróleo é nosso” (“The Oil is Ours “), and it was given a legal monopoly in Brazil under the government of Brazilian president Getúlio Vargas.
The company operates through Oil and Gas Exploration & Production, Refining, Supply of Natural Gas, Distribution, Petrochemicals & Fertilizers, Electric Energy Generation, Biofuel Production, and Transportation & Trade.