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Watch These 3 Energy Stocks With Fortress Balance Sheet
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The initial pandemic period, when there were no vaccines, saw an environment of heightened uncertainties. The price of crude oil plunged to a negative $36.98 per barrel on Apr 20, 2020. However, with the rapid developments of vaccines, which led to the gradual opening of the economies, the pricing scenario of West Texas Intermediate crude improved drastically over time to reach $123.64 per barrel on Mar 8, 2022. Oil price data are per the U.S. Energy Information Administration, and currently, the WTI oil price is approaching $80 per barrel.
Thus, it’s pretty apparent that the business model of most energy players, by nature, is exposed to extreme volatility in commodity prices. Energy companies with robust balance sheets will be better positioned to navigate these uncertainties.
Hence, it would be wise for investors to keep an eye on promising stocks like Exxon Mobil Corporation (XOM - Free Report) , ConocoPhillips (COP - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . All the stocks carry a Zacks Rank #3 (Hold) and have significantly lower debt exposure than the composite stocks belonging to the respective industries.
ExxonMobil has a strong balance sheet, hence it can withstand adverse business environments. The integrated energy player has a total debt-to-capitalization of 16.4%. Thus, compared to the 24% debt-to-capitalization of composite stocks belonging to the Zacks Oil & Gas Integrated International industry, ExxonMobil is better off.
In fact, the energy giant has been consistently witnessing a lower debt-to-capitalization ratio than the industry over the past three years.
ConocoPhillips has achieved a promising production outlook by leveraging its extensive drilling inventory and diversified upstream assets. Compared to composite stocks belonging to the industry, the leading upstream energy company has considerably lower exposure to debt capital. This reflects that the company is better positioned to rely on its strong balance sheet to withstand any adverse business scenario.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company is likely to continue witnessing increased production volumes. FANG also has an investment-grade balance sheet and a lower debt-to-capitalization ratio than the composite stocks belonging to the industry over the past years.
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Watch These 3 Energy Stocks With Fortress Balance Sheet
The initial pandemic period, when there were no vaccines, saw an environment of heightened uncertainties. The price of crude oil plunged to a negative $36.98 per barrel on Apr 20, 2020. However, with the rapid developments of vaccines, which led to the gradual opening of the economies, the pricing scenario of West Texas Intermediate crude improved drastically over time to reach $123.64 per barrel on Mar 8, 2022. Oil price data are per the U.S. Energy Information Administration, and currently, the WTI oil price is approaching $80 per barrel.
Thus, it’s pretty apparent that the business model of most energy players, by nature, is exposed to extreme volatility in commodity prices. Energy companies with robust balance sheets will be better positioned to navigate these uncertainties.
Hence, it would be wise for investors to keep an eye on promising stocks like Exxon Mobil Corporation (XOM - Free Report) , ConocoPhillips (COP - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . All the stocks carry a Zacks Rank #3 (Hold) and have significantly lower debt exposure than the composite stocks belonging to the respective industries.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ExxonMobil has a strong balance sheet, hence it can withstand adverse business environments. The integrated energy player has a total debt-to-capitalization of 16.4%. Thus, compared to the 24% debt-to-capitalization of composite stocks belonging to the Zacks Oil & Gas Integrated International industry, ExxonMobil is better off.
In fact, the energy giant has been consistently witnessing a lower debt-to-capitalization ratio than the industry over the past three years.
ConocoPhillips has achieved a promising production outlook by leveraging its extensive drilling inventory and diversified upstream assets. Compared to composite stocks belonging to the industry, the leading upstream energy company has considerably lower exposure to debt capital. This reflects that the company is better positioned to rely on its strong balance sheet to withstand any adverse business scenario.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company is likely to continue witnessing increased production volumes. FANG also has an investment-grade balance sheet and a lower debt-to-capitalization ratio than the composite stocks belonging to the industry over the past years.