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Buy 5 Giant Oil Explorers to Tap the Northward Journey of Crude Prices
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Key Takeaways
CVX's record production, Hess synergies and strong cash flow support growth, alongside a new power deal.
XOM leverages advanced technology and low-cost assets to boost productivity across the Permian and Guyana.
EOG, FANG and COP focus on low-cost operations, efficiency gains and expanding growth opportunities.
Crude oil prices have soared this year buoyed by geopolitical conflicts in the Middle East, with no signs of abatement. On Oct 16, crude oil prices spiked following Iran's escalated attacks in the Strait of Hormuz, Houthi militants firing missiles in Saudi Arabia, and Ukraine reaffirming that it will continue to target Russian oil refineries.
As a result, the U.S. benchmark – the West Texas Intermediate (WTI) crude future price rose 3.5% to settle at $101.41 per barrel. The international benchmark – the Brent crude future price increased 3.7% to close at $109.86 per barrel, after touching $110 per barrel. Year to date, the WTI crude price jumped 77.4%, while the Brent crude price climbed 80.5%.
Consequently, stock prices of crude oil explorers and producers have surged in 2026. Here, we recommend five crude oil exploration behemoths with a favorable Zacks Rank for investment. These are: Chevron Corp. (CVX - Free Report) , ExxonMobil Holdings Corp. (XOM - Free Report) , EOG Resources Inc. (EOG - Free Report) , Diamondback Energy Inc. (FANG - Free Report) and ConocoPhillips (COP - Free Report) .
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Chevron Corp.
Zacks Rank #1 Chevron produced 4.07 million BOE per day in second-quarter 2026, up 20% year over year, with U.S. output reaching a record 2.08 million BOE per day. CVX’s growth was supported by Hess, the Permian and the Gulf of America. Hess generated $1.5 billion in annual synergies six months ahead of schedule, helping increase value per share.
CVX’s quarterly operating cash flow reached $19.7 billion and adjusted free cash flow was $15.4 billion. Debt fell by more than $8 billion. A 20-year agreement with Microsoft Corp. (MSFT) for 2.67 gigawatts of power capacity adds a new growth opportunity.
CVX’s TTM ROIC of 7.8% was above its 10-year median, and FY2026 EPS estimates rose 5.8% in four weeks. Although commodity prices and returns remain risks, higher production, Hess savings, strong cash flow and power growth support CVX’s long-term growth prospects.
Chevron has an expected revenue and earnings growth rate of 26.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.6% over the last 30 days.
ExxonMobil Holdings Corp.
Zacks Rank #2 ExxonMobil’s upstream portfolio is increasingly concentrated in advantaged assets with lower development costs and long production runways. The Pioneer acquisition expands XOM’s Permian scale and supports broader deployment of proprietary technologies and extended-reach development.
XOM is using proprietary technology, centralized operations and enterprise data systems to lower costs and raise asset productivity across the portfolio. In the Permian, XOM drilled more than 80 four-mile wells in the first half of 2026, supported by remote operations and real-time data. In Guyana, 4D seismic and high-performance computing have unlocked more than $2 billion of net present value, while FPSO reliability exceeded 98% year to date.
ExxonMobil has an expected revenue and earnings growth rate of 24% and 79.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5% over the past 30 days.
EOG Resources Inc.
Zacks Rank #1 EOG Resources combines a diversified shale and international portfolio with a low-cost operating model that supports free cash flow across commodity cycles. EOG’s deep inventory, flexible capital program and broad market access allow spending to move toward the highest-return opportunities.
EOG’s recent gains from the Utica integration, Eagle Ford exploration and early UAE results expand the development runway, while infrastructure and export-linked sales support realizations. EOG’s cash returns remain anchored by the regular dividend and opportunistic buybacks, backed by substantial liquidity and repurchase capacity.
EOG Resources has an expected revenue and earnings growth rate of 35.4% and 72.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.4% over the past seven days.
Diamondback Energy Inc.
Zacks Rank #2 Diamondback Energy continues to strengthen returns through improvements in well construction, targeting, stimulation and completion techniques. FANG highlighted that wells that once took around 30 days to drill can now be drilled in roughly five days, demonstrating substantial operational progress.
FANG focuses on combining more wells per section with higher production per well while maintaining a low cost per well. Longer laterals, improved completion designs and better targeting are also reducing cost per foot. These efficiencies can increase returns on existing acreage and potentially raise FANG’s intrinsic value over time.
Diamondback Energy has an expected revenue and earnings growth rate of 26.5% and 57.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.6% over the past seven days.
ConocoPhillips
Zacks Rank #1 ConocoPhillips offers an attractive long-term profile supported by a deep low-cost shale inventory, expanding global LNG exposure and a broader portfolio of capital-efficient international opportunities. Record Permian output highlights the quality of COP’s Lower 48 position, while LNG projects are expected to begin contributing in 2027.
Willow remains on track for first oil in early 2029, with Alaska exploration adding COP’s resource optionality around existing infrastructure. Cost reductions are ahead of plan, shareholder distributions remain a priority and COP continues to target a sizable free-cash-flow inflection by 2029. Portfolio high-grading adds flexibility. These drivers should lower future reinvestment needs, broaden cash-flow sources and support durable returns.
ConocoPhillips has an expected revenue and earnings growth rate of 15.9% and 81.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.2% over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Buy 5 Giant Oil Explorers to Tap the Northward Journey of Crude Prices
Key Takeaways
Crude oil prices have soared this year buoyed by geopolitical conflicts in the Middle East, with no signs of abatement. On Oct 16, crude oil prices spiked following Iran's escalated attacks in the Strait of Hormuz, Houthi militants firing missiles in Saudi Arabia, and Ukraine reaffirming that it will continue to target Russian oil refineries.
As a result, the U.S. benchmark – the West Texas Intermediate (WTI) crude future price rose 3.5% to settle at $101.41 per barrel. The international benchmark – the Brent crude future price increased 3.7% to close at $109.86 per barrel, after touching $110 per barrel. Year to date, the WTI crude price jumped 77.4%, while the Brent crude price climbed 80.5%.
Consequently, stock prices of crude oil explorers and producers have surged in 2026. Here, we recommend five crude oil exploration behemoths with a favorable Zacks Rank for investment. These are: Chevron Corp. (CVX - Free Report) , ExxonMobil Holdings Corp. (XOM - Free Report) , EOG Resources Inc. (EOG - Free Report) , Diamondback Energy Inc. (FANG - Free Report) and ConocoPhillips (COP - Free Report) .
Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Chevron Corp.
Zacks Rank #1 Chevron produced 4.07 million BOE per day in second-quarter 2026, up 20% year over year, with U.S. output reaching a record 2.08 million BOE per day. CVX’s growth was supported by Hess, the Permian and the Gulf of America. Hess generated $1.5 billion in annual synergies six months ahead of schedule, helping increase value per share.
CVX’s quarterly operating cash flow reached $19.7 billion and adjusted free cash flow was $15.4 billion. Debt fell by more than $8 billion. A 20-year agreement with Microsoft Corp. (MSFT) for 2.67 gigawatts of power capacity adds a new growth opportunity.
CVX’s TTM ROIC of 7.8% was above its 10-year median, and FY2026 EPS estimates rose 5.8% in four weeks. Although commodity prices and returns remain risks, higher production, Hess savings, strong cash flow and power growth support CVX’s long-term growth prospects.
Chevron has an expected revenue and earnings growth rate of 26.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.6% over the last 30 days.
ExxonMobil Holdings Corp.
Zacks Rank #2 ExxonMobil’s upstream portfolio is increasingly concentrated in advantaged assets with lower development costs and long production runways. The Pioneer acquisition expands XOM’s Permian scale and supports broader deployment of proprietary technologies and extended-reach development.
XOM is using proprietary technology, centralized operations and enterprise data systems to lower costs and raise asset productivity across the portfolio. In the Permian, XOM drilled more than 80 four-mile wells in the first half of 2026, supported by remote operations and real-time data. In Guyana, 4D seismic and high-performance computing have unlocked more than $2 billion of net present value, while FPSO reliability exceeded 98% year to date.
ExxonMobil has an expected revenue and earnings growth rate of 24% and 79.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 5% over the past 30 days.
EOG Resources Inc.
Zacks Rank #1 EOG Resources combines a diversified shale and international portfolio with a low-cost operating model that supports free cash flow across commodity cycles. EOG’s deep inventory, flexible capital program and broad market access allow spending to move toward the highest-return opportunities.
EOG’s recent gains from the Utica integration, Eagle Ford exploration and early UAE results expand the development runway, while infrastructure and export-linked sales support realizations. EOG’s cash returns remain anchored by the regular dividend and opportunistic buybacks, backed by substantial liquidity and repurchase capacity.
EOG Resources has an expected revenue and earnings growth rate of 35.4% and 72.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.4% over the past seven days.
Diamondback Energy Inc.
Zacks Rank #2 Diamondback Energy continues to strengthen returns through improvements in well construction, targeting, stimulation and completion techniques. FANG highlighted that wells that once took around 30 days to drill can now be drilled in roughly five days, demonstrating substantial operational progress.
FANG focuses on combining more wells per section with higher production per well while maintaining a low cost per well. Longer laterals, improved completion designs and better targeting are also reducing cost per foot. These efficiencies can increase returns on existing acreage and potentially raise FANG’s intrinsic value over time.
Diamondback Energy has an expected revenue and earnings growth rate of 26.5% and 57.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.6% over the past seven days.
ConocoPhillips
Zacks Rank #1 ConocoPhillips offers an attractive long-term profile supported by a deep low-cost shale inventory, expanding global LNG exposure and a broader portfolio of capital-efficient international opportunities. Record Permian output highlights the quality of COP’s Lower 48 position, while LNG projects are expected to begin contributing in 2027.
Willow remains on track for first oil in early 2029, with Alaska exploration adding COP’s resource optionality around existing infrastructure. Cost reductions are ahead of plan, shareholder distributions remain a priority and COP continues to target a sizable free-cash-flow inflection by 2029. Portfolio high-grading adds flexibility. These drivers should lower future reinvestment needs, broaden cash-flow sources and support durable returns.
ConocoPhillips has an expected revenue and earnings growth rate of 15.9% and 81.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.2% over the past seven days.