Best oil and gas stocks to buy

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Top Oil Stocks to Buy in -- The Motley Fool

Between OPEC's recent plans to decrease output by up to 1. After all, global oil and refined product stocks won't last forever, and while oil output has steadily fallen, consumption has increased. Oil prices are much higher than the bottom in early , but still down by half from the peak in REN , has already been a big winner, but if oil prices fall or even stagnate, investors could get punished.

One thing that makes the largest oil companies safer investments than many smaller peers is their integration -- exposure to multiple segments of the oil and gas value chain.

And while low oil prices can destroy the profits and cash flows of independent producers faster than you can say "Brent Crude futures," refineries and pipelines tend to generate steady, reliable cash flows in every part of the oil cycle. Suncor Energy is a smaller integrated oil company, with refining operations that generate steady cash flows and significant Canadian oil sands assets from which it should reap major rewards.

Based on all that, Suncor is positioned to rebound from a rough and deliver strong returns for investors. And while that makes ONEOK an ideal investment if it's steady dividends you're looking for, there's a good argument that its shares have gotten a bit pricey, especially compared to other high-quality midstream operators:.

Based on valuation, both Enterprise Products Partners L.

3 Top Oil Stocks to Buy in April -- The Motley Fool

But here's the catch: If you're investing in a retirement account such as an IRA or k , your dividends could be subject to taxes on these two MLPs, while any income you get from ONEOK, which is a C corp, would not be. To sum it up: But if you're buying shares in a retirement account, ONEOK would make for a more tax-efficient investment, even with the risk of more share price volatility in the short term.

Smart Energy Investing When Oil Is Cheap

National Oilwell Varco, Inc. NOV, as the company is commonly called, stands as a major supplier of machinery and components across the entire oil and gas value chain, and is so important to its customers that it has been said that NOV could just as well stand for "No Other Vendor.

Nonetheless, both companies have felt the squeeze of the ongoing downside of the oil cycle, with their share prices down more than half from their five-year highs. At the same time, it's likely that both could see business continue to be less-than-stellar in , with capital expenditures across the industry expected to be down from So why are these two worthy investments? They are very well run, incredibly good at what they do, and have strong balance sheets that will enable them to emerge from the downturn in solid shape.

NOV data by YCharts. Put it all together and these two companies will surely benefit from the eventual rise of oil prices. But they're built to last, even if that takes longer to happen than you expect.

REN data by YCharts. Back at the start of , Resolute Energy was on the ropes. A heavy debt burden and relatively high expenses had the company at real risk of defaulting on its loans and going under, but it managed to end the year in solid shape, less debt, and a focus on developing its Permian Basin assets in Texas.

10 Best Oil and Gas Stocks for - Top Stocks - TheStreet Ratings

The Permian Basin -- specifically the Delaware Basin, where Resolute operates -- is potentially the biggest oil field in the world now, and because of its geological structure, has proven to be cheaper to drill and more cost effective to produce than many other shale formations.

After running a single rig in its Permian holdings for most of , the company intends to run a two-rig program in , a move that will significantly increase its output, but will also mean negative cash flows at current oil prices. This brings us to the big risk with Resolute. As a producer, the company must see oil prices hold steady or ideally rise or things could get ugly. But the reality is this: If oil prices stay near their current levels through , it's almost a sure thing that oil investors will turn away from this small, still-leveraged producer, leading to painful losses.

Resolute has great assets, but an investment in this small producer is a decidedly bullish bet on oil prices going up. Jason Hall owns shares of Core Laboratories, National Oilwell Varco, and ONEOK.

The Motley Fool owns shares of and recommends Core Laboratories, National Oilwell Varco, and ONEOK. The Motley Fool recommends Enterprise Products Partners and Magellan Midstream Partners. The Motley Fool has a disclosure policy.

Born and raised in the Deep South of Georgia, Jason now calls Southern California home. A Fool since , he began contributing to Fool. Trying to invest better? Like learning about companies with great or really bad stories?

Jason can usually be found there, cutting through the noise and trying to get to the heart of the story. Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services.

Stock Advisor Flagship service. Rule Breakers High-growth stocks.

Income Investor Dividend stocks. Hidden Gems Small-cap stocks.

Inside Value Undervalued stocks. Learn How to Invest. Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. Mortgages Compare Mortgage Rates Get Pre-Approved How Much House Can I Afford? Taxes How to Reduce Your Taxes Deductions Even Pros Overlook Audit-Proof Your Tax Return What Info Should I Keep?

Helping the World Invest — Better. How to Invest Learn How to Invest. Personal Finance Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards.

Jan 7, at 8: National Oilwell Varco NYSE: Enterprise Products Partners NYSE: Magellan Midstream Partners NYSE: Prev 1 2 3 4 Next. Motley Fool push notifications are finally here Allow push notifications to help you stay on top of Breaking investing news Earnings coverage Market movers Special offers and more Subscribe to notifications You can unsubscribe at any time.