Oil and gas stocks are on the rise as the 60th presidential election approaches, with potential policy shifts on the horizon. With Republicans holding the House, a victory for the Republican ticket could mean advances in oil and gas policies, aligning with the views of 57% of Republicans who believe in continued use of fossil fuels.
The oil and gas industry is already thriving in 2024, with over $800 billion in free cash flows predicted from global upstream industry spending. Regulatory changes, such as the Inflation Reduction Act, are expected to further boost these initiatives, leading to significant market growth projections.
Exxon Mobil (XOM) leads the pack among oil and gas stocks, being one of the two companies on the Dividend Aristocrats list. The company’s efforts towards low-carbon solutions, such as manufacturing low-carbon hydrogen and ammonia, showcase its commitment to sustainability while maintaining strong financial performance.
Chevron (CVX) is another standout in the sector, with a recent $53 billion merger with Hess expected to enhance its cash flow per share by 2025. Plans for increased dividends and share buyback programs post-merger demonstrate Chevron’s focus on rewarding its shareholders while exploring low-carbon emission solutions.
ConocoPhillips (COP) is making headlines for its $22.5 billion all-stock deal to acquire Marathon Oil, part of the industry consolidation trend. The transaction is projected to bring significant cost savings and strengthen ConocoPhillips’ presence in key basins, paving the way for substantial share buybacks and dividends in the future.
Overall, the future looks promising for oil and gas stocks, with companies adapting to changing market dynamics and sustainability goals while delivering strong returns for investors.
