PXD - 3 Oil Stocks to Buy as Saudi Arabia Presses to Push Crude Prices Higher
2023-07-07 08:05:00 ET
Saudi Arabia isn't messing around. The major oil-producing country recently revealed that it would extend its current 1 million barrel per day (BPD) production cut for another month, pushing it out until the end of August. That will remove additional supplies from the oil market when it's starting to get very tight . The move shows that Saudi Arabia will do whatever it takes to push oil prices higher.
That's great news for oil stocks . Higher oil prices would enable oil companies to produce more cash flow, which should boost their share prices and ability to return cash to shareholders. While rising oil prices should lift all producers, Devon Energy (NYSE: DVN) , Pioneer Natural Resources (NYSE: PXD) , and Diamondback Energy (NASDAQ: FANG) stand out as some of the top stocks to buy because they plan to return most of their oil-fueled cash flows to investors.
Devon Energy enables investors to immediately cash in on higher oil prices. The oil company launched the industry's first fixed-plus-variable dividend framework a few years ago. In addition to paying a fixed base dividend each quarter, Devon pays out up to half of its quarterly free cash flow to shareholders through its variable dividend. That means rising oil prices mean more cash will flow directly to shareholders through dividends.
For further details see:
3 Oil Stocks to Buy as Saudi Arabia Presses to Push Crude Prices Higher