Compared to the larger market, the oil and gas industry is having its finest year in years. Many investors are eager to buy stocks in this area. Because of its brand familiarity, ExxonMobil stock( NYSE:XOM ) is likely to be the first firm that comes to mind.
Is it, however, the finest investment among its peers? Let’s compare ExxonMobil stock to one of its top competitors, TotalEnergies stock ( NYSE:TTE )), to see which is the best oil stock to buy.
Stock Analysis: Similarities
Finding and developing top-tier oil-producing assets is something that both ExxonMobil and TotalEnergies have excelled at lately . Both firms claim that their respective breakeven prices are about $40 per barrel (the oil price at which they can cover operating costs, capital expenditures to sustain present operations, and dividends).
According to TotalEnergies, one investment condition for future initiatives is to be profitable at less than $30 per barrel after taxes. Similarly, ExxonMobil claims that at less than $35 a barrel, 90% of its capital expenditures should produce 10% returns.
Both corporations are placing significant bets on liquefied natural gas (LNG) as part of their medium- to long-term strategies. ExxonMobil intends to build 40 million tons per year (Mta) of LNG liquefaction and export facilities (it has about 20 Mta of liquefaction capacity today). TotalEnergies has around 10.5 Mta of new export capacity coming online, but it also has Europe’s biggest LNG import operation.
Stock Analysis: The devil is in the particulars.
The most significant differences be...
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