This article will go over the fastest-growing oil and gas stocks for 2023 in great length. The global crude oil market has been on a rollercoaster ride over the last year. Oil hit a 14-year high of $120 in the wake of Russia’s invasion of Ukraine, but since then prices have steadily fallen below $80 a barrel.
Big Oil benefitted handsomely from the surge. The five largest publicly traded oil companies combined to print nearly $200 billion in profits in 2022, and their stock prices surged accordingly. But choosing the best oil stock investments is more challenging now, with the boom firmly in the rearview mirror.
Fastest-growing Oil and Gas Stocks for 2023
Oil and gas stocks as a group, measured by the benchmark Energy Select Sector SPDR ETF (XLE), have climbed by 23.3% in the past year, outperforming the broader market. However, declining oil and gas prices in the second half of 2022 and into 2023 could pressure margins and revenues in the sector.
These are the top oil and gas stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth.
Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes the ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers. Listed below are some of the fastest-growing oil and gas stocks for 2023.
List of Fastest-growing Oil and Gas Stocks for 2023
Permian Basin Royalty Trust – Best Oil Stock Investments
The Permian Basin Royalty Trust is a United States oil and natural gas royalty trust based in Dallas, Texas. With a market capitalization of US $790,000,000 and an average daily trading volume of about 186,000 shares at the end of 2007, it was one of the largest royalty trusts in the United States. The Permian Basin Royalty Trust, an express trust, holds overriding royalty interests in various oil and gas properties in the United States.
The trustee of Permian Basin Royalty is Simmons Bank. The trust announced a March 2023 monthly cash distribution of around 2.4 cents per unit, which was down compared to the previous month due to an increase in oil and gas production.
Par Pacific Holdings, Inc.
This is a growth-oriented company that owns and operates market-leading energy and infrastructure businesses in logistically complex markets. It combines experience in the oil and gas industry with corporate financing know-how.
Par Pacific owns and operates energy infrastructure and retail businesses. The company manages multiple oil refineries in Hawaii and the Pacific Northwest and is a logistics operation for fuel transportation and storage among the Hawaiian Islands. Par Pacific also owns a convenience store chain in Hawaii called Hele.
It is the world’s fourth-largest oil tanker shipping company, based in Hamilton, Bermuda, and controlled by John Frederickson. Frontline Ltd. (Frontline) is a shipping company that transports crude oil and its related refined petroleum products.
The company’s main focus is on the seaborne transportation of crude oil and refined products. The Company owns and operates a fleet consisting of multiple VLCC, Suezmax, and LR2/Aframax tankers intended for the freight of oil and cargo. The company operates worldwide.
Obsidian Energy Ltd.
Obsidian Energy Ltd. is a mid-sized Canadian oil and natural gas production company based in Calgary, Alberta. For a while, it was one of the S&P/TSX 60, the sixty largest companies on the Toronto Stock Exchange. They primarily operate in the Peace River, Cardium, and Viking areas, our principal business consists of the exploration, development, and production of petroleum resources, providing energy to fuel people’s lives.
On Feb. 23, the company released its fourth-quarter and full-year earnings. Net income surged 29-fold, with production revenue growing by 38% compared to Q4 2021. The massive increase in net income was due to strong funds from operations (FFO) and higher reserve and commodity values.
SilverBow Resources, Inc.
SilverBow Resources is an oil and gas company that engages in the production of petroleum products in southern Texas. The company’s strategy is focused on acquiring and developing assets in the Eagle Ford Shale and Austin Chalk in South Texas.
SilverBow Resources, Inc. is a Houston-based energy company engaged in the exploration, development, and production of oil and gas from the Eagle Ford Shale in South Texas. The company leverages its regional reservoir understanding to enhance its operations and maximize returns.
Will oil stocks continue to rise in 2023?
After hitting US$ 22 in June, the price per barrel of WTI crude slowly receded to US$77 in early 2023. Most oil stocks followed that slide, with their strong performance in the first half of 2022 slowly eroding in the second half.
Who produces the most oil in 2023?
Crude oil production is a major driver of global economic growth. The top three countries in terms of crude oil production are the United States, Saudi Arabia, and Russia. Together, these countries produce around 30 percent of the world’s total crude oil output.
How high will oil go in 2023?
In this year’s survey, prices are forecast to average $87 in 2023, down from the $99 realized in 2022, when prices surged following Russia’s invasion and sanctions imposed in response by the United States and European Union.
Which stocks go up when oil goes down?
Consumer Discretionary: This sector includes companies in retail, travel, entertainment, and restaurants. These businesses benefit indirectly from lower oil prices as consumers look for places to spend the money that they save on fuel.