Crunching the Data: Twelve Key Integrated Oil and Gas Stocks

by: Richard Shaw

We believe that the larger integrated oil and gas companies are in a favorable position. They are likely to benefit by either an expanding global economy, or to possess strong anti-inflation protections. The anti-inflation feature comes from either the oil and gas reserves they own, or their participation in rising oil prices as they recieve some revenue shares for performing production and exploration services for nationalized oil resources.

We are overweight the energy sector, with a bias toward those companies that pay significant dividend yields.

The following table provides a broad data view of 12 key integrated oil and gas companies from the US, Europe, and the emerging markets:

  • Exxon (NYSE:XOM) -- USA
  • Chevron (NYSE:CVX) -- USA
  • ConocoPhillips (NYSE:COP) -- USA
  • Marathon (NYSE:MRO) -- USA
  • Royal Dutch Shell (RDSA) -- European Union
  • BP (NYSE:BP) -- European Union
  • Total (NYSE:TOT) -- European Union
  • Statoil (NYSE:STO) -- Norway
  • PetroChina (NYSE:PTR) -- China
  • PetroBra (NYSE:PBR) -- Brazil
  • Sasol (NYSE:SSL) -- South Africa
  • Lukoil (OTCPK:LUKOY) -- Russia

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From these data, we think the general picture is pretty good.

Based on the following total return, best and worst periods, volatility and dividend growth rate data, the three largest US integrated companies appear to be the most conservative choices.

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Here is a view of those 12 stocks versus the S&P 500 (proxy SPY) and the BarCap US Aggregate Bond index (proxy BND) over the intermediate-term.

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Prior Articles In this Series: Crunching the Data: Tech Stocks

Disclosure: We hold SPY, CVX, COP, RDSA, and TOT in some but not all managed accounts as of the publication date of this article.

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