Earnings from Oil and Gas Are Going Down. Here Are Top 5 Companies To Invest In. 

May 04, 2023

Earnings from Oil and Gas Are Going Down. Here Are Top 5 Companies To Invest In.

Several oil and gas businesses reported record profitability in 2022, but 2023 seems more difficult.

Oil remains somewhat expensive at roughly $80 per barrel, although it had fallen significantly from its peaks – when prices reached their highest level since 2014. Natural gas prices have plummeted much more.

Oil and gas companies have strong balance sheets, but profits are anticipated to shrink. When profits are declining, it is difficult for stock values to grow.

That is why it is worth looking at the few companies with rising profits. Only five energy businesses with market capitalizations bigger than $2 billion in the SPDR S&P Oil & Gas Exploration & Production ETF are predicted to raise profits this year.

Earnings from Oil and Gas Are Going Down

Sitio Royalties (STR) is unlike other industry firms. While it owns oil and gas royalties, it rents its mineral properties for drilling to other exploration and production firms. 

Most of its royalty holdings are in the Permian Basin, located in West Texas and New Mexico and the fastest-growing location for US production. Sitio committed more acres than ever in 2022, which will almost certainly contribute to higher profits this year.

Northern Oil & Gas (NOG) is a Minneapolis-based corporation that buys minority holdings in oil projects that other companies typically operate. Gains from hedging and new projects like Mascot in Texas are anticipated to pay off this year.

Ovintiv (OVV), located in Denver, has been busy acquiring additional drilling sites this year, agreeing last month to purchase 65,000 acres in Texas for $4.275 billion. 

“We believe the transactions provide Ovintiv with a significantly improved asset runway, alleviating any inventory concerns,” Truist analyst Neal Dingmann said. 

Permian Resources (PR) in Midland, Texas, stunned Wall Street by producing more oil than predicted in the fourth quarter, despite other oil firms having grown output slowly, if at all. 

“A significant improvement in commodity prices, combined with improved capital efficiency, positions Permian Resources to generate significant free cash flow through 2025,” said TD Cowen analyst Gabe Daoud last month, boosting his rating to Outperform. 

Nonetheless, the firm has its detractors. According to Gerdes Energy, it has one of the highest levels of short interest in the sector, with 11% of its shares sold short as of March 31.

Kosmos Energy (KOS), located in Dallas, said in February that it plans to increase output by 50% over the following year. And it is moving its focus to natural gas when US gas exports are increasing. 

“Longer term, we plan to continue shifting the balance of our portfolio from oil to natural gas, and LNG to help meet the world’s energy needs as cleaner natural gas displaces coal, heavy fuel oil, and biomass as a primary source of energy in both developed and emerging economies,” CEO Andrew Inglis said during the company’s most recent earnings call.

Subscribe Our Newsletter

Think the Federal Reserve Is Already Tightening? Not So Fast
Think the Federal Reserve Is Already Tightening? Not So Fast

Finally, what is not appreciated is that a true tightening of liquidity in 2022 might result from an outright decrease of the central bank's balance sheet. That is not on the market's radar, but Fed watchers in the know are discussing it.

Banks and Finance
The Fed's Stance: No Fed Rate Cuts in March

Nato

Fed Rate Cuts Aren’t Happening Anytime Soon

The Federal Reserve's decision to hold interest rates steady dampens hopes of rate cuts in March.

Banks and Finance
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Alexander

The Best Crypto Wallets of 2022: Top 5 Picks
2022 was a tough year for the crypto industry as the crypto winter and bear markets took their toll. After the collapse of huge and well-known crypto projects like the FTX exchange and the subsequent distrust of centralized exchanges, investors looked for alternative ways to store and manage their crypto assets.

discover
Why "Skip the Latte" And "Cancel Netflix" Is Bad

Alexander

Why “Skip the Latte” is Poor Financial Advice

When it comes to personal finance advice, one of the most commonly heard suggestions is to "skip the latte" and save money instead. This concept, popularised by financial author David Bach, is known as "The Latte Factor." 

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.