The oil and gas industry spans several distinct businesses. Some companies focus on exploration and production, while others operate pipelines, storage facilities, refineries or oilfield services. Crude oil and natural gas prices are shaped by supply and demand, geopolitical events, transport security and energy policy, so stocks can perform very differently depending on where a company sits in the value chain. The companies below cover upstream production, integrated energy, midstream infrastructure and oilfield services. Market data is based on prices around the close on October 16, 2021, with quotes delayed by 15 minutes.
Eight companies across the oil and gas chain
Texas Pacific Land Trust (NYSE: TPL), founded in 1888, is one of the largest landholders in Texas. Its revenue comes from oil and gas royalties, easements, commercial leases, material sales and land sales. The company also provides water access, water treatment, infrastructure construction, wastewater disposal and water-monitoring services. Company materials put its market capitalization at about $3.9 billion, with EPS of $25.83 and annual dividends of $10 per share. Average daily trading volume exceeded 32,500 shares, while 2019 revenue was $490 million. The stock closed at $350.92 on October 16, up $4.40, or 1.27%. The market-data page listed a market capitalization of $24.141 billion, showing a substantial difference from the figure in the company materials.
TotalEnergies (NYSE: TTE) is an integrated energy company involved in exploration, production and refining worldwide. In 2020, it produced an average of 1.5 million barrels of liquids per day and 7.2 billion cubic feet of natural gas per day. At the end of that year, proved reserves stood at 12.3 billion barrels of oil equivalent, with liquids accounting for 43%. Its refineries had total capacity of nearly 2 million barrels per day, concentrated mainly in Europe, while refined products were sold in 65 countries. The company also produces commodity and specialty chemicals and holds a 19% interest in Russian oil and gas company Novatek. TotalEnergies closed at $91.34 on October 16, up 3.22%, with a market capitalization of about $201.257 billion.
EOG Resources (NYSE: EOG) produces oil and gas in several U.S. shale regions, including the Permian Basin, Eagle Ford and Bakken. At the end of 2020, the company had 3.2 billion barrels of oil equivalent in net proved reserves. Average production that year was 754,000 barrels of oil equivalent per day, comprising 72% oil and natural gas liquids and 28% natural gas. The shares closed at $158.01 on October 16, up 3.53%, on volume of about 5.3 million shares. The market-data page showed a market capitalization of $84.818 billion.
Baker Hughes (NASDAQ: BKR) took its current form after Baker Hughes and GE Oil & Gas combined in 2017. Its history stretches back more than a century, and its business provides oilfield services across the upstream and downstream segments. The stock closed at $55.70 on October 16, up 2.39%, with a market capitalization of about $55.469 billion and trading volume of roughly 6.023 million shares.
Africa Oil Corp. is an international oil and gas exploration company still at the exploration stage. Its projects are located in emerging markets in sub-Saharan Africa, with a focus on Kenya and Ethiopia. The available market data did not include the company’s opening and closing prices, trading volume, market capitalization or 52-week range, so it cannot be compared directly with the other companies on those measures.
Devon Energy (NYSE: DVN), headquartered in Oklahoma City, is one of North America’s larger independent oil and gas exploration and production companies. Its assets are spread across several U.S. onshore regions, including the Delaware Basin, STACK, Eagle Ford, Powder River Basin and Bakken. The company reported proved reserves of 1.6 billion barrels of oil equivalent at the end of 2021 and full-year net production of 572,000 barrels of oil equivalent per day, with oil and natural gas liquids representing 74%. The stock closed at $50.73, up 3.03%, with a market capitalization of about $58.389 billion.
Enbridge (NYSE: ENB) owns midstream transportation assets across the United States and Canada, including the Canadian Mainline system, oil sands pipelines and natural gas pipelines. It also operates regulated natural gas utilities and Canada’s largest natural gas distribution business. Its renewable-energy portfolio is smaller and is focused mainly on onshore and offshore wind power. Enbridge closed at $48.10 on October 16, up 2.71%, with a market capitalization of about $107.384 billion.
Enterprise Products Partners (NYSE: EPD) is a master limited partnership that transports and processes natural gas, natural gas liquids, crude oil, refined products and petrochemicals. Its operations extend across most producing regions in the lower 48 U.S. states. The company has a significant position in natural gas liquids and provides midstream services spanning the broader hydrocarbon value chain. The stock closed at $36.82, up 3.51%, with a market capitalization of about $79.577 billion.
Upstream, midstream and downstream companies earn money differently
Upstream companies find, drill for and produce oil and gas. Their revenue is directly exposed to production volumes and commodity prices, while drilling, hydraulic fracturing and related equipment require substantial investment. As a result, debt levels and capital-spending commitments can be important sources of pressure.
Midstream businesses generally transport, process and store hydrocarbons. Pipelines, tankers and storage facilities connect producers with refineries, and revenue is often linked to infrastructure utilization and contractual arrangements rather than short-term commodity prices alone.
Downstream companies refine and market crude oil, turning it into products such as gasoline, motor oil and heating oil. Some large energy companies operate across all three segments, leaving them exposed to OPEC policy, regional conflicts, transport conditions and changes in end-user demand. Seasonal factors, including summer travel, can also affect refined-product markets.
Cash, debt and dividends remain key measures
Oil and gas companies generally require substantial capital expenditure, particularly in the upstream segment. Debt, cash reserves and the pace of project spending affect how well a company can withstand falling prices or a sudden slowdown in demand. A high dividend does not necessarily translate into stable cash returns: companies may reassess distributions when commodity prices fluctuate, infrastructure requirements change or the energy mix shifts.
Cash reserves also determine whether a company can continue exploration, maintain production facilities and carry out planned capital projects. Climate policy, environmental regulation and changing safety standards may raise costs or delay development. Investors using brokers to trade oil and gas stocks must also consider trading fees, account requirements and product availability. The platforms listed in the materials include Interactive Brokers, Plus500, Public, Robinhood and TradeZero. Their offerings differ in areas such as active trading, leveraged trading, mobile trading and short selling, and the applicable fees and product conditions depend on each platform’s disclosures.
Geopolitics and the energy transition shape valuations
Geopolitical developments are a major variable for oil and gas markets. Changes in producer-country policy, changes of government, protests, refinery outages and transport disruptions can alter supply expectations and feed through to crude oil and natural gas prices, affecting company revenue. Health and safety incidents may also result in production stoppages, regulatory reviews and additional compliance costs.
Over the longer term, the global energy mix is becoming more diversified, requiring companies to address climate policy, carbon-emissions requirements and competition from renewable energy. The risks facing a diversified company with strong cash flow or flexible capital allocation may differ materially from those facing a single-segment upstream producer. The share prices and operating figures above reflect specific points in time and should be assessed alongside companies’ latest financial statements, debt levels, reserve changes and regulatory conditions.