The average American will receive a tax refund of $ 3,138. This is a big unexpected for most people. They could use this money for good holiday, pay part of their debt or invest in the future.
One of the places you can consider investing your tax return is the oil patch. While the sector can be volatile, there are a few great Petroleum consider buying these days. Total energy(NYSE: TTE), ExxonmobilANDand Chevron(NYSE: CVX) You excel in some contributors to Fool.com as the best ones who can buy right now because they have fuel to potentially increase the tax return to a much larger future unexpected.
Reuben Gregg Brewer (Totaalenergies): One of the long -term trend that investors must face in the energy sector is the growing use of pure energy. This does not mean that oil and natural gas are leaving; This is far from the case, because it seems that the approach of “all of the above” is the way forward. However, there was a great growth in the energy sector in areas such as solar and wind. What should an investor do with a dichotomy among slow -growing carbon fuels and faster increasing renewable energy? Punt with totalmergies.
Totalenergies is one of the largest integrated energy companies on the planet. It will continue to supply the world of carbon fuel that it needs if it is convenient. Unlike most of their integrated energy peers, however, Totalenergies committed themselves to pure energy possibilities through the integrated performance division.
In 2024, this company increased by 17%. It is difficult to compare integrated energy with oil and gas operations of totallergies that all reduced in 2024, as commodities are quite volatile. The real way is that management is now preparing for the future in which cleaner energy sources have a more important role in the global energy landscape.
This is important because it means that you can comfortably own your own and collect its 5.8% dividend yield without worrying that energy transition leaves you behind. Even better, carbon fuel gains effectively drive the trading shift of Totalenergies. So today you benefit from carbon fuels and use the same profits to benefit from what will probably be the future with pure energy.
Matt dilallo (Exxonmobil): Exxonmobil is an indisputable leader in the oil patch. Last year, the company earned $ 34 billion for profit and $ 55 billion from operations from operations. This meant his third best year in ten years and led All international oil companies (IOC).
Even more impressive is how fast it grows. Over the past five years, EXXON has increased its earnings at about 30% of the analized rate and at the same time increased its cash flow at 15% of an annual pace. It was not just his group of peers; it grew nearly four times faster than the leadership of industrial companies with large capital in S&P 500.
The keys to the success of exxon shrinks to two factors: savings of structural costs and investment in a high return. Since 2019, Exxon has reduced its structural costs by more than $ 12 billion by simplifying business processes, optimizing supply chains and modernizing its technology. Meanwhile, the company has invested a significant amount in expanding its best assets that generate high A return of employed capital (13% last year and 11% on average in the last five years).
Exxon plans to continue to carry out its strategy in the coming years. By 2030, the company estimates that it can add $ 20 billion and $ 30 billion to cash flow.
He also expects to capture another $ 7 billion for cost savings over the next six years. In addition, it plans to invest about $ 140 billion in large projects and its Permian River Basin Development Program to support the growth of earnings. This outlook will place the company to produce a cumulative excess free cash flow of $ 165 billion to continue to increase its dividend (42 equal years) and bought supplies back.
Exxonmobil has brought the main returns over the past five years. It seems that since growth is still ahead of us in the future.
Wouldn't call(Chevron): Chevron is one of the largest oil and gas companies in the world, and the second largest public energy shares in the US are also one of the best dividend oil supplies and is on a solid basis right now after delivering record production and returning in cash in 2024.
Chevron expects to reduce costs by 2 billion to $ 3 billion by 2026, and according to Reuters, it is reportedly intended to reduce its global labor force by up to 20%. The company also strengthens all its businesses to two wide segments: (1) upstream and downstream and (2) medium and chemicals. The management believes that the reorganization will improve efficiency and bring more value to its shareholders.
However, the largest catalyst would be an acquisition Hess. Chevron agreed to receive a $ 53 billion in the All-Stock agreement to access its massive oil project in Guyana, but the arbitration proceedings stopped the agreement. However, Chevron is convinced that the acquisition will pass now that he cleans the antitrust review of the Federal Commission.
Even without Hess, Chevron expects the growth of his free cash flow (FCF) an average annual rate of at least 10% by 2026, which should also support larger dividends. The size of Chevron, the growth potential and the 37 -year record of the increase in dividends make it one of the Right now you need to buy little oil stores.
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