Energy companies have not been the greatest investments over the last several years. Plunging price realizations have hurt oil companies' upstream results across the board. Levered upstream companies in the U.S. shale oil and gas patch have been hurt particularly badly. This company's shares have risen ~14 percent year-to-date. Stabilizing energy prices should support its upstream results moving forward. I continue to see more upside. An investment yields ~7 percent.
Integrated oil companies like BP (NYSE:BP), ExxonMobil (NYSE:XOM), or Chevron Corp. (NYSE:CVX) have done much better than oil companies that have been more heavily exposed to the upstream sector - think ConocoPhillips (NYSE:COP) -, but they have nonetheless been terrible investments as well. However, big oil companies have started to rebound in 2016, and quite significantly, too. Take a look at BP, for instance, whose shares have risen ~14 percent since January. BP is by far not the only company that has seen an uptick in investor interest after oil prices bottomed out in the 1st quarter of this year. Most big oil companies have profited from a rebound in investor optimism that went hand in hand with stabilizing crude oil prices. The bottom surely is in, don't you think?
Source: Seeking Alpha
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I think with Trump coming in I think green energy stocks may lose favor while traditional oil companies rebound. I also think that Keystone XL will probably get passed which will allow oil to stay competitive in the US for the foreseeable future.