Rapidly Growing Crude Oil Stocks

1. Hoegh LNG Partners (HMLP)

Headquartered in Norway, Hoegh LNG Partners provides floating natural gas services to major clients and the oil sector in the North Sea and other regions. The company primarily focuses on owning and operating storage and regasification units in the North Sea and other areas, with a substantial fleet of natural gas and oil transportation vessels. With a per-share earnings growth rate of 67.34%, it's one of the fastest-growing companies in the industry.

2. Vermilion Energy Corp. (VET)

Vermilion Energy Corp. is a rapidly growing international crude oil producer with involvement in the natural gas sector as well. Its operations span from exploration, acquisition, and development to production, primarily concentrated in North America, Australia, and Europe. Hence, its diversified asset base and economic growth in these regions are expected to boost earnings per share. As of March 2022, the company reported earnings per share of $1.66, marking a 705.09% year-over-year growth. The company also boasts a fast profit growth rate at 92.22% annually, compared to the U.S. oil and gas exploration and production industry's average of 26.27%.

3. Valero Energy Corp. (VLO)

Valero Energy Corp. is a prominent rapidly growing company in this list, functioning as a refiner of petroleum and ethanol, operating in locations such as Canada, the United States, and Aruba, producing gasoline, distillates, jet fuel, asphalt, petrochemicals, diesel fuel, among others. Investing in Valero allows investors to participate in the oil market without necessarily facing the inherent risks of investing with smaller companies.

Crude Oil Stocks with Value

1. Murphy Oil Corp. (MUR)

Murphy Oil Corp. is a significant oil and gas exploration company with producing crude oil and natural gas assets, along with refineries and retail operations in certain areas of the United States. As the global economy recovers from the impacts of the pandemic, the company is poised to be one of the beneficiaries of the anticipated high demand for crude oil. With a market capitalization of $6.5 billion and a trailing twelve months price-to-earnings ratio of 49.71, it presents a robust value investment.

2. Cheniere Energy Inc. (LNG)

Cheniere Energy Inc. is a longstanding player in liquefied natural gas, and with some European countries seeking to reduce their reliance on Russian natural gas supply, the company also holds crude oil stakes, allowing traders to leverage the benefits of liquefied natural gas while being exposed to the crude oil market.

3. ConocoPhillips (COP)

ConocoPhillips is a massive company covering the entire spectrum from crude oil and natural gas to other petroleum products, engaged in oil exploration, production, processing, refining, and marketing. With a market capitalization of $132.42 billion and a trailing twelve months price-to-earnings ratio of 16.1, ConocoPhillips should be one of the biggest winners during rapid economic expansions.

Top Momentum Crude Oil Stocks

1. EQT Corp. (EQT)

EQT Corp. might be a regional company you're not familiar with, having just struck a deal with Chevron to acquire and provide upstream and midstream assets in Appalachia. The company focuses on production, gathering, and transportation of natural gas in the Appalachia region, along with exploration of crude oil and natural gas liquids. With a recent $1 billion stock buyback program, earnings per share are expected to increase. EQT's market capitalization stands at $15.83 billion, with a trailing twelve months total return of 85.87%.

2. Coterra Energy Inc. (CTRA)

This company is a result of the $17 billion merger between Cabot Oil & Gas Corporation and Cimarex Energy Co. The merger received approval from both companies' shareholders, exceeding 90%. Coterra Energy operates in the oil and gas business in the Marcellus Shale, Permian Basin, and Anadarko Basin. With expectations of increased exploration for crude oil during economic expansions, Coterra Energy may continue to attract significant inflows of capital. With a market capitalization of $23.4 billion and a trailing twelve months return of 52.02%, it demonstrates exceptional performance among its peers.

3. Antero Midstream Corp. (AM)

Antero Midstream Corp. owns, operates, and develops midstream energy assets, making it essential to the energy industry, operating pipelines and compressor stations, as well as water distribution and fractionation. Pipeline safety is also a significant source of revenue. With a market capitalization of $5.4 billion and a trailing twelve months return of 30.34%, it maintains solid momentum.

Why Invest in Crude Oil Stocks?

If you're looking to trade in a closely watched sector, the crude oil industry is an excellent starting point. The oil market has been striving to recover to pre-pandemic demand levels. The current environment indicates rapid changes in the crude oil market and supply-demand dynamics.

In recent years, we've witnessed massive sell-offs of oil assets, primarily due to lackluster economic growth. This means that the oil market, and consequently oil stocks, offer an excellent way to benefit from any potential economic recovery. This recovery momentum is something that has been happening globally since the large-scale financial crisis and more recently with the Covid pandemic. The better the global economic outlook, the better your oil company investment portfolio performs.

Precautions Before Investing

There are many intersecting factors in oil stocks to be aware of. Firstly, the most obvious to watch for is whether there is global growth. If there isn't robust global economic growth, oil is likely to be one of the first things affected, as it is used in many parts of the global supply chain. In other words, if we're trading and there's economic growth, then ships, trains, and tankers all need fuel to transport goods domestically and across the world.

It's worth noting that there are various points, from extraction to marketing and covering the entire spectrum of companies, which may be the best way to balance an energy investment portfolio. If you can't conduct fundamental research, there are also ETF products to consider.

There's concern about the world needing to move away from fossil fuels, but the reality is quite different from the often-exaggerated claims. It will be decades before everyone is driving electric cars. Not to mention, oil is still used in power plants and provides electricity to much of the world. With these facts in mind, it's evident that oil is crucial to the entire economic process.