I don’t buy into the “peak oil” theory that we are going to run out of oil. Solar and wind are proven failures as far as powering anything much of substance. The world will always run on oil.
You have several choices in this arena. ConocoPhillips (NYSE:COP) had $4.3 billion in cash flow in the TTM, against only $700 million in interest and $21 billion in debt. Exxon Mobil (NYSE:XOM) generated a whopping $22 billion in free cash flow against a tiny $327 million in interest, and $7.9 billion in debt. Chevron (NYSE:CVX) produced $8 billion in cash flow against only $12 billion in debt. And none of this mentions the billions of cash these companies have on their balance sheets.
Each stocks also offers steady, growing dividends. Chevron pays 3.4%, Conoco yields 4.5% and Exxon pays 2.9%. I personally think that while Exxon Mobil is the lowest-yielding of the trio, it’s also the best-positioned, and would buy that.