The 3 Best Oil & Gas Stocks to Buy in April 2024


  • With crude oil prices likely to hit $100, it’s a good time to consider the best oil and gas stocks to buy in April.  
  • Occidental Petroleum (OXY): This favorite of Warren Buffett is entering the buy zone again.  
  • Chevron (CVX): The growth in CVX stock lags behind the oil market, but it has the fundamentals to catch up. 
  • Schlumberger (SLB): An undervalued picks-and-shovels way to play the oil and gas market.  
best oil and gas stocks to buy in April - The 3 Best Oil & Gas Stocks to Buy in April 2024

Source: Oil and Gas Photographer /

Currently, crude oil is trading for over $85 a barrel. That’s a 7% gain since March 1 and a 22% gain in 2024. Those gains are mirrored in the Energy Select Sector SPDR ETF (NYSEARCA:XLE), which has been up 16% since mid-February. And many industry analysts forecast it won’t be long before we see $100 a barrel for oil. That’s why it’s time to look at the best oil and gas stocks to buy in April.  

For investors in this sector, the rally in oil prices is a better late than never moment. Many investors have been piling into oil and gas stocks since 2023, expecting higher oil prices. The oil price rallied in the summer of 2023, but the gains didn’t hold.  

But this rally may have legs. The ISM Manufacturing Data in March rose unexpectedly, and the job market remains strong despite stubbornly high inflation and interest rates above 5%. That’s not historically high but generationally high after nearly 15 years of near-zero interest rates.  

Yet, the Federal Reserve seems committed to cutting interest rates sometime in 2024. That’s making it a good time to consider cyclical stocks. And even if those cuts happen later than expected, you’ll want to be invested in the best oil and gas stocks to buy in April before the price spikes. 

Occidental Petroleum (OXY) 

Occidental Petroleum (OXY) Company logo seen displayed on smart phone
Source: IgorGolovniov /

You could look at several “big oil” stocks to put on a list of the best oil and gas stocks to buy in April. But many of those, like ExxonMobil (NYSE:XOM), are trading above $100, which may be too expensive for some investors’ tastes. On the other hand, Occidental Petroleum (NYSE:OXY) is trading at around $67 per share as of this writing, and after breaking above a resistance level, it has room to move higher. 

OXY stock also supports Warren Buffett, whose hedge fund, Berkshire Hathaway (NYSE:BRK.B), owns approximately 28% of the company. Buffett has been buying the stock at a level around $58.  

Since first taking a position in the stock in 2020, Buffett has expressed his belief in the company’s chief executive officer (CEO), Vicki Hollub, who realigns the company’s balance sheet in favor of shareholders. One example is that Occidental is aggressively raising its dividend, which it slashed in 2020. 

Chevron (CVX) 

CVX stock
Source: tishomir /

Chevron (NYSE:CVX) is another Buffett favorite in the oil sector. CVX and OXY were Berkshire’s only buys in the fourth quarter of 2023. Chevron has many of the attributes that Buffett loves, including a solid history of share buybacks and growing dividends to go along with strong free cash flow. 

However, CVX stock has lagged behind the XLE and is up just 7% in 2024. Investors hate uncertainty, and there is uncertainty about whether regulators will approve the company’s proposed acquisition of Hess (NYSE:HES), a move that ExxonMobil is also challenging. However, Hess shareholders have approved the deal, which takes away one bit of uncertainty. 

The deal would benefit CVX shareholders by enhancing the company’s portfolio while increasing production and free cash flow, which would also mean higher dividend growth per share and more share buybacks.  

But even if the deal remains delayed, Chevron has continued to deliver solid earnings with oil in the $70 range and below. With oil now likely above $85 a barrel, investors will be taking a closer look at this undervalued stock.  

Schlumberger (SLB) 

slb stock
Source: Valentin Martynov /

Schlumberger (NYSE:SLB) is an international oilfield services company at a time when oil drilling is going to increase. And with oil approaching $90 a barrel, the economics say this drilling will happen sooner rather than later, especially in an election year.  

And when that drilling starts, it’s good to know that Schlumberger is also the world’s largest offshore drilling company. This is significant because companies will likely use this technique as oil production ramps. After all, it is less carbon-intensive than traditional onshore drilling. This is already happening in Saudi Arabia, where Schlumberger expects significant growth in 2024 despite OPEC’s pledge to cut production.  

Schlumberger trades at just 15x forward earnings and is projecting over 18% earnings growth in 2024. Analysts have a consensus price target of $68.08 on SLB stock, which is 25% higher than the price as of April 3, 2024. Plus, 25 out of 33 analysts give the stock a Strong Buy rating.  

On the date of publication, Chris Markoch had a LONG position in CVX. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

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