: This midstream operator manages pipelines and storage. As drilling activity picks up, the demand for transporting that oil increases. Magellan currently offers a high dividend yield of over 4% and maintains strong operating margins.
For investors, the key is identifying which companies have the operational efficiency and asset quality to thrive even if prices remain volatile. 1. The Large-Cap "Safe Havens" oil drilling stocks to buy 2017
: Another Permian powerhouse, Pioneer is forecasting production growth of 15%–17% in 2017. Their strategy involves selling off lower-performing assets to focus on high-yield "core" acreage. 3. Oilfield Services & Midstream : This midstream operator manages pipelines and storage
: BP offers one of the highest dividend yields in the industry, often exceeding 6%. With earnings expected to surge as the industry recovers, it is a top pick for those seeking yield. 2. High-Growth Shale Drillers For investors, the key is identifying which companies
: Focused almost exclusively on the prolific Permian Basin, Diamondback is one of the fastest-growing producers in the sector. Recent acquisitions have set them up for triple-digit production increases in the coming years.
: Many analysts favor Chevron over its peers because it is more highly leveraged to rising crude prices. The company reached a critical milestone in late 2016: at $52 per barrel, its operations are now cash-flow positive, meaning it can fund its dividend and growth entirely from its own pockets.