If you are investing for a while, you are likely to read about keeping a balanced wallet. But sometimes it is difficult to know the benefits of diversification unless you have faced it directly.
Earlier this year, many growth shares are linked during valuable shares Berkshire Hathaway to coca colaIt rose with investors agreeing to the companies that can be relied upon regardless of what the economy is doing.
On Friday, the broader indexes decreased due to the burning tensions in the Middle East. But oil prices rose, and in turn, stock prices did for many defense and oil and gas companies.
Although trading inside and outside the stocks based on the factors close to the range is never a good idea, it may be wise to include higher oil stocks in a balanced portfolio, especially for the generation of negative income, as many oil shares leak from high returns.
That is why ExxonmobilIand Conocophillips(NYSE: COP)And (NYSE: KMI) It stands out that it is from the top Energy shares To buy in the second half of 2025.
Photo source: Getty Images.
Even after filming 7.7 % last week, there are many reasons why Exxonmobil is still one of the best total purchases in the oil correction.
Exxonmobil continues to reduce the costs of their production and operation by investing in high -quality plays, or what you call “assets advantages”. These assets are found in areas where Exxonmobil has competitive advantages or where there are factors that make it easier to produce oil and gas on a large scale.
For example, one of the advantages was created is the pump pelvis, the largest oil play in the United States in the United States already established in the region, but it expanded greatly from its location when it bought the leading natural resources in 2024. Permian has a lot of existing infrastructure, access to resources such as water, and other factors that make it easy to produce somewhat.
Other assets that have been invested are Guyana. Unlike Permian, Guyana is an external play, where long -term projects and years of investment lead to low -cost oil production. Such projects are the reason that Exxonmobil believes they can Reduce the tie number To $ 35 a barrel of crude oil by 2027 and $ 30 a barrel by 2030. Brent crude prices jumped more than 7 % on Friday to about 74 dollars a barrel – giving Exxonmobil a big margin for a mistake in achieving profit even when prices are not high.
Exxonmobil also has huge dedication and marketing business, which encourages their spending on low -carbon investments, such as capturing and storing carbon. These Exxonmobil investments can diversify the flow of revenues and benefit from industries that can provide better growth in the long term of oil and gas as countries and companies follow environmental targets.
Throwing in 42 consecutive years of profit increase, 3.5 % profit distributions, and only 14.9 of price to profits (P/E), and it is easy to know why Exxonmobil is the balanced energy stockpile of purchase in the second half of 2025.
Conocophillips is one of the largest exploration and production companies in the United States (E&P), which means that it does not contain large products solutions or large chemical products.
Like Exxonmobil, Conocophillips was in the field of integration and acquisition in recent years, and the purchase of E&P Concho Resources in January 2021 at a cheap price of dirt during the process of declining industry caused by the epidemic, and then, it remains recently, buying it, and he is buying recently, and he buys, and he buys, and he buys, and he remains a lot, which is what He remains on him, which is, both, and he buys, which is, the public budget, and betting on its best ideas.
In the last quarter, Conocophillips produced 2.389 million barrels of the equivalent of oil per day (BOE/D), and 1.462 million of them were in less than 48 (with the exception of the United States with the exception of Alaska and Hawaii). The majority of the 48 company production is less in Permian, with 816,000 BOE/D for a quarter. Conocophillips is the third largest producer of the United States behind Exxonmobil only and Chevron.
Despite a variety of production portfolio, Conocophillones still generate very impressive margins. In the first quarter, the company realized $ 53.34 from the oil equivalent price. However, GOBS still generates free cash flow and profits, with $ 2.09 in the profits of one share and $ 5.5 billion in cash from operations. Conocophillips generates a lot of profits and cash flows to pay its regular profits of $ 0.78, or $ 3.12 annually, which amounted to 3.2 %.
In fact, Conocophillips is so profitable that it can afford to purchase shares at a superpower. Arrows re -purchases are an essential part of the company’s capital return strategy. Within three years, Conocophillips plans to compensate for almost equivalent shares to acquire all-Stock of Marathon Oil. For several quarters now, Conocophillones have spent more re -purchases than shares, which can do it again due to the cash flow.
Conocophillips is the E&P company that it runs very well does a great job in managing its big business without bearing a lot of risks and endangering its financial health. It can be said that the best E&P is better for investors to buy and keep long -term while continuing to collect a continuous flow of negative income.
Kinder Morgan does not produce or polish oil and gas. Instead, they operate in the middle part of the oil and gas chain with pipelines and energy infrastructure assets such as storage facilities, gas treatment plants, stations, and recently renewed natural gas production facilities. RNG consists of wastewater, dairy fertilizer, food waste, or dump gas instead of natural gas extracted from the ground.
For years, Kinder Morgan was constantly disappointing stock. Its profits were reduced by 75 % in December 2015 due to the shrinkage of oil and gas. She gradually building reserve profits, pushed debts and improved free cash flow. But the company has struggled to justify spending on intense capacity infrastructure projects because local natural gas consumption is not expected to grow in the long run.
Some factors have changed the Kinder Morgan investment thesis, making it more tempting for the company to invest the capital in new projects. The first is the opportunity to export natural gas abroad by cooling and intensify it in liquid – known as LNG (LNG). Russia’s invasion of Ukraine is the acceleration of European attention in liquefied natural gas, and energy -dependent countries such as Japan, South Korea and China are senior buyers of LNG.
The second factor is the opportunity to invest in the assets of energy -low -carbon fuel infrastructure, such as RNG and hydrogen. The third factor is the expected need for more strength due to the functioning of artificial intelligence. Kinder Morgan has many medium -term expansion projects to support the growing demand for natural gas.
Kinder Morgan has a clear runway for the development of FCF, and thus its profits, which currently give 4.2 %.
Exxonmobil, Conocophillips and Kinder Morgan offers three different ways to enhance negative income through investment in the energy sector.
Exxonmobil is a trusted distribution share with a flawless busy record to enhance its batches. Conocophillips has the largest bullish capabilities of high oil prices, but also has a highly efficient asset base that can generate stable FCF even at weaker oil prices. Kinder Morgan is a good bet if you think natural gas will continue to play an important role in the power mix.
Add everything, Exxonmobil, Conocophillips, and Kinder Morgan are three great purchases for the second half of 2025 to enhance the negative income flow.
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*The stock consultant dates back from June 9, 2025
Daniel Fileber He has no position in any of the mentioned stocks. Motley Fool has positions in Berkshire Hathaway, Chevron, and Kinder Morgan. Motley deception has Disclosure.
