Is it good to invest in oil stocks?

The world is slowly moving away from fossil fuels toward green alternatives, but that transition will take decades. For the foreseeable future, oil stocks remain an attractive way to invest in the overall health of the global economy because so much of what we do -- from transportation to industry to petrochemicals -- relies on oil.

What oil stocks did Warren Buffett buy?

Buffett owned several energy stocks throughout his tenure at Berkshire Hathaway (NYSE:BRKB), but he is best known for the company's large stakes in Occidental Petroleum (NYSE:OXY) and Chevron.

What oil stocks pay a dividend?

Most oil companies pay dividends. Oil giants like ExxonMobil and Chevron have a long history of steadily raising their dividends. Investors looking for dividends should also consider pipeline companies such as Enbridge. Many pipeline companies are master limited partnerships, a structure designed to pass income through to investors as distributions.

What is the market capitalization of oil stocks?

The largest oil stock by market capitalization is Saudi Aramco, valued at $1.7 trillion, followed by ExxonMobil ($675 billion) and Chevron ($401 billion). The top five oil stocks alone account for almost $3.3 trillion in market capitalization in August 2026.

7 Best Oil Stocks for 2026 and How to Invest

By Matthew DiLallo – Updated Aug 25, 2026 at 12:41 PM EST | Fact-checked by Frank Bass

Key Points

ConocoPhillips has a leading low-cost oil portfolio, enhancing its ability to generate cash and return it to shareholders.
Devon Energy's recent merger will boost its production and profits.
Enbridge delivers stable cash flow from regulated pipeline operations, supporting a strong and steadily rising dividend.

Oil stocks are publicly traded companies focused on the oil market. These companies do more than drill. The industry includes upstream producers that extract oil from the ground, downstream refiners that turn crude into gasoline and jet fuel, and midstream pipeline companies that move energy and collect toll-like fees. That diversity matters because each part of the oil value chain wins and loses in different environments.

If you want exposure to oil, the goal shouldn’t be “pick the stock that benefits most if oil spikes.” It should be about owning businesses that can survive down cycles and still reward shareholders. Here's a look at seven top oil stocks poised to more than survive downturns, while thriving during strong oil markets.

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An oil rig at sunset. — Image source: Getty Images.

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7 top oil stocks for 2026

There are over 100 publicly traded oil and gas companies. They include:

Exploration and production (E&P) stocks: These are the companies that find and extract hydrocarbons.
Oilfield services stocks: Companies that provide support, equipment, and services to oil and gas exploration and production companies. Services include drilling, seismic testing, well maintenance, and equipment manufacturing.
Refining stocks: These companies process crude oil into refined products such as gasoline, diesel, and jet fuel.
Energy midstream companies and master limited partnerships (MLPs): Midstream companies own and operate energy infrastructure assets, such as pipelines, storage facilities, and processing plants.
Integrated oil company stocks: These are companies that operate across the entire oil and gas value chain, including exploration, production, transportation, refining, and marketing the finished product.

Here are seven of the best oil stocks to consider buying in 2026.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
ConocoPhillips (NYSE:COP)	$160.2 billion	2.52%	Oil, Gas and Consumable Fuels
Devon Energy (NYSE:DVN)	$53.1 billion	2.16%	Oil, Gas and Consumable Fuels
Enbridge (NYSE:ENB)	$109.4 billion	5.56%	Oil, Gas and Consumable Fuels
ExxonMobil (NYSE:XOM)	$674.6 billion	2.51%	Oil, Gas and Consumable Fuels
Phillips 66 (NYSE:PSX)	$96.5 billion	2.07%	Oil, Gas and Consumable Fuels
Chevron (NYSE:CVX)	$401.3 billion	3.47%	Oil, Gas and Consumable Fuels
EOG Resources (NYSE:EOG)	$78.8 billion	2.72%	Oil, Gas and Consumable Fuels

Data as of Aug 25, 2026. Showing 7 of 7 total entries.

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Let's take a closer look at these oil stocks.

1. ConocoPhillips

NYSE: COP

ConocoPhillips

Today's Change

(-0.68%) $-0.90

Current Price

$132.45

Key Data Points

Market Cap

$160B

Day's Range

$130.17 - $132.77

52wk Range

$85.57 - $135.88

Volume

3.6M

Avg Vol

7.2M

Gross Margin

27.18%

Dividend Yield

2.52%

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ConocoPhillips (COP -0.66%) is one of the largest E&P companies in the world. It has operations in more than a dozen countries across conventional, unconventional (shale), oil sands, and liquefied natural gas (LNG) resources.

ConocoPhillips benefits from scale and access to some of the lowest-cost oil on earth, which includes significant exposure to the Texan Permian Basin. At a breakeven level in the mid-$40s, it can make money in almost any oil market environment, generating significant cash flow.

The company expects its breakeven level to drop into the low-$30s by 2030 as it executes its growth strategy. ConocoPhillips expects to deliver a peer-leading free cash flow improvement of $7 billion by 2029 at $70 oil, driven by major project completions and cost-reduction initiatives, nearly doubling its free cash flow from 2025. That will allow the company to return more cash to shareholders. ConocoPhillips aims to deliver dividend growth in the top 25% of the S&P 500 while also repurchasing a meaningful number of shares.

Finally, the company complements its low-cost portfolio with a top-tier balance sheet. ConocoPhillips routinely boasts one of the highest credit ratings among E&P companies, backed by a low leverage ratio and ample cash. These factors make it one of the safest E&P investments.

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2. Devon Energy

NYSE: DVN

Devon Energy

Today's Change

(-1.98%) $-0.96

Current Price

$47.28

Key Data Points

Market Cap

$53B

Day's Range

$46.84 - $47.55

52wk Range

$31.47 - $52.71

Volume

4.6M

Avg Vol

12.8M

Gross Margin

27.09%

Dividend Yield

2.16%

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Devon Energy (DVN -1.98%) is a U.S.-focused E&P company. It has diversified operations across several low-cost, oil-rich basins. The company's diversification enables it to produce large volumes of low-cost oil and natural gas, generating plenty of cash.

The E&P meaningfully expanded its scale in 2026 through its $21.5 billion all-stock merger with Coterra Energy. The combined company expects to achieve $1 billion in merger synergies by the end of 2027. It also further enhanced its leading Delaware Basin position in 2026 by acquiring 16,300 net acres in a federal lease sale. Devon is also evaluating non-core asset sales to maximize shareholder value.

The now even stronger Devon Energy expects to generate greater free cash flow, enabling it to return additional capital to shareholders. Devon boosted its dividend by 33% after closing the merger and approved an $8 billion repurchase authorization, nearly 15% of its current market capitalization.

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Dividends Per Share

The dividends a company pays out per share and a commonly used per-share metric.

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3. Enbridge

NYSE: ENB

Enbridge

Today's Change

(-0.26%) $-0.13

Current Price

$49.95

Key Data Points

Market Cap

$109B

Day's Range

$49.71 - $50.15

52wk Range

$45.02 - $58.45

Volume

Avg Vol

4.3M

Gross Margin

25.44%

Dividend Yield

5.56%

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Enbridge (ENB -0.25%) operates one of the biggest oil pipeline systems in the world, transporting 30% of the oil produced in North America. Enbridge also has an extensive natural gas pipeline system that moves 20% of the natural gas used in the United States. Additionally, it has the largest natural gas utility franchise in North America by volume, as well as growing renewable energy operations.

Enbridge's pipeline operations generate stable cash flow, backed by long-term contracts and government-regulated rates (which account for more than 98% of its earnings). That gives it the cash to be one of the best high-yield dividend stocks. Enbridge has increased its dividend for 31 consecutive years (in Canadian dollars).

The company is also investing heavily to expand its energy infrastructure operations. It has billions of dollars in expansion projects underway across its four core franchises, which it expects to complete through the early 2030s, with many more under development. These investments should support 5% annual cash flow per share growth after 2026 and a similar dividend growth rate.

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4. ExxonMobil

NYSE: XOM

ExxonMobil

Today's Change

(-1.62%) $-2.65

Current Price

$161.40

Key Data Points

Market Cap

$675B

Day's Range

$160.80 - $162.81

52wk Range

$108.35 - $176.41

Volume

Avg Vol

15.8M

Gross Margin

20.88%

Dividend Yield

2.51%

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As one of the largest oil companies on the planet, ExxonMobil (XOM -1.55%) is a fully integrated supermajor. It operates in every segment of the oil and gas industry, including E&P, midstream, petrochemical manufacturing, refining, and, even further downstream, marketing refined and petroleum products to customers.

ExxonMobil has focused its recent efforts on reducing its costs and boosting efficiency. The oil giant expects to deliver $25 billion in earnings growth and $35 billion in cash flow growth by 2030 at constant prices and margins compared to 2024, implying double-digit annualized growth rates. That positions the oil giant to generate $145 billion in cumulative surplus cash over that period at $65 oil.

This cash flow should continue to protect ExxonMobil's dividend, which it has increased for an industry-leading 43 consecutive years. Exxon also plans to continue buying back shares, with $20 billion of repurchases planned for 2026.

5. Phillips 66

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NYSE: PSX

Phillips 66

Today's Change

(-0.79%) $-1.92

Current Price

$240.04

Key Data Points

Market Cap

$97B

Day's Range

$238.01 - $242.00

52wk Range

$126.74 - $246.95

Volume

917.8K

Avg Vol

2.7M

Gross Margin

7.92%

Dividend Yield

2.07%

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Phillips 66 (PSX -0.83%) is one of the leading oil refining companies, with operations in the U.S. and Europe. It also has investments in midstream operations and in petrochemicals via its CPChem joint venture with Chevron (CVX -1.26%). Its marketing and specialties business distributes refined products and manufactures specialty products, including lubricants.

Thanks to its large-scale, vertically integrated operations, Phillips 66 is among the lowest-cost refiners in the industry. This is the result of its leveraging its integrated midstream network to obtain the lowest-cost crude for refining and petrochemical feedstocks, as well as its investments in projects that give it higher margins on its products. That enables Phillips 66 to generate lots of cash to return to investors. The refiner has increased its dividend every year since its spin-off from ConocoPhillips in 2012, growing it at a 14% compound annual rate. It has also repuchased $27 billion of its stock since the spin-off, more than 35% of its shares outstanding.

Phillips 66 also boasts a strong financial profile, including an investment-grade balance sheet and very manageable debt. It also has lots of cash on hand. Its low debt and high cash reserves mean it has ample capital to invest in expansion projects. In August 2026, Phillips 66 and its partners, Kinder Morgan (KMI +0.53%) and HF Sinclair (DINO -0.98%), approved the Western Gateway Pipeline, a $5 billion system to increase the flow of refined products to Arizona and California.

6. Chevron

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NYSE: CVX

Chevron

Today's Change

(-1.26%) $-2.57

Current Price

$200.52

Key Data Points

Market Cap

$401B

Day's Range

$200.29 - $202.06

52wk Range

$146.49 - $214.71

Volume

4.4M

Avg Vol

8.7M

Gross Margin

18.48%

Dividend Yield

3.47%

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Chevron is a global energy titan that operates across every stage of the oil and gas value chain. Think of it as a massive, vertically integrated machine that finds energy in the ground, moves it across the world, and turns it into the fuel in your car or the plastic in your phone.

Chevron has a strong balance sheet and a record of 39 consecutive years of dividend increases. The company also bought Hess in 2025 to enhance its portfolio, including adding a position in high-growth Guyana.

The oil giant initially expected to deliver an additional $12.5 billion in free cash flow in 2026 at $70 oil, fueled by the Hess deal, major growth capital project completions, and cost-savings initiatives. It's on track to significantly exceed that number due to higher-than-expected oil prices. Meanwhile, Guyana and other catalysts should give Chevron the fuel to grow its free cash flow by more than 10% annually through 2030 at $70 oil. That should enable Chevron to continue growing its high-yielding dividend, which it has done for 39 straight years.

7. EOG Resources

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NYSE: EOG

EOG Resources

Today's Change

(-1.74%) $-2.61

Current Price

$147.60

Key Data Points

Market Cap

$79B

Day's Range

$146.95 - $149.14

52wk Range

$101.59 - $153.67

Volume

1.4M

Avg Vol

3.4M

Gross Margin

43.24%

Dividend Yield

2.72%

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EOG (EOG -1.70%) has been called the "Apple (AAPL -0.40%) of Oil" because of its focus on technology, innovation, and high-margin efficiency. Unlike Chevron, which is a massive integrated company with refineries and gas stations, EOG is an independent E&P company -- a "pure play" focused almost entirely on extracting oil and gas from the ground as cheaply and intelligently as possible.

EOG mostly finds its oil in U.S. shale. The company has some international operations, but its primary focus is on extracting energy from rock formations in the United States. It controls over 12 billion barrels of oil equivalent in resources, with a direct after-tax rate of return of more than 100% at $55 oil.

The company's low-cost, high-return assets enable it to generate lots of cash. EOG Resources can produce $12 billion in cumulative free cash flow through 2028 at $50 oil and double that number at $80 a barrel. That will give it the funds to continue paying its dividend (28 years of stability and growth) and to repurchase shares ($20 billion repurchase authorization approved in 2026).

How to invest in oil stocks

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in oil stocks

Some of the benefits of investing in oil stocks include:

Capitalizing on rising oil prices: Oil stock prices tend to rise with crude prices.
Inflation hedge: Rising oil prices can be a major catalyst for inflation. Investing in oil stocks can help you hedge your portfolio against this risk.
Income: Many oil stocks pay high, steadily rising dividends, making them ideal passive-income investments.

On the other hand, investing in oil stocks isn't without risk, which includes:

Volatility: Energy markets are notoriously cyclical, and oil is highly sensitive to supply-and-demand dynamics. Even a slight imbalance between supply and demand can cause the oil market to go haywire.
Geopolitical issues: Oil prices are highly susceptible to geopolitical risks. International sanctions, wars, and OPEC can all influence oil prices.
Climate change: Environmental concerns are driving increased adoption of lower-carbon energy sources, reducing future oil demand.

Methodology: How these stocks were chosen

As we said at the top, the flow of oil involves many companies operating at different points along the supply chain. We have assembled the "best of the best" here, featuring top candidates in exploration, transportation, and refining.

Oil demand is not going to wane any time soon, but priorities are changing, and not all companies will be winners. We focused on companies well-positioned to weather the ups and downs of the commodity cycle and deliver long-term returns for investors.

Should you invest in oil stocks?

Oil is vital to fueling the global economy. While demand is slowing due to the growing adoption of lower-carbon alternative energy and increased electrification, oil will continue to play a crucial role in driving economic growth. As a result, investors should consider owning some oil stocks. While they'll likely be volatile, they could help fuel higher octane returns over the long run as oil demand rises.

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Investing in oil stocks: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Chevron, and Enbridge. The Motley Fool recommends ConocoPhillips, EOG Resources, and Phillips 66. The Motley Fool has a disclosure policy.

7 Best Oil Stocks for 2026 and How to Invest

Key Points

7 top oil stocks for 2026

1. ConocoPhillips

Key Data Points

2. Devon Energy

Key Data Points

3. Enbridge

Key Data Points

4. ExxonMobil

Key Data Points

5. Phillips 66

Key Data Points

6. Chevron

Key Data Points

7. EOG Resources

Key Data Points

How to invest in oil stocks

Benefits and risks of investing in oil stocks

Methodology: How these stocks were chosen

Should you invest in oil stocks?

Related investing topics

5 Best Oil Dividend Stocks for 2026 and How to Invest

5 Best Oil ETFs for 2026 and How to Invest

How to Calculate Net Revenue Interest for Oil & Gas

3 Best Natural Gas Stocks to Buy in 2026 and How to Invest in Them

Investing in oil stocks: FAQ

Is it good to invest in oil stocks?

Is it good to invest in oil stocks?

What oil stocks did Warren Buffett buy?

What oil stocks did Warren Buffett buy?

What oil stocks pay a dividend?

What oil stocks pay a dividend?

What is the market capitalization of oil stocks?

What is the market capitalization of oil stocks?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

7 top oil stocks for 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

5. Phillips 66

Key Data Points

6. Chevron

Key Data Points

7. EOG Resources

Key Data Points

Benefits and risks of investing in oil stocks

Methodology: How these stocks were chosen

Should you invest in oil stocks?

5 Best Oil Dividend Stocks for 2026 and How to Invest

5 Best Oil ETFs for 2026 and How to Invest

How to Calculate Net Revenue Interest for Oil & Gas

3 Best Natural Gas Stocks to Buy in 2026 and How to Invest in Them

Investing in oil stocks: FAQ

Is it good to invest in oil stocks?

Is it good to invest in oil stocks?

What oil stocks did Warren Buffett buy?

What oil stocks did Warren Buffett buy?

What oil stocks pay a dividend?

What oil stocks pay a dividend?

What is the market capitalization of oil stocks?

What is the market capitalization of oil stocks?

How to invest in oil stocks