Oil Prices Above $100: Two Stocks Poised for Growth

The recent surge in oil prices above $100 per barrel has significant implications for the energy sector. Two companies that stand to benefit from this trend are Occidental Petroleum (OXY) and Chevron (CVX).

Occidental Petroleum's upstream focus gives it more exposure to higher oil prices, making it a more direct play on rising crude costs. The company generates most of its revenue and profits from exploration, drilling, and extraction activities.

Chevron, on the other hand, is an integrated energy giant with a diversified portfolio that includes upstream, midstream, and downstream businesses. While it has some exposure to higher oil prices, its scale and diversification make it a more balanced long-term investment.

Both companies have strong fundamentals, with Occidental Petroleum expected to see its adjusted earnings per share (EPS) surge 175% by 2026, while Chevron's EPS is expected to rise 122%. Analysts forecast that Oxy will need WTI crude oil to remain above $40 per barrel to support its capex and dividends, while Chevron requires Brent crude to stay above $50 per barrel.