A new, predictable era has arrived at Apache Corporation (NYSE:APA). The company has realized that assets such as the Gulf of Mexico come with high regulatory overhead and cannot compete with the lower-priced gas production domestically the company has invested in over the past year. Management sees onshore unconventional plays as a new priority in delivering shareholder value over time, which could result in a predictable, steady growth instead of the volatility investors have seen in share prices over the years.
Investing in any oil company is always subject to outside factors and should only be added to a diversified portfolio. Global economics, regional conflicts, and even speculative high frequency trading can all change the behavior of the oil market in a heartbeat.
That being said, I believe the three companies I have profiled come with different risk factors. Apache Corporation (NYSE:APA) might be the “safest” play given a renewed focus and strategy while investors will be expecting Anadarko Petroleum Corporation (NYSE:APC) to continue discovering large international reserves which yield high returns but comes with high risk. Cabot Oil & Gas Corporation (NYSE:COG) is a great choice for investors that want somewhat of a middle-ground between playing it safe and playing it risky as the company can present a high growth story with already proven assets.
The article 3 Oil Companies You Should Follow originally appeared on Fool.com and is written by Jayson Derrick.
Jayson Derrick has no position in any stocks mentioned. The Motley Fool owns shares of Apache.
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