This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

23 Oil Industry Stocks to Consider for Your Stock Portfolio

NEW YORK (TheStreet) -- With so many different investments options, investors often have a difficult time deciding which direction is the best one for them to take.

Here at TheStreet, we attempt to declutter the excess of information available and present it to our readers in a way so they can make wise investment decisions.

Whether you're an individual investor or work with a financial adviser, our objective is to help simplify the process and present information that's user friendly.

Quite simply, the oil and gas industry is the largest by revenue in the world. The industry as a whole amassed nearly $1.25 trillion in revenue in 2012, according to Ernst & Young's 2013 "Global Oil and Gas Reserves Study." Oil and gas companies comprise seven of the top eight largest companies by revenue worldwide. In fact, ExxonMobil's total revenue of $482 billion is larger than the 2012 GDP of all but 25 countries.

Not only is it the largest by revenue, but also it is one of the most profitable industries in the world. Oil and gas extraction have a net profit margin of 16.4%, according to Sageworks. It comes third only to accounting, tax preparation, bookkeeping and payroll services at 17.8%, and legal services at 19.8%.

Despite its long-running success, the oil industry has proved to be extremely volatile. For example, in the past 10 years, the price of WTI Crude Oil has plummeted as low as $43/bbl and peaked as high as $140/bbl. Similarly, the price of natural gas has dropped as low as just above $2/MMBtu and has reached as high as nearly $14/MMBtu during that same ten year time period.

The oil industry is massive; made up of many different segments such as integrated energy, contract drilling, services and equipment, and exploration and production. Because of its size, complexities and power, tackling the industry can be quite challenging for the average investor.

What follows are 23 oil industry stocks, ranked by our own proprietary quantitative ranking system at, which are worth looking over. Note that these ratings can change at any time. If you would like access to real-time ratings of these stocks, you can subscribe to TheStreet Quant Ratings.

23. Hercules Offshore  (HERO)

Segment: Contract Drilling

Hercules Offshore, Inc., together with its subsidiaries, provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry worldwide.

The company operates through Domestic Offshore, International Offshore, and International Liftboats segments. Its services comprise oil and gas exploration and development drilling, well services, platform inspection, maintenance and decommissioning services in various shallow-water provinces.

As of Feb. 19, the company owned a fleet of 38 jackup rigs; and 19 liftboat vessels, as well as operated 5 liftboat vessels owned by third party. It serves national oil and gas companies, integrated energy companies, and independent oil and natural gas operators.

The company was formerly known as Hercules Offshore, LLC and changed its name to Hercules Offshore, Inc. in 2005.

Hercules Offshore was founded in 2004 and is headquartered in Houston, Texas.

Read More: Warren Buffett's 25 Favorite Stocks

TheStreet Ratings team rates HERCULES OFFSHORE INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate HERCULES OFFSHORE INC (HERO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

You can view the full analysis from the report here: HERO Ratings Report

1 of 23

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CVX $104.28 0.00%
IMO $40.09 0.00%
TOT $50.82 0.00%
XEC $112.50 0.00%
XOM $83.58 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs