Investment Opportunities in the Petrol Sector!

Investment Opportunities for Investors in the Oil Sector

While the oil industry faces challenges, a new report published by Wells Fargo suggests that there are still solid options available for investors. The bank sees a slowdown in demand, but notes that it hasn't shifted to a fully negative situation. Refining operations stand out as a strong area. In summary: supply is adequate, and finished fuel products should attract investor interest.

Sam Margolin supports this perspective with concrete stock recommendations. Two energy stocks, ExxonMobil and Valero Energy, emerge as buy recommendations in a challenging market outlook. According to Wells Fargo's view, these stock recommendations carry meaningful profit potential for investors.

ExxonMobil (XOM)

ExxonMobil is one of the world's largest oil companies and is a descendant of John D. Rockefeller’s famous Standard Oil Company. Currently, it is the largest U.S.-based oil firm with a market value of $478 billion. Last year, it generated $349.6 billion in total revenue and paid out $16.7 billion in total dividends.

The company focuses on the exploration and utilization of hydrocarbon energy resources such as crude oil and natural gas, while also producing and distributing significant refined products and fuels. In recent months, ExxonMobil has not only increased its refining capabilities but has also expanded its production capacity. In September, it opened a seventh development phase offshore Guyana, with a crude oil production capacity of 150,000 barrels per day.

Expectations for its third-quarter results are quite high; equity is expected to increase by as much as $300 million. Looking at Q2 2025 results, the company's total revenue was $85.51 billion and exceeded expectations.

ExxonMobil has not missed a dividend payment since 1995. Most recently, it paid a dividend of 99 cents, which translates to an annual dividend of $3.96. Sam Margolin expresses a positive view on ExxonMobil, setting a price target of $156 for the stock.

Valero Energy Corporation (VLO)

Another company on our list is Valero Energy, a leading producer of refined fuels. Valero has a network of 15 refineries located in the U.S., Canada, and the United Kingdom. The company's total processing capacity is approximately 3.2 million barrels per day.

In recent periods, Valero achieved a capacity utilization rate of %92 with a refining segment pump volume of 2.9 million barrels. In the third-quarter results, it generated $29.89 billion in revenue, which exceeded expectations.

Valero regularly pays a dividend of $1.13. Sam Margolin finds Valero's business model and dividend returns successful and sets a price target of $216 for the stock.

In conclusion, ExxonMobil and Valero Energy present solid investment opportunities in the oil industry. The growth potential in these stocks may attract investor attention despite the challenges in the energy market.