In the oil & gas sector, few companies appeal to me in today's commodities environment. While I certainly would suggest investors check out this sector, as many of the companies with oil & gas operations have been hit very hard (and unfairly so, in my opinion), finding what will turn out to be a great long-term buy and hold can be a very difficult exercise; many companies have debt loads that have turned them into ticking time bombs should oil prices drop substantially, while others have experienced much of their future growth being priced into current levels, with little leeway should commodities prices return to 2015 levels.
That being said, Exxon Mobil (NYSE:XOM) has remained one of my top picks in this sector for some time now due in large part to the company's position as a global, diversified leader in the oil & gas space. Exxon controls companies along its value creation chain (both upstream and downstream), which allows Exxon to turn a profit in nearly any price environment.
The company's moat is wide, and will get even wider, in my opinion, following news the company expects to invest $50 billion U.S. over the next 10 years in capital spending.
This money is expected to provide a significant amount of growth and efficiency generation in the years to come, and I remain bullish on the long-term outcomes related to said investment. With a yield of more than 3.5%, Exxon's status as a dividend king will continue moving forward.
Invest wisely, my friends.
