Top FTSE oil and gas stocks that investors should check out

 

Highlights:

1  Oil and gas prices have increased significantly this year, leading to record rates.

2  The higher prices have raised oil firms' profits, making them attractive to investors.

 

Millions of Britons are feeling the heat of rising inflation in the country. Global oil prices touched record highs after the Russia-Ukraine war sparked fears of supply disruptions. Rising post-pandemic demand also contributed to the supply shortage, leading to a huge jump in global prices.

Even when the global prices came down, motorists didn't get much relief from the high prices as oil companies continued to charge higher rates. Soaring oil and gas prices, combined with the government's revision of the energy price cap, have put a significant squeeze on the budgets of UK households.

The high commodity prices have impacted households and businesses, and the situation doesn't appear to improve in the foreseeable future. Due to the price hikes, businesses too are forced to increase their prices, further adding pressure on the consumers. As a result, the inflation rate in July hit 10.1% and is projected to rise further.

While most businesses bear the brunt of the high prices, the energy sector generates bumper gains. The profits of several energy companies have grown multifold in the first six months of this year, and they expect the performance to continue for the rest of the year.

Kalkine Media® explores a few top oil and gas stocks performing well in the current economic situation.

Shell plc (LON: SHEL)

Shell is an oil and gas producing giant listed on the FTSE 100 index. In the second quarter of 2022, Shell posted bumper profits as its adjusted earnings hit nearly £9.5 billion. The company saw record profits in the first quarter as well. Shell's market cap stands at £165,379.41 million, and the 12-month return is 61.15%. The EPS stands at 2.59.

BP plc (LON: BP.)

BP is another multinational oil and gas giant and a constituent of the FTSE 100. The company currently holds a market cap of £83,067.05 million, providing over 50% returns to investors in the past 12 months.

Diversified Energy Company plc (LON: DEC)

The independent oil and gas production company own and operates oil and natural gas wells in the US Appalachian Basin. With a market cap of £1,072.21 million, the stock prices over the past 12 months have provided returns of 15.33% to investors. On a YTD basis, the return was also in the positive zone at 21.07%. The EPS stands in the negative territory at -0.03, and the dividend yield is 10.08%.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.