Deep Dive: 20 big oil companies expected to be cash gushers in 2023 despite short-term uncertainty

by | Nov 30, 2022 | Stock Market

The energy sector of the S&P 500 has been the year’s best performer, yet oil stocks still appear to be inexpensive when compared with those in other industries. If you are interested in investing in energy, your time frame is important. The oil industry seems to have a good long-term setup for prices, but also faces difficult earnings comparisons in 2023.

Below is a list of large-cap energy companies expected to generate the highest levels of free cash flow to support dividends and share buybacks next year. First, let’s look at sector valuations and expectations for next year.Oil industry is expected to earn less in 2023 When discussing the recent decline in oil prices in a note to clients on Nov. 30, Jefferies’ global equity strategist Sean Darby wrote: “Chinese growth has acted as a headwind for global demand as it enforces strict Covid policies coming into the winter flu season.” Here’s a look at the 11 sectors of the S&P 500, sorted by price-to-earnings ratios that are based on Nov. 29 prices and weighted consensus 2023 earnings estimates among analysts polled by FactSet, with the full index at the bottom:

Forward P/E based on 2 …

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