Better Oil Stock: Devon Energy vs. ExxonMobil
Over the past three months, West Texas Intermediate crude prices have spiked around 15% only to turn around and come back down to a roughly 4% gain. There are supply-and-demand and geopolitical reasons for the price move, but the truth is that this type of volatility isn't uncommon in the energy sector.
Here's why that could make ExxonMobil (NYSE: XOM) the better oil stock for you, or it could make Devon Energy (NYSE: DVN) the oil stock you might want to pick. Here's why.
Devon Energy is what is known as an upstream company, which means it produces oil and natural gas. It also focuses its business geographically, by only drilling for energy in the U.S. market. The stock can be highly volatile given that oil and gas prices are the main driver of its financial results on the top and bottom lines. There are simply no other divisions to help offset the ups and downs of its drilling operations.
Source Fool.com
