My Top Oil Stock to Buy in January
There's a lot of debate about what's next for oil prices. Crude did a complete round trip last year, spiking into the triple digits following Russia's invasion of Ukraine, only to give back all those gains on macroeconomic concerns by year-end. While those recession worries remain, several upside catalysts could cause crude prices to rebound in 2023.
The best way to cash in on higher oil prices this year is to buy shares of Pioneer Natural Resources (NYSE: PXD). The oil company aims to return three-quarters of its excess cash to investors via its variable dividend. That ability to immediately cash in on crude is why Pioneer is my top oil stock to buy this January.
Pioneer Natural Resources has one of the oil patch's best resource bases and balance sheets. The company owns a top-tier position in the resource-rich Midland Basin in Texas. It has over 25,000 remaining well locations, giving it enough inventory to maintain its current drilling pace for over 20 years. That's the deepest drilling inventory in its peer group.
Source Fool.com
