3 Scorching-Hot Oil Stocks -- Are They Buys?
Crude oil has rallied without much fanfare over the past several months, recently notching gains of more than 20% off the bottom to set off a new bull market. That rebound in crude prices has taken several oil stocks up with it, including Encana (NYSE: ECA), Devon Energy (NYSE: DVN), and Marathon Oil (NYSE: MRO), which have been blistering hot over the past three months. Yet all three appear to have much more upside in the coming years because of their growth potential at current oil prices, which makes them great buys for oil bulls.
After spending the bulk of the oil downturn repositioning its portfolio and driving out costs, Encana returned to growth mode last fall, unveiling a new five-year plan to boost output and cash flow. That forecast put the company on pace to increase production and cash flow by 60% and 300%, respectively, by 2021. Furthermore, the company believed it could achieve that ambitious growth plan while living within cash flow as long as crude averaged $55 per barrel.
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Source: Fool.com
