3 Oil Stocks Still Minting Cash at $90 Oil
After a red-hot run to begin the year, oil prices have cooled off considerably over the past couple of months. Oil was recently down to around $90 a barrel, well off its highs in the $120s from earlier in the year.
However, while oil prices are down, oil pumps are still money-printing machines for most oil companies. Three oil stocks minting a boatload of cash at $90 oil are Devon Energy (NYSE: DVN), Diamondback Energy (NASDAQ: FANG), and EOG Resources (NYSE: EOG).
Devon Energy initially estimated that it would produce $5 billion in free cash flow this year, assuming oil prices averaged $85 a barrel. Thanks to higher-than-expected oil prices during the first half of the year, the company now expects to produce $6.5 billion of free cash (assuming oil averages $95 a barrel during the second half). That's a more-than-25% increase despite service cost inflation and higher capital costs due to a recent acquisition.
Source Fool.com
