Even at $80 Oil, These Oil Stocks Are Still Ridiculously Cheap
Oil prices have continued to cool off after a red-hot run earlier this year following Russia's invasion of Ukraine. West Texas intermediate, the primary U.S. oil price benchmark, recently dipped below $80 a barrel on concerns that demand will decline if there's an economic downturn. That puts crude well off its peak of more than $120 a barrel earlier this summer.
While oil companies won't make as much money at $80 a barrel as when crude was in the triple digits, they can still generate lots of cash at that price point. That means many oil stocks are still pretty cheap based on the cash flows they can produce at the current level. Here's a look at a few of the bargains across the oil patch that value investors won't want to miss.
Devon Energy (NYSE: DVN) has been generating prodigious amounts of free cash flow this year. It produced a record $2.1 billion of free cash in the second quarter. Devon followed that up with a strong $1.5 billion of free cash flow in the third quarter, even though oil prices were much lower.
Source Fool.com
