2018 was a hard time for oil companies. Early 2018 saw oil prices shoot up in price; however, by the end of the year, the price of oil was down by 19%. Diamondback Energy, Concho Resources, Apache, Devon Energy, and Newfield Exploration were the oil companies that were hit the hardest by the 2018 oil slump, but could these companies bounce back in 2019? Now could be the perfect time to invest.
Diamondback Energy saw its stock tumble by 26% in 2018. This is a surprise considering Diamondback made quite a few substantial, positive changes throughout the year. The company purchased Energen, one of their competitors, and they announced that 2019 would see investors getting a greater return on their money. So why exactly did the stock plummet so much? Well, it’s because shareholders didn’t like that Diamondback Energy was making acquisitions while the price of crude oil was so low. If crude rises in 2019, expect Diamondback Energy to rise as well.
Concho’s stock dropped by 31% in 2018, but it plans on making a comeback in 2019. Concho suffered from the same problem as Diamondback: they made changes to benefit investors, and it backfired. They plan on upping production by 25% by 2020.
Apache created a new subsidiary in 2018; the company is called Altus Midstream. It was created as a company to self-fund growth. Apache also resumed its share repurchase program in the third quarter of 2018. These decisions resulted in Apache’s stock dropping by 37% by the end of the year; however, their 2019 is looking much better as they intend to up their production to record-breaking levels.
Things were not looking very bright for this energy company in 2018. Their stock dropped by 45%. Otherwise, 2018 was a good year for Devon. They initiated a buyback program for their stocks, and they increased dividends for investors. Their biggest trouble came in the form of production issues. Despite the setback, they expect production to increase by 17% in 2018.
Newfield’s stock plummeted by 46% in 2018, but it could be on the rise in 2019. Encana, a different company, stepped in to purchase all Newfield stock. Despite the drop in stock prices, Encana is certain that they will be able to turn things around. With the help from Encana, Newfield Exploration could see an excellent 2019.