: This midstream operator manages pipelines and storage. As drilling activity picks up, the demand for transporting that oil increases. Magellan currently offers a high dividend yield of over 4% and maintains strong operating margins.
: A perennial favorite for income seekers, Exxon has increased its dividend for over 33 consecutive years. It remains a cornerstone for any diversified energy portfolio due to its massive global footprint and strong relationship with government regulators. oil drilling stocks to buy 2017
: As the world's largest oilfield services company, Schlumberger is the first to benefit when drillers start spending again. Following their merger with Cameron International, they are positioned to dominate the service market in 2017. : This midstream operator manages pipelines and storage
: Focused almost exclusively on the prolific Permian Basin, Diamondback is one of the fastest-growing producers in the sector. Recent acquisitions have set them up for triple-digit production increases in the coming years. : A perennial favorite for income seekers, Exxon
You don't always have to bet on the price of oil itself; sometimes the best move is to bet on the companies that provide the tools and transportation.
As oil stabilized above $50 per barrel in early 2017, independent exploration and production (E&P) companies focused on the Permian Basin are expected to lead the way in growth.