In this article, we discuss the 15 biggest oil companies in Texas. To skip the detailed analysis of the Texas oil industry, go directly to the 5 Biggest Oil Companies in Texas.
A ramp-up of shale oil production has seen Texas emerge as one of the biggest producers of the key energy commodity. Most of the big oil companies have headquarters in the state. In 2022, oil production tax in Texas was up 84% to $6.36 billion.
Thanks to its massive oil reserves, Texas is on course to propel the U.S. to the net exporter status. While Saudi Arabia is the biggest producer of black gold, there was a time when Texas produced more oil and natural gas than any other country in the world. Its status in the oil production business has to do with the fact that it is home to one of the largest oil fields in the world.
U.S. crude production from seven of the biggest shale basins will hit record highs in 2023. According to the Energy Information Administration, production is expected to rise to a record high of 9.36 million barrels per day. Crude production in the South of Texas Eagle Ford alone is poised to reach highs of 1.18 million barrels per day, the highest level since April of 2020.
The Permian basin in the West of Texas is the largest oil-producing basin in the U.S. Studies have shown that the Permian Basin holds oil that will last up to 2050. There are also other oil reserve areas in the state.
Given that Texas has more oil in its basin and reserves than in another state in the U.S., it is home to some of the largest oil companies. There are more than 25 refineries spearheading the oil production spree. In addition, there are more than 300 oil companies in Texas including Chevron Corporation (NYSE:CVX) Exxon Mobil (NYSE:XOM) and Phillips 66 (NYSE:PSX).
Although Texas's Permian basin is a significant contributor to the total oil production in the U.S., less than 50 producers are responsible for 50% of the basin's output. When compiling our list of the top 15 oil companies in Texas, we considered the extent of Permian basin acreage controlled by these companies, as well as their average daily oil production. We picked the biggest companies operating in the Texas oil basin and ranked them based on their annual revenue.
Revenue in 2022: $1.92 billion
Number of Hedge Fund Holders: N/A
Vital Energy Inc. (NYSE:VTLE) is an independent company that explores and develops oil and natural gas within the Permian basin of West Texas. With a market cap of about $790 million, Vital Energy Inc. (NYSE:VTLE) employs approximately 289 employees in Oklahoma and Texas. It also controls about 163,286 acres within the Permian basin, where most of the oil production takes place.
Vital Energy Inc. (NYSE:VTLE) has about 302,318 million barrels of oil equivalent within its portfolio. Its average daily oil production stands at about 77,947 barrels of oil equivalent.
Revenue in 2022: $4.6 billion
Number of Hedge Fund Holders: N/A
XTO Energy has a huge presence within the Permian basin in Texas. The company owns over 50,000 acres for producing oil and natural gas nationwide. It also owns more than 9.5 million acres.
Revenue in 2022: $7.54 billion
Number of Hedge Fund Holders: 52
Headquartered in Findlay, Ohio, Marathon Petroleum Corp (NYSE:MPC) operates one of the biggest oil refineries in El Paso, Texas
As of the close of Q4 2022, 52 hedge funds in Insider Monkey’s database reported owning stakes in Marathon Petroleum Corp (NYSE:MPC), up from 50 in the previous quarter. These stakes are collectively valued at nearly $3.05 billion. Paul Singer’s Elliott Management was the company’s prominent stakeholder in Q4.
In its Q4 2021 investor letter, Clark Street Value says the following about Marathon Petroleum Corporation (NYSE:MPC):
“During the worst of covid, I bought some LEAPs on Marathon Petroleum (MPC) as a proxy for Par Pacific (PARR) since long dated options weren’t available on the later. Those MPC calls expire next month and I’ll take profits, with PARR I’ve reduced my position throughout the year and might sell the rest early next year, I’ve owned it for 6-7 years and it has gone nowhere, they haven’t touched the NOLs, just a difficult business that I probably don’t understand as well as I should.”
Revenue in 2022: $9.1 billion
Number of Hedge Fund Holders: 33
Coterra Energy Inc (NYSE:CTRA) controls about 307,000 prime oil-producing acreages In Texas.
In its Q4 2022 investor letter, Diamond Hill Capital provided a statement regarding Coterra Energy Inc. (NYSE:CTRA).
“Other bottom contributors included energy exploration and production company Coterra Energy Inc. (NYSE:CTRA) and West Coast-focused office and apartment REIT Douglas Emmett (DEI). Investors became concerned about CTRA’s outlook following the company’s 32% – 36% downward revision to its reserve numbers — purportedly in line with SEC proved reserve reporting rules. With shares trading below our estimate of intrinsic value, we are closely monitoring the situation and are prepared to pivot accordingly as more data become available.”
Revenue in 2022: $9.64 billion
Number of Hedge Fund Holders: 52
Diamondback Energy Inc (NASDAQ:FANG) is an independent company engaged in exploring and developing oil and natural gas properties. Diamondback Energy Inc (NASDAQ:FANG) employs nearly 1,800 employees in Texas
Diamondback Energy Inc (NASDAQ:FANG) is engaged in the development of Spraberry and Wolfcamp of the Delaware basin, which is part of the Permian basin in West Texas.
Revenue in 2022: $12.13 billion
Number of Hedge Fund Holders: 43
With a market cap of about $11.58 billion, APA Corporation (NASDAQ:APA) is one of the Permian basin's biggest oil producers, controlling about 1.7 million acreages. It also holds interest in the Eagle Ford Shale and Austin Chalk in southeast Texas.
Ariel Investments made a statement regarding APA Corporation (NASDAQ: APA) in its Q4 2022 investor letter:
“Oil and natural gas explorer, APA Corporation (NASDAQ:APA) was the top contributor to relative returns in the period. Shares traded higher on strong U.S. well performance and upbeat guidance suggesting production is back on track in the North Sea and Egypt. Management also reiterated APA’s commitment to return 60% of free cash flow to shareholders through dividends and repurchases. In our view, this suggests significant buyback activity in the upcoming quarter, highlighting an attractive return of capital.”
Revenue in 2022: $12.46 billion
Number of Hedge Fund Holders: 38
While Ovintiv Inc. (NYSE:OVV) has its headquarters in Denver, Colorado, it is one of the biggest players within the Permian basin engaged in the oil production business.
Ovintiv Inc. (NYSE:OVV) has principal assets within the oil-rich Midland basin in Texas. The company is engaged in the development of the Spraberry and Wolfcamp formations, from where it produces most of its oil.
Revenue in 2022: $18.7 billion
Number of Hedge Fund Holders: 67
ConocoPhillips (NYSE:COP) is an American multinational energy corporation headquartered in Houston, Texas. While it has operations and assets in various locations worldwide, the company also has a significant presence in Texas, particularly in the Permian Basin and Eagle Ford shale.
In its Q4 2022 investor letter, ClearBridge Investments made the following comment about ConocoPhillips (NYSE:COP):
“The risk-on environment supported by China reopening drove strong returns for the energy sector, despite underlying commodity prices falling from recent highs. In the portfolio, leading E&P company ConocoPhillips (NYSE:COP) was again among the top contributors; it maintains one of the best balance sheets in the industry and continues to execute well while benefiting from being a low-cost producer and growing liquefied natural gas demand. ConocoPhillips is also investing in field electrification and carbon capture across its portfolio, with ambitions to deliver oil production with industry-low CO2 intensity.”
Revenue in 2022: $19.17 billion
Number of Hedge Fund Holders: 55
Devon Energy Corp (NYSE:DVN) operates deep, high-quality inventory oil drilling locations in the Delaware Basin West of Texas and Eagle Ford shale South of Texas.
Devon Energy Corp (NYSE:DVN)'s oil production in the Delaware basin averaged 407,000 barrels a day in 2022 and 68,000 barrels a day at the Eagle Ford.
Revenue in 2022: $24.29 billion
Number of Hedge Fund Holders: 55
Pioneer Natural Resources Co (NYSE:PXD), with a market cap of $52 billion, is ranked number 248 in the Fortune 500 list of the biggest companies in the US. Headquartered in Irving, Texas, Pioneer Natural Resources Co (NYSE:PXD) owns over 1 million acres of oil-producing acreage with no exposure to federal land.
Pioneer Natural Resources Co (NYSE:PXD) employs over 4,000 people, making it one of the biggest employers in Texas.
In its Q4 2022 investor letter, TimesSquare Capital Management stated the following about Pioneer Natural Resources Company (NYSE:PXD):
“Better was the 8% surge from Pioneer Natural Resources Company (NYSE:PXD), an exploration and production company with operations in Texas. They reported a slight beat to production estimates with other metrics within their guidance range. The company continued with its aggressive capital return program inclusive of a sizable quarterly dividend and share repurchases. Management announced a shift to its drilling plans by focusing on acreage with higher expected returns.”
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Disclosure: None. 15 Biggest Oil Companies in Texas is originally published on Insider Monkey.
