What does 'upstream projects' mean in the energy sector?

Upstream projects refer to the exploration and production activities in the oil and gas industry. This includes finding new oil and gas reserves, drilling wells, and extracting these resources from the ground. It's the first stage of the energy supply chain, before refining and distribution.

How do global commodity prices affect these energy stocks?

Energy companies' profits are directly tied to oil and gas prices. When global commodity prices rise, these companies typically see higher revenues and profits, which can boost their stock prices. Conversely, when prices fall, their earnings and stock values often decline as well.

What is an integrated oil company?

An integrated oil company operates across multiple stages of the oil and gas supply chain. They don't just extract oil and gas (upstream), but also refine it into products like petrol (downstream) and sometimes handle distribution and retail sales. This diversification can provide more stable revenues.

What does 'market cap' tell me about a company?

Market capitalisation (market cap) is the total value of a company's shares in the stock market. It's calculated by multiplying the share price by the number of shares outstanding. A higher market cap generally indicates a larger, more established company.

How does dividend yield work for energy stocks?

Dividend yield shows how much a company pays out in dividends relative to its share price, expressed as a percentage. Many energy companies pay regular dividends to shareholders, especially during profitable periods when commodity prices are high. The yield helps you understand the income potential from holding the stock.

6 handpicked stocks

Devon Energy Stock: Could Global Peers Offer Better?

As global energy markets shift, Nigerian investors are increasingly looking for ways to diversify their portfolios beyond local assets. This basket offers potential exposure to the international energy sector through a collection of US and EU-listed oil and gas producers with operations or strategic interests relevant to Africa.

Han Tan | Market Analyst

Updated 1 day ago | Published at September 9