Oil Drilling Stocks — To Buy 2017

: 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.

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.

: Another Permian powerhouse, Pioneer is forecasting production growth of 15%–17% in 2017. Their strategy involves selling off lower-performing assets to focus on high-yield "core" acreage. 3. Oilfield Services & Midstream oil drilling stocks to buy 2017

: 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.

The energy sector is entering 2017 with a renewed sense of optimism. After a turbulent 2016, a combination of OPEC production cuts and increasing global demand has set the stage for what could be a major comeback year for oil and gas. : Focused almost exclusively on the prolific Permian

: 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.

For investors, the key is identifying which companies have the operational efficiency and asset quality to thrive even if prices remain volatile. 1. The Large-Cap "Safe Havens" Oilfield Services & Midstream : A perennial favorite

: Often called "the Apple of the oil industry," EOG uses big data and proprietary drilling technology to maintain an edge over competitors. Their ability to lower break-even costs makes them a winner even in a lower-price environment.