These 3 Energy Stocks Have Turned Oil Pumps Into Money Printing Machines

Key Points

• ExxonMobil generated an industry-leading $11.5 billion in cash during the second quarter.

• Chevron plans to pump out an additional $12.5 billion in free cash flow next year.

• ConocoPhillips expects its already robust free cash flow to double by 2029.

• 10 stocks we like better than Chevron ›

Oil prices can be very volatile. However, producing crude oil can still be quite lucrative despite the ebbs and flows of crude prices.

Here are three energy stocks that have turned oil pumps into cash-gushing machines.

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ExxonMobil

ExxonMobil (NYSE: XOM) generated an industry-leading $11.5 billion in cash flow from operations during the second quarter. That brought its year-to-date total to $24.5 billion. Exxon is on pace to produce nearly $50 billion in cash this year, down slightly from the $55 billion it produced in 2024 due to lower oil and gas prices.

The big oil behemoth utilizes its massive cash flows to expand its business and distribute excess cash to investors. Exxon plans to invest a staggering $140 billion into major projects and its Permian Basin development program through 2030. That investment should add another $30 billion to its annual cash flow. That positions Exxon to produce about $165 billion in cumulative surplus free cash during that period.

Exxon is returning the bulk of its growing surplus free cash to investors. It has returned an industry-leading $18.4 billion in cash through the first half of this year, paying $8.6 billion in dividends and repurchasing $9.8 billion of its shares. Exxon expects to continue increasing its dividend, which it has done for an industry-leading 42 straight years. It also expects to repurchase a significant amount of its stock each year, targeting $20 billion in both 2025 and 2026.

Chevron

Chevron (NYSE: CVX) generated $8.6 billion in cash flow from operations and $4.9 billion of free cash flow in the second quarter. The oil giant returned $5.5 billion of that money to shareholders via dividends ($2.9 billion) and share repurchases ($2.6 billion). That was the 13th straight quarter that Chevron returned at least $5 billion in cash to investors.

The oil giant expects to produce an even bigger free cash flow gusher next year. It recently completed several expansion projects that are starting to deliver production and cash flow. Chevron also finally closed its acquisition of Hess. The company expects that these and other catalysts will add $12.5 billion to its annual free cash flow next year.

That will give Chevron even more money to return to investors. The company has increased its dividend for 38 straight years, including delivering peer-leading growth over the past decade. Chevron also plans to repurchase between $10 billion and $20 billion of its stock annually.

ConocoPhillips

ConocoPhillips (NYSE: COP) has generated $10.2 billion in cash flow from operations through the first half of this year, along with $3.5 billion in free cash flow. The oil and gas producer utilized $6.7 billion for capital expenditures and other investments. It has also returned $4.7 billion in cash to investors this year via dividends ($2 billion) and share repurchases ($2.7 billion).

The global energy giant is investing in several longer-cycle capital projects, including three liquefied natural gas (LNG) expansions and the Willow oil project in Alaska. The company and its partners anticipate completing these projects by 2029. They should steadily grow the company's free cash flow, helping add an incremental $7 billion to its annual total by 2029. That's roughly double the free cash flow ConocoPhillips expects to produce this year.

ConocoPhillips expects to return most of its growing free cash flow to investors. The company plans to deliver well above average annual dividend increases. It also aims to repurchase a significant number of its shares each year.

Cash-producing machines

ExxonMobil, Chevron, and ConocoPhillips have turned their oil pumps into money-printing presses. Each company generates billions of dollars in cash annually, enabling them to grow their businesses and return substantial cash to shareholders. All three expect to produce even more cash flow in the coming years, positioning shareholders to reap even higher cash returns.

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Matt DiLallo has positions in Chevron and ConocoPhillips. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.