Getting a Tax Refund? 3 Oil Stocks to Buy With Your Refund Check.

The average American receives a tax refund of $3,138. That’s a big windfall for most people. They could use that money to go on a nice vacation, pay down some of their debt, or invest for the future.

One place to consider investing your tax refund is the oil patch. While the sector can be volatile, there are some great oil stocks to consider buying these days. TotalEnergies (NYSE: TTE), ExxonMobil (NYSE: XOM), and Chevron (NYSE: CVX) stand out to some Fool.com contributors as the top ones to buy right now because they have the fuel to potentially grow your tax refund into a much bigger future windfall.

Reuben Gregg Brewer (TotalEnergies): One long-term trend that investors in the energy sector have to contend with is the increasing use of clean energy. That’s not to suggest that oil and natural gas are going away; that’s far from the case, as an “all of the above” approach appears to be the way forward. But the big growth in the energy sector has been in areas like solar and wind. What’s an investor to do with the dichotomy between slow-growing carbon fuel businesses and faster-growing renewable energy? Punt with TotalEnergies.

TotalEnergies is one of the largest integrated energy companies on the planet. It will continue to supply the world with the carbon fuel it needs for as long as it is profitable to do so. But unlike most of its integrated energy peers, TotalEnergies has made a material commitment to cleaner energy options via its integrated power division.

This business grew 17% in 2024. Profit-wise, it is hard to compare integrated power to TotalEnergies’ oil and gas operations, which all shrank in 2024, since commodity prices make those divisions fairly volatile. The real takeaway is that management is preparing today for a future in which cleaner energy sources have a more important role in the global energy landscape.

This matters because it means you can comfortably own TotalEnergies and collect its 5.8% dividend yield without worrying that the energy transition is leaving you behind. Better yet, profits from carbon fuels are effectively powering TotalEnergies’ business shift. So, you are benefiting today from carbon fuels and using those same profits to benefit from what is likely to be a future with more clean energy in it.

Matt DiLallo (ExxonMobil): ExxonMobil is the undisputed leader in the oil patch. Last year, the company produced $34 billion in earnings and $55 billion in cash flow from operations. That marked its third-best year in a decade and led all international oil companies (IOCs).

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