What is Pemex’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Pemex because it is a private company. However, Petrobras (NYSE: PBR), PetroChina (OTC: PCCYF), and Exxon Mobil (NYSE: XOM) are energy stocks that traders can invest in.
For good reason, the energy sector has been popular with long-term investors. These companies are massively profitable and provide a product that the world needs. Oil and gas stocks have provided some of the largest returns to shareholders and continue to do so in a world dominated by tech companies. Not only do they provide low volatility for your portfolio, but most also pay a handsome dividend.
Many countries have regulated and even state-owned industries outside the United States. As a result, this means the government owns and controls most of the oil and gas operations. Mexico is one such country, and Pemex is a company in it. This article will take a closer look at Pemex and discuss whether or not you can invest in Pemex stock in 2024.
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Pemex Introduction (No Stock Symbol)
Pemex is a Mexican state-owned oil and gas company founded in 1938 by Lazaro Cardenas. Who was Lazaro Cardenas? In 1938, Cardenas was the President of Mexico who sided with Mexican oil workers who were striking against foreign petroleum corporations.
Cardenas signed a decree on June 7th, 1938, establishing Pemex as the country’s first state-owned oil and gas company. The company is headquartered in Mexico City and, as of the end of 2023, had about 128,000 employees.
As of 2024, it is the largest company in Mexico and one of the largest in Latin America. Pemex produces fuel, natural gas, and other petrochemicals for consumer and industrial use. The company provides the full spectrum of oil and gas services.
Upstream services include exploration for new sources of oil and hydrocarbons in Mexico and abroad. For midstream customers, Pemex stores and transports fuels and other petroleum products. Finally, Pemex provides downstream services through distribution and retail gas station outlets.
Today, Pemex is the lifeblood and the foundation of the Mexican oil and gas industry. In 2023, the company recorded over $90 billion in annual revenue.
The company has struggled over the years with mounting debt the Mexican government has had to offset. In September 2023, the Mexican government agreed to send Pemex capital allocations for financial assistance. However, can you buy Pemex stock?
Can I Buy Pemex Stock?
As of 2024, you cannot buy Pemex stock on any stock market. Pemex is a state-owned company, which means the Mexican government owns it. Although there are state-owned companies you can trade, Pemex is not one of them.
In the early 2000s, Mexican President Vicente Fox suggested that Pemex shares be available to Mexican investors. While not necessarily seeking a public listing, Fox wanted to make them available to Mexican pension funds and private investors. The idea did not reach the Mexican Congress, so Pemex remains a private company.
Therefore, this is where things might get a little confusing. Mexican investors can now invest in Pemex, but only through the Pemex investor site. This site allows Mexican citizens to invest in high-yield bonds and other financial instruments. It isn’t the same as buying Pemex stock, but it allows you to invest in the company to some extent.
Pemex Stock Competitors
Although you can’t invest in Pemex stock, it doesn’t mean you can’t trade other oil and gas companies. Plenty of world-class companies you can invest in on the public market. Some of them are even state-owned, giving you an idea of what it would be like to invest in Pemex stock.
So, if you’re looking to invest in the oil and gas industry, I’ve got some suggestions for your portfolio. Here are some top stocks to consider if you invest in companies like Pemex.
1. Petrobras ADR (NYSE: PBR)
Petrobras, or Petroleo Brasileiro, is a Brazillian state-owned petroleum giant founded in 1953. This stock trades on several exchanges but is available to American investors on the New York Stock Exchange as an American Depository Receipt (ADR).
As of August 2024, Petrobras is the world’s eleventh-largest oil and gas company by market cap. It is also the most valuable company in Brazil, with a market cap of about $89 billion.
The stock has been known for years as one of the best dividend-paying stocks. PBR comes with a massive yield of 19.5% annually. One problem with PBR’s dividend is that it is wildly inconsistent. It is also usually only paid bi-annually, although Petrobras is known to reward its shareholders with special dividends.
Over the past five years, Petrobras stock has returned a slight loss of about 5.2%. The largest shareholder in Petrobras stock is the Brazilian government. Like Pemex, Petrobras handles upstream, midstream, and downstream services in Brazil and abroad. As a result, this is a great Pemex stock alternative.
2. PetroChina (SEHK: 857, SSE: 601857)
PetroChina is a state-owned oil and gas company established in Beijing in 1999. It is China’s largest energy company by market cap and the fifth-largest globally. Unsurprisingly, it is Asia’s largest oil and gas producer and a constituent of the Hang Seng Index. The stock is dual-listed in Hong Kong, Shanghai, and the United States under the OTC ticker symbol OTC: PCCYF.
This Chinese state-owned energy giant provides fuels and other petroleum products to countries worldwide. As with many energy companies, PetroChina is getting heavily involved in renewable energy.
It owns massive amounts of renewable infrastructure, including several gigawatts of solar and wind farms and geothermal projects. PetroChina competes directly with other state-owned energy giants like Sinopec. As a result, consider this as a Pemex stock alternative.
3. Saudi Aramco (2222. SR)
My third state-owned energy stock is the largest energy company in the world by market cap. Saudi Aramco has a market capitalization of $1.7 trillion, making it almost as valuable as big tech companies in America.
Saudi Aramco’s stock has only traded publicly on the Tadawul Stock Exchange since December 2019. On the second day of trading, Saudi Aramco hit a market cap of $2 trillion.
Oil is how much of the Middle East has gained its wealth, and Saudi Arabia is no different. Not many American investors have access to Saudi Aramco stock. Non-Saudi residents are allowed to open a brokerage account online.
An easier way to gain exposure to Saudi Aramco is to buy the iShares MSCI Saudi Arabia ETF (NYSEARCA: KSA). This fund is dedicated to Saudi Arabian stocks and holds a 7.60% allocation to Saudi Aramco stock.
4. Exxon Mobil (NYSE: XOM)
What about some American oil companies that we can add to our portfolios? It isn’t easy to get more American than Exxon Mobil, the second-largest energy company in the world, next to Saudi Aramco.
XOM has a market cap of $531.98 billion is double the next closest American oil company, Chevron (NYSE: CVX). Exxon operates worldwide and was founded as Standard Oil Mobil back in 1882.
This stock has been a monster for shareholders, returning about 65% over the past five years while paying a solid 3.2% dividend yield. Salesforce.com (NYSE: CRM) replaced it as a component of the Dow Jones Industrial Average in 2020.
Exxon is the world’s largest non-state-owned oil company and focuses primarily on upstream services. The company also provides downstream services via its retail gas station chains Exxon and Esso in Canada.
5. Canadian National Railway (NYSE: CNI)
The last stock I recommend isn’t a state-owned entity, although it was for the first eighty years of operation. Canadian National Railway is the largest railway company in Canada, founded in 1919. This stock is dual-listed on the Toronto Stock Exchange (TSE: CNR) and the New York Stock Exchange. Bill Gates and the Bill and Melinda Gates Foundation are the largest individual shareholder of the stock.
This stock has been a compounding monster for shareholders. Although it has returned just 28% over the past five years, it has returned more than 7,200% since 1995, not including dividend reinvestments. The stock pays an annualized yield of 2.15% and is a Dividend Aristocrat with more than 27 consecutive years of dividend growth.
Final Thoughts: Pemex Stock
Unfortunately, if you’re looking to invest in Pemex stock, it won’t be through any public stock market. Pemex is a private company that is state-owned by the Government of Mexico. The company has provided ways for citizens to invest, but none are through the public markets.
Unlike Pemex, plenty of other publicly traded state-owned companies exist. You can own shares of the Brazilian state-owned oil and gas giant Petrobras. If you buy the iShares ETF focused on Saudi Arabia, you can also own exposure to Saudi Aramco.
What are the benefits of owning state-owned company stocks? These companies are very stable and have benefits like high dividend yields.
They are also a bedrock of the country’s domestic economy and provide plenty of employment for citizens. Overall, they make great investments, but unfortunately, Pemex is not one of them!
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Frequently Asked Questions
Currently, Pemex is not on the stock market. There are ways to invest in Pemex through the company but not through any stock exchange. As of August 2024, you cannot buy public shares of Pemex in the United States.
Pemex is a state-owned oil and gas company owned by the Mexican government. Although you can invest in some state-owned oil and gas companies in other countries, Pemex is not one of them.
Pemex is one of the world's most indebted companies and oil companies. As of 2023, it has over $100 billion in debt, equal to nearly 10% of Mexico's.
Yes, Pemex is a state-owned oil monopoly. It is a legal monopoly providing the country's drilling, production, and distribution. In recent years, Mexico has allowed some foreign gas station companies into the country, but Pemex still owns and operates most of these outlets.
