In a showing of solidarity, OPEC and its partner states have announced an extension to their production cuts. The move marked a continuation of its original cuts enacted in November 2016. OPEC has done this for a straightforward reason: economics. Member states need oil prices to be higher to fund their massive government budgets.

After years of lean times, the sun is shining on the oil patch again. Even long-term oil bears like investment bank Goldman Sachs have turned cautiously bullish. In a recent research note dated December 5, 2017, Goldman stated: "...risks remain, and we see these as skewed to the upside into 2018 on the risk of an over tightening, either because of new disruptions, demand exceeding our optimistic forecast of OPEC letting the stock draw run hot." Analysts also noted that there are risks to the bull case -- notably ramped-up shale production. But the message was clear: Goldman's commodity analysts have turned into modest crude bulls.

With oil market dynamics shifting, oil stocks are on investors' radars once again. But to do so and avoid permanent losses in a future oil rout, investors need to be cautious. Oil producers with an edge are the only way to go. Here's why Parsley Energy (PE), Crescent Point Energy (CPG -1.52%), and Apache Corp. (APA 0.17%) are solid picks for Foolish investors today. 

A price chart moving up against an oil rig in the backgrond.

Image Source: Getty Images.

An oil stock for all season(ing)s 

Parsley Energy owns producing acreage in some of the best geographic areas in West Texas. Its portfolio of assets is primarily located in the Midland Basin and the Delaware Basin, two of the most attractive oil producing areas in the continental United States.

Throughout the current oil downturn, the company has made efforts to expand its position in these coveted areas. The move has already borne fruit. Its production in the third quarter averaged 71.5 MBoe per day, up 11% sequentially and an enormous 66% jump from Q3 2016.

Because it is in hyper-growth mode, the company produced a net loss for the quarter, but this short-term pain will almost certainly produce long-term gains. Management took the third-quarter release as an opportunity to reiterate its continued robust oil production growth estimates for next year. 

Parsley Energy reserve map.

Image Source: Parsley Energy.

With an oil rebound in the cards, Parsley Energy is holding a strong hand. Not only is it the owner of some of the most coveted oil rights in the U.S., but it has doubled its net acreage position since the end of the fiscal year 2015. This growth in production shows no signs of stopping and makes Parsley a great oil pick for growth-minded investors. 

Value in the Canadian oil patch

Crescent Point Energy is a Canada-based oil and gas exploration, development, and production company. Its assets consist of light and medium oil and natural gas reserves in Western Canada as well as the United States. The biggest portion of its oil and gas production comes from the Williston Basin of Canada.

As oil prices inch upward, Crescent should be considered because its shares have been tossed aside by investors amid the oil downturn. They're currently trading hands at around half of book value. A statistically "cheap" stock isn't reason enough to buy a stock, but the company remains a respected player in the Williston Basin, sporting a market capitalization of just under $4 billion. It also continues to eke out free cash flow despite depressed oil prices:

CPG Free Cash Flow (Annual) Chart

CPG Free Cash Flow (Annual) data by YCharts

Shareholders benefit from the company's ability to get results no matter what oil prices do, via its dividend, which currently nets investors a juicy 4% yield. At a discount to book value and with an above-average dividend yield, Crescent Point is a fantastic pick. 

Outspending cash flow for a really good reason

While it has been a significant beneficiary of the shale revolution, Apache Corporation has been in the business a long time. Founded in 1954, Apache explores for, develops, and produces natural gas, crude oil, and natural gas liquids. Operating segments include the United States, Egypt and the United Kingdom's North Sea. It also pursues exploration interests in Suriname.

In North America, the Company has two  main onshore regions: The Permian region, The Midcontinent/Gulf Coast region. The Permian region located in West Texas and New Mexico includes the Permian sub-basins, the Midland Basin, Central Basin Platform/Northwest Shelf, and Delaware Basin. The Midcontinent/Gulf Coast region consists of the Granite Wash, Tonkawa, Canyon Lime, Marmaton, and Cleveland formations of the West Anadarko Basin, the Woodford-SCOOP and Stack plays located in Central Oklahoma, and the Eagle Ford shale in southeast Texas.

Shares in Apache had slumped in October 2017 on concerns that the company was being too liberal with its spending. Management went public with plans to exceed its cash flow on capital expenditures by a cool $1 billion. However, there is a method to the company's spending madness.

A little over a year ago, Apache announced a massive oil find in the Delaware Basin (itself a sub-basin of the Permian). Known as the "Alpine High" field, it is thought to hold as much as 3 billion (that's with a b) barrels of oil. Spread across roughly 300,000 acres, the discovery could prove to be a boon for shareholders -- and is a primary reason investors should consider Apache as the tone of oil markets turns bullish.

What you need to know

Each of the oil stocks detailed above offers a great deal to investors today. All are proven oil and gas producers that successfully navigated one of the worst downturns in a generation. With so many stakeholders focused on driving the price of oil up, it seems like it's just a matter of time. While the entire sector will benefit, Parsley Energy, Crescent Point Energy and Apache are great picks for Foolish investors.