While there are many oil and gas companies to invest in, there are some that stand out among the rest as the best energy stocks to buy. ConocoPhillips, NextEra Energy, Ring Energy and Brookfield are just some of the companies that you can choose from. Before investing in a company, make sure you carefully review its fundamentals.
Ring Energy
Ring Energy stock outperformed the market over recent months. Investors should examine its earnings outlook to gain guidance for future performance. The earnings outlook is a good indicator of the company's prospects, as it incorporates recent revisions to earnings estimates and current consensus earnings expectations. The earnings estimates revisions are strongly correlated with stock price movements in the near future. The Zacks Rank can be used to measure recent changes in earnings estimations.
Ring Energy is an independent energy company whose primary focus is on the acquisition, exploration, and development of high-quality oil assets within the Permian basinin. Despite having a very short history, Ring Energy has seen its share prices rise by more 70% since January. Unfortunately, the company had a terrible month in June, and is now starting the year with a loss of 7.7%.
ConocoPhillips
With a market cap of $122.1 billion, ConocoPhillips has the resources to take advantage of any oil price increase. The company is active in oil and natural gases operations in more 15 countries. The company's production splits almost evenly between oil, natural gas, and coke. Its integrated oil business allows for it to maximize its production while also lowering its costs. Moreover, its free cash flow allows it to maintain its dividend.
Strong dividend paying companies are a great way to make money in the energy sector. While it isn't the most lucrative investment you can make, you will still earn a tremendous yield. The dividend yield of 3.8% is not bad, especially in this environment. The share price has more than doubled in the last five-years.
NextEra Energy
NextEra Energy has a strong portfolio of assets and is a publicly traded utility firm. With a market capitalization of $153 billion, the company is one of the largest utilities in the United States. It owns Florida Power and Light, Gulf Power Company, and the Carolinas Power & Light Company, and provides electricity to customers in large cities and smaller towns.
NextEra Energy is a large energy company and the first to be involved in the traditional petroleum and gas industries. This company is an excellent example of how renewable energies can be used to increase profit.
Brookfield
Brookfield Energy is a major investor in renewable energy. Its corporate headquarters are in Toronto Canada. Brookfield Asset Management controls approximately 60% of the shares. It has a portfolio of renewable power assets that includes solar, wind, and hydropower. Brookfield Renewable Partners L.P. Brookfield Energy Company and Brookfield Wind Energy are its subsidiaries.
Brookfield Renewables leads the private ownership of critical power assets. Brookfield Renewables' 1,200-megawatt portfolio of operating assets will be supplemented by a 1,300 Megawatt renewable development pipe. Brookfield Energy is set to grow its global position as a leader in distributed power.
TC Energy
TC Energy, a midstream company, has a large network pipelines across the United States and Canada. It has stable cash flows, regardless of macroeconomic conditions, and is well-positioned to support the growing LNG export market. The stock currently yields 5.31% and has increased its dividend every year since 2000. The company is a great choice for investors who want to invest in energy stocks with a high yield and stable cash flow.
TC Energy has a large portfolio of capital projects that should drive its revenues higher and generate more cash flow in the future. The company currently has projects worth $7 billion and 20 billion in secured capital developments plans until 2024. TC Energy's assets total more than $100 trillion. This allows it to grow its cash flow while improving its financial results. Moreover, 95% of its comparable EBITDA comes from assets that are regulated by the government.