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 and NextEra Energy are just a few of these companies. Before investing in any company, you should carefully examine its fundamentals.
Ring Energy
Ring Energy stock is outperforming the market in recent weeks, so investors should take a look at its earnings outlook as a guide to future performance. The company's earnings outlook provides a good indicator about its prospects as it incorporates the most recent revisions of earnings estimates and current consensus earnings expects. There is a strong correlation between earnings estimate revisions and near-term stock price movements. The Zacks Rank can be used to measure recent changes in earnings estimations.
Ring Energy, an independent company in energy, focuses its efforts on developing and acquiring high-quality oil assets from the Permian. It has had a short history of growth but its share price has increased by more than 70% in the past year. Unfortunately, the company lost 7.7% in June.
ConocoPhillips
ConocoPhillips, which has a market capital of $122.1 billion is well-positioned to profit from any increase in oil prices. ConocoPhillips has natural gas and oil operations in over 15 countries. Its production is nearly evenly split between oil and natural gases. The integrated oil business it has allows it to increase its production and lower its costs. Its free cash flow permits it to retain its dividend.
Strong dividend paying companies are a great way to make money in the energy sector. Although it may not be the most lucrative, this investment will give you a fantastic yield. The dividend yield of 3.8% is not bad, especially in this environment. Additionally, the share price of the company has increased by more than twofold in the past five year.
NextEra Energy
NextEra Energy is a publicly traded utility company with an impressive portfolio of assets. With a market capitalization of $153 billion, the company is one of the largest utilities in the United States. Its subsidiaries include Florida Power and Light and Gulf Power Company. Carolinas Power & Light Company supplies electricity to small and large towns.
NextEra Energy ranks among the top energy companies around the globe. It is unique among its peers because it is not in the traditional oil & gas industry. This company is an excellent example of how renewable energies can be used to increase profit.
Brookfield
Brookfield Energy has been a leading investor in renewable power for over a decade. The company's corporate headquarters can be found in Toronto, Canada. Brookfield Asset Management holds approximately 60% shares. Its portfolio includes renewable power assets such as wind, solar and hydropower. Brookfield Renewable Partners L.P. Brookfield Energy Company and Brookfield Wind Energy are its subsidiaries.
Brookfield Renewables, the world's largest private owner and operator of critical power assets, is the leader. Brookfield Renewables' 1,200-megawatt portfolio of operating assets will be supplemented by a 1,300 Megawatt renewable development pipe. Brookfield Energy will continue to be a leader in distributed energy.
TC Energy
TC Energy has a large pipeline network in both the United States of America and Canada. It is well-positioned for growth in the LNG export industry and has steady cash flows that are unaffected by macroeconomic factors. The stock currently yields 5.31%. It has also increased its dividend every year in 2000. Investors looking for energy stocks with high yield and stable cash flows will find this stock a good choice.
TC Energy is able to generate cash flow through its large portfolio of capital project. This will help increase its revenues. The company has $7 billion of projects under its belt and $20 billion in secured capital development plans through 2024. TC Energy holds more than $100B in assets. It is in a good position to grow cash flow and improve its financial results. Moreover, 95% is from assets that the government regulates.