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 (Ring Energy, NextEra Energy, Brookfield) are some of these companies. Before you invest in any company, it is important to carefully assess its fundamentals.
Ring Energy
Ring Energy stock has outperformed other stocks in recent months. Investors can look at its earnings outlook for guidance regarding future performance. Because it includes recent revisions to earnings estimates as well as current consensus earnings forecasts, the earnings outlook can be a useful indicator of the company’s prospects. There is a strong correlation among earnings estimate revisions, near-term stock prices movements, and earnings estimate revisions. The Zacks Rank, which is a reliable indicator of changes in earnings estimates over the past few days, is also very useful.
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. 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 experienced a horrible June and is now at 7.7% loss.
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. Its production is split almost evenly between oil and natural gas. The integrated oil business it has allows it to increase its production and lower its costs. Moreover, its free cash flow allows it to maintain its dividend.
It is important to invest in companies that have strong dividends, if you wish to make a profit from the energy sector. This is a good investment that will yield a high yield, even though it might not be the most lucrative. This is a good dividend yield, especially considering the environment. The company's share prices have increased more than twice in the past five years.
NextEra Energy
NextEra Energy has a strong portfolio of assets and is a publicly traded utility firm. It is the country's largest utility company, with a market cap of $153 trillion. 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 is one of the world's largest investors in renewable power. The corporate headquarters of Brookfield Energy are in Toronto, Canada. Brookfield Asset Management owns approximately 60% of the shares. It has a portfolio of renewable power assets that includes solar, wind, and hydropower. Its subsidiaries include Brookfield Renewable Partners L.P., Brookfield Energy Company, and Brookfield Wind Energy.
Brookfield Renewables is the largest private owner of critical power assets. The 1,200-megawatt operating portfolio and a 1,300 megawatt development pipeline will complement it. Brookfield Energy will be a world leader in distributed generation and this investment will strengthen its position.
TC Energy
TC Energy (Midstream Company) is a company that operates a large number of pipelines throughout the United States. It is well-positioned for growth in the LNG export industry and has steady cash flows that are unaffected by macroeconomic factors. Current yields are 5.31%, and the stock has been increasing its dividend each 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 boasts a wide portfolio of capital projects, which should increase its revenues and create more cash flow. The company currently has $7B in projects in the pipeline, and $20B in secured capital development plans up to 2024. TC Energy has more than $100 billion of assets and is in a strong position to increase its cash flow and improve financial results. Moreover, 95% is from assets that the government regulates.