List of 10 Best Energy Stocks to Buy
Here are some of the best energy stocks to buy for your portfolio.
These top energy stocks are popular because they tend to represent large and established companies with a proven track record of success.
Suncor (SU)
Plug Power (PLUG)
Escalera Resources Co. (ESCR)
EOG Resources (EOG)
Phillips 66 (PSX)
ConocoPhillips (COP)
Exxon Mobil Corp. (XOM)
Noble Energy (NBL)
Statoil (STO)
Anadarko Petroleum (APC)
Detailed Overview of the Ten Top Energy Stocks
Suncor (Stock: SU)
Suncor is one of the largest companies operating in the Canadian oil sands.
Suncor trades on both the TSX and the NYSE.
Image source: Pixabay
The company is one of the original developers of the oil sands in Alberta, Canada, which has become one of the most productive oil deposits in the world.
Suncor is included as part of our best energy stocks, as the company is in the midst of a strong growth expansion.
From an initial focus on oil drilling, the company has expanded its operation to include a wide variety of energy producing endeavors.
The company has expanded into the natural gas segment, and currently has several large refineries in operation. They've also expanded into green energy production. A large ethanol production plant and a wind power project have helped diversify Suncor, and set it up well for success in the future.
Plug Power (Stock: PLUG)
Dealing in fuel-cells, Plug Power is operating in a relatively new section of the energy industry. While the company does not have the pedigree of some of the older energy stocks, the explosive growth in this particular sector makes Plug Power one of our listed top energy stocks.
Plug Power has experienced enormous growth, with triple percentage growth occurring over the last several quarters.
A blockbuster deal with Wal-Mart along with multi-million dollar backorders make this company a solid bet as one of the best energy suppliers.
However, because the fuel-cell market is still evolving, you need to use caution when investing in this particular section of the energy market. The potential for profit is large, but a turn in the sector would need to be caught early on to avoid large losses.
Escalera Resources Co. (Stock: ESCR)
Formerly known as Double Eagle Petroleum, in April 1st of 2014, the company changed its name to Escalera Resources Co.,
Escalera is based out of Denver, and has the bulk of its efforts devoted to a natural gas deposit in Wyoming. It is also involved in crude oil production, and operates a large gas pipeline. The company's large reserves of gas and oil make it a reliable investment for you to consider as a top energy stock for your portfolio.
EOG Resources (Stock: EOG)
EOG Resources looks like a great investment primarily because of its strength in the Bakken Shale deposit.
The reserves discovered in the Bakken hold the promise of making the United States the eventual largest producer of oil in the world, and EOG Resources is one of the largest players in the area.
As reported by US News, “The U.S. Geological Survey has considers the Bakken deposit the largest continuous oil accumulation it has ever assessed. The U.S. Geological agency said over 7 billion barrels of oil could be extracted from the Bakken and the underlying Three Forks using current technology.”
As one of the top energy stocks to buy, EOG Resources’ current size, ongoing production and discoveries have been impressive. The company consistently opened new wells that are producing not only at a high-volume, but also at a high quality.
The produced oil is light, which makes it easier to refine and turn into the higher-priced products that companies make out of crude oil. With the resources under its control, EOG Resources should continue to be a power player for many years to come.
Phillips 66 (Stock: PSX)
Phillips 66 is a top tier in the list of best energy stocks to invest in. It is based out of Houston and is involved in a large variety of businesses within the energy sector, with a very large portion of its business tied up in transporting energy products.
In 2012, the company controlled approximately 18,000 miles of pipeline and 8,500 rail cars. It is also involved in chemical production, refining and marketing specialty products.
One of the good indicators that Phillips 66 is one of the stronger top 10 energy stocks is how it is held by fund managers in energy based funds.
One highly performing energy-based ETF is PowerShares Dynamic Energy (PXI). It is one of the top performing energy ETF. Three energy stocks are tied for the largest investment made by the fund in any one individual stock, and one of those is Phillips 66.
ConocoPhillips (Stock: COP)
ConocoPhillips is a long-term major player in the energy industry.
With a market cap of over $98 billion, they are among the largest companies in the sector. The largest portion of the company's business is in the lower 48 states, and although they have operations throughout the country they are focused to a large degree on the Bakken play and the Gulf Coast.
Exxon Mobil Corp. (Stock: XOM)
Whenever Warren Buffet makes a big move, the stock investing world pays attention. Although energy stocks have never been the trademark investment of the Oracle of Omaha, there have been times when he has invested in the sector.
Image source: Pixabay
One of the reasons that Exxon Mobil looks attractive is because Berkshire Hathaway made a large investment in the company.
Exxon Mobil is gearing up to be one of the leaders in the country as the United States pushes towards being able to export more oil and gas to other countries as at-home production ramps up.
Noble Energy (Stock: NBL)
Noble Energy is another company poised to take advantage of the discoveries in shale. Shale deposits around the country are producing at high volumes, but Noble Energy is focused on the Niobrara field in Colorado.
The hallmark of Noble is that it has a very stable source of income at home, as it is producing approximately 100,000 barrels of oil every day from its shale deposits. This gives the company stability while it continues to expand, explore and branch out in operations around the rest of the planet.
Statoil (Stock: STO)
North America isn't the only place to hunt for high-quality, popular top 10 energy stocks. Norway is another significant player in the energy field, and Statoil is a Norwegian based company that is a popular choice with investors. The company has large operations both at home in and in Canada, keeping it active in two of the most productive energy locations in the world.
Anadarko Petroleum (Stock: APC)
One of the ways to assess the popularity of energy stocks is to see which fund managers are buying a particular stock and including it in their portfolio.
Looking at hedge funds that deal in energy stocks, it becomes clear that Anadarko Petroleum is one of the most popular top 10 energy stocks.
Anadarko is an active oil and gas producer in the Gulf of Mexico. The company was spun off from parent company Panhandle Eastern Corporation in 1928.
In addition to its primary operations in the United States, it also has significant operations in China, and other countries around the world.
One of the reasons its popularity has spiked lately is because in April of 2014, it settled a massive lawsuit with the Justice Department relating to environmental charges against an acquired company, Kerr-McGee.
