Do You Have These Energy Stocks On Your List Of Top Stocks To Buy Now?
As we wrap up another week of stock market volatility, there is a lot for investors to consider. Despite the increasing sanctions on Moscow, Russia’s attack on Ukraine continues. And as a result of this conflict, investors are at the edge of their seats. It’s no secret that oil prices and global stock markets swung wildly after Russia launched an invasion on Ukraine. At one point we saw oil prices jump to $105 per barrel and natural gas futures soared more than 50%.
With the shockwaves in the energy markets, investors could be eyeing some of the top energy stocks to buy in the market. After all, Russia is the second largest producer of natural gas and third largest oil producer in the world. As such, it would be nearly impossible for any country to meaningfully substitute Russian’s supply of natural gas to Europe in a short period of time. Following this disruption, it’s understandable why energy stocks have been among the hottest trades this week.
Some experts think that it’s prudent to take some profits off the table when the energy prices are high. Regardless of whether you agree with that view, the industry seems to be thriving. For instance, earlier this week, Diamondback Energy (NASDAQ: FANG) surprised Wall Street with quarterly revenue and profits that beat expectations. Elsewhere, we have APA Corp (NASDAQ: APA) which announced an oil discovery at the Krabdagu-1 (KBD-1) that is located on Block 58 offshore Suriname. All in all, given the positive news in the industry, here are four energy stocks to watch in the stock market in March 2022.
Energy Stocks For Your March 2022 Watchlist
- SM Energy Company (NYSE: SM)
- Ovintiv Inc. (NYSE: OVV)
- Enphase Energy Inc. (NASDAQ: ENPH)
- Kinder Morgan Inc. (NYSE: KMI)
Starting us off today is SM Energy. The company is primarily engaged in the acquisition, exploration and production of oil, gas, and natural gas liquids in Texas. SM Energy’s operations are concentrated in the Midland Basin and South Texas. Its Midland Basin assets span across 81,000 net acres in the Permian Basin in West Texas. On top of that, its South Texas operations consist of about 155,000 net acres of assets. Over the past year, SM stock has risen by more than 130%.
Yesterday, SM Energy announced its fourth-quarter and full-year financial results. Accordingly, the company raked in a net income of $424.9 million for the quarter, a great rebound from the previous year’s loss of $165.2 million. Along with that, earnings per share came in at $3.43 which beat expectations. As for its revenue, the company posted $855 million in the period, also beating Wall Street forecasts of $631.5 million.
Besides that, average daily oil production volumes were up by 22% from 2020, making it the highest in the company’s history. Moreover, it also bumped up its proved reserves. Estimated proved reserves at the end of 2021 totaled 492 million barrels of oil equivalent. This is up by 22% and is driven by reserve additions and performance revisions. Given the strong quarter, would you buy SM stock?
Formerly known as Encana, Ovintiv operates as an energy producer. The company focuses on developing its multi-basin portfolio of oil, natural gas liquids, and natural gas producing plays. It primarily serves clients in the U.S. and Canada. Put into perspective, the energy company has approximately 1,900 employees. OVV has been on an uptrend, rising by more than 70% over the past year.
Diving into the company’s financial earnings released yesterday, full-year net earnings were $1.38 billion compared to a loss of $642 million from the prior year. Accordingly, earnings per share for the full year were $5.32 per diluted share of common stock. Furthermore, Ovintiv achieved an average annual total production of approximately 534 thousand barrels of oil equivalent per day. Hence, being in line with its guidance. It also managed to reduce net debt by roughly $2.3 billion.
Ovintiv CEO Brendan McCracken said, “Our performance in 2021 demonstrates Ovintiv’s unique strengths – our industry-leading capital efficiency, top-tier multi-basin portfolio, culture of innovation, and disciplined approach to capital allocation. Our strategy to sustainably deliver superior returns is resulting in substantial value creation for our shareholders.” With the positive outlook, is OVV stock one for the watchlist?
Enphase is a renewable energy company that designs and manufactures home energy solutions. It is a global energy technology company and also the world’s leading supplier of microinverters-based solar storage systems. With its smart and easy-to-use solutions, the company connects solar generation, storage, and energy management into one intelligent platform. Enphase’s semiconductor-based microinverters convert energy at the individual solar module level and bring a system-based approach to solar energy management.
The company yesterday announced that its Enphase Energy System has seen a growing number of deployments in New Jersey. This likely comes as thousands of New Jersey residents experienced power outages following Hurricane Ida. As such, these grid outages helped spur an interest in reliable backup power solutions such as home solar and batteries. It’s worth noting that Enphase’s Energy System is powered by its IQ Microinverters and IQ Batteries.
Besides New Jersey, battery storage in Ohio is expanding as well. Ohio has been a proving ground for the clean energy transition. Its residential battery storage has been steadily growing year-over-year. Forecasts estimate that deployments will grow six-fold by 2026. All in all, it seems that more and more homes in states around the country are adopting Enphase’s Energy System. Given the growing deployments, would you consider investing in ENPH stock?
Finishing us off today is Kinder Morgan, one of the largest energy infrastructure companies in North America. The company owns an interest in or operates over 80,000 miles of pipelines and 144 terminals. For the most part, these pipelines transport everything from natural gas, gasoline, crude oil, and carbon dioxide among others. Along that, its terminals store and handle petroleum products and chemicals to name a few.
Recently, the energy titan announced that it would be building a renewable diesel hub in Southern California. Evidently, the hub will be capable of moving 20,000 barrels per day with room to grow now that it has received sufficient contractual commitments. Once built, Kinder Morgan said that the diesel hub would allow customers to aggregate and move renewable diesel batches (R99) from the Los Angeles area to high-demand markets in Colton and Mission Valley, California.
In January, the company also delivered steady results that enabled the company to close out 2021 as a record year financially. Net income for the quarter was $637 million for the company, compared to the $607 million from 2020. For 2022, the company expects to generate a net income of $2.5 billion for the year. With this renewable diesel hub in the works and a steady quarter, is KMI stock a buy?