2 Winning Energy Stocks to Invest in Right Now

Investors have been betting on energy stocks since early this year, given the rapid rise in economic and industrial activities with the progress made in controlling the COVID-19 pandemic. This is evidenced by the S&P Oil & Gas Exploration & Production Select Industry Index’s 68.3% gains year-to-date, versus the broader S&P 500 index’s 12.9% returns over this period…

Oil prices are currently hovering near their two-year highs, at more than $70 per barrel, driven by rising demand from major economies as industrial and manufacturing activities re-engage. As the major oil consuming emerging markets of India and Brazil recover from recent new waves of coronavirus, the demand for oil is expected to rise further in the near term. OPEC+ expects oil demand to rise 6.6% year-over-year in 2021.

Given this backdrop, we think EOG Resources, Inc. (EOG – Get Rating) and Energy Transfer LP (ET – Get Rating), which have gained more than 70% year-to-date, could be solid bets now.

EOG Resources, Inc. (EOG – Get Rating)

EOG explores for and markets crude oil and natural gas and natural gas liquids. The company operates in New Mexico and Texas in the United States; the Republic of Trinidad and Tobago; the People’s Republic of China; and the Sultanate of Oman.

EOG expects to administer $3.70 – $4.10 billion in capital expenditure in 2021 to maintain production at its fourth quarter 2020 rate and to fund growing exploration programs and emission reduction projects. The company also aims to achieve zero routine flaring by 2025 and reach net zero scope 1 and scope 2 GHG emissions by 2040. EOG’s commitment to sustainability should make it a popular stock among…

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