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Top-Performing Energy Stocks in 2021

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by Beatrice Mastropietro · 6 min read
Top-Performing Energy Stocks in 2021
Photo: Unsplash

The energy sector is booming, and there are many reasons for this trend: the hike in gasoline prices, increased investment worldwide, and new technologies that have made drilling more efficient than ever before. In this guide, we’ll take a look at some of the best-performing stocks in this space.

The energy industry is changing. The US Department of Energy predicts that by 2022, electricity generation in the United States will be about 30% cleaner than it was in 2005. One way to capitalize on this trend is through investing in stocks of companies that are leaders in renewable energy technology and oil exploration or those who have taken steps to improve efficiency while lowering emissions. In 2021, the energy sector has been one of the few bright spots on Wall Street. The steady growth in global demand for oil and gas and an increase in production from more efficient producers such as the US, Canada, and Brazil have helped boost stock prices across the board. Let us take a look at some of the top-performing energy stocks in 2021.

Best Energy Stocks to Invest In

The top companies to consider in 2021 include Chevron Corp, Devon Energy Corp, ConocoPhillips, Green Plains Inc, Cheniere Energy, Inc, and NRG Energy Inc.

Chevron Corp

Chevron Corp (NYSE: CVX) is a major integrated energy company that operates in every oil and gas industry aspect. It has been operating for over 100 years, beginning as Pacific Coast Oil Company before changing its name to Chevron in 1984 after acquiring Texaco. Chevron’s operations include exploration and production, refining/marketing, chemicals manufacturing, petroleum products trading companies worldwide. In 2015, Chevron acquired Anadarko Petroleum Corporation for $33 billion, which added significant reserves to Chevron’s already impressive portfolio of assets.

Chevron Corp is the world’s fourth-largest oil company. It has about 23,000 gas stations in more than 130 countries. Chevron was named one of the “World’s Most Admired Oil and Gas Companies” by Fortune Magazine for six years in a row. The company also sponsors professional athletes worldwide, including NASCAR Sprint Cup driver Joey Logano and golfer Michelle Wie. Chevron Corp stocks are traded on New York Stock Exchange (NYSE).

As of the end of September 2021, Chevron stock is 43.21% up from the same period of 2020.

Devon Energy Corp

Devon Energy Corp (NYSE: DVN) is a major American energy company headquartered in Oklahoma City and the sixth-largest natural gas producer. Since 2010, more than 75% of Devon’s daily production has been fueled by resources such as crude oil, NGLs, and natural gas liquids like propane. This change towards more profitable energy sources has driven the company’s growth over the past few years.

Although the company’s sales have partly declined due to low prices in many areas in 2021, its debt load is also exceptionally high considering this outlook.

Devon stock is a large-cap stock with a market cap of  $20.91 billion and an average trading volume of 2,767,517 shares. The dividend yield is 5.4%, and the payout ratio (the percentage of earnings paid out as dividends) is 86.2%. We can see from Devon’s financials that they have been growing their revenue by 10% on average over the last decade while maintaining steady net income growth at 8.7%.

As of September 2021, Devron stock’s one-year growth has totaled as much as 265.73%.

ConocoPhillips

According to Forbes, ConocoPhillips (NYSE: COP) is one of the largest energy companies globally, which brought them a net income of about $12 billion.

This success started before World War I when two separate oil companies were founded in Oklahoma. They were Continental Oil Company and Phillips Petroleum Company. In 2002, both companies merged to become ConocoPhillips after being separate entities for 75 years.

ConocoPhillips’ assets include Cook Inlet Region,  Alaska, Fort Berthold Indian Reservation, North Dakota, Kaybob Duvernay Shale play, Alberta, ShaMaran Petroleum Corp., Apache Canada Ltd., Blackrod oil sands project, Fort McMurray, Alberta, as well as shares in fields operated by Exxon Mobil Corp., Royal Dutch Shell PLC, and other oil companies.

ConocoPhillips’ EPS growth between 2012 and 2021 is estimated at 9%, versus an average of 13% for the major integrated oil companies.

The company has a market capitalization of $75 billion (USD), revenues of more than $36 billion (USD), and more than 10,000 employees worldwide as of September 2021. It is changing its structure to focus on fewer but more significant projects to boost profits by 2022.

Green Plains

Green Plains Inc (NASDAQ: GPRE) is the nation’s largest ethanol producer and America’s leading biofuels company operations in more than 20 states. In addition to operating 11 ethanol plants, GP produces distillers grains branded Dakota Gold, Inviz, Voila, and Yella. GP also owns a majority interest in Gavilon, LLC, one of the nation’s leading agricultural merchants involved in grain merchandising and risk management.

Green Plains is a specialty chemicals firm with a market value of $1.6 billion as of September 2021. Green Plains (GPRE) is a one-of-a-kind chemicals firm based in Omaha. If you want to branch out from the more well-known energy businesses on this list, it ranks as one of the significant ethanol manufacturers in the United States.

According to analysts at NASDAQ, Green Plains Inc stocks in 2021 are expected to surge to new heights over the next decade. The 2021 NASDAQ stock exchange predicts Green Plains Inc stocks will climb as high as $60 per share by 2026. This is almost double its share price.

As of September 2021, its stock is 114.18% up from September 2020.

Cheniere Energy

Cheniere Energy Inc (NYSE: LNG) is a Texas-based energy infrastructure company primarily engaged in LNG-related businesses. Its energy infrastructure represents a more than $38 billion investment in the future of energy and is a demonstration of the company’s ability to execute. Cheniere established industry records for bringing new liquefaction units online ahead of schedule and is the fastest company to produce and export 1,000 cargoes of LNG.

As of September 2021, the market cap of Cheniere totals $24.36 billion. The stock is up 99.69% this year.

NRG Energy

NRG Energy Inc. (NYSE: NRG) is an American power generation company that offers retail electricity and natural gas services to over 3 million customers in nine states through NRG Retail, NRG Business Services, and NRG Home Services. NRG is the largest electric utility in Texas.

NRG was created as a spin-off from Reliant Energy. NRG bought RRI Energy (the parent company of Green Mountain Energy) from ENRON as one of the businesses that emerged after the ENRON scandal. In July 2005, NRG acquired NorAm Energy from National Grid plc for $4.230 billion, gaining more than 5 hydroelectric plants in New York and New England and accessing those states’ electrical grids.

In 2021, NRG stock is promising and worth investing in. As of September 2021, its market cap is $10.35 billion. Compared with 2020, NRG stock is 39.36% up.

Conclusion

Energy stocks have been one of the most profitable sectors in the market over the last few years, and they continue to perform well even as a result of recent volatility. Investors who are looking for a high-growth investment should consider energy stocks.

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FAQ

What are the best energy stocks to invest in in 2021?

The top companies to consider in 2021 include Chevron Corp, Devon Energy Corp, ConocoPhillips, Green Plains Inc, Cheniere Energy, Inc, and NRG Energy Inc.

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