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Rapidly increasing demand for oil and natural gas and significant advances in technology continue to drive the growth and evolution of the energy sector. Against this backdrop, fundamentally strong energy stocks such as Total Energy (TTE), Cheniere Energy (LNG), and Champion X Corporation (CHX) may be ideal buys to accelerate your portfolio. do not have. read more….
The energy sector is growing due to rapid energy consumption amid economic growth and industrialization, and numerous innovations in energy production and distribution technologies. Therefore, investors can consider buying the top energy stock TotalEnergies SE (Tete), Cheniere Energy Co., Ltd. (LNG), ChampionX Corporation (CHX) for the benefit of the portfolio.
The Organization of the Petroleum Exporting Countries (OPEC) predicts steady growth in oil demand. World oil demand is 2.25 million barrels per day in 2024, 1.85 million barrels per day in 2025, Each. Economic growth forecasts have been raised by 0.1 percentage point in both years, with growth expected to be 2.7% in 2024 and 2.9% in 2025, supported by general easing in inflation.
Meanwhile, demand for natural gas will rapidly increase due to economic growth, industrialization, and infrastructure development.Global he LNG market is predicted to grow rapidly CAGR 7.6% Additionally, the transition to natural gas in the United States, particularly in power generation, is fueling demand for LNG, supported by robust infrastructure and industrial activity.
The U.S. Energy Information Administration (EIA) estimates that the U.S. consumed 118 Bcf of natural gas per day in January, setting a new monthly record by the power sector. The EIA further states that U.S. natural gas consumption is 5% YoY increase in the first quarter of 2023.
Additionally, the oil and gas industry is experiencing significant growth due to increased digitalisation, increased exploration activity and increased energy consumption, with advanced technologies offering efficiency and safety benefits.The global oil and gas automation market is estimated to grow at a significant CAGR of 6.7% to reach $33.34 billion by 2030.
Continuing advances in exploration and production technologies, such as hydraulic fracturing and horizontal drilling, have made it possible to extract unconventional oil and gas reserves, facilitating production and industrial growth.
Given these favorable trends, let’s discuss the fundamentals of three energy stocks: TTE, LNG, and CHX.
Total Energy SE (Tete)
TTE, headquartered in Courbevoie, France, is a global multi-energy company engaged in the production and sale of fuels, natural gas and electricity. The company operates through five segments: integrated gas, renewable energy and power. exploration and production. refining and chemicals; marketing and services;
On February 29, 2024, TTE entered into a 16-year purchase and sale (SPA) agreement with Sembcorp Fuels, a wholly owned subsidiary of Singapore-based Sembcorp Industries, to supply up to 800,000 tonnes per year (Mtpa) of LNG starting in 2024. I decided to supply it. 2027. LNG will be sourced from TotalEnergies’ global portfolio. This new agreement extends the companies’ current SPA until 2029.
The agreement underscores TTE’s commitment to supporting Singapore’s energy security and decarbonization efforts, while strengthening its position as a major global LNG player.
On February 6, TTE proposed the following: dividend The 2023 ordinary dividend was 3.01 euros ($2.22) per share, an increase of 7.1% from the 2022 ordinary dividend of 2.81 euros ($2.07) per share. Taking into account the three interim dividends of €0.74 ($0.55)/share previously determined by the Board of Directors, the final dividend for the 2023 financial year will be €0.79 ($0.58) per share.
TTE’s final dividend will be paid in cash to shareholders on July 1, 2024 and payable on July 11, 2024. The company’s annual dividend yields 4.97% when converted to the prevailing price level.
TTE reported revenue of $54.77 billion for the fourth quarter ended December 31, 2023. The company reported adjusted net operating income and adjusted EBITDA of $5.55 billion and $11.7 billion, respectively. Additionally, cash flow from operating activities was $16.15 billion, an increase of 70% sequentially.
Street expects TTE’s revenue and EPS to be $217.33 billion and $9.01, respectively, for the fiscal year ending December 2024. The company expects fiscal 2025 EPS to be $9.29, up 3.1% year over year. Additionally, the company beat consensus revenue estimates in three of his four subsequent quarters.
TTE stock has increased 12% over the past nine months, closing at $64.50. Also, stock prices rose slightly during the day.
TTE’s power evaluation reflects this strong outlook. This stock has an overall rating of B, which equates to a “buy” according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to the best degree.
TTE earns a B grade for momentum, stability, and quality.within Energy – oil and gas Ranked 3rd out of 83 stocks in the industry.
In addition to the POWR Rating above, you can access additional growth, value and sentiment ratings for TTE. here.
Cheniere Energy Co., Ltd. (LNG)
LNG is an energy infrastructure company specializing in liquefied natural gas (LNG)-related businesses. The company owns and operates the Sabine Pass LNG Terminal in Cameron Parish, Louisiana, and the Corpus Christi LNG Terminal near Corpus Christi, Texas. It also owns the Creole Trail Pipeline and operates the Corpus Christi Pipeline.
On February 23, 2024, LNG paid a quarterly cash dividend of $0.435 per common share. The company pays $1.74 per year, equivalent to a yield of 1.11% at prevailing price levels, which is higher than the four-year average dividend yield of 0.46%.
On November 29, 2023, LNG and Cheniere Energy Partners, LP (CQP) today announced that Sabine Pass Liquefaction Stage V, LLC has entered into a long-term integrated production marketing (IPM) gas supply agreement with ARC Resources US Corp., a subsidiary of prominent US-based natural gas producer ARC Resources Ltd. (ARX). announced that they had signed a contract. Canada.
Under the IPM contract, ARC Resources will sell 140,000 MMBtu of natural gas per day to SPL Stage 5 over a 15-year period, beginning with the commercial operation of the first train of the Sabine Pass Liquefaction Expansion Project. The agreement could allow Cheniere to supply more Canadian natural gas to Europe.
Total LNG revenue for the fourth quarter ended December 31, 2023 reached $4.82 billion. The company posted operating income of $2.44 billion and net income of $1.83 billion. Total assets as of December 31, 2023 were $43.08 billion and total assets as of December 31, 2022 were $41.27 billion.
The company expects consolidated adjusted EBITDA to be in the range of $5.5 billion to $6.0 billion for fiscal 2024, while distributable cash flow is expected to be in the range of $2.9 billion to $3.4 billion. .
Analysts expect LNG’s revenue and EPS to increase 22% and 14.3% year over year to $20.69 billion and $10.34 for the fiscal year ending December 2025, respectively. The company also beat consensus EPS estimates in each of his four subsequent quarters.
Shares have increased 9.8% over the past nine months, closing at $156.18.
LNG’s strong fundamentals are reflected in the POWR Rating. This stock has an overall rating of B, which equates to a “buy” according to our proprietary rating system.
This stock has a B grade for momentum, sentiment, and quality. LNG is ranked #11 out of 83 stocks in the Energy – Oil & Gas industry.
To access additional ratings on LNG growth, value, and stability, please visit click here.
Champion X Co., Ltd. (CHX)
CHX provides chemical solutions, artificial lift systems, engineering equipment and technology to oil and gas companies around the world. The company operates through the following segments: Production Chemical Technology, Production and Automation Technology, Drilling Technology, and Reservoir Chemical Technology.
On February 27, 2024, CHX acquired Artificial Lift Performance Limited (ALP), strengthening its portfolio of digital solutions for oil and gas production optimization. This strategic move combines ALP’s advanced analytical expertise with CHX’s XSPOC™ software to improve the productivity and profitability of customers’ production assets.
On February 5, CHX’s board of directors approved a 12% increase in the regular quarterly dividend to $0.095 per common share, payable on April 26, 2024. The company pays $0.38 per year. This translates to a yield of 1.19% at the prevailing price level. The average dividend yield over four years is 0.42%.
For the fourth quarter ended December 31, 2023, CHX reported revenue of $943.56 million. The company’s adjusted EBITDA was $198.15 million, an increase of 10.4% from the same period last year. Additionally, adjusted EPS attributable to CHX increased 2.3% year over year to $0.44.
In addition, operating cash flow was $169 million and free cash flow was $140 million in the fourth quarter, representing 71% of adjusted EBITDA for the period.
For the fiscal year ending December 2024, Street expects CHX’s revenue and EPS to increase 3.6% year-over-year to $3.89 billion and EPS to increase 11% to $1.99. Additionally, the company beat consensus EPS estimates in three of the trailing four quarters. , which is promising.
CHX stock last closed at $31.89, up 17% over the past month and 21.6% over the past nine months. It also rose 2.7% during the day.
CHX’s POWR Rating reflects its optimistic outlook. This stock has an overall rating of B, which equates to a “buy” according to our proprietary rating system.
The quality of the stock is B grade.within Energy – Services In its industry, CHX ranks #10 out of 51 stocks.
click here See CHX’s assessment of growth, value, momentum, stability, and sentiment.
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TTE stock was unchanged in premarket trading Monday. Year-to-date, TTE has declined -4.27%, while the benchmark S&P 500 Index has gained 7.90% during the same period.
About the author: Kritika Sarma
An interest in risky financial products and a passion for writing led Kritika to become an analyst and financial journalist. She earned a Bachelor’s degree in Commerce and is currently enrolled in the CFA program. She aims to help investors identify untapped investment opportunities with her fundamental approach.
post 3 Energy Stocks to Accelerate Portfolio Returns It first appeared stocknews.com