10 Oversold Energy Stocks To Buy Now

7. Ecopetrol S.A. (NYSE:EC)  

Number of Hedge Fund Investors: 11  

Forward P/E Ratio as of November 5: 5.15  

YTD Performance as of November 5: -35.18%  

Ecopetrol S.A. (NYSE:EC) is Colombia’s state-owned oil company, responsible for oil and natural gas production. The company operates in the oil and gas value chain, including exploration, production, refining, and transportation. Ecopetrol S.A. (NYSE:EC) also plays a crucial role in developing Colombia’s oil reserves.

Ecopetrol S.A.’s (NYSE:EC) diversified asset base and strong cash flow profile make it an attractive investment opportunity. The company’s midstream and downstream operations, which include a 9,000-kilometer pipeline network and two refineries, generate stable and predictable cash flows, providing a cushion against potential disruptions in the exploration and production segment.

Additionally, Ecopetrol S.A.’s (NYSE:EC) ownership of transmission lines and toll roads through its subsidiary, Interconexión Eléctrica, further diversifies its revenue streams and provides a hedge against oil prices. With a free cash flow yield of approximately 14.6%, Ecopetrol S.A. (NYSE:EC) offers investors a compelling opportunity to generate returns in a volatile market.

Ecopetrol S.A.’s (NYSE:EC) production profile is also well-positioned for long-term growth, with a diverse portfolio of assets that includes the Rubiales, Castilla, and Chichimene oil fields, as well as operations in the Permian Basin.

The company’s water injection programs at Chichimene have been successful in offsetting natural production declines, and its partnership with Parex to explore the Llanos Foothills offers significant upside potential.