5 Most Promising Energy Stocks According to Analysts

In this article, we discuss the 5 most promising energy stocks according to analysts. To read the overview of the energy sector, go directly to the 13 Most Promising Energy Stocks According to Analysts.

5. Energy Transfer LP (NYSE:ET)

Average Analyst Price Target Upside: 33.70%

Average Analyst Price Target: $18.33

Energy Transfer LP (NYSE:ET) is one of the biggest midstream energy companies with a diversified portfolio of assets in 44 states.

On November 16, Energy Transfer LP (NYSE:ET) announced a non-binding agreement to provide crude oil from its proposed Blue Marlin offshore port to TotalEnergies SE (NYSE:TTE). Under the agreement, the Texas-based port will supply 4 million barrels per month.

According to Insider Monkey’s database, the number of hedge funds with a stake in Energy Transfer LP (NYSE:ET)’s stock remained the same, 34, in both the second and third quarters, but the total stake value increased to $803.248 million in Q3 from Q2’s $606.342 million. The most prominent investor in the company was David Abrams’ Abrams Capital Management with 17.834 million shares worth $250,215 million.

4. Marathon Oil Corporation (NYSE:MRO)

Average Analyst Price Target Upside: 35.16%

Average Analyst Price Target: $32.87

Marathon Oil Corporation (NYSE:MRO) is an independent exploration and production (E&P) company that has operations in the Eagle Ford in Texas, the Bakken in North Dakota, the STACK and SCOOP in Oklahoma, and the Permian in New Mexico.

Over the last three months, 15 Wall Street analysts covered Marathon Oil Corporation (NYSE:MRO), and 11 kept a Buy rating on the stock. The average price target of $32.87 had an upside of 35.16% as of the December 15 market close.

On November 28, Citi decreased the price target on Marathon Oil Corporation (NYSE:MRO)’s stock to $30 from $32.50 and maintained a Buy rating.

In the third quarter, Marathon Oil Corporation (NYSE:MRO) reported a non-GAAP EPS of $0.77, which surpassed the estimates by $0.08. The revenue of the quarter was $1.81 billion, which beat the estimates by $50 million.

3. Schlumberger Limited (NYSE:SLB)

Average Analyst Price Target Upside: 35.16%

Average Analyst Price Target: $70.54

Schlumberger Limited (NYSE:SLB) is a Texas-based company that provides tech and services to the oil and gas industry, including well completion services, drilling services, interpretation and consulting services, and more.

On October 30, Schlumberger Limited (NYSE:SLB) announced that it had been selected by Eni S.p.A. (NYSE:E) to provide fugitive methane emissions measurement and reporting plans for its international operating facilities.

Schlumberger Limited (NYSE:SLB) is a dividend stock with a 1.92% dividend yield. The company’s next quarterly dividend is payable by January 11 to the shareholders of record on December 6.

Schlumberger Limited (NYSE:SLB) was mentioned in Fred Alger Management’s third quarter 2023 investor letter. Here is what it said:

“Schlumberger Limited (NYSE:SLB) provides technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. During the period, shares contributed to performance driven in large part by higher oil prices and strong fiscal second quarter earnings results. Within its quarterly report. the company highlighted growing momentum in international offshore markets that reflected market share gains as well as solid end market activity, leading to strong profit margins and healthy free cash flow generation, in our view.”

2. Halliburton Company (NYSE:HAL)

Average Analyst Price Target Upside: 39.59%

Average Analyst Price Target: $50.00

Halliburton Company (NYSE:HAL) is a Texas-based company that provides several services to the oil and gas industry, including identification of hydrocarbons, management of geological data, drilling and formation evaluation, and more.

In the third quarter, the number of funds with a stake in Halliburton Company (NYSE:HAL)’s stock was 41, up from 39 in the previous quarter. The most significant stakeholder in the company was Richard S. Pzena’s Pzena Investment Management. The fund owned 3.568 million shares of Halliburton Company (NYSE:HAL) worth approximately $144.5 million.

Aristotle Atlantic Partners, LLC commented on Halliburton Company (NYSE:HAL) in its third quarter 2023 investor letter. Here is what it said:

“Halliburton Company (NYSE:HAL) contributed to outperformance in the quarter. The company continues to benefit from higher commodity prices, with both oil and natural gas prices increasing due to supply concerns, as well as improving supply-demand fundamentals in 2024. Investors are focusing on the upside growth benefits to the company in 2024, as North American oil and gas producers begin to increase rig counts, and international oil companies (IOCs) and national oil companies (NOCs) continue to increase their spending on mega projects. Halliburton should see a reacceleration in topline growth and improved margins as the result of the company’s focus over the last few years on higher-margin tools and technology offerings.”

1. Cenovus Energy Inc. (NYSE:CVE)

Average Analyst Price Target Upside: 48.92%

Average Analyst Price Target: $24.20

Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company with crude oil, natural gas liquids (NGLs), and natural gas assets and projects across Canada, the United States, and the Asia Pacific region.

Cenovus Energy Inc. (NYSE:CVE) was covered by 11 Wall Street analysts, and 10 kept a Buy rating on the stock. The average price target of $24.20 represented an upside of 48.92% as of the December 15 market close.

On December 14, Cenovus Energy Inc. (NYSE:CVE) announced its 2024 budget, which outlined investments of $4.5 billion-$5 billion. The company plans on continuing its growth mission of 2023 and will be progressing with multiple projects, including the West White Rose project, Foster Creek, Christina Lake, and Sunrise oil sands facilities.

Cenovus Energy Inc. (NYSE:CVE) was mentioned in L1 Capital’s third-quarter 2023 investor letter. Here is what it said:

“Cenovus Energy Inc. (NYSE:CVE) (Long +23%) shares rallied as WTI oil prices rose to ~US$91/bbl over the month, the highest level since November 2022. The company also had tailwinds from higher refinery margins, particularly in North America which remains their key exposure. Cenovus continues to generate strong free cash flow at current oil price levels, with the long-life nature of its oil sands assets and its low cost of production providing a break-even oil price at around ~US$40/bbl. We estimate the company can reach its net debt target in early CY24, enabling a step-up in shareholder returns through on-market share buybacks.”

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