We recently published a list of the 15 Energy Infrastructure Stocks That Are Skyrocketing. In this article, we are going to take a look at where Excelerate Energy, Inc. (NYSE:EE) stands against other energy infrastructure stocks that are skyrocketing.
In January 2024, the Biden administration paused federal authorizations for several pending LNG export projects, citing concerns about environmental impacts and domestic energy security. The US Department of Energy later released an assessment indicating that increased LNG exports could add 1.5 gigatons of greenhouse gas emissions annually by 2050, equivalent to a quarter of the current emissions of the US. However, President-elect Donald Trump is set to reverse the Biden administration’s pause on liquefied natural gas (LNG) export approvals, marking a significant shift in US energy policy.
On January 1, Ukraine officially halted the transit of Russian natural gas to several European nations, marking the end of a five-year agreement and closing a chapter in Russia’s decades-long dominance over Europe’s energy markets. The termination of this deal comes amidst the ongoing war between Ukraine and Russia, with neither side willing to negotiate an extension. Europe is expected to rely heavily on liquefied natural gas (LNG) imports. Christoph Halser of Rystad Energy estimates that the EU will need to source approximately 7.2 billion cubic meters of gas from the global LNG market.
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As Europe pivots away from Russian gas, the United States emerges as a key player in filling the supply gap. US LNG exports to Europe have already been rising in recent years, and this shift presents an even greater opportunity for American energy producers. With robust infrastructure and increased LNG export capacity, the U.S. is well-positioned to strengthen its role as a reliable supplier to Europe, enhancing energy security across the continent while bolstering its own energy industry.
The growth of US energy exports hinges on significant investments in infrastructure. According to a report by ICF, prepared for the American Petroleum Institute (API), the development of US oil and gas infrastructure is expected to remain robust through 2035. The report highlights that the primary drivers for continued infrastructure development remain strong. Shale and tight oil resource extraction are projected to continue at a rapid pace, supported by advancements in extraction technologies and favorable market responses to competitive commodity prices. Total capital expenditures (CAPEX) for oil and gas infrastructure are projected to range between $1.06 trillion and $1.34 trillion from 2017 to 2035. This equates to an average annual investment of $56 billion to $71 billion, spanning various infrastructure components, including surface and lease equipment, gathering and processing facilities, pipelines for oil, gas, and natural gas liquids (NGLs), storage facilities, refineries, and export terminals.
As global energy dynamics shift, the United States stands poised to play a pivotal role in ensuring energy security for Europe while driving growth in its own energy sector.
A bird’s eye view of a natural gas pipeline stretching across the landscape.
Our Methodology
To compile our list of the 15 energy infrastructure stocks that are skyrocketing, we used Finviz and Yahoo stock screeners to rank the top 15 energy infrastructure stocks that achieved the highest gains over the past six months. We also included their hedge fund sentiment, which was taken from Insider Monkey’s Hedge Fund database of 900 elite hedge funds as of Q3 of 2024. The list is sorted in ascending order of 6-month performance, as of January 2.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Excelerate Energy, Inc. (NYSE:EE)
Returns in Past 6 Months: 65.86%
Number of Hedge Fund Investors: 15
Excelerate Energy, Inc. (NYSE:EE) is a leading provider of integrated liquefied natural gas (LNG) solutions. The company specializes in floating LNG regasification infrastructure, LNG supply, and energy delivery services. Excelerate Energy, Inc. (NYSE:EE) operates both LNG carriers and Floating Storage Regasification Units (FSRU), a vessel that stores LNG and turns it back into gas, once it arrives at its destination.
The stock price of Excelerate Energy, Inc. (NYSE:EE) has increased significantly over the last six months, driven by the company’s strong financial performance and growth prospects. Additionally, the company’s decision to more than double its quarterly dividend has also provided a positive catalyst for the stock. Excelerate Energy, Inc. (NYSE:EE) has signed a strategic partnership agreement with PetroVietnam Technical Services Corporation to develop FSRU-based LNG solutions in Vietnam. This partnership has provided a new market opportunity for Excelerate Energy, Inc. (NYSE:EE).
Excelerate Energy, Inc. (NYSE:EE) has also signed midterm agreements to purchase and sell approximately 0.65 million tons of LNG in one of the Atlantic Basin regions, which will help optimize its supply portfolio and support commercial opportunities in its pipeline. This agreement, along with others is expected to provide a stable source of revenue and help to drive growth for the company. Furthermore, Excelerate Energy, Inc.’s (NYSE:EE) ability to buy and sell LNG at the prices from the European natural gas index, helps to derisk margin and provides a competitive advantage in the market.
Overall, EE ranks 7th on our list of energy infrastructure stocks that are skyrocketing. While we acknowledge the potential of EE to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
