In this segment, Motley Fool analysts Joel South and Taylor Muckerman discuss their top 5 energy companies to watch. The top five can be found here.
Devon Energy (NYSE: DVN ) is among our favorite oil & gas investments, with oil production soaring and capital expenditures geared at targeting liquids heavy, high ROI plays in North America. Unlike a number of Devon's peers, the company has a sturdy and unleveraged balance sheet, with $4.2 billion in cash and a 23% net debt-to-cap ratio.
Investors today are looking at a conservative oil & gas producer trading well below its net asset value. With high oil prices and the potential for a slight rise in natural gas producers, Devon Energy looks like a tremendous value.
More great energy plays
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.
Be sure to follow the energy sector on Twitter as well.