The Best Energy Stocks for 2014

Photo credit: SandRidge Energy

Oil production in the U.S. is expected to grow over the next few years. According to the U.S. Energy Information Agency, by 2016 America could top its historical high of 9.6 million barrels per day set in 1970. That means American energy production is a great place for investors to be over the next few years. Below are the four best energy stocks to play this boom in the year ahead.

Best Energy stock for America's energy boom: EOG Resources Inc. (NYSE: EOG  )
There are a number of ways to invest in the American oil boom, but EOG Resources just might be the best energy stock in America. It has a dominant position in the Eagle Ford Shale as well as solid positions in the Bakken Shale and Permian Basin. Because of this, EOG Resources expects to deliver best-in-class oil production growth over the next few years. In fact, by 2018 EOG Resources could be the top oil producer in America.

Best energy stock for a value: SandRidge Energy Inc. (NYSE: SD  )
While SandRidge Energy doesn't have a top-tier position in all of the hot oil plays like EOG Resources, it does have a great position in an emerging oil play. The company has consistently grown its production from that play and is getting better at driving returns. The problem is that investors have missed the fact that SandRidge Energy has really turned a corner. That has its stock so undervalued that one billionaire thinks it could easily double. That potential makes it one of the best energy stocks to buy for investors digging for value in 2014.

Best energy stock for growth and value: ConocoPhillips (NYSE: COP  )
Investors looking for a great energy stock that combines growth and value as well as operations in the U.S. and around the world need to look no further than ConocoPhillips. The company has a plan in place to grow both its production and margins by 3%-5% annually through 2017. On top of that it pays a very generous 4% dividend. Further, the company offers international growth, as 45% of its 2014 capital budget will be spent outside the U.S. Add it all up and ConocoPhillips is a great all-around energy stock and the perfect energy stock to add to a retirement account.

Best energy stock for income: LINN Energy LLC (NASDAQ: LINE  )
Speaking of generous dividends, LINN Energy is one of the best energy stocks for income investors. The oil and gas MLP has a 9.5% yield and it pays its investors on a monthly basis instead of each quarter. The company recently completed a transformational deal that really pushed its production toward higher margin oil. That oil production should enable LINN Energy to boost its payout to investors in 2014. Not only that but LINN Energy is always on the lookout for future deals to add more fuel to its distribution increases. Bottom line, LINN Energy is one of the best energy stocks for income-seeking investors.

Investor takeaway
There really is an energy stock for every investor's portfolio. In fact, I'd go as far as to say that every investor should have an energy stock in their portfolio as America's energy boom really is producing some serious profits for American investors. Best of all, these profits in 2014 will be at OPEC's expense.

Find out which company is OPEC's worst nightmare

Not much worries OPEC. That said, in an exclusive, brand-new Motley Fool report we reveal the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock.



Read/Post Comments (15) | Recommend This Article (67)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 01, 2014, at 11:34 PM, philbabb wrote:

    The longest dullest pitch ever and I'm already a subscriber

  • Report this Comment On January 02, 2014, at 7:34 PM, poohbear wrote:

    I don't understand why it takes so long to give out such a little bit of information. please cut to the chase!

  • Report this Comment On January 02, 2014, at 10:35 PM, marshallfineman wrote:

    It is very interesting to me that Warren Buffett, considered the worlds most successful investor, recently purchased, through Berkshire Hathaway, a very substantial position (said to be 40.1 million shares valued at $3.4 billion) in Exxon Mobil. Yet this stock is not listed above. Curious!

  • Report this Comment On January 03, 2014, at 12:18 AM, moozyx wrote:

    I'm already a subscriber too. How do I find out which stock he's pitching? Have I already been given this info as part of my subscription?

  • Report this Comment On January 03, 2014, at 7:53 AM, Neta777 wrote:

    @Atevenivill

    $16566 / 65 = 255 hours

    Assuming 22 working days per month (5 day work week) we have:

    255 / 22 = 11.6 hours per day. A far cry from "just working on the computer for a few hours".

    I suggest you take your SPAM somewhere else.

  • Report this Comment On January 03, 2014, at 10:24 AM, Polecat423 wrote:

    I agree with philbabb and poohbear above. the MF has good information but it is time consuming to wade through all the hype getting to the meat of the thing. It is almost as bad as sitting through a TV commercial a kitchen appliance. Please "just the facts sir"

  • Report this Comment On January 03, 2014, at 2:58 PM, gcor1952 wrote:

    Good Lord if you are going to drag this out so long could you put a pause button on it. People get phone calls and visitors. Maybe even a need to go to the bathroom!

    I CAN'T LISTEN ANY LONGER. DOES ANYONE KNOW THE NAME OF THIS STOCK? i already get Stock Advisor. Is it in there?

  • Report this Comment On January 03, 2014, at 8:38 PM, TMFmd19 wrote:

    The stock in the special video report is in Stock Adviser.

    Matt

  • Report this Comment On January 04, 2014, at 1:45 AM, malcolmcochran wrote:

    Worldwide, I accept hydrogen as a versatile fuel.

    I hold Energy shares in HYGS after doing the best I can with my Foolish know-how. And ITM-power - tho' that little cutie might get blown away.

  • Report this Comment On January 04, 2014, at 2:35 PM, Mistysandy wrote:

    An observation that makes me curious, Devon is not mentioned as a best energy pick for 2014, yet it was a recently recommended buy.

  • Report this Comment On January 04, 2014, at 10:12 PM, RxDan1 wrote:

    Why is it that virtually everytime there are recommendations on "Energy" stocks by MotleyFool, they always are based carbon footprint companies which include natural gas firms, the so-called clean burning fuel, but when obtained, the process uses enormous amounts of water, toxins and releases green house gases quite predominantly, not even taking into account the potential for seismic activity induced fracking.. Look, of course it will take a while for us to wean ourselves from oil but, alternative fuel will eventually, over the long haul, prove to be a primary resource. China is still making much of the solar cells being used in the world yet few of these or other alternative fuel companies are advocated in your reviews. Given the realization that many of these companies do not have as long a historical lifespan as oil and may be a bit more risky at this very time, we need more advocacy for the best companies that donot involve old carbon based fuels.

  • Report this Comment On January 06, 2014, at 12:42 AM, scruffydog wrote:

    to motly fool

    pls stop the excessive hype I don't bother to listen anymore

  • Report this Comment On January 07, 2014, at 12:38 PM, surrykid wrote:

    to RxDan1. We should all get in there and push nuclear power. If there are problems, let's work on fixing them. Solar, wind, etc. will never get down to 1.8 cents per kwh which Exelon claims for its nuclear operations. from Surrykid

  • Report this Comment On January 11, 2014, at 3:38 AM, bobfates wrote:

    I agree with the folks that complained about being a member of Fools and getting these long sales pitches. If you can't give this to me directly STOP

  • Report this Comment On January 28, 2014, at 7:17 PM, mpetrune wrote:

    Iagree I don't have the time to sit here and read for hours give me what I have to know to invest in a stock that is going to outperform that's all I want.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2777139, ~/Articles/ArticleHandler.aspx, 9/17/2014 1:57:26 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement