In this piece, we will take a look at the 12 best performing energy stocks in 2023. If you want to skip our overview of the energy industry and recent events, then take a look at 5 Best Performing Energy Stocks in 2023.
The energy industry has been one of the most dynamic sectors in the stock market and the broader economy over the past year and a half. The sector was dealt a massive shock in the form of the coronavirus pandemic that saw worldwide manufacturing, hospitality, and transportation shut downs which significantly reduced the demand for petroleum fuels. This depressed oil prices and naturally, big and small energy companies saw their revenue drop.
Then, just as the world was taking a breather and seeing some economic recovery at the tail end of 2021 and the start of 2022, the Russian invasion of Ukraine started. Since Russia is one of the world's biggest suppliers of oil and natural gas, and Western nations scurried to not only sanction Russian oil to stop funding the war but also started diversifying their energy supply chains, the price of oil soared to record levels. While these high prices led to pain for the ordinary consumer who was forced to digest high gas prices at the pump and broader high inflation levels, for the oil companies it proved to be a blessing as they brought in record revenues and paid billions of dollars in dividends to shareholders.
Skipping to 2023, oil prices remained moderated for most of the year particularly due to a slow Chinese economy. However, the tail end of the year is threatening to usher in high oil prices due to war in the Middle East. The conflict between Israel and Palestine has historically been a bad indicator for the global economy, and this year's conflict is quite historic not only in terms of the brutality that it has seen but also because it was 50 years ago during the same period that the Yom Kippur war effectively put an end to the economic boom that the world had enjoyed after hostilities had ceased after the second world war. In 1973, the Organization of the Petroleum Exporting Countries (OPEC) placed a blanket embargo on oil sales, which crashed global economies but at the same time made inflation shoot up as oil prices soared due to short supply.
This time around, as Hamas's devastating attack on Israel took place on the 7th of October and Israel retaliated with even more devastating attacks on the Gaza Strip, crude oil which had dropped to $82 a barrel on the 5th, went on to soar to $87.7 on the 13th of October. It is currently trading for $88 even as some fresh developments have the potential to reduce the pressure on oil supply coming from the Middle East. The biggest development is a six month relaxation in sanctions against Venezuela by the United States that are aimed to stop the country's oil wealth from being misused by non democratically elected leaders. As trading opened on Thursday, October 19th, crude oil futures slipped by 1% as investors factored in the growing oil supply from Venezuela and a statement from OPEC that said that the group would not act on member nation Iran's demand that the flow of oil to Israel be suspended.
Moving towards the corporate side of the energy industry, right now it's earnings season in the U.S., and big and small oil companies are gearing up to reveal their financial report card. These earnings come as the oil firms return back to Earth from their meteoric revenue and profits last year, and while oil companies are yet to report their financials, some have already started to make optimistic projections. For instance, Exxon Mobil Corporation (NYSE:XOM) shared at the start of October that it expects operating profit during the third quarter to mark a sequential growth ranging between $8.3 billion and $11.4 billion. Exxon's profit during the year ago quarter stood at $19.7 billion, but the profit during the second quarter of this year was $7.9 billion, so quarterly growth is all but certain should Exxon meet its guidance.
So, as the energy industry remains as dynamic as ever, we decided to take a look at the best performing energy stocks in 2023. The top three best performing energy stocks in 2023 are Geospace Technologies Corporation (NASDAQ:GEOS), Vista Energy, S.A.B. de C.V. (NYSE:VIST), and NGL Energy Partners LP (NYSE:NGL).
12 Best Performing Energy Stocks in 2023
An energy executive observing a wind turbine farm from a remote location. Editorial photo for a financial news article. 8k. --ar 16:9
Our Methodology
To compile our list of the best performing energy stocks in 2023, we ranked all energy stocks by their year to date share price appreciation and picked the top stocks.
Cameco Corporation (NYSE:CCJ) marks off a unique start to our list of the best performing energy stocks in 2023 since it is a uranium company headquartered in Canada. It is also one of the highest rated stocks on the list, with the shares rated as Strong Buy on average and analysts having set an average share price target of $45.97.
By the end of this year's second quarter, 54 out of the 910 hedge funds tracked by Insider Monkey were the firm's investors. Cameco Corporation (NYSE:CCJ)'s biggest hedge fund shareholder is Richard Driehaus's Driehaus Capital as it holds a $130 million stake.
Along with Vista Energy, S.A.B. de C.V. (NYSE:VIST), Geospace Technologies Corporation (NASDAQ:GEOS), and NGL Energy Partners LP (NYSE:NGL), Cameco Corporation (NYSE:CCJ) is a top performing energy stock in 2023.
Newpark Resources, Inc. (NYSE:NR) is an American backend oil company that provides drilling, construction, and other services to oil companies. Insiders and institutional investors own more than 85% of the firm's shares, and the stock is up by 72% year to date.
As of Q2 2023 end, 15 out of the 910 hedge funds part of Insider Monkey's database had held a stake in Newpark Resources, Inc. (NYSE:NR). Out of these, the firm's largest shareholder is Phill Gross and Robert Atchinson's Adage Capital Management since it owns 5.4 million shares that are worth $28.6 million.
TechnipFMC plc (NYSE:FTI) is a British firm that helps oil companies develop and operate their land and sub sea drilling platforms and production facilities. The firm's shares are rated Buy on average and analysts have priced in a $3 upside based on the average share price target of $23.75.
After digging through 910 hedge funds for their second quarter of 2023 investments, Insider Monkey discovered that 33 were the firm's shareholders. TechnipFMC plc (NYSE:FTI)'s biggest hedge fund investor is John Overdeck and David Siegel's Two Sigma Advisors courtesy of its $89.7 million stake.
Frontline plc (NYSE:FRO) is an ocean oil transportation firm with 70 tankers in its fleet. Despite having missed analyst EPS estimates in three of its four latest quarters, the firm is expanding its vessel fleet and aims to buy two dozen ships from a European firm.
During this year's June quarter, 23 out of the 910 hedge funds polled by Insider Monkey had invested in Frontline plc (NYSE:FRO).
Gulfport Energy Corporation (NYSE:GPOR) is an American oil and gas production company with more than two hundred thousand acres of production properties. Its shares are rated Strong Buy on average, and a flurry of analyst coverage in August, September, and October rated the stock as Buy.
By the end of 2023's second quarter, 29 out of the 910 hedge funds part of Insider Monkey's research had bought the firm's shares. Gulfport Energy Corporation (NYSE:GPOR)'s largest stakeholder in our database is Edward A. Mule's Silver Point Capital since it owns $753 million worth of shares.
Weatherford International plc (NASDAQ:WFRD) is a sizeable company that provides well completion, drilling, and other services to oil companies. Goldman Sachs cited faith in the firm's prospects in August 2023 as it shared that Weatherford International's diversified global presence allows it to capitalize on secular trends in the capacity expansion in the energy sector.
As of June 2023, 33 out of the 910 hedge funds tracked by Insider Monkey had held a stake in Weatherford International plc (NASDAQ:WFRD). Donald Yacktman's Yacktman Asset Management owns the biggest stake among these, which is worth $253 million.
TETRA Technologies, Inc. (NYSE:TTI) is a rather diversified energy company that provides support services to energy companies and products to battery manufacturers. Its shares are also rated Strong Buy on average, and the firm scored a win in June 2023 to develop a large lithium property in the U.S. with the aim of producing batteries.
Insider Monkey scoured through 910 hedge fund portfolios for their shareholdings during this year's June quarter and found 17 TETRA Technologies, Inc. (NYSE:TTI) investors. Out of these, the biggest shareholder is Jeffrey Gendell's Tontine Asset Management since it owns 4.9 million shares that are worth $16.5 million.
Geospace Technologies Corporation (NASDAQ:GEOS), TETRA Technologies, Inc. (NYSE:TTI), Vista Energy, S.A.B. de C.V. (NYSE:VIST), and NGL Energy Partners LP (NYSE:NGL) are some best performing energy stocks in 2023.
