With the rise of artificial intelligence (AI) algorithms and a push for investment in domestic production and manufacturing, the United States could see a surge in energy demand. As the appetite for energy grows, there are excellent investment opportunities for some of the energy sector's largest players.
Oil producers are taking a disciplined approach to capital management, rewarding shareholders in the process. Meanwhile, pipeline operators are positioned to benefit from the increasing production across the U.S. And let's not forget uranium producers, which are poised to thrive as nuclear capabilities expand in the coming decades.
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If you're looking to capitalize on the U.S.'s growing energy needs, here are three stocks to consider buying today.
ExxonMobil
ExxonMobil(NYSE: XOM) offers investors a solid dividend of 3.6%. Not only that, but the company has grown its payout for 42 consecutive years, which is a testament to its integrated business model.
As an integrated oil and gas company, Exxon engages in activities across the entire value chain. This includes exploring and producing crude oil and natural gas (upstream operations) and refining crude oil into fuel, lubricants, and other petroleum-based products (downstream operations). By operating across the value chain, Exxon is better equipped to weather volatile oil prices and deliver for investors.
The company continues to aggressively expand its production in the resource-rich Permian Basin. Last year, it produced 4.3 million barrels of oil equivalent per day, its highest output in over a decade.
The company is also expanding its low-carbon solutions and will invest $30 billion in lower-emission technologies over the next five years, as it pursues a long-term $4 trillion opportunity in carbon capture and sequestration technology.
Enterprise Products Partners
Enterprise Products Partners(NYSE: EPD) is a top midstream operator that moves oil, natural gas, and other resources from extraction sites to refineries and distribution centers. The company operates an extensive network of pipelines and earns fees tied to long-term contracts, giving it a dependable business model that provides visibility into future earnings.
The company operates over 50,000 miles of pipelines and will bring more on line in the next couple of years. It has $7.6 billion in projects under construction and is focusing specifically on growth in its core natural gas liquids value chain.
In addition, Enterprise should benefit from deregulation and the opening up of land for drilling under the Trump administration, which could support added pipeline infrastructure projects and boost earnings over time.
With a 6.8% dividend yield and an impressive 26-year streak of increasing payouts, Enterprise Products Partners is a solid choice for investors seeking growth and stability.
Cameco Corporation
A global shift in attitudes toward nuclear energy is underway, as countries seek clean, reliable energy sources with lower carbon emissions. As one of the world's largest uranium producers, Cameco Corporation(NYSE: CCJ) is well positioned to benefit from this shifting sentiment.
Over the past couple of years, numerous countries have signed the Declaration to Triple Nuclear Energy, a pledge to triple nuclear capacity by 2050. Several financial institutions, including Bank of America, Goldman Sachs, and Citigroup, have supported the initiative.
Cameco has a 40% interest in Joint Venture Inkai with Kazatomprom in Kazakhstan, the largest uranium-producing country in the world. It has a 49% stake in Westinghouse with Brookfield Renewable Partners. The company also operates two uranium mines in Canada, at Cigar Lake and McArthur River, and manages one of the world's largest commercial refineries in Ontario. Last year, it produced 23.4 million pounds of uranium.
Cameco is locked in with buyers for an average of 29 million pounds annually through 2029. With the stock down 33% from its 52-week high, this could be an excellent entry point for investors bullish on the nuclear energy revival.
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Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Courtney Carlsen has positions in Cameco and ExxonMobil. The Motley Fool has positions in and recommends Bank of America and Goldman Sachs Group. The Motley Fool recommends Brookfield Renewable Partners, Cameco, and Enterprise Products Partners. The Motley Fool has a disclosure policy.
