As vital as the air we breathe, energy stocks fuel homes, businesses, and vehicles. Although the sector faced a slight dip in 2023, energy investors hold their breath for 2024. Fidelity’s energy sector portfolio manager shares this optimism, citing tight supply, robust demand, and increased production investments as harbingers of potential stock growth. Notably, the likes of Exxon Mobil (NYSE:XOM) have been illuminating the energy arena with their comprehensive involvement in oil and gas exploration, production, refining, and marketing, offering investors a diversified portfolio with lingering echoes of superior success.
Incandescent Innovations: Enterprise Products Partners (EPD)
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Enterprise Products Partners (NYSE:EPD) stands tall in the energy sector as a provider of indispensable services to diverse clients in the crude oil, natural gas, and natural liquid gas markets. Bolstered by a 0.8% surge in share price over the past year, EPD boasts a robust dividend yield of 7.6%, sustained by 25 consecutive years of distribution growth until 2023.
In a recent financial coup, EPD reported a monumental surge in revenue to $14.62 billion, marking a 7.12% year-over-year (YOY) jump, while surpassing earnings-per-share (EPS) expectations by 4 cents, totaling 72 cents. Moreover, following the completion of $3.5 billion in capital projects, the company hiked its cash distribution by 5.1%, underlining its operational acumen.
Moreover, EPD demonstrated its operational prowess by swiftly commissioning two new natural gas processing plants in the latter half of 2023. These facilities briskly reached full capacity, a testament to the soaring demand for EPD’s services. Mirroring this optimism, TipRanks analysts have bestowed EPD with a ‘strong buy’ rating, projecting a remarkable 22.15% upside potential.
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On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
