Stocks to buy

In an exciting turn of events, natural gas futures prices soared on the international market. According to the U.S. Energy Information Administration, Bloomberg Finance L.P. reported that short-term futures for liquefied natural gas cargoes in East Asia saw an impressive $2.21 increase, settling at a weekly average of $11.50 per metric million British thermal unit (/MMBtu). The Netherlands’ Title Transfer Facility also experienced a rise of $1.77, reaching a weekly average of $12.17/MMBtu. These prices are significantly higher compared to the same period last year. That has investors searching for the top energy stocks for natural gas news.

Meanwhile, U.S. utilities pleasantly surprised with a gas storage increase of 95 billion cubic feet (bcf) in the week ending June 16, surpassing the expected 91 bcf. Notably, this figure also outperforms the 76 bcf increase recorded during the same week last year and exceeds the five-year average of 86 bcf. Considering these developments, let’s take a look at three energy stocks with high growth potential.

Phillips 66 (PSX)

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Diversified energy company Phillips 66 (NYSE:PSX) recently shared its first-quarter 2023 financial results, demonstrating strong performance. They achieved earnings of $2 billion or $4.20 per share, surpassing the previous quarter’s earnings of $1.9 billion. During the same period Phillips generated $1.2 billion of operating cash flow, reaching a total of $2.5 billion when excluding working capital. The company’s commitment to delivering value to shareholders was evident through returning $1.3 billion to them via dividends and share repurchases.

As an additional testament to their dedication the company increased their quarterly dividend by 8% to $1.05 per common share. Moreover, Phillips received industry recognition for its exemplary safety performance in Midstream, Refining and Chemicals throughout 2022. This acknowledgement highlights their unwavering commitment to maintaining high safety standards for their employees and the communities they serve. This is definitely one of the top energy stocks for natural gas news to keep an eye on.

Suncor Energy (SU)

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Suncor Energy Inc (NYSE:SU) places a strong emphasis on reducing greenhouse gas emissions and actively collaborates with industry peers and government entities through the Pathways Alliance. They were recently awarded exploratory rights for a carbon capture and storage hub in northern Alberta, in addition to an engineering contract for a CO2 transportation line.

In the first quarter of 2023 Suncor generated $3 billion in adjusted funds from operations and $1.8 billion in adjusted operating earnings. They returned $1.6 billion to shareholders and achieved a production rate of 742,100 barrels of oil equivalent per day (boe/d) alongside refinery throughput of 367,700 barrels per day (bbls/d). Notable activities during this period included selling their wind and solar business, acquiring a working interest in Fort Hills and agreeing to sell their U.K. E&P portfolio. Additionally, they announced the acquisition of TotalEnergies (NYSE:TTE) Canadian operations.

Devon Energy (DVN)

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Devon Energy (NYSE:DVN) holds a prominent position in the U.S. oil and gas industry, well-known for its strategic multi-basin portfolio and strong presence in the Delaware Basin.

The first quarter of 2023 witnessed a noteworthy 5% increase in production compared to the previous quarter. They averaged 81,000 boe/d, with natural gas accounting for approximately 49% of the production. Additionally, Devon successfully brought 7 new wells online and initiated drilling operations for 19 additional wells. They also achieved an all-time high of 320,000 bbls/d, showcasing their efficient extraction and delivery capabilities.

This robust operational performance translated into solid financial results, with operating cash flow totaling $1.7 billion and free cash flow reaching $665 million during the first quarter. In recognition of their positive performance, Devon Energy declared a fixed-plus-variable dividend payout of 72 cents per share based on their first-quarter results. Furthermore, the company accelerated its share buyback activity, repurchasing $692 million worth of shares since the beginning of the year. This is an energy stock to snap up now before the opportunity floats away.

As of this writing, Gabriel Osorio-Mazzilli did not hold (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.

Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.

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