The good news is that many E&P firms have managed to report overall rising production and higher average prices for that production. That’s great news, actually, considering many of the integrated giants have suffered in that category lately. At the same time, many smaller independent energy stocks continue to knock it outta the park in regions like the Bakken and Eagle Ford.
However, several names in the sector — such as Royal Dutch Shell (RDS.A, RDS.B) — have suffered under the weight of poor profits at their downstream operations as well as failed production goals. A rising tide is no longer lifting all boats, and it seems like the energy sector is once again becoming a stock picker’s market.
If so, stock pickers would be well-off investing in these five energy stocks: