In the energy sector, there are different ways to find gains.
You can buy into traditional energy companies, such as utilities or oil miners.
Or you can think outside the box.
I have a different way to capitalize on the rise in the energy sector and collect a nice dividend in the process.
In today’s episode of The Stock Power Podcast, I share a 95-rated Power Stock that doesn’t mine for oil and gas but instead collects money from what’s pulled from the ground.
And it’s on track to profit due to its unique position.
The Oil and Gas Royalty Market
Rather than invest in companies steeped in the heavy costs of mining, there’s another way to profit: oil and gas royalty companies.
These royalty companies own rights to properties (more importantly what’s underneath) and get paid for how much is pulled from the ground.
Because these companies don’t have the risk of increased mining costs such as equipment and labor, they capitalize on mining operations.
Using our Stock Power Ratings system, I found a company that owns royalties on some of the richest oil- and gas-producing land in the U.S.:
- It earns a “Strong Bullish” 95 out of 100 on our Stock Power Ratings system!
- The company raked in record revenues from royalties in the last quarter.
- The stock is trading just 12.5% off its 52-week high.
Let’s see why this company is in line for more gains in the future.
Oil and Gas Consumption Continues to Rise
It’s no secret there is a push for more reliance on green energy.
That’s one of the mega trends Adam O’Dell, Charles Sizemore and I follow at Money & Markets.
Oil and gas, however, remain important parts of our energy consumption:
This chart shows the actual and estimated consumption of oil and gas in the U.S.
In 2021, we used 58.85 quadrillion British thermal units.
By 2050, the U.S. Energy Information Administration expect that consumption to grow 20.7%!
In this episode of The Stock Power Podcast, I’m going to share a way to play this oil and gas stock growth … and bring home a tidy dividend at the same time.
The stock I'm going to share earns a 95 overall rating!
Listen below to see why we expect it to beat the broader market by 3X over the next 12 months.
The Stock Power Podcast
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Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He's the host of our podcast, The Stock Power Podcast. He's also a certified Capital Markets and Securities Analyst through the Corporate Finance Institute. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.
P.S. Got a comment about Stock Power Daily or The Stock Power Podcast? Reach out to my team and me at Feedback@MoneyandMarkets.com!