The 3 Best Energy Stocks to Buy in August

Stocks to buy

The month of August begins and with it I bring you three energy stocks with growth potential that are developing innovative projects and incredible energy processing methods. You will notice something peculiar. Some of them are working together on the same energy project. It is incredible that large companies will collaborate with each other for better energy development don’t you think? Well, let’s take a closer look at these top energy stocks for August.

TotalEnergies (TTE)

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TotalEnergies SE (NYSE:TTE) is a global energy company that does all sorts of energy-related stuff. They work with liquid pipelines, gas transportation and storage, gas distribution and even renewable energy generation and energy services.

Lately TTE’s finances have been looking good. Their EBITDA has grown from $3.7 billion in 2022 to $4.0 billion in 2023. That’s a nice increase! Also, they had more cash to share with their shareholders. Their distributable cash flow went up from $2.7 billion to $2.8 billion. On top of that, their earnings per share increased from 67 cents to 68 cents.

There’s more! TTE is involved in an exciting project called Rio Grande LNG down in South Texas. They’re teaming up with some other companies to make this happen. The project is all about turning natural gas into its liquid form, and they’re going to have three big machines to do it, called liquefaction trains. Once it’s up and running in 2027, it will have the capacity to handle 17.5 million tons of liquefied natural gas each year.

Overall, things are looking pretty good for TotalEnergies SE. They’re making moves in the energy world and showing some solid growth in their financial numbers. Who knows what exciting things they’ll do next?

Equinor (EQNR)

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Equinor ASA (NYSE:EQNR) is an energy company engaged in the production and distribution of oil, gas and renewable energy resources. They have had an excellent financial performance, posting adjusted earnings of $7.54 billion in the second quarter of 2023, reflecting their strength in the market.

In addition to their strong financial results, Equinor has been making strategic progress. They have increased capacity at the Johan Sverdrup Oil Field. They have also acquired Rio Energy, allowing them to expand their market presence. These actions indicate that they are working to strengthen their position and growth.

In recent news, Equinor has signed a purchase agreement with Cheniere (NYSEAMERICAN:LNG), a major liquefied natural gas supplier. This agreement involves the purchase of approximately 1.75 million tons of liquid natural gas per year for 15 years, with half of the volume starting in 2027. This alliance will enable Equinor to double its export volumes from Cheniere’s terminals on the U.S. Gulf Coast.

Enbridge (ENB)

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Enbridge (NYSE:ENB) is a leading energy company engaged in the transportation and distribution of energy. Their network of pipelines and infrastructure allows them to move and deliver crude oil, natural gas and other liquid products efficiently.

Why is it a top energy stock for August? In the second quarter 2023, Enbridge reported solid financial results. They posted GAAP earnings of $1.8 billion or 91 cents per share, a significant increase from a year earlier. Its adjusted earnings also remained strong, reaching $1.4 billion or 68 cents per share. This demonstrates the company’s ability to generate earnings and deliver value to its shareholders.

In addition, adjusted EBITDA increased 8% to $4.0 billion and cash flow generated from operations reached $3.4 billion, indicating a healthy financial position.

In terms of recent projects, Enbridge is planning the construction of the first phase of the Rio Bravo Pipeline, which will transport 2.6 billion cubic feet per day of natural gas to supply the Rio Grande LNG project, which could boost its revenues going forward.

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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