3 Cheap Energy Stocks to Buy Right Now
The broader energy sector has been a bit volatile of late, with oil prices driven higher and lower by the latest coronavirus news. However, overall, oil prices and oil stocks have staged a material rebound since the drilling industry's pandemic downturn in 2020. One niche in the energy space that's still not feeling much investor love, however, is the midstream space. And investors looking for solid companies with big yields would do well to dig into Enterprise Products Partners (NYSE: EPD), Magellan Midstream Partners (NYSE: MMP), and Enbridge (NYSE: ENB).
One of the first names that comes to mind when investors think of midstream investments is usually Enterprise Products Partners, a $46 billion market cap North American master limited partnership (MLP). Its collection of pipelines, storage, transportation, and processing assets would be virtually impossible to replace. And, like the other two names here, it largely gets paid for the use of its assets, so commodity volatility isn't a huge deal. And with demand for oil and natural gas likely to remain strong for decades to come, thanks to growing global demand for energy, there's no reason to expect Enterprise's systems to suddenly run on empty. That fact remains true even as clean energy investment ramps up, since it will take many years for these options to displace oil and natural gas.
Image source: Getty Images.
Source Fool.com
