3 Incredibly Cheap Energy Stocks
The efforts to contain COVID-19 have resulted in a massive supply/demand imbalance in the energy sector, leaving oil trading at a very low level. Investors have fled the sector, which creates a potential opening for long-term investors looking for cheap stocks. Here are three worth deep dives today: Enbridge (NYSE: ENB), Enterprise Products Partners (NYSE: EPD), and Magellan Midstream Partners (NYSE: MMP).
Hailing from Canada, Enbridge's massive collection of oil logistics infrastructure (about 50% of adjusted EBITDA) and natural gas (30%) assets spans North America. It also owns a natural gas utility business and renewable power facilities (effectively the rest of adjusted EBITDA). The company estimates that 98% of its top line is fee-based or regulated, providing material consistency to its business. Meanwhile, the diversified portfolio is expected to offer multiple growth options in the future, with Enbridge expecting distributable cash flow to increase between 5% and 7% in 2021 and 2022.
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Source Fool.com
