2 Energy Stocks That Have a Killer Advantage
The energy industry is getting crushed today by low oil and natural gas prices. A big piece of that is being driven by the economic shutdowns used to slow the spread of COVID-19, which caused demand to fall off a cliff. Survival is the name of the game for many energy names today, as the news gets filled with stories of bankruptcies and dividend cuts.
However, Chevron (NYSE: CVX) and Enterprise Products Partners (NYSE: EPD) are two industry giants that look like they'll easily survive. Here's the killer advantage that sets them apart today.
Chevron is one of the largest oil and natural gas companies in the world, operating with an integrated model that spans from the upstream (drilling) to the downstream (chemical and refining) segments of the energy sector. Although the demand destruction caused by COVID-19 has left the entire energy ecosystem reeling, historically Chevron's diversified portfolio of assets has resulted in a more stable business. That's notable, since that the energy sector is highly cyclical.
Source Fool.com
