2 Top Energy Stocks to Buy in April

Energy stocks have started the year strong, with the Energy Select Sector SPDR ETF up 13.5% in the first quarter. Two of the stocks helping power those returns are the ETF's top two holdings: ExxonMobil (NYSE: XOM) and (NYSE: CVX). The two companies continue to have some of the best prospects in the energy patch and share a lot in common.

One of the most exciting oil projects in the world is an offshore oil project off the coast of South American country Guyana. ExxonMobil found 11 billion barrels of reserves in the region and is expecting gross production from its Stabroek block project to reach 1.2 million barrels a day in 2027. However, that reserve amount could grow, as the company is still searching for new discoveries in the region.

While the size of the discovery is massive, just as important, the project has some of the best drilling economics outside of the Middle East. Energy research firm Rystad estimates the project to have breakeven costs of approximately $28 a barrel. By comparison, the average breakeven in the U.S. is about $54 a barrel with the Delaware Permian the lowest in the U.S. with an average breakeven around $46 a barrel.

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Source Fool.com