Whether it’s the cash building up in your portfolio or just plain boredom, it seems like investors are always on the lookout for the next big thing. In the energy space, the big growth these days is coming from the oil and gas production out of shale plays and from deepwater sources. To help you find some stocks to invest in that are benefiting from this growth, I’ve selected five very intriguing energy stocks worth a closer look.
Hi-Crush Partners LP (NYSE:HCLP)
If you’ve been digging around for a solid income stock to invest in, then you might want to dig into frac sand producer Hi-Crush. The company currently pays about an 8% distribution, which it has a clear path to grow in the future. With a low-cost structure, large runway of growth opportunities thanks to the booming shale industry and long-term contract securing its revenue, Hi-Crush has the potential to produce market crushing future returns.
BreitBurn Energy Partners L.P. (NASDAQ:BBEP)
Sticking with the income theme, BreitBurn is also a high-yielding stock, offering investors a more than 10% current yield. Like Hi-Crush Partners LP (NYSE:HCLP), Breitburn has a visible path to grow its distribution as $500 million in oil and gas asset acquisitions that meet its criteria will yield a $0.21 per unit accretion to its distributable cash flow. With exploration and production companies desperate for capital these days, it opens up a number of opportunities for BreitBurn to continue to acquire mature production assets and grow that large distribution. As you can see from the slide below, the math is quite compelling, which makes BreitBurn such an intriguing stock:
Core Laboratories N.V. (NYSE:CLB)
Oil and gas companies are investing vast sums to explore for oil in increasingly harder-to-reach places. This has them turning to reservoir optimization specialist Core Labs to help find the best way to develop these plays. That’s yielding significant profits for Core, which last quarter reported its most profitable quarter ever. With its strength in deepwater hydrocarbon development, this is a great stock to invest in to benefit from the capital being poured into drilling for oil under the sea.
C&J Energy Services Inc (NYSE:CJES)
Joining Core Laboratories N.V. (NYSE:CLB) in helping oil companies with developing more complex oil and gas projects is C&J Energy Services. The company specializes in complex, technically demanding well completions, meaning it’s an important service provider to the industry. Its shares are currently dirt cheap at less than seven times earnings, which is makes this a really intriguing stock to consider investing in if you are a value investor.