3 Energy Stocks With High Yields As Oil Pushes Back Above $100

Oil above $100, record diesel prices and stubborn 3.4% inflation have pushed energy risk back to the front of your portfolio, just as higher yields and talk of extra Fed hikes weigh on growth heavy sectors. That mix can punish some areas while supporting others. This article walks through three stocks exposed to the latest energy shock and shows where investors are currently leaning in or stepping aside.

The stocks covered below are just a sample of the idea, with the full screen surfacing 9 more energy producers and refiners with equally compelling narratives that are not included in this article. To go straight to the full list, analyze peers and identify your own high-conviction targets, head into the Global Energy Producers and Refiners screener.

Alvopetro Energy (TSXV:ALV)

Overview: Alvopetro Energy is a Calgary based producer that acquires, develops and produces onshore oil and natural gas fields in Brazil.

Operations: The business generates about $62 million from oil and gas exploration and production, with roughly $59 million coming from Brazil and $3 million from Canada.

Market Cap: CA$416 million

For the Global Energy Producers and Refiners theme, Alvopetro Energy gives you direct exposure to upstream oil and gas pricing, with current drilling and development work focused on turning higher commodity levels into sustained cash flow.

"Field diversification: successful step-out and multi-zone wells are proving reserves are not concentrated in a single Murucututu structure."

What happens to future returns depends heavily on how one unseen pressure shapes the balance between generous payouts and organic reinvestment.

That trade off is exactly what the full narrative for Alvopetro Energy unpacks, showing how Alvopetro Energy’s capital choices could accelerate or stall future shareholder outcomes.

Kinetic Development Group (SEHK:1277)

Overview: Kinetic Development Group is a coal producer focused on mining, processing and selling coal from Inner Mongolia to power and industrial users in China and overseas.

Operations: Kinetic Development Group generates about CN¥4.4b from coal mining and CN¥805 million from real estate and property management, with almost all revenue earned in the People’s Republic of China.

Market Cap: HK$16.5b

Kinetic Development Group plugs into the Global Energy Producers and Refiners theme through direct coal price exposure, plus a 6.25% dividend yield and revenue tied mainly to Chinese energy demand. Investors get a coal pure play, while the outcome hinges on how one pressure on cash generation and payouts ultimately resolves.

To see how that pressure on cash and payouts is currently priced in, review the 2 key rewards and 1 important warning sign and identify where Kinetic Development Group’s story could be misread.

PHX Energy Services (TSX:PHX)

Overview: PHX Energy Services provides horizontal and directional drilling tools and services to oil and gas producers in Canada, the US and internationally.

Operations: PHX Energy Services generates about CA$711 million from horizontal oil and natural gas well drilling, with roughly CA$506 million from the US and CA$205 million from Canada.

Market Cap: CA$574 million

PHX Energy Services offers indirect exposure to the Global Energy Producers and Refiners theme, since higher oil and gas prices can encourage exploration budgets and keep drilling crews and guidance tools working. The stock combines that cyclical link with a 6.38% yield, a share buyback plan and a depressed P/E. However, the outlook depends on how one key pressure on future cash coverage is ultimately resolved.

That cash coverage question is exactly what the analysis report for PHX Energy Services unpacks so you can see whether PHX Energy Services’ current yield is masking something or just mispriced potential.

Seeking Alternatives Before The Crowd Moves

Fresh ideas often move first. Breakout stories, early momentum and under-the-radar compounders can attract more attention once prices start moving quickly. Scan these curated shortlists before the crowd and consider your options early.

• Target resilient cash generators by running the list of solid balance sheet and fundamentals (7 results) and filter for businesses with financial headroom while valuations still reflect recent uncertainty.
• Spot potential income workhorses through the 2 dividend fortresses and focus on companies aiming to support higher yields before the next wave of yield hunters arrives.
• Explore early opportunities in future-facing infrastructure by checking the 39 power grid technology and infrastructure stocks and track operators tied to ongoing grid upgrades while they remain less widely followed.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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