Why These 3 Energy Stocks Could Be Your Best Investing in Energy Right Now

The energy sector has experienced an underwhelming performance compared to broader market indices. Year-to-date returns for the average energy stock in the S&P 500 hover around 4%, significantly trailing the market’s nearly 18% advance. However, the underlying fundamentals remain compelling. Here are three leading energy stocks worth considering for investors seeking exposure to continued energy demand growth.

NextEra Energy: Growth Through Infrastructure Investment

NextEra Energy (NYSE: NEE) stands out as a vertically integrated player combining utility operations with energy infrastructure development. The company’s Florida-based utility generates predictable, rate-regulated earnings while its energy resources division benefits from long-term contracts and stable revenue streams.

What makes NextEra particularly attractive is its massive capital deployment program. The company plans to invest over $100 billion through 2032 to meet Florida’s growing energy demand, while simultaneously expanding transmission lines, developing clean power projects, and enhancing gas pipeline infrastructure nationwide.

These investments are projected to drive compound annual earnings-per-share growth exceeding 8% over the next decade. Coupled with a 2.8% dividend yield and planned 10% dividend increase next year followed by 6% annual growth through at least 2028, NextEra Energy presents a compelling total return opportunity for long-term investors.

ConocoPhillips: Maximizing Free Cash Flow Generation

ConocoPhillips (NYSE: COP) represents traditional energy exposure with a modern cost advantage. As one of the sector’s most efficient operators, the company maintains some of the industry’s lowest operating costs and a diversified asset portfolio.

At current oil price levels near $60 per barrel, ConocoPhillips generates substantial surplus free cash flow. The company requires only mid-$40s pricing to sustain its capital program and roughly $50s pricing to fund its dividend. The company’s strategic merger with Marathon Oil continues to unlock cost efficiencies that are steadily reducing breakeven levels.

Looking ahead, three major liquefied natural gas projects and the Willow oil project in Alaska are expected to reach completion by decade’s end. These developments will add an estimated $6 billion in annual free cash flow by 2029, effectively doubling the company’s current output from the first nine months of the year ($6.1 billion). With growing cash generation and a 3.4% dividend yield, ConocoPhillips recently increased its payout by 8% and aims for top-10% dividend growth within the S&P 500.

Oneok: Pipeline Growth Through Strategic Consolidation

Oneok (NYSE: OKE) operates as one of America’s premier midstream energy infrastructure companies. Its business model relies on long-term contracts and government-regulated rates, generating highly predictable cash flows that support a 5.6% dividend yield.

The company has pursued aggressive expansion through acquisitions. The 2023 merger with Magellan Midstream Partners expanded crude oil and refined product infrastructure significantly. Subsequent acquisitions of Medallion Midstream and controlling interests in EnLink for $5.9 billion, followed by the complete acquisition of remaining EnLink shares for $4.3 billion, have transformed the company’s scale.

Management expects these consolidation efforts to deliver hundreds of millions in synergies over the coming years. Organic expansion projects—including the Texas City Logistics Export Terminal and Eiger Express Pipeline—should become operational by mid-2028. These growth drivers position Oneok to increase dividends at 3-4% annually, combining attractive yield with solid capital appreciation potential.

The Energy Sector Investment Case

The convergence of stable long-term energy demand growth, supportive capital structures, and committed dividend policies creates an attractive environment for investing in energy stocks. ConocoPhillips, Oneok, and NextEra Energy each offer distinct exposure to this thesis through differentiated business models and clear paths to shareholder value creation.

Whether through production optimization, infrastructure development, or utility-scale investments, these companies possess the financial tools and strategic positioning to deliver meaningful total returns while providing current income to investors.