From Yahoo Finance: 2025-04-29 09:08:00

After notable gains in the first three months of 2025, the energy sector saw a decline in April due to ongoing global trade tensions. The oil and gas sector has fallen by over 15% YTD, with crude oil prices dropping by over 25% YoY to under $62. The International Energy Agency also cut its 2025 oil demand growth forecast by 300,000 barrels per day.

Liquified natural gas remains bullish in the energy industry, with the US leading as the largest LNG exporter globally. The Trump administration’s support has led to record LNG offtake contracts, with 15.5 million tons per annum signed in Q1 2025. The industry expects further growth as countries seek to export American LNG to narrow their trade gap with the US.

The energy sector is also driven by AI and power-hungry data centers, with electricity demand in the US projected to surge by 35-50% by 2040. Natural gas is a primary candidate to meet this demand, with the potential construction of 80 new gas power plants by 2030. However, natural gas prices have risen by 36.6% over the last 52 weeks.

Nuclear energy has gained traction, with tech giants pledging to triple the world’s nuclear energy capacity by 2050. Companies are signing contracts with nuclear energy providers to power their data centers. Constellation Energy Corporation (CEG) stands out as a leading energy company, reporting strong financial results and making significant acquisitions to expand its portfolio. Citigroup upgraded CEG’s outlook to Buy with a price target of $232.

CEG is the largest producer of carbon-free energy in the US, with significant generating capacity. The company reported better-than-expected results in Q4 2024, with a strong ROE of 30% and increased dividends. With 17 billionaire holders, CEG ranks 15th on the list of the top energy companies with the highest upside potential. Despite the potential of CEG as an investment, AI stocks are seen as holding greater promise for higher returns within a shorter time frame.



Read more at Yahoo Finance: Among the Top Energy Companies with the Highest Upside Potential