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Energy


President Donald Trump’s executive order designed to roll back President Obama’s signature climate-change policy will likely extend the life span of a few coal-fired power plants. Whether it actually reverses the country’s shift from coal to natural gas, solar and wind is another question all together.

The problem is that large utility companies have already begun long-term investments involving the use of gas, wind and solar. According to experts, those companies are not likely to reverse course – especially given the fact Trump’s plan is likely to result in years of court cases challenging the move.

Related: THE CURRENT STATE OF AUTONOMOUS VEHICLES

About Those Investments

For those who place their faith in the forward motion of mammoth energy companies, two stand out.

Duke Energy Corp. (NYSE:DUKD) plans to invest $11 billion in natural gas and renewables over the next decade. By 2026 the company says it aims to cut greenhouse-gas emissions by 35% from 2005 levels.

The Southern Co. (NYSE:SOF) has planned a $1 billion a year investment over the next 5 years in wind farms. The company uses natural gas to generate 47% of its power. Coal currently provides just 31% and nuclear 15%. Hydropower, wind, solar and other renewable sources currently provide 7% of Southern’s electricity.

Expectations Have Been High

On the more traditional energy side, when candidate Trump proposed completing the Dakota Access Pipeline, the Keystone XL pipeline and bringing back coal jobs to coal country, many people became supporters overnight.

As a result, 2017 has been dubbed a comeback year for energy including not just coal but oil and natural gas. Trump’s plan to reverse offshore drilling restrictions has been met with enthusiasm in the oil industry. Word that he planned to integrate more federal acres for oil and gas drilling operations was believed to be a way to significantly improve oil and gas production in the U.S.

Related: TRUMP INFRASTRUCTURE PLANS UNCERTAIN

Notable Stocks

To that end, and assuming Trump continues on the path he has promised, several stocks have caught the initial attention of Wall Street experts, each for their own reasons.

McDermott International Inc. (NYSE:MDRB), based in Texas is an engineering and construction company, focused on the offshore oil and gas business. Trump’s plans to unleash offshore oil and gas should bode well for McDermott.

Gathering, transporting and processing natural gas is another important part of the energy sector and Tulsa, Oklahoma-based Williams Partners LP (NYSE:WPZD), former by The Williams Companies, Inc. (NYSE:WMBD) to handle WMB’s midstream assets is another promising company on Wall Street’s radar.

Houston’s W&T Offshore Inc. (NYSE:WTIC) plays the upstream space and is involved in oil and natural gas exploitation and production in the Gulf of Mexico.

Rowan Companies Plc (NYSE:RDCC) provides both domestic and international contract drilling and aviation services that are indispensable to the energy industry.

Finally, Antero Midstream Partners LP (NYSE: AM) owns, operates and develops midstream energy properties including pressure gathering pipelines and compressor stations designed to collect natural gas and oil.



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