The Best ASX Energy Stocks
to buy Now In
April 2024

Check out our Industry Experts’ report and
analysis on the Best Energy Stocks right now on the ASX

The Best ASX Energy Stocks to buy Now In April 2024

Check out our Industry Experts’ report and analysis on the Best Energy Stocks right now on the ASX

ASX Energy Stocks

The Australian Securities Exchange (ASX) serves as a robust marketplace for a plethora of investment avenues, and the energy sector stands as a testament to this diversity. From traditional fossil fuels and renewable energy to utilities and emerging technologies, the ASX offers a wide array of top-performing energy stocks. Among these, uranium stocks have been garnering attention for their potential in the nuclear energy space.

Investors seeking to diversify their portfolios have the luxury of choosing from various sub-sectors. Whether you're a risk-averse investor focusing on stable utilities or someone looking for the next big thing in renewable energy, the ASX has got you covered. Moreover, for those specifically interested in nuclear energy, uranium stocks on the ASX offer a specialized investment opportunity.

What are Energy Stocks?

Energy stocks represent shares in publicly traded companies actively involved in the production, distribution, or exploration of energy resources. These companies hold a pivotal role in the energy sector, a cornerstone of global industries that have a direct impact on carbon emissions and electricity generation. With the consistent demand for energy resources and the potential for significant returns, energy stocks have become an essential part of investment portfolios for many investors.

The market cap of these energy companies can vary widely, from giants in fossil fuel production to emerging players in renewable energy or even explorers for energy resources such as uranium.

Key Features of ASX Energy Stocks

gold-stock-circle-icon-1

Exposure to the Renewable Energy Transition

Australia, like many other countries, is actively transitioning towards cleaner and more sustainable energy sources. This shift presents exciting opportunities for investors to support companies leading the charge in the renewable energy space, such as solar, wind, and battery technology firms.

supplier-2 (1)

Steady Growth

The energy sector in Australia remains resilient and exhibits steady growth prospects due to the nation's ongoing demand for energy resources. As a major exporter of coal, natural gas, and uranium, and with increasing investments in renewable energy projects, the Australian energy market offers compelling investment opportunities.

diversify

Diverse Sub-Sectors

The ASX is home to a wide array of energy companies, encompassing both established giants and innovative newcomers. Investors can choose from well-established oil and gas companies, renewable energy pioneers coal miners, utility providers, and firms at the forefront of cutting-edge energy technologi                                          

Get the Latest Stock Market Insights for Free with
Stocks Down Under & Pitt Street Research

Join our newsletter and receive exclusive insights, market trends, investment tips, and updates delivered directly to your inbox. Don't miss out – subscribe today and make informed investment decisions.

Types of Energy Stocks

Energy stocks can be categorized into different sub-sectors based on the type of energy business they are involved in

These companies are engaged in the exploration, production, and distribution of oil and natural gas. They often have operations in various regions around the world and are sensitive to factors like geopolitical events, supply and demand dynamics, and commodity prices.

Our Top 4 ASX Energy Stocks

Woodside Energy Group (ASX: WDS)

It is the largest energy company on the ASX, with a market capitalization of over $66 billion. Woodside is a leading producer of oil and gas in Australia, with assets in the North West Shelf, the Browse Basin, and the Timor Sea. Most notably, it owns the Scarborough LNG project which will be Australia's biggest oil and gas project for at least a decade, expected to produce 9m tonnes of LNG annually. It is still below its pre-COVID levels even in spite of high energy prices, because it does not have the strongest ESG angle and it is uncertain as to how it'll fund Scarborough.

Santos (ASX: STO)

It is another major oil and gas producer on the ASX, with a market capitalization of over $24 billion, a most recent annual profit of US$790bn and annual production of 103.2mmboe. Santos has assets in Australia, Indonesia, and Vietnam that have 3,280mmboe in 2C contingent reserves and is a leading supplier of LNG to the global market. The company is also investing in renewable energy projects, such as in solar projects and wind power. It is targeting Net Zero by 2040.

Ampol (ASX: ALD)

It is a diversified energy company with interests in oil, gas, and convenience retailing. Yes Ampol is the largest fuel retailer in Australia, with a network of over 1,400 service stations and that is why most investors would know it. However, the company is also a major supplier of LPG and aviation fuels across the broader Asia-Pacific region. And it is slowly pivoting to meet the future needs of electric vehicles, installing public charging bays in Australia.

Strike Energy (ASX: STX)

It is an oil and gas exploration and production company with exploration assets with a focus on Western Australia. Strike has been most well known for its West Eregulla discovery, found with joint venture partner Warrego Energy. It tried to acquire its joint-venture partner but lost out to Gina Rinehart-backed Hancock Energy. Still, it enjoyed a good payday when the deal occurred and has big plans for the precinct, planning to develop a urea fertiliser development there too. Also keep in mind, it has a number of other promising projects in the region, including the Waitsia gas field and the Dorado oil field. The company is also exploring for new opportunities in the North West Shelf.

Our Top 4 ASX Energy Stocks

Woodside Energy Group (ASX: WDS)

It is the largest energy company on the ASX, with a market capitalization of over $66 billion. Woodside is a leading producer of oil and gas in Australia, with assets in the North West Shelf, the Browse Basin, and the Timor Sea. Most notably, it owns the Scarborough LNG project which will be Australia's biggest oil and gas project for at least a decade, expected to produce 9m tonnes of LNG annually. It is still below its pre-COVID levels even in spite of high energy prices, because it does not have the strongest ESG angle and it is uncertain as to how it'll fund Scarborough.

Santos (ASX: STO)

It is another major oil and gas producer on the ASX, with a market capitalization of over $24 billion, a most recent annual profit of US$790bn and annual production of 103.2mmboe. Santos has assets in Australia, Indonesia, and Vietnam that have 3,280mmboe in 2C contingent reserves and is a leading supplier of LNG to the global market. The company is also investing in renewable energy projects, such as in solar projects and wind power. It is targeting Net Zero by 2040.

Ampol (ASX: ALD)

It is a diversified energy company with interests in oil, gas, and convenience retailing. Yes Ampol is the largest fuel retailer in Australia, with a network of over 1,400 service stations and that is why most investors would know it. However, the company is also a major supplier of LPG and aviation fuels across the broader Asia-Pacific region. And it is slowly pivoting to meet the future needs of electric vehicles, installing public charging bays in Australia.

Strike Energy (ASX: STX)

It is an oil and gas exploration and production company with exploration assets with a focus on Western Australia. Strike has been most well known for its West Eregulla discovery, found with joint venture partner Warrego Energy. It tried to acquire its joint-venture partner but lost out to Gina Rinehart-backed Hancock Energy. Still, it enjoyed a good payday when the deal occurred and has big plans for the precinct, planning to develop a urea fertiliser development there too. Also keep in mind, it has a number of other promising projects in the region, including the Waitsia gas field and the Dorado oil field. The company is also exploring for new opportunities in the North West Shelf.

Why Invest in ASX Energy Shares

Energy is a fundamental aspect of modern civilization, and the global demand for energy continues to rise. As the world population grows and economies develop, the need for energy to power industries, transportation, and households increases. Investing in ASX energy shares provides exposure to a sector with a robust long-term demand outlook

Factors Influencing Energy Stocks:

The most significant determinant of energy stocks' performance is the prevailing prices of energy commodities such as oil, natural gas, and coal. Changes in global oil supply and demand, geopolitical events, and weather patterns can cause significant fluctuations in energy prices.

Are ASX Energy Stocks a Good Investment?

Whether or not ASX energy stocks are a good investment depends on your individual circumstances, financial situation and investment goals. However, the factors mentioned above suggest that energy stocks can be a good way to diversify your portfolio and generate income.

Investing in ASX energy stocks can be an attractive proposition for investors looking to diversify their portfolios and capitalize on the potential growth and stability of the energy sector.

Pros of Investing in ASX Energy Stocks:

Resilient Demand: Energy is a fundamental necessity for modern society, and as such, there is a consistent and enduring demand for energy resources. This demand provides a level of stability to energy companies, even during economic downturns.

Income Potential: Many energy companies, particularly utilities, have a history of paying dividends to their shareholders. For income-focused investors, these dividends can offer a steady stream of income.

Global Exposure: Some ASX-listed energy companies have extensive operations and projects around the world. This global exposure can offer investors an opportunity to benefit from energy demand in various regions.

Potential for Capital Appreciation:Depending on market conditions stock, share price move, and company performance, ASX energy stocks have the potential to experience capital appreciation, providing investors with the opportunity for long-term growth.

Diversification: Investing in energy stocks can provide diversification benefits to an investment portfolio, as it adds exposure to a sector that may have a different risk profile compared to other investments

FAQs on Investing in Energy Stocks

Investing in ASX energy stocks can offer potential benefits, such as exposure to a fundamental sector with consistent demand, income potential through dividends, and the opportunity for capital appreciation. The energy sector can also provide diversification to an investment portfolio.

Our Analysis on ASX Energy Stocks

AGL Energy in 2024

AGL Energy in 2024: What does the year ahead hold for Australia’s largest energy provider?

January 19, 2024

AGL Energy in 2024…only time will tell what it has in store for the company. Will it finish the year…

Woodside Energy: Is its proposed merger with Santos just a band-aid solution?

December 18, 2023

Woodside Energy’s (ASX:WDS) share price droppеd by 13.5% sincе Novеmbеr 2023, and it has droppеd by approximatеly 22% sincе thе…

Wesfarmers shareholders

BPH Enеrgy: Legislative U-turn Unlocks a New Era with PEP-11

December 8, 2023

BPH Enеrgy (ASX: BPH), an Australian еnеrgy stock, is pushing to begin a nеw chaptеr that will havе important rеpеrcussions…

origin energy takeover

An Origin Energy Takeover from AustralianSuper is not happening, so now what? Here are 4 possibilities

December 6, 2023

The Origin Energy Takeover offer from Brookfield and EIG was formally voted down earlier this week. Although a majority of…

Origin Energy shares

Are Origin Energy shares a Buy Opportunity Amid the Takeover Saga?

November 27, 2023

In the energy sector, few shares are as compelling as that of Origin Energy shares (ASX: ORG), which is why…

Solar Energy Stocks

The best Solar Energy Stocks on the ASX in 2023

May 17, 2023

What are the best Solar Energy Stocks to invest in in 2023? Australia is at the forefront of renewable energy…