Energy Stocks End 2024 on a Flat Note; Top Performers Emerge

Energy stocks, after a year of transformation and volatility, conclude 2024 with a relatively flat performance. Despite the ups and downs, several companies have emerged as top performers, offering investors valuable insights into the energy sector's dynamics and future prospects.

The energy sector in 2024 was characterized by a blend of traditional fossil fuels and renewable energy sources, supported by favorable economic conditions and strategic industry developments. As we delve into the ten best-performing energy stocks for 2024, we'll analyze how these companies adapted to the changing landscape and capitalized on the anticipated shifts in energy consumption, production, and pricing.

1. NextDecade Corp. (NEXT) - Up 10.8% (30-day return)
NextDecade, a liquefied natural gas (LNG) company, saw its stock price surge due to the growing demand for LNG and the company's strategic investments in LNG export facilities. The U.S. LNG sector was anticipated to grow, with gross exports expected to rise from 12 billion cubic feet per day in 2023 to 14 billion in 2025, highlighting the country's role as a key player in global energy markets. NextDecade's strong performance reflects the company's ability to capitalize on this growth trend.

2. Alliance Resource Partners, LP (ARLP) - Up 10.0% (30-day return)
Alliance Resource Partners, a coal producer, benefited from the increased demand for coal in the global energy market. Despite the shift towards renewable energy sources, coal remains an essential component of the energy portfolio, particularly in countries with limited access to alternative energy sources. The company's strong performance can be attributed to its strategic focus on coal production and its ability to adapt to the evolving energy landscape.

3. EQT Corp. (EQT) - Up 2.5% (30-day return)
EQT, a natural gas producer, saw its stock price increase due to the growing demand for natural gas and the company's strategic investments in natural gas production and infrastructure. The forecast indicates that prices at Henry Hub will remain relatively stable at around $2.20 per million British thermal units (MMBtu) before spiking to approximately $3.10/MMBtu in 2025. This trend reflects a complex interplay between production capabilities and increasing export demands, especially as the U.S. continues to expand its LNG footprint. EQT's strong performance demonstrates the company's ability to capitalize on these market dynamics.

4. HighPeak Energy Inc. (HPK) - Up 1.3% (30-day return)
HighPeak Energy, an oil and gas exploration and production company, benefited from the increased demand for oil and gas and the company's strategic investments in exploration and production activities. The projected increase in U.S. crude oil production from 12.9 million barrels per day in 2023 to 13.3 million in 2024 contributed to a robust supply environment, which further enhanced the attractiveness of energy stocks. HighPeak Energy's strong performance reflects the company's ability to capitalize on this growth trend.

5. Chord Energy Corp. (CHRD) - Down 0.8% (30-day return)
Chord Energy, an oil and gas exploration and production company, experienced a slight decline in its stock price despite the overall positive trends in the energy sector. The company's performance may have been affected by specific operational challenges or market conditions, highlighting the importance of thorough research and analysis when investing in individual stocks.

6. Chesapeake Energy Corp. (CHK) - Down 0.8% (30-day return)
Chesapeake Energy, an oil and gas exploration and production company, also experienced a slight decline in its stock price. Similar to Chord Energy, Chesapeake's performance may have been influenced by specific operational or market factors, emphasizing the need for careful analysis when investing in individual stocks.

7. Viper Energy Inc. (VNOM) - Down 1.2% (30-day return)
Viper Energy, a master limited partnership (MLP) focused on oil and gas exploration and production, saw its stock price decrease slightly. The company's performance may have been affected by market conditions or specific operational challenges, underscoring the importance of thorough research and analysis when investing in individual stocks.

8. Valero Energy Corp. (VLO) - Down 1.3% (30-day return)
Valero Energy, a refining company, experienced a slight decline in its stock price. The company's performance may have been influenced by market conditions or specific operational factors, highlighting the need for careful analysis when investing in individual stocks.

9. Coterra Energy Inc. (CTRA) - Down 3.1% (30-day return)
Coterra Energy, an oil and gas exploration and production company, saw its stock price decrease more significantly. The company's performance may have been affected by market conditions or specific operational challenges, emphasizing the importance of thorough research and analysis when investing in individual stocks.

10. Exxon Mobil Corp. (XOM) - Down 3.9% (30-day return)
Exxon Mobil, a globally diversified and integrated energy company, experienced a decline in its stock price. Despite the overall positive trends in the energy sector, Exxon Mobil's performance may have been influenced by specific operational or market factors, underscoring the importance of careful analysis when investing in individual stocks.

In conclusion, energy stocks ended 2024 on a relatively flat note, with several companies emerging as top performers. The energy sector's transformation and volatility in 2024 offered investors valuable insights into the dynamics and future prospects of the industry. As we look ahead to 2025, investors should continue to monitor the evolving energy landscape and consider the strategic investments and adaptations made by these top-performing companies.