3 Energy Security Stocks Retail Investors May Be Missing

Energy security is back in the headlines as geopolitics, inflation and central bank signals collide to reshape how money moves across global markets. That mix can punish some stocks and create fresh interest in others that touch pipelines, LNG, storage, ports and broader supply chains. This article breaks down three stocks from our Global Energy Security and Supply-Chain Resilience Leaders screener that appear positively exposed to these currents.

The three stocks below are just a starting sample. The full screen surfaced 16 more companies with equally compelling energy security and supply-chain narratives that are not covered here. To identify and analyze the highest conviction ideas tailored to your own criteria, head straight into the Global Energy Security and Supply-Chain Resilience Leaders screener.

Ørsted is a Danish renewable energy company that develops and operates offshore and onshore wind farms, solar projects and large battery storage, directly tied to governments’ push for secure, domestically sourced power. Most of its revenue comes from Offshore, which generated about DKK64.1b, with Bioenergy & Other contributing roughly DKK17.0b and Onshore about DKK2.9b. The stock is a large player in the theme, with a market cap of around DKK176.7b.

Investors looking at energy security may find Ørsted hard to ignore. The company runs a large portfolio of offshore wind, onshore renewables and storage that links directly to efforts to reduce reliance on imported fossil fuels. Management also points to a high share of regulated and hedged earnings that can cushion some power price swings. At the same time, Ørsted has only recently come through a period of restructuring, dilution and project clean up, and still depends on external funding for its capital intensive build out. The question is whether that combination of scale, policy support and a low P/S tag will outweigh the funding and execution risks as its next wave of projects connects to the grid.

Ørsted’s large offshore footprint and low P/S tag may appear to offer a rare reset moment for such a major renewable player. However, the real story lies in how its next projects reshape risk and reward in the analysis report for Ørsted

Build your own energy security shortlist

Ørsted and the other two stocks in this article all came out of a single screen, but the real value is shaping filters around what matters most to you. Use our flexible Screener to mix metrics like valuation, growth, balance sheet strength and risks, or jump straight into our curated Investing Ideas for ready made starting points.

Enerflex is a Calgary based CA$3.4b company that builds and runs the natural gas compression, processing, power and treated water equipment that keeps energy systems working in North America, Latin America and the Eastern Hemisphere. This ties the company directly to energy security and supply-chain resilience. Most revenue comes from North America at about $1.7b, with Latin America contributing $355 million and the Eastern Hemisphere $511 million. That mix, together with long term contracts and a growing service footprint, puts Enerflex firmly in the middle of how gas and power move from field to grid.

For investors looking at energy security as a long term theme, Enerflex brings a mix of hard assets, recurring service revenue and a record $1.5b Engineered Systems backlog that links directly to gas, power and water infrastructure across key regions. Management highlights a margin improvement plan, higher growth capital for U.S. contract compression and demand for produced water and emissions focused projects. However, recent one off losses, margin pressure and a relatively new leadership team mean execution risk is significant. For those evaluating whether the company’s push into higher margin services and energy transition projects can outweigh funding and cycle risks, Enerflex may warrant closer examination.

Enerflex’s record $1.5b Engineered Systems backlog and shift toward higher margin services hint at a story investors may have only half priced in. The full risk reward picture sits inside the 3 key rewards and 2 important warning signs

National Energy Services Reunited is an oilfield services company that helps keep hydrocarbons flowing from the Middle East and North Africa, one of the most important regions for global energy security and supply chains. Its Production Services arm, which covers fracturing, coiled tubing, cementing, artificial lift and water management, generated about $994 million, while Drilling and Evaluation Services contributed around $625 million. The stock has a market cap of roughly $3.3b, which puts it in the mid cap bracket among global energy service providers.

Investors watching geopolitical risk and supply concerns may want National Energy Services Reunited on their radar because its rigs, fracturing fleets and production services directly support the capacity that keeps oil and gas moving from MENA to global customers. Long multi year contracts in markets such as Kuwait, Saudi Arabia and North Africa, plus a growing push into water management and digital solutions, give the company a mix of visibility and exposure to potential new profit pools. The flip side is heavy reliance on a single region, capital intensive projects and external funding, so any contract delays or policy shocks could matter a lot. The key question for investors is how that balance of growth, concentration risk and energy security exposure develops over time.

National Energy Services Reunited looks like an underappreciated way to play MENA energy security, with multi year contracts and new water and digital work potentially reshaping the story. The missing piece sits inside the full narrative for National Energy Services Reunited

Seeking Alternatives Before The Crowd Moves

Fresh ideas move first. Breakout stories gain momentum while others are still checking headlines and by then the best entries can be gone. Scan new angles now and get in early.

• Spot strong cash generators before they get crowded by scanning a curated 267 high quality undervalued stocks that combine quality, cash flow and balance sheet strength while they are still under the radar for now.
• Catch income workhorses while yields remain high by reviewing a focused set of 423 dividend fortresses that aim to keep paying even when markets are flying in different directions.
• Ride the build out of tomorrow’s AI backbone by checking a hand picked group of 55 AI infrastructure stocks that power data centers, chips and networks before the crowd fully catches on.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com