Bullish Case for These Energy Stocks: GLP, NFG, EPSN

Industry Overview - Energy stocks are gaining strength as macro conditions improve and demand drivers increase, with recession fears easing and tariff negotiations progressing [1] - The global buildout of data centers is expected to significantly increase electricity demand, benefiting utilities, natural gas providers, and midstream energy firms [2] Crude Oil Market - Crude oil prices have shown technical strength, indicating a potential bottom, with recent price action suggesting a bullish reversal pattern [5][6] - A key resistance level has emerged near $64, and a breakout above this level could lead to a sustained move towards $70 [7] Company Highlights - National Fuel Gas (NFG): - Vertically integrated natural gas company with a diverse business model, benefiting from multiple points along the energy value chain [8] - Currently holds a Zacks Rank 2 (Buy) with upward earnings revisions indicating analyst confidence [9] - Shares trade at 11.7x forward earnings, below the 10-year median of 14x and the industry average of 16.8x, with projected earnings growth of 20.4% annually over the next three to five years, resulting in a PEG ratio of 0.58 [10] - Epsilon Energy (EPSN): - Small-cap natural gas exploration and production company focused on the Appalachian Basin, emphasizing capital efficiency and shareholder returns [11] - Holds a Zacks Rank 1 (Strong Buy) with earnings estimates surging, including a 38% increase for the current quarter [14] - Technical analysis shows a bullish flag pattern, with a breakout above $7.30 likely to trigger further buying [15] - Global Partners (GLP): - Diversified midstream energy company involved in the wholesale, distribution, and retail of petroleum products, with a strong cash flow and market exposure [16] - Offers a 6% dividend yield, supported by consistent cash generation and a 10% average annual dividend increase over the last five years [17] - Holds a Zacks Rank 1 (Strong Buy) with significant earnings estimate revisions, including a 42.9% increase for the current quarter [18] Investment Outlook - With improving macro conditions, rising energy demand, and technical support in crude oil prices, the outlook for energy stocks is strengthening [20] - National Fuel Gas, Epsilon Energy, and Global Partners present a compelling mix of value, growth, and yield, making them attractive options for investors [20]