11 Cheap Energy Stocks to Buy Right Now

Core Viewpoint - Fundstrat Global Advisors' Tom Lee suggests energy and basic materials as top sector picks for 2026, citing historical underperformance as a potential turning point for these sectors [1][2] Group 1: Sector Analysis - Energy and materials sectors have underperformed over the past five years, indicating a possible upside turning point [2] - Stocks in these sectors could perform well even with mediocre fundamentals due to the amount of bad news already factored in [2] - The turnaround for small-cap stocks is expected to be part of a multi-year cycle, potentially lasting up to 12 years, benefiting from a dovish Federal Reserve and potential mergers and acquisitions [2] Group 2: Company Highlights - Matador Resources Company (NYSE:MTDR): - Reported a 9% increase in total proved oil and natural gas reserves, reaching 667 million BOE, and achieved record production of 211,290 BOE per day [7][8] - Plans to increase oil production by 3% while reducing capital expenditures by 11% to approximately $1.50 billion [8] - Secured a strategic gas transportation deal expected to enhance market access and pricing by late 2026 [9] - Range Resources Corporation (NYSE:RRC): - Generated over $650 million in free cash flow and $1.3 billion in cash flow from operations, with an average production of 2.24 Bcfe per day [11] - Established a capital budget of $650 to $700 million for 2026, targeting production increases to between 2.35 and 2.40 Bcfe per day [12] - Entered a 10-year agreement to supply natural gas at premium pricing, with expectations of production ramp-up in mid-2026 [13]