Why energy is still a buying opportunity

1. The long term energy crisis still exists and will exist for years to come. Don’t see demand destruction coming, but Joe could do something to cause a pullback. LNG is in a much worse state and that’s the next/current play besides just oil and refining. Oil could get to $145 easily and Nat Gas May top $20 in winter.

2. Earnings are moving up so much faster than the stock prices which is going to cause an under valuation on a lot of these stocks when we see Q2 reports. Could see some like an MPC actually be as much as 40% undervalued.

3. China opening back up. Bullish catalyst with them being a massive importer of oil.

4. Most of these companies have their process down to the point where their breakeven is roughly $40-60 per barrel. Even if the war ends and we see a pullback, it’s still a great situation with the level of dividends being paid back to shareholders.