Top Energy Stocks Providing High Returns for an Investment of $2,000 at Present Moment
TotalEnergies and Enbridge, two major players in the global energy sector, are taking different approaches as the world transitions towards renewable power.
TotalEnergies, an integrated energy company, is actively investing heavily in renewable energy and low-carbon projects as part of its energy transition strategy. The French firm plans to invest between $17 and $17.5 billion by 2025, with around $4.5 billion specifically allocated to low-carbon energy, mostly in integrated power generation. This includes renewables and electricity.
The company aims to triple its renewable energy capacity and double energy efficiency by 2030, while significantly reducing methane emissions. Recent investments include acquiring renewable project developers, expanding offshore wind farms, and launching solar power projects with battery storage systems. TotalEnergies also forms joint ventures for LNG bunkering and biogas sales.
In contrast, Enbridge, a Canadian company, is best known as a midstream energy infrastructure company focused primarily on pipeline, storage, and terminal operations. While it does not have a detailed renewable investment focus in the search results, its business centres on transporting natural gas, natural gas liquids, crude oil, and refined products via an extensive pipeline network across the United States.
Enbridge's revenue model relies on charging fees for pipeline usage, providing stability irrespective of oil and gas price volatility. The company's focus on the midstream provides reliable cash flows as the volume passing through its system is more important than the price of oil and natural gas.
Both TotalEnergies and Enbridge have histories of supporting dividends through the market cycle. TotalEnergies' ticker symbol is TTE, and Enbridge's is ENB. The dividend yields for TotalEnergies and Enbridge are 6.5% and 5.9%, respectively.
As the world prepares for the shift in energy use from 21% to 32% electricity in the United States by 2050, both companies are making moves in response to the anticipated changes in the global energy landscape. TotalEnergies has also been buying electric utility businesses, while Enbridge is focusing on increasing its exposure to reliable natural gas businesses, like regulated natural gas utility operations.
Investing in TotalEnergies could potentially benefit a portfolio by getting ahead of the curve in the shift towards more electricity use. On the other hand, investing in Enbridge could provide energy exposure while avoiding commodity risk. However, it's important to note that as foreign companies, U.S. investors may have to pay foreign taxes.
At the time of writing, the stock prices of TotalEnergies and Enbridge were 0.95% and -0.12% respectively. Both companies have shown resilience during challenging times, with TotalEnergies maintaining its dividend during the coronavirus pandemic while some European peers cut theirs. Enbridge, too, has had 30 annual increases in its dividend.
In conclusion, TotalEnergies is heavily investing in renewable power and low-carbon projects as a key pillar of its energy transition, while Enbridge remains focused mainly on traditional midstream infrastructure supporting oil and gas flows, with no highlighted large-scale renewable power investments in the search results.
[1] TotalEnergies 2020-2025 Strategic Plan - https://www.total.com/media/newsroom/press-releases/total-announces-its-2020-2025-strategic-plan [2] Enbridge 2020 Corporate Profile - https://www.enbridge.com/en-ca/about/investors/corporate-profile [3] TotalEnergies invests in renewable power - https://www.total.com/media/newsroom/press-releases/total-energies-invests-in-renewable-power [4] Enbridge focuses on natural gas - https://www.enbridge.com/en-ca/about/industry/natural-gas [5] TotalEnergies and Enbridge renewable projects - https://www.reuters.com/article/us-total-energies-renewables-enbridge-idUSKBN29T205
- TotalEnergies is actively investing $17 to $17.5 billion by 2025, with a significant portion allocated to low-carbon energy, including renewable energy and electricity.
- In contrast, Enbridge's business primarily involves pipeline, storage, and terminal operations, with no highlighted large-scale renewable power investments.
- Investing in TotalEnergies could potentially benefit a portfolio by getting ahead of the curve in the shift towards more electricity use, while investing in Enbridge could provide energy exposure while avoiding commodity risk.
- TotalEnergies has been buying electric utility businesses, while Enbridge is focusing on increasing its exposure to reliable natural gas businesses, such as regulated natural gas utility operations.
