This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Low-Beta Energy Stocks With Upside

Stocks in this article: WES WPZ YPF TSL PBR BBEP EPD

NEW YORK ( TheStreet) -- Western Gas Partners (WES - Get Report), Williams Partners (WPZ - Get Report), YPF SA (YPF - Get Report), Trina Solar (TSL - Get Report), Petroleo Brasileiro (PBR - Get Report), BreitBurn Energy Partners (BBEP - Get Report), Enterprise Products Partners (EPD - Get Report), InterOil Corporation (IOC), El Paso Pipeline Partners (EPB) and Linn Energy (LINE) are energy stocks trading at a lower beta.

EIA projects global oil consumption to grow by 1.7 million barrels per day (b/d) in 2011, from 86.7 million b/d in 2010. The agency adds that world consumption could increase by 1.6 million b/d in 2012. At close Tuesday (June 7, 2011), WTI crude traded at $98.2 per barrel, while Brent crude settled at $116.2 per barrel.

These 10 energy stocks are trading at a lower beta compared to peers and are relatively safe plays in a volatile market. In addition, these stocks have 15% to 84% upside potential, based on analysts' average 12-month price targets.

10. Petroleo Brasileiro (PBR - Get Report) is an integrated Brazilian oil and gas company engaged in the exploration and production, refining, transportation, and marketing of gas and power.

Net income for the first quarter of 2011 was reported 42% higher than the same period in 2010, driven by a demand surge for oil products in the domestic market. Higher oil prices and volumes during the year delivered a positive impact on the company exploration and production segment. Concurrently, spiking oil prices pressured the downstream business.

At the end of the first quarter, the company's leverage declined to 17%, much lower than Petroleo's established limit of 35%.

Experts peg 2011 capex at around $30 billion to $35 billion, up from $27 billion in 2010. Majority of the 2010 investments were utilized for pre-salt projects.

According to Bloomberg, the adjusted beta for the past six months stands at 0.95. Analysts' consensus estimate projects average gains at 45% over the next one year. The stock is trading at 8.5 times its estimated 2011 earnings.

1 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs