Garcia’s favourite stocks to play the higher energy prices

on Jun 7, 2022
  • Courtney Garcia expects energy prices to keep up at least in the near term.
  • She picked two stocks to benefit from higher prices on CNBC's "Closing Bell".
  • SPDR S&P Oil & Gas Exploration & Production ETF is already up over 65% YTD.

The oil and gas companies have already had an unprecedented run up this year. Still, Courtney Garcia – Senior Wealth Advisor at Payne Capital Management – is convinced the energy stocks are not out of juice yet.

Buy Chevron to play the higher oil prices

Garcia says the Ukraine war could see oil prices as high as $150 a barrel and Chevron Corporation (NYSE: CVX) is a great pick to benefit from that. On CNBC’s “Closing Bell: Overtime”, she said:

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Chevron has a really strong balance sheet; really good cash flow. There’s a lot of money they’re expected to put back into the company, return to shareholders through repurchases. So, I think it’s a really good way you can play higher oil prices.

In April, Chevron reported a close to four-fold year-over-year increase in its Q1 profit. The stock is already up 50% versus the start of 2022.

Buy Pioneer to play the higher natural gas prices

To play the sharp surge in natural gas price that now stands over $9.0, Garcia recommends investing in Pioneer Natural Resources Co (NYSE: PXD), trading currently at its all-time high. She said:

Natural gas prices are expected to only go up, especially in the near-term. Clearly, inflation is here to stay. And Pioneer is a really good hedge in your portfolio so that if inflation does persist, you’re able to take advantage of that.

Garcia expects more demand to unlock once China comes out of the lockdown. Consequently, she added, energy prices will continue to move up.

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