Top Energy Stocks For 2012

The market has been on fire since the dark days of the financial crisis. The S&P 500 has soared an astounding 85% since the lows of March 2009. Market returns have been propelled by more cyclical sectors like technology and consumer products, while the more defensive sectors have badly lagged the market. In short, it's the go-go stocks that have been the first to benefit in the post crisis market, but things might be changing...
The bull market has gotten long in the tooth while at the same time uncertainty is growing as the Middle East erupts in turmoil. Oil prices are soaring near $100 a barrel from just $85 a month ago and may climb still higher, threatening economic recovery.
It may be time for investors to look at defensive stocks that can perform in any economy. Health care, more specifically major drug manufacturers, earn consistent income in any economy and, best of all, pay fat dividends.
Health care stocks have their critics, however. Most large drug companies are facing steep patent cliffs and an accompanying fall in revenue in the years ahead. In addition, uncertainty regarding health care legislation and possible higher costs going forward are weighing on prospects.
However, these problems are largely factored into share prices already.

Three stocks in particular stand out as having strong business prospects, cheap valuations and high dividends.

Top Energy Stocks For 2012:Airgas Inc. (ARG)

 Airgas, Inc., through its subsidiaries, distributes industrial, medical, and specialty gases, as well as hardgoods in the United States. The company offers various gases, including nitrogen, oxygen, argon, helium, and hydrogen; welding and fuel gases, such as acetylene, propylene, and propane; and carbon dioxide, nitrous oxide, ultra high purity grades, special application blends, and process chemicals. Its hardgoods products comprise welding consumables and equipment, safety products, and construction supplies, as well as maintenance, repair, and operating supplies. The company also engages in the rental of gas cylinders, cryogenic liquid containers, bulk storage tanks, tube trailers, and welding and welding related equipment. In addition, the company manufactures and distributes liquid carbon dioxide, dry ice, nitrous oxide, ammonia, refrigerant gases, and atmospheric merchant gases. It serves repair and maintenance, industrial manufacturing, energy and infrastructure construction, medical, petrochemical, food and beverage, retail and wholesale, analytical, utilities, and transportation industries. The company operates an integrated network of approximately 1100 locations, including branches, retail stores, packaged gas fill plants, specialty gas labs, production facilities, and distribution centers. Additionally, it provides retail solutions to retail customers, such as florists, grocers, restaurants and bars, tire and automotive service centers, and others. The company markets its products through multiple sales channels, including branch-based sales representatives, retail stores, strategic customer account programs, telesales, catalogs, e-business, and independent distributors. Airgas, Inc. was founded in 1982 and is based in Radnor, Pennsylvania.
Advisors' Opinion:

• By Tom Bishop At 2011-9-8
  Airgas Inc. (NYSE:ARG) was also the subject of a takeover bid, this one a little unwelcome. The company received a bid from Air Products (NYSE:APD) at $60 per share, a 38% premium from where the stock had been trading.
  
  Airgas rejected the offer claiming that the offer "very significantly undervalues Airgas and its future prospects and is not in the best interests of Airgas stockholders." Airgas finished up 39% in February 2010, and is currently trading at $65 per share as the market is anticipating a possible higher bid.

Top Energy Stocks For 2012:Atwood Oceanics Inc. (ATW)

 Atwood Oceanics, Inc., together with its subsidiaries, engages in offshore drilling, and the completion of exploratory and developmental oil and gas wells. The company owns semisubmersible rigs, semisubmersible tender assist rigs, jack-up drilling rigs, and submersible drilling rigs. As of November 22, 2010, it operated nine mobile offshore drilling units located in offshore southeast Asia, offshore Africa, offshore Australia, offshore South America, and the Mediterranean Sea. The company was founded in 1968 and is headquartered in Houston, Texas.

Top Energy Stocks For 2012:ConocoPhillips (COP)

 ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalysts, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.
Advisors' Opinion:

• By Hawkinvest At 2012-2-23
  
  ConocoPhillips (COP) is a leading oil and gas company involved in exploration, production, refining, and transportation of petroleum products. ConocoPhillips appears undervalued, as it offers a solid dividend yield and a price to earnings ratio of just about 9 times earnings. This stock could have an upside catalyst in the coming months, as the comp! any plan s to spin-off the refining division, which will become a separate, publicly traded company called Phillips 66. This company has extensive oil reserves which can grow as the company makes new finds, and these reserves also grow more valuable as the price of oil trends higher. This stock has been rising, so waiting for pullbacks makes sense. Recently, it's been possible to buy Conoco shares at below $70 per share, and that would be a very attractive entry point.
  
  
  Here are some key points for COP:
  
  
  Current share price: $73.83
  The 52 week range is $58.65 to $81.80
  Earnings estimates for 2011: $8.27 per share
  Earnings estimates for 2012: $8.75 per share
  Annual dividend: $2.64 per share which yields 3.6%
• By Fabian At 2012-2-21
  ConocoPhilips(COP) is a close second. This is a Warren Buffett darling that will benefit from its spinoff of refining assets some time in 2012.
  Conoco also continues to pay a consistent and reliable 3.75%. Note that COP has underperformed the rest of the sector recently. Correlations are normally so close that such an underperformance by one stock can point the way to value.
• By Dave Friedman At 2011-9-23
  Institutional investors bought 49,282,090 shares and sold 75,744,640 shares, for a net of -26,462,550 shares. This net represents 1.79% of common shares outstanding. The number of shares outstanding is 1,479,330,000. The shares recently traded at $65.51 and the company’s market capitalization is $89,946,840,000.00. About the company: ConocoPhillips is an international, integrated energy company which operates in several business segments. The Company explores for and produces petroleum, and refines, markets, supplies, and transports petroleum. ConocoPhillips also gathers and processes natural gas, and produces and distributes chemicals and plastics.

Top Energy Stocks For 2012:Sunoco Logistics Partners LP (SXL)

 Sunoco Logistics Partners L.P. engages in the transport, terminalling, and storage of refined products and crude oil, as well as the purchase and sale of crude oil in the United States. Its Refined Products Pipeline System segment owns and operates approximately 2,200 miles of refined product pipelines that transport gasoline, heating oil, diesel and jet fuel, and liquefied petroleum gas (LPG). This segment also includes approximately 100-mile refined products Harbor pipeline, and 50 miles of inter refinery pipelines; and various joint venture interests in refined product pipeline companies. The company?s Terminal Facilities segment consists of 42 refined product terminals with an aggregate storage capacity of 7.2 million barrels, primarily serving the Refined Products Pipeline System; the Nederland Terminal, a 20.2 million barrel marine crude oil terminal on the Texas Gulf Coast; a 2.0 million barrel refined products terminal serving Sunoco?s Marcus Hook refinery near Philadelphia, Pennsylvania; 1 inland and 2 marine crude oil terminals with a combined capacity of 3.4 million barrels, and related pipelines that serve Sunoco?s Philadelphia refinery; and a 1.0 million barrel LPG terminal near Detroit, Michigan. Its Crude Oil Pipeline System segment gathers, purchases, sells, and transports crude oil principally in Oklahoma and Texas. This segment consists of approximately 4,900 miles of crude oil trunk pipelines; approximately 500 miles of crude oil gathering lines; approximately 110 crude oil transport trucks; and approximately 100 crude oil truck unloading facilities. This segment also holds a 91% interest in the Mid-Valley Pipeline Company that owns approximately 1,000 miles of crude oil pipelines; a 60.3% interest in West Texas Gulf Pipe Line Company, which includes approximately 600 miles of crude oil pipe; and a 37.0 percent undivided interest in the 100-mile Mesa Pipe Line system. The company was founded in 2001 and is based in Philadelphia, Pennsylvania.

Top Energy Stocks For 2012:Permian Basin Royalty Trust (PBT)

 Permian Basin Royalty Trust owns overriding royalty rights in mineral properties in the United States. It holds a 75% net overriding royalty interest in the Waddell Ranch Properties located in Crane County, Texas; and a 95% net overriding royalty interest in the Texas Royalty Properties in Texas. As of December 31, 2009, the Waddell Ranch properties contained 372 net productive oil wells, 87 net productive gas wells, and 131 net injection wells; and the Texas Royalty properties consisted of approximately 125 separate royalty interests containing approximately 51,000 net producing acres. The company was founded in 1980 and is based in Dallas, Texas.

Top Energy Stocks For 2012:SM Energy Company (SM)

 SM Energy Company, an independent oil and gas company, engages in the acquisition, exploration, exploitation, development, and production of natural gas and crude oil in North America. Its oil and gas reserves and operations are concentrated primarily in the Rocky Mountain Williston basin; the Mid-Continent Anadarko and Arkoma basins; the Permian basin; the productive formations of east Texas and north Louisiana; north central Pennsylvania; the Maverick Basin in south Texas; and the onshore Gulf Coast and offshore Gulf of Mexico. As of December 31, 2009, the company had estimated proved reserves of 53.8 million barrels of oil and 449.5 billion cubic feet of natural gas. SM Energy Company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company on June 1, 2010. SM Energy Company was founded in 1908 and is based in Denver, Colorado.