Hydraulic fracturing, or fracking, has proven to be one of the keys to unlocking a treasure trove of oil and gas trapped in tight rock formations. It has almost single-handedly turned the U.S. into an energy export juggernaut.
While fracking has fueled significant production growth in the country, it hasn't helped boost the stock prices of most energy companies. That's because most focused on growing no matter the cost instead of aiming to create value for their shareholders. That approach, however, has started to change in recent years, as many fracking-focused producers are using the process to generate free cash instead of even more production. That potentially sets these companies up to produce strong returns in the coming year. Three that stand out this January are EOG Resources (NYSE: EOG), Devon Energy (NYSE: DVN), and Diamondback Energy (NASDAQ: FANG).
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Source: Motley Fool
(January 8, 2020 - 8:01 AM EST)
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