The Clap
Energy stocks are signaling a strong performance relative to the market due to the disruptions over the past two years.
The Deets
Analysts are expecting oil and gas producers to record their highest ever free cash flow (FCF) in 2022.
Increasing oil prices continue to benefit oil and gas producers, as indicated by the S&P 500 Energy Index which is up nearly 50% this year.
U.S. shale producers are predicting a record FCF of $600 billion, noting that they generated negative cash flows in nine out of the last 10 years.
Why this Matters
The strong performance of the energy sector highlights the potential upside for investment in energy ETFs.
Now What
Investments in energy are expected to continue to be profitable as the energy crisis deepens and inflationary pressures keep prices elevated.
Energy ETFs on the come up 🛢
