The oil and gas sector isn't for everyone…
If the past 12 months has taught us anything it's that investing in the energy market can be a costly past time.
From the largest global producers to the smallest explorers, the last year has certainly sorted the wheat from the chaff.
However, there are now signs that life is being blown back into the sector. Already we've seen some ASX-listed energy stocks outperforming the market in 2015.
So if you're prepared to bet on a revival in Australian oil and gas stocks, below I've identified three Aussie companies which may be worthy of closer inspection.
- APA Group (ASX: APA) is Australia's largest natural gas pipelines and infrastructure owner and operator. The company, like many Australian infrastructure owners, operates in a perplexing financial structure whereby it utilises a trust to keep tax and other costs to a minimum. However if you can move past its complicated financials, it's arguably one of the safest ways to play Australia's imminent natural gas boom. Personally, I'm waiting for a lower price before hitting the buy button, however, at today's prices APA is offering a handy 4% dividend yield.
- The 43% fall of Santos Ltd (ASX: STO) shares over the past year has been well documented by the financial media. However what many investors may be overlooking is the significant wave of demand expected to hit Australia's LNG industry in the next decade. Whilst Santos' near-term will likely prove painful, the start-up of the GLNG project later this year bodes well for future returns.
- If you're seeking a higher-risk LNG stock idea, look no further than Liquefied Natural Gas Ltd (ASX: LNG). LNG Ltd was the 'wonder stock' of 2014, soaring more than 1,000% in less than 12 months. Yesterday the company announced its fully-owned subsidiary, Bear Head LNG, has progressed through all its initial regulatory hurdles to develop Canada's first east coast LNG liquefaction and tolling facility.
A better bet than LNG Ltd…
