2 top ASX energy shares to buy right now

Analysts believe these ASX shares could energise your portfolio.

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The Australian energy sector is filled to the brim with different options for investors to choose from.

There are oil and gas producers, coal miners, renewable energy companies, and uranium developers, to name just a few.

To narrow things down, I have picked out two top ASX energy shares that have been named as buys by analysts. Let's check them out:

Deep Yellow Limited (ASX: DYL)

Nuclear power had been out of favour for some time until recently thanks to the decarbonisation megatrend. As a result, demand for uranium is expected to increase materially over the coming decades. And with uranium supply expected to struggle to keep up with demand, this bodes well for the price of the chemical element.

One way investors can gain exposure to uranium is through Deep Yellow, which Bell Potter is bullish on. The broker has a speculative buy rating and a $1.84 price target, which implies a 57% upside from current levels. It commented:

[W]e see DYL in pole position to capitalise on the momentum and advance its two flagship projects into production within the next 3-4 years. With average planned production capacity at Tumas of ~3Mlbpa over 22 years and ~3.1Mlbs over 15 years at Mulga Rock, DYL offers longevity at the perfect point in the uranium price cycle.

Woodside Energy Group Ltd (ASX: WDS)

If oil and gas are more to your tastes, then Woodside Energy could be the ASX energy share to buy.

That's the view of analysts at Goldman Sachs, which believe that Woodside is the way to go due to its attractive valuation and production growth potential.

The broker has a buy rating and a $38.30 price target on its shares, which suggests a potential upside of 15% for investors. It commented:

Woodside produces over 500 kboe/d LNG, gas and oil across Australia and the Americas, and offers Australia's highest exposure to spot LNG and oil pricing, which we expect will remain elevated due to structural underinvestment despite near-term demand uncertainty, funding attractive growth projects and shareholder returns. We are Buy rated on WDS on (1) Attractive valuation trading at a 17% discount to NAV, (2) Strong returns trading on a 7% NTM dividend yield, (3) Strong near term production growth of 9% over the next year increasing oil exposure where we expect prices to remain elevated.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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