Energy Stocks in the Retirement Portfolio: ConocoPhillips Impresses in 2024

In 2023, the clean energy sector faced significant setbacks due to supply chain disruptions, the energy crisis resulting from the Ukraine war, as well as rising interest rates and inflation. However, traditional energy companies flourished thanks to high demand and fossil fuel prices. Despite these challenges, the transition to clean energy is more urgent than ever to avoid drastic economic losses due to climate change. According to a report by Deloitte, a global annual investment between five and seven trillion dollars will be necessary by 2050 to finance the green energy transition. The International Energy Agency forecasts that in 2024, global energy investments will exceed three trillion dollars for the first time, with two trillion dollars directed towards clean technologies. In 2023, investments in renewable energies surpassed spending on fossil fuels for the first time. Despite the central role of clean energies, oil and gas companies remain indispensable for the stability of energy markets during the transition phase. High fossil fuel prices and increased demand led to record profits and payouts for major oil companies in 2022. However, oil prices in 2023 remained below the peak levels of over 130 dollars per barrel from the previous year. Long-term challenges and uncertain demand continue to predict cautious production expansion. For retirees, energy stocks offer stable value and dividend potential. Investments in both traditional and renewable energies promise solid returns. Hedge fund strategies can help outperform the market by mimicking top stock selections. On our list of retirement stocks is ConocoPhillips, which operates globally in hydrocarbon businesses. The stock has a dividend yield of 3.32% and plans a dividend increase of 34% in the fourth quarter of 2024. In the second quarter of 2024, ConocoPhillips exceeded earnings expectations with an EPS of 1.98 USD. The production target for the third quarter is 1.87 - 1.91 million barrels per day. A merger with Marathon Oil Corporation, expected to be completed by the end of 2024, will significantly strengthen the US portfolio. Seventy-two hedge funds are bullish on ConocoPhillips and see great potential. Overall, ConocoPhillips ranks fifth on our list of retirement energy stocks, although we believe that AI stocks offer greater return potential.