Analysts love these energy stocks — and give one upside of more than 60%

Energy is everywhere, in everything we do; we can’t avoid it. The sheer ubiquity of the sector is one major factor drawing investors to it. After all, energy companies will always be able to find customers for their products, and will never lack for sales. Energy companies have also been seen as a hedge against inflation.

The energy sector has been riding high this year, with the S&P 500 energy index up 61% year-to-date. So the question for investors is, do energy stocks have more room to run? According to some Wall Street pros, the answer to that is ‘yes.’

Opening up the TipRanks database, we identified two energy stocks that have recently been picking up plenty of analyst love. These stocks have earned Strong Buy ratings from Wall Street’s pros, and at least one of them may show an upside better than 60% going into next year. Let’s take a deep dive in, and find out just why these two energy firms are impressing the Street.

Denbury Inc. (DEN)

First up, Denbury, is both a hydrocarbon extraction company and a clean energy firm – demonstrating convincingly that one company can fill both of those niches. On the first, Denbury focuses on tertiary recovery, or enhanced oil recovery, in major production fields; on the second, the company is a leader in carbon capture, utilization, and storage technologies. Denbury uses its carbon capture tech to build up reserves of carbon dioxide, which can be used in enhanced oil recovery operations. In short, the company uses its carbon reserves by pumping them into the ground to push out recoverable oil.

All of this adds up to both a significant oil operation and a significant carbon capture system. So far this year, Denbury is producing some 47,500 barrels of oil equivalent daily, of which 97% or more is petroleum. The oil is extracted using both conventional and enhanced oil recovery (EOR) tech; the latter, which accounts for 28% of the company’s production, injects approximately 4 million tons of industrial-capture CO2 annually into the oil wells. Denbury is a world-leader in EOR, and is planning an expansion of its…

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