Despite the general market pullback following the post-election rally, certain oil stocks have remained strong, defying the broader trend. Enterprise Products Partners (EPD) and Riley Exploration Permian (REPX) are two energy plays that have reached new highs, and both stocks are in or near buy zones, offering potential opportunities for investors.

Powering Through the Volatility: Resilient Oil Stocks Shine

Navigating the Shifting Energy Landscape

The energy sector, including oil exploration and drilling companies, has experienced a resurgence since Donald Trump's victory in the presidential election. The new administration's perceived pro-petroleum production stance, embodied in the "drill, baby, drill" campaign slogan, has fueled optimism within the industry. This shift in the political landscape has had a significant impact on the performance of energy stocks, with many companies benefiting from the renewed focus on domestic energy production.

Enterprise Products Partners: A Midstream Powerhouse

Enterprise Products Partners, a leading provider of transportation and storage services for natural gas, natural gas liquids, and crude oil, has been a standout performer in the energy sector. The stock has been on an upward trajectory, and it received an additional boost following Trump's election victory on November 5th. Enterprise Products stock broke out of a flat base with a 30.05 buy point and is currently trading within the 5% buy zone, up to 31.55. The stock has also reclaimed its 10-week moving average and is now at nine-year highs.The company's strong performance is reflected in its recent financial results. In the third quarter, Enterprise Products reported an 8% increase in profit and a 15% growth in revenue. Looking ahead, the company's earnings projections show a 5% growth for 2024 and a 7% increase for 2025, further solidifying its position as a resilient player in the energy landscape.

Riley Exploration Permian: Tapping into the Permian Basin

Riley Exploration Permian, an oil-and-gas exploration and production company focused on the Permian Basin in West Texas and southeastern New Mexico, has also caught the attention of investors. The stock broke out of a long, undefined base with a 34.90 buy point on Friday, although it later retraced below the entry point by midday. Despite this temporary pullback, Riley Exploration Permian's shares have climbed around 25% since November 5th.The company's performance has been mixed, with a 6% drop in adjusted earnings and a 5% decline in sales in the third quarter. However, the fourth-quarter estimates show a promising 123% earnings growth, followed by a 67% increase in the first quarter. Revenue is also expected to improve, with a 7% growth forecast over the next two quarters. For the full year 2024, Riley Exploration Permian's profit estimates call for a 23% lift, indicating the company's potential to capitalize on the ongoing trends in the energy sector.

Navigating the Volatility: Opportunities and Challenges

The resilience of these oil stocks in the face of broader market volatility highlights the dynamic nature of the energy industry. While the political landscape and regulatory environment can have a significant impact on the performance of energy companies, investors must also consider factors such as operational efficiency, financial stability, and the ability to adapt to changing market conditions.As the energy sector continues to evolve, investors will need to closely monitor the performance of individual companies, their strategic positioning, and their ability to capitalize on emerging trends. The success of Enterprise Products Partners and Riley Exploration Permian serves as a reminder that even in times of market uncertainty, there are opportunities for investors to identify and capitalize on resilient energy plays.