Energy utilities and providers are exposed to risk and uncertainty from power sources, consider the recent hike in oil prices as a prime example. At the end of the day the energy sources these providers use are an investment. An age old investment strategy for controlling volatility is diversification.
With the U.S. power industry complying with a federal mandate to eliminate carbon emissions by 2035, the diversification will include many renewable sources. Kraneshares Global Carbon Transition ETF (NYSEARCA:KRBN) was created to capture companies that will be a part of this change such as green utility providers.
While these utilities will diversify to control prices, there is one company diversifying its portfolio to become an all-in-one green energy provider Viking Energy Group, Inc. (OTCMKTS: VKIN).
Viking Energy Group (OTCMKTS:VKIN) may be one of the best ways to play skyrocketing energy prices. VKIN has proven oil and gas assets valued at over $96 million located in North America in Kansas, Missouri, Texas, Louisiana, and Mississippi. VKIN’s oil & gas holdings aren’t something the company speaks about regularly because it is focused on several ESG initiatives, which are covered below. However, the fact is VKIN’s assets are increasing in value rapidly and the market has yet to factor that in, which is one reason to like the company.
Viking Energy (OTCMKTS:VKIN) is unique in that not only will its oil & gas assets rise in value; but its several diversified green energy subsidiaries will also benefit as rising oil prices push people toward green alternatives. These include a Green biodiesel production facility and a carbon capture technology. Other products in the company’s green portfolio include a medical waste treatment technology and a newly acquired Electric grid optimization technology that allows for retrofitting.
Kraneshares Global Carbon Transition ETF (NYSEARCA:KRBN) – The first to look into at this point in time is that of the innovative carbon credits trading firm KraneShares Global Carbon ETF. As more and more companies regulations come into place to tackle carbon emissions, there is expected to be a rise in the price of carbon allowance and that is where KraneShares Global is expected to come into play in a big way. The company offers carbon credits futtures contracts from a range of markets from all over the world. Currently, it may be a good move from investors to consider keeping an eye on the sort of work that the company does.
Gevo Inc (NASDAQ:GEVO) – In the past week, the renewable fuel firm Gevo has seen its stock go on a remarkable rally and clock gains of as much as 25% amidst heavy interest. On Tuesday, the stock received another major boost after it emerged that that company had signed a significant agreement with Delta Airlines. As per the terms of the agreement, Gevo will be supplying Delta Airlines with 75 million gallons worth of aviation fuel over the course of the next seven years. Hence, it can be said that it may be a good move to add the Gevo stock in your watch lists at this point.
Diversified Energy Company PLC (OTCMKTS:DECPF) stock has been gaining momentum over the past few sessions with a jump of 5% in the past week. The company reported a net loss of $325 million in the recent year inclusive of $485 million (2020: $181 million) tax-effected, non-cash unsettled derivative fair value adjustments. Total Revenue grew 147% to $1 billion from $409 million in 2020. Full-year production up 19% to 119 MBoepd (711 MMcefpd) (2020: 100 MBoepd) and December exit rate production(a) up 35% to 139 MBoepd (833 MMcfepd) (2020: 103 MBoepd).
Array Technologies Inc (NASDAQ:ARRY) announced that it is quickly progressing through the procedures required to complete its year-end reporting and expects to file its Annual Report in the coming weeks. Once the date of filing is finalized the Company will also announce the timing of its fourth quarter earnings call where it will discuss the 2021 year-end results as well as the outlook for 2022.
ARRY stock has outperformed the broader market on increased volume. The stock has soared 57% in the past month and 21% in the past week.
FuelCell Energy (NASDAQ:FCEL) – Lastly, it is the biofuel fuel cells manufacturing company FuelCell Energy that could be on the radars of investors who might be looking into renewable energy stocks. In the past month, the stock performed poorly and saw it decline by as much as 26% amidst a heavy selloff. On top of that, just when the company had been on track to get to the next level of growth, it suffered and gave up most of its gains. Hence, it now remains to be seen if the company can make a comeback in the coming months.