The search for quality stocks in the energy sector is more challenging than in many other sectors. The high cyclicality, strong dependence on commodity prices and capital cost-intensive business models often lead to fluctuating margins, low returns on capital and balance sheet weaknesses.

Despite these challenges, there are companies that stand out positively thanks to their solid financial position, strategic focus or innovative business model. Here I present a selection that I find interesting despite certain compromises:

Energiekontor $EKT (+0,06 %) (growth value, cash flow oriented)

Texas Pacific Land $TPL (+2,67 %) (extremely profitable)

Hess $HES (+2,71 %)(cooperates with $XOM) (+2,84 %)

EOG Resources $EOG (+2,69 %) (high ROIC)

Which companies do you see as particularly promising for a long-term investment?

Chevron ($CVX (+2,95 %) )has announced it has acquired Hess Corporation ($HES (+2,71 %) ) to an "all stock" deal, valued at 53 billion US dollars to acquire. This move comes shortly after the Exxon-Pioneer transaction. With the acquisition of Hess acquires Chevron access to promising oil resources in Guyana and Shale deposits in the Bakken region. This is expected to growth and the free cash flow of the combined company significantly.