Energy Stocks to Buy and Hold for a Long, Glorious Ride

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As the universe continues to expand, so too does humanity’s insatiable thirst for energy. Much like an absurdly optimistic hamster on a never-ending wheel, energy companies are compelled to fuel this demand, pouring capital into expanding their operations in the hopes that one day, their future investments will reap more rewards than an overfed goose. Enter ConocoPhillips (COP) and MPLX (MPLX)-two energy giants that are not just nibbling at the edges of the energy market, but are firmly planting their flag in the terrain, promising growth for years to come.

ConocoPhillips and MPLX aren’t just sitting around waiting for the oil barrel to fill itself up. No, they’ve got ambitious plans-a veritable feast of expansion projects lined up through 2029. This forward-thinking approach, coupled with their knack for churning out dividends like a well-oiled machine, makes them the sorts of stocks you’ll want to snatch up, tuck in your portfolio, and forget about until your grandchildren are running their own hedge funds.

Doubling Free Cash Flow: A Cosmic Quest

ConocoPhillips is one of those rare beasts-one of the oil and gas companies with such an impressive portfolio, it could almost be mistaken for a collection of rare, priceless relics unearthed from the cosmic dust of a forgotten galaxy. The company boasts one of the lowest-cost resource positions in the industry, which means it can generate impressive cash flow even when oil prices take a breather. And because oil prices are as volatile as a caffeinated squirrel, this capacity to weather storms bodes well for its future growth.

One of the key ingredients in ConocoPhillips’ recipe for financial success is its recent acquisition of Marathon Oil. Now, this deal might sound like a casual Tuesday afternoon transaction, but in reality, it’s a masterstroke. The deal will continue to churn out dividends like a dog returning a stick for years to come. ConocoPhillips expects to pull in a cool $1 billion in cost synergies from the merger by the end of this year-more than double its initial predictions. And next year? Well, another $1 billion in cost and margin improvements should materialize, like an unexpected bonus from the universe.

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But wait, there’s more! ConocoPhillips is pouring money into long-term projects, including three liquefied natural gas (LNG) ventures scheduled to begin between 2027 and 2028. And in Alaska, a $7 billion investment is set to fuel the Willow oil project, due to start production in 2029. The result? An incremental $6 billion in annual free cash flow by 2029-assuming oil prices maintain a humble $70 per barrel. Add in the extra boost from Marathon’s integration, and you’re looking at a $7 billion surge by the end of the decade. That’s right-ConocoPhillips is on track to double its free cash flow, which is a bit like turning lead into gold, only without the mess.

This surge in cash flow will, of course, be passed along to shareholders in the form of dividends. ConocoPhillips has a dividend yield of 3.3%, but with its earnings accelerating, it plans to grow its dividend at an above-average rate. In fact, the company aims to put its dividend growth in the top 25% of S&P 500 companies-an ambitious target, but not outside the realm of possibility, given its track record of sound decision-making. There’s also a hint of stock repurchases on the horizon, ensuring shareholders feel particularly special for their investment.

Steady Growth Through 2029 and Beyond

Then there’s MPLX, an intriguing creature in the energy space that focuses on the midstream business. This involves pipelines, processing plants, storage facilities, and export terminals-assets that hum along, generating stable and predictable cash flow, like a diligent butler who never once questions his orders. These assets are backed by long-term contracts and regulated rate structures, which is why MPLX can afford a juicy 7.6% dividend yield, something that would make even the most seasoned investors raise an eyebrow.

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But MPLX isn’t content with simply maintaining the status quo. The company has an impressive backlog of expansion projects, including new pipelines, processing plants, and even an export terminal. These projects will keep coming online every year through 2029, providing a constant flow of fresh growth, much like a well-maintained faucet that never runs dry. To top it off, MPLX has also made some very strategic acquisitions this year, including stakes in large-scale pipelines and gathering and processing companies. The biggest acquisition? A $2.4 billion purchase of Northwind Midstream. These acquisitions add both immediate cash flow and long-term potential to the company’s growth profile.

It’s no wonder MPLX has been raising its payments consistently since it went public in 2012, with compound annual growth exceeding 10% since 2021. The combination of growth and income makes MPLX one of the more attractive MLPs (Master Limited Partnerships) in the market, offering investors a steady and ever-increasing income stream to help them sleep soundly at night.

The Ultimate Buy and Hold

With these two companies, we’re not just talking about random bets on the energy sector; we’re looking at two well-established giants with carefully constructed growth strategies. ConocoPhillips and MPLX are like the sleek, high-performance sports cars of the energy world. They’re equipped with shiny expansion plans, glittering acquisition strategies, and a history of driving steadily into the future, regardless of whether oil prices are high or low.

For investors looking for both growth and income, ConocoPhillips and MPLX should be considered the gold standard. They’ve got the fuel to keep the engine running for years, possibly decades, delivering dividends, growth, and that rarest of commodities in the stock market: stability. Buy, hold, and relax. The ride will be worth it.

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2025-09-25 10:22