3 energy stocks I’d buy with $10,000

One key facet of investing, as all Fools know, is getting the right mix between growth and value. Indeed, one without the other often leads to disappointment, while a mixture of the two can prove to be a potent boost to a portfolio’s total value.

With that in mind, here are three energy plays that offer growth at a very reasonable price and could, therefore, turn $10,000 into a whole lot more…

  1. Oil Search

Although its P/E ratio is sky-high at 30.5, Oil Search Limited (ASX: OSH) is forecast to have a cracking couple of years. The oil and gas exploration and development company that is focused on Papua New Guinea is set to increase earnings per share (EPS) from $0.15 in 2013 to $0.37 in 2014. That’s an increase of 147% in just one year! However, it doesn’t stop there, since Oil Search is expected to see its bottom line jump to $0.63 in 2015; a rise of 70%. Combining these numbers with the sky-high P/E gives a price to earnings growth (PEG) ratio of just 0.3. Growth at a very reasonable price, indeed.

  1. Woodside Petroleum

Despite shares in Woodside Petroleum Limited (ASX: WPL) rising by 9% during the course of 2014, they still trade at a lower P/E than the ASX. In fact, it’s a 15% discount to be precise (14 versus 16.5 for the index) and, moreover, Woodside Petroleum is due to deliver better earnings growth than most of its index peers, too. EPS is set to be 40% higher in 2014 than it was in 2013 and, when combined with the company’s strong EPS growth rate, means shares trade on a PEG of just 0.7. Better still, they come with a fully franked yield of 5.8%!

  1. Santos

Yet more top-notch growth prospects are on offer at Santos Ltd  (ASX: STO). Its bottom line is due to grow by 23% this year and by 48% next year. Certainly, its P/E ratio of 25.8 is rather rich, but this combines with the company’s super growth rate to deliver a potent PEG ratio of 0.7. Add to the mix a fully franked yield of 2.2% and Santos could be on-track to turn around the disappointing share price performance of 2014, which has seen shares in the company fall by 1%. The future, then, could prove to be a whole lot more positive than the past.

One More Stock

Of course, Oil Search, Woodside Petroleum and Santos aren't the only stocks that could boost your portfolio. Top Motley Fool investment advisor Scott Phillips has just named his #1 dividend-paying stock for 2014-2015. With solid growth prospects and a fat, fully franked dividend, this ASX stock could be a huge winner for your portfolio. Discover the name and code FREE by clicking here now.

Motley Fool contributor Peter Stephens does not own shares in any of the companies mentioned.

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