Due to the volatile nature of oil prices (CLN24), energy stocks are cyclical. That means oil and gas companies generally report outsized profits during periods of economic expansion, and experience a steep decline in cash flows when the economy enters a recession.
However, the global demand for oil and natural gas (NGN24) is expected to remain steady in the upcoming decade, despite the worldwide shift towards clean energy solutions - making midstream companies such as Western Midstream Partners (WES) a good investment choice right now. Let’s see why.
