10 Under-the-Radar Energy Stocks With Incredible Growth Potential

Energy is vital to our modern society. We can't live without electricity (which is proven anytime there's a power outage). We also need gas to heat our homes and oil to fuel our cars.

Fossil fuels, such as coal, oil, and gas, currently provide the bulk of our energy. They'll likely remain vital to fueling our economy for years to come. On top of that, we're steadily transitioning to lower-carbon energy sources.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Here's a look at 10 energy stocks across traditional and lower-carbon areas with tremendous growth potential in the decades ahead.

Image source: Getty Images.

Antero Resources

Antero Resources (NYSE: AR) is a leading U.S. natural gas producer focused on the Appalachian region (Ohio Utica Shale and West Virginia Marcellus Shale). It has the largest and lowest-cost inventory among producers in the region.

That puts it in a strong position to capitalize on the expected surge in natural gas demand in the coming decades. Catalysts such as liquid natural gas (LNG) exports, artificial intelligence (AI) data centers, electric vehicles (EVs), and crypto could fuel a 116% surge in natural gas demand by the end of the decade compared to their current demand level.

Bloom Energy

Bloom Energy (NYSE: BE) makes the Bloom Energy Server. The distributed generation platform provides customers with resilient power by converting natural gas, biogas, or hydrogen into electricity through its proprietary solid oxide technology.

The scalable technology can serve as either a backup power system or the main electricity source. "Looking ahead," stated founder and CEO KR Sridhar in the first-quarter earnings press release, "the world needs power, and we expect demand to grow, driven by AI, data center needs and industrial electrification, and Bloom is well-positioned to serve these markets."

Clearway Energy

Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) operates a growing portfolio of clean power assets (wind, solar, and natural gas generation) across the U.S. It sells this power to utilities and large corporate customers under long-term, fixed-rate power purchase agreements (PPAs).

Those PPAs produce predictable cash flow, the bulk of which Clearway pays to investors in dividends (a 5.5% current yield). It uses the cash it retains to invest in additional clean power assets. With demand for clean power expected to surge, Clearway Energy can grow its earnings and high-yielding dividend at healthy rates for decades to come.

Diamondback Energy

Diamondback (NASDAQ: FANG) is a leading oil and gas producer in the Permian Basin, which runs through Western Texas and parts of New Mexico. Diamondback has quietly built one of the largest resource bases in that prolific region through a series of highly accretive acquisitions.

The company has nearly 900,000 net acres in the region, with best-in-class inventory depth and quality at 8,400 remaining drilling locations that are economic at $50 per barrel of oil. That massive resource base gives Diamondback Energy a long growth runway to continue supplying the country with more low-cost energy.

Enphase Energy

Enphase Energy (NASDAQ: ENPH) is the world's leading supplier of microinverter-based solar-plus storage systems. The company's microinverters are crucial for converting the direct current (DC) produced by solar panels into the alternating current (AC) used to power our modern society.

While microinverters are more expensive compared to string inverters, they last longer and are more efficient. Enphase has been expanding beyond microinverters to capture a larger total share of a solar panel installation by adding battery storage and software to its packaged offering. It sees a massive $25.4 billion (and growing) market opportunity for its products.

Kinetik Holdings

Kinetik Holdings (NYSE: KNTK) is an energy midstream company focused on the Permian Basin. It owns an extensive natural gas gathering system in the region and holds equity interests in several long-haul pipelines that move Permian production to market centers along the Texas Gulf Coast.

Rising regional production to support growing gas demand is expected to continue fueling robust growth for Kinetik. The company can continue investing capital to expand its existing systems and make bolt-on acquisitions. That growth should give Kinetik Holdings the fuel to continue increasing its high-yielding dividend (over 7%).

NextDecade

NextDecade (NASDAQ: NEXT) is building the Rio Grande LNG export facility in Brownsville, Texas. Phase 1 (LNG liquefaction trains 1-3) is already under construction and should start entering service in 2027. It has enough space to build up to 10 liquefaction trains at this site in the future, enabling the export of gas produced from the Permian and Eagle Ford. NextDecade is also in the early stages of developing a potential carbon-capture and sequestration project at its Rio Grande facility, opening the door to another potentially large market opportunity.

NuScale Power

NuScale Power (NYSE: SMR) is working to bring small modular reactor (SMR) technology to the global energy market. SMRs are smaller nuclear energy reactors built in a factory, which should save construction costs and time. The company currently has a dozen fully factory-fabricated modules in production and is working with a partner to help commercialize the technology. NuScale sees a massive market opportunity for SMRs, especially in helping to meet the enormous and growing power needs of data centers.

Oklo

Oklo (NYSE: OKLO) is developing fast-fission power plants that can use uranium more efficiently than traditional nuclear power plants. The company is building its first Aurora powerhouse, which it expects will be operational in late 2027 or early 2028. Oklo, backed by OpenAI's Sam Altman, has signed commercial deals to sell power produced by its Aurora powerhouses to data center operator Switch, oil and gas producer Diamondback Energy, and others.

QuantumScape

QuantumScape (NYSE: QS) is working to revolutionize energy storage by creating a better battery. Its solid-state lithium metal battery technology will provide faster charging and enhanced safety compared to traditional lithium-ion batteries. The company started shipping its first battery samples to its prospective launch customer earlier this year. QuantumScape estimates that demand for solid-state batteries will exceed 1 terawatt-hour per year by 2040, which it calls a "truly enormous opportunity" and "a challenge worth pursuing."

High-powered energy stocks

These 10 energy companies have enormous growth potential as the sector continues to grow and evolve. Because of that, they could produce high-octane total returns for their investors in the future. However, they also have higher risk profiles, which is something to keep in mind before buying shares.

Should you invest $1,000 in NuScale Power right now?

Before you buy stock in NuScale Power, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NuScale Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $881,731!*

Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Matt DiLallo has positions in Clearway Energy. The Motley Fool recommends Enphase Energy and NuScale Power. The Motley Fool has a disclosure policy.