Energy Stocks for the Long Haul

Brooke Sopelsa,|Writer Producer
Thursday, 2 Oct 2008 | 3:01 PM ET

Energy stocks have gotten hammered recently, but Scott Richter, who manages the Fifth Third All Cap Value Fund, sees opportunities in the sector.

“Hedge fund redemptions, a slow economy, credit crisis are near-term stressers, but the long-term supply-demand balance is still in the favor of the bulls," said Richter. "So if you can accumulate these over the next several quarters, I think you can make some money over the haul," he added.

  • More Advice: Click to Watch The Interview

Richter’s first pick is Exxon Mobil .

“It’s cheap, number one, (has a) great balance sheet, which you have to have in a credit crunch, and they’re going to get a lift from ENP projects in Brazil…and gas shale projects in Eastern Europe.”

He also likes XTO Energy , which he calls a “defensive play.”

“Real high-growth production profile, a low-cost producer, which you have to have in this difficult commodity environment, and they have a large inventory of very low-risk U.S. projects that they can do that aren’t tied to leases and aren’t tied to the capital markets.”

New from CNBC.com:

  • Panicky Investors' Bone-Headed Moves
  • Jobless Claims Highest in 7 Years
  • Playboy Seeks Women of Wall Street



  Price   Change %Change