3 top energy stocks to trade now

That upending of the apple cart sent many top-tier energy stocks down sharply this year, including EOG Resources (NYSE:EOG), Kinder Morgan (NYSE:KMI), and Core Laboratories(NYSE:CLB). All three stocks are down by double digits since the start of the year, which now has them trading at much more compelling prices.

Leading shale driller EOG Resources puts a premium on drilling for returns over increasing its oil output. That's why the company slammed on the brakes of its oil growth engine during the market downturn and refocused its efforts on driving out costs and improving drilling returns so it could thrive at lower oil prices. As a result of those efforts, the company has identified more than 7,000 future drilling locations on its acreage where it can earn premium returns, which it defines as achieving a 30% after-tax rate of return at $40 oil.

Pipeline giant Kinder Morgan's stock has tumbled in recent weeks along with oil, and is down more than 10% for the year, despite the fact that it generates robust free cash flow. In fact, after a slightly better-than-expected first quarter, the company remains on track to generate $4.46 billion of distributable cash flow, or $1.99 per share, for 2017.

Oil-field service specialist Core Labs is another company that has had no problems generating gobs of free cash flow during the oil market downturn. Last year it generated $121 million of free cash flow, converting a whopping 20% of every dollar of revenue into free cash, which was by far the best in the oil-field service sector since many rivals lost money last year.

Source: Bloomberg

Jr Trader Z Karadzhova

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