Goldman Sachs is bullish on the energy, utilities, and mining sectors, with a focus on recommending investment opportunities in LNG, oil, and steel industries.

Goldman Sachs Group, Inc. believes that there are investment opportunities worth paying attention to in the energy, utilities, and mining sectors, such as midstream and major oil companies and refiners, exploration and production companies (E&Ps), clean technology, energy services, and metals and mining. In the current market environment, many companies have shown good growth potential and investment value. Particularly after announcing their performance, the performance and future prospects of some companies have made Goldman Sachs Group, Inc. even more bullish on them. Goldman Sachs Group, Inc.'s investment recommendations for each sector: Midstream Business Goldman Sachs Group, Inc. has a positive view on the largest LNG exporter in the US, Cheniere Energy (LNG.US), mainly due to its 2025 guidance exceeding expectations, showing strong performance prospects. In addition, the company's Phase 3 expansion project in Corpus Christi is steadily progressing, laying the foundation for future capacity growth. Meanwhile, the T8 and T9 projects are expected to make final investment decisions later this year, and the company is positive about the returns from these projects. In the long term, the company's positioning in the LNG sector and the progress of its projects demonstrate its competitiveness and growth potential in the energy market. Major Oil Companies and Refiners ConocoPhillips (COP.US) exceeded expectations in the fourth quarter, with strong earnings from US and international exploration and production (E&P) operations. The company has a diversified portfolio of growth projects, including projects like Port Arthur, Willow, and Qatar, which are expected to bring significant free cash flow (FCF) growth once completed. Additionally, the company has committed to ongoing capital returns during the cycle, with a 2025 capital return guidance of $10 billion, including approximately $6 billion in share buybacks and about $4 billion in dividends. Goldman Sachs Group, Inc. finds ConocoPhillips attractive in the major oil companies and refiners sector, as its diversified growth projects and continuous capital returns provide investors with stable investment choices. Exploration and Production Devon Energy Corporation (DVN.US) had a strong production in the fourth quarter, with improved capital efficiency. The company has revised its 2025 capital expenditure outlook from $4-4.2 billion to $3.8-4 billion, while also raising its oil production guidance. The company's continued execution in 2024 and positive operational momentum have enhanced market confidence in its future performance. Additionally, the company achieved significant cost savings through the dissolution of its joint venture with BPX in the Eagle Ford and Williston Basins and the acquisition of Grayson Mill. Goldman Sachs Group, Inc. believes Devon Energy Corporation has good investment potential in the exploration and production sector, with its cost savings and production increase providing positive return expectations for investors. Clean Technology Goldman Sachs Group, Inc. sees solar inverter manufacturer SolarEdge Technologies (SEDG.US) as a good investment opportunity in the clean technology sector, as its restructuring efforts and improved demand environment in Europe provide positive signals for investors. SolarEdge has made a series of restructuring efforts over the past year to reduce costs and move away from low-margin business lines, which have begun to show results. The company's profit margin and free cash flow (FCF) guidance for the first quarter of 2025 exceeded expectations, alleviating investor concerns about the company's ability to repay upcoming debts. Additionally, the company has seen positive signals in the European demand environment, which will help its future cash flow and profit growth. Utilities Goldman Sachs Group, Inc. believes that Southern Company (SO.US) with its growing capital plans and business expansions provides positive return expectations for investors. Southern Company has increased its five-year capital plan by approximately 30%, showing confidence in future growth. The company's load growth rate has increased from 6% to 8%, and its asset base growth rate has increased from 6% to 7%, indicating strong business growth momentum. Additionally, the company has $10-15 billion in additional capital investment opportunities over the next five years, which will further drive the company's development. Energy Services Quanta Services (PWR.US) exceeded expectations for EBITDA in the fourth quarter, slightly higher or in line with Goldman Sachs Group, Inc. and market expectations. Management remains optimistic about the company's ability to benefit from the theme of electricity demand and grid construction. The company is expected to see a 14% year-on-year increase in power infrastructure revenue in 2025, and with 80% of transmission and distribution (T&D) spending in 2024 going towards replacements, it is expected to bring 9-10% revenue growth annually by 2030. Goldman Sachs Group, Inc. believes that Quanta Services' revenue growth expectations and benefits from grid construction provide positive signals for investors. Metals and Mining Goldman Sachs Group, Inc. has a positive view on Nucor Corporation (NUE.US), mainly based on its advantages in steel demand prospects. The company believes it can take advantage of any increase.Steel demand is driven by its scale and the diverse range of products supplied. During the fourth quarter earnings call in 2024, the company's commentary was more positive, aligning with the outlook of Goldman Sachs Group, Inc. and other United States Steel Corporation producers and end users. Recent channel checks indicate that industry participants generally believe steel demand will increase year-on-year in 2025, primarily due to increased investment in construction and infrastructure, inventory rebuilding, import substitution, and more reshoring of manufacturing. Demand is expected to be stronger in the second half of 2025 than in the first half.Goldman Sachs Group, Inc. believes that Nucor Corporation has good investment potential in the metals and mining sector, with positive return expectations for investors due to the outlook for steel demand and industry growth. In summary, the energy sector shows strong growth potential and investment value in the current market environment, mainly attributed to the continuous increase in global energy demand. Goldman Sachs Group, Inc. advises investors to focus on companies with significant growth potential, especially in areas such as liquefied natural gas, renewable energy, and clean technology. Companies in these sectors generally have high profitability and market competitiveness, providing investors with good returns. Goldman Sachs Group, Inc. emphasizes that investors should pay attention to companies that are committed to ongoing capital returns, such as ConocoPhillips. These companies provide shareholders with stable returns through stock buybacks and dividends, enhancing investor confidence.