The Russian invasion of Ukraine led to an energy crisis, which led to a sharp increase in energy stock valuations. However, I’m still finding  big opportunities to pick up cheap energy stocks.

In the current economic climate, the energy crisis will continue to boost energy firms globally. As a result, many of those firms can charge higher prices and still see robust demand. In fact, the shift from Russian oil and gas in Europe is a key catalyst for energy firms having ties to Europe. Therefore, it’s an excellent time to consider cheap energy stocks to benefit from the boom in the sector.

Black Stone Minerals (BSM)

Black Stone Minerals (NYSE:BSM) is a Texas-based oil and natural gas giant with mineral interests across 41 states in the U.S. Its business has performed incredibly over the past several years, with both revenue and EBITDA growth averaging over 15%. The recent surge in energy prices has resulted in massive revenues, which has significantly bolstered free cash flow margins and shareholder distributions. It offers an eye-catching dividend yield of 8.26% at this time while trading at a substantial discount.

Black Stone expects production levels at the lower end of its guidance this year due to issues with well completions on its acreage. It doesn’t expect production to ramp up next year, but strip prices should be high enough for it to boost distribution from current levels. Moreover, the U.S. Energy Information Administration expects energy prices in 2023 to stay above 2020 and 2021 levels. This indicates larger gains and more dividend payouts for Black Stone Minerals shares.

Suncor Energy (SU)

Suncor Energy (NYSE:SU) is an integrated energy play that offers diverse exposure with a single investment. It is an oil extraction firm that produces synthetic crude from oil sands. Moreover, it was the first company to develop oil sands in the Alberta region, contributing immensely to Canada’s economic success. Also, it’s among the few traditional energy firms embracing low-carbon solutions such as solar and wind power.

Suncor’s fundamentals are on fire with the resurgence in oil and gas prices. It comfortably beat sales targets by roughly $2.4 billion in the second quarter and $1.6 billion in the first quarter. It recently bumped its earnings per share guidance by a whopping 200% for the year. Its pricing strength will likely keep most of its operational gains beyond 2022. Moreover, with a dividend yield of over 4.5%, it trades at just one-time forward sales, 44% lower than its 5-year average.

Kinder Morgan (KMI)

Kinder Morgan (NYSE:KMI) is one of North America’s top energy infrastructure businesses and a midstream powerhouse. It operates approximately 83,000 miles of pipeline across the U.S. and has proven to be critical to the country’s economic viability.

The company has reported massive cash flow numbers in the past couple of years. Last year, it posted a 56% gain in free cash flows and was on course to rake in even better numbers this year. The sizeable increase in cash flow numbers has helped protect its solid dividend and reduce its debt load. With a strong yield of 6.3% along with capital appreciation, KMI’s long-term returns are likely to grow in the teens. Moreover, it trades at a considerable discount to its peers, and if we couple that with its well-protected distribution, it’s an excellent investment option for income investors.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines