The Monster Energy (NYSE:MEG) stock surged 8% on Wednesday after it announced a $1.8 billion investment in its U.S. energy operations, bringing its total funding to $9.5 billion.
The investment will help fuel the expansion of its shale gas operations.
“This will enable us to provide our customers with reliable, clean, affordable energy at a cost that is affordable to consumers and a competitive advantage in the marketplace,” said John Gubicic, president and chief executive officer of Monster Energy, in a statement.
“With this investment, we will be able to accelerate our commitment to creating new jobs, expand our operations and provide our consumers with affordable, reliable energy that meets their needs and expectations.”
While the investment will bring the company closer to its original goal of producing 20 billion kilowatt-hours of energy, it will also help push the stock further up the list of energy stocks to buy.
The company is still only at about 12% of the S&P 500 and is up more than 20% from a year ago.
In the year to date, the stock has gained nearly 17%, according to FactSet.
The stock has outperformed the broader S&p 500 by more than 2% annually since mid-2016.