Energy Stocks Stand Out Amid Oil Price Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 25 2026
0mins
Source: NASDAQ.COM
- Oil Price Impact: Brent crude prices have surged back above $100 per barrel, reflecting the market's heightened sensitivity to geopolitical news, and while there have been short-term pullbacks, supply disruptions keep prices elevated, creating uncertainty for investors.
- Large Energy Stock Advantage: In the current turbulent market environment, established firms like Chevron, Kinder Morgan, and TC Energy stand out as ideal choices for investors seeking stability due to their strong market positions and reliable dividend payouts amidst oil and gas price fluctuations.
- Importance of Dividends: In uncertain market conditions, dividend-paying stocks provide a steady income source, allowing investors to buffer against price swings, which is especially valuable when short-term price movements are unpredictable.
- Future Growth Potential: The diversified operations and strong cash flows of Chevron, Kinder Morgan, and TC Energy position them well to withstand future market volatility, with expectations for continued reliable dividends and potential capital appreciation opportunities.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CVX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 185.950
Low
158.00
Averages
176.95
High
206.00
Current: 185.950
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Proxy Advisors Recommend Against Exxon and Chevron Proposals
- Shareholder Proposal Opposition: Proxy advisory firms Glass Lewis and ISS have recommended that investors vote against Exxon's plan to redomicile in Texas at the upcoming shareholder meeting, indicating strong concerns over corporate governance.
- Pressure for Climate Risk Assessment: Exxon and Chevron have faced ongoing shareholder proposals urging them to evaluate climate change and human rights risks, reflecting growing investor emphasis on sustainability that could influence the companies' future strategic directions.
- Upcoming Annual Meetings: Both companies are set to hold their annual shareholder meetings on May 27, and the recommendations from proxy advisors may significantly impact voting outcomes, potentially leading to profound changes in corporate governance structures.
- Influence of Proxy Advisors: The recommendations from proxy advisors are closely monitored, and their opposition could diminish shareholder trust in management, thereby affecting support for future proposals and initiatives.
See More
Brent Crude Oil Prices Surge Over 70% Amid Regional Conflict
- Oil Price Surge: Brent crude oil prices have surged over 70% this year, surpassing $100 per barrel, primarily due to U.S. and Israeli airstrikes against Iran that sparked regional conflict and restricted oil shipments through the Strait of Hormuz, impacting global markets.
- Investment Strategy Shift: As the conflict intensifies, investors have pivoted back to oil stocks; however, these stocks may lose momentum once the conflict subsides, prompting a recommendation for investors to consider more balanced midstream stocks to mitigate exposure to volatile oil prices.
- Energy Transfer's Advantage: Energy Transfer operates over 140,000 miles of pipeline across 44 states, delivering natural gas, LNG, and crude oil, with its distributable cash flow (DCF) easily covering annual distributions over the past five years, demonstrating resilience and risk mitigation capabilities.
- Future Earnings Outlook: Analysts expect Energy Transfer's earnings per unit (EPU) to rise by 20% to $1.46 by 2026, and with a current share price of $20, the valuation remains attractive at less than 14 times that estimate, making it an appealing option for income-seeking investors.
See More
AI Investment Fuels Surge in Energy Spending
- Surge in Capital Expenditure: BNP Paribas reports that AI-related capital expenditures are projected to reach $725 billion by 2026, nearly doubling last year's estimate of $365 billion, indicating robust investment demand in the energy sector.
- Significant Market Impact: The $725 billion spending is comparable to the GDP of some mid-sized European countries and nearly matches JPMorgan's market cap, highlighting the substantial influence of AI investments on the energy market, which could drive stock prices higher for related companies.
- Optimistic Industry Outlook: UBS anticipates that spending on power generation capacity will reach $511 billion by 2030, while Evercore ISI is even more bullish, forecasting expenditures of $800 billion, reflecting strong demand for energy infrastructure.
- Diverse Investment Opportunities: Investors should consider energy infrastructure firms like Hut 8, which recently signed a $9.8 billion deal leading to a stock surge, and Fluence Energy, which saw its shares double after securing supply agreements with major tech companies, showcasing the strong demand for energy solutions.
See More
Berkshire Hathaway's Portfolio Focused on Five Key Stocks
- Portfolio Concentration: Berkshire Hathaway's portfolio is heavily concentrated in five key stocks—Apple, American Express, Coca-Cola, Bank of America, and Chevron—which together account for approximately 60% of total investments, indicating a strong reliance on these core assets.
- Buffett's Cautious Strategy: Despite a strong stock market, Buffett remains cautious in his investments, refraining from significantly increasing exposure to emerging technologies and industries, reflecting his preference for familiar sectors.
- Significant Cash Flow Growth: While the portfolio has not changed dramatically, Berkshire's cash flow has grown significantly, indicating that the company can still achieve strong financial performance through stable core assets.
- Successful Investment Philosophy: Buffett emphasizes that having just one top-performing stock, like Apple, can dramatically enhance overall portfolio performance, underscoring the importance of focusing on familiar areas of expertise.
See More
Investment Insights: Analysis of Chevron and Vertiv Prospects
- Chevron Investment Advice: With oil prices returning to current levels, Chevron's stock previously saw significant increases, currently offering a 3.8% dividend yield and strong cash flow, indicating its stability and attractiveness in the market.
- Vertiv Order Outlook: Vertiv is experiencing strong order performance, with recommendations for investors to build positions gradually; despite potential short-term price fluctuations, its long-term growth potential is widely regarded, reflecting market confidence in its product demand.
- Sterling Infrastructure Risk Warning: Following a 52% increase in stock price, analysts advise against further investment in Sterling Infrastructure at current levels, emphasizing the importance of cautious investing in a high-volatility market.
- GoodRx Market Performance: GoodRx's stock performance remains relatively stable, with analysts noting limited downside risk, suggesting investors should monitor its future market performance and potential growth opportunities.
See More
Closure of Strait of Hormuz Triggers Epic Oil Supply Shock
- Supply Chain Crisis: The closure of the Strait of Hormuz has led to a dramatic reduction in global oil supply, with estimates indicating a loss of between 500 million and 1 billion barrels since the war began, while the global economy consumes over 10 million barrels daily, forcing stockpiles to an eight-year low, projected to drop to 98 days of demand by the end of May.
- Price Surge: Brent crude prices have surged 75% this year to around $110 per barrel, while jet fuel prices have skyrocketed from $85-$90 to $150-$200 per barrel; however, Chevron's earnings fell from $3 billion to $2.8 billion in Q1 due to a $2.9 billion unfavorable timing effect.
- Market Expectations: Analysts expect crude prices to remain in the $90 to $100 range as oil supplies from the Persian Gulf will not return to normal quickly, and rebuilding inventories will take time, leading to a consensus that the oil market won't recover until 2027.
- Future Outlook: Despite short-term profit pressures, Chevron's outlook for Q2 remains optimistic, benefiting from high oil prices, and with shares up about 22% this year, there is potential for further gains.
See More
Proxy Advisors Recommend Against Exxon and Chevron Proposals
- Shareholder Proposal Opposition: Proxy advisory firms Glass Lewis and ISS have recommended that investors vote against Exxon's plan to redomicile in Texas at the upcoming shareholder meeting, indicating strong concerns over corporate governance.
- Pressure for Climate Risk Assessment: Exxon and Chevron have faced ongoing shareholder proposals urging them to evaluate climate change and human rights risks, reflecting growing investor emphasis on sustainability that could influence the companies' future strategic directions.
- Upcoming Annual Meetings: Both companies are set to hold their annual shareholder meetings on May 27, and the recommendations from proxy advisors may significantly impact voting outcomes, potentially leading to profound changes in corporate governance structures.
- Influence of Proxy Advisors: The recommendations from proxy advisors are closely monitored, and their opposition could diminish shareholder trust in management, thereby affecting support for future proposals and initiatives.
See More
Brent Crude Oil Prices Surge Over 70% Amid Regional Conflict
- Oil Price Surge: Brent crude oil prices have surged over 70% this year, surpassing $100 per barrel, primarily due to U.S. and Israeli airstrikes against Iran that sparked regional conflict and restricted oil shipments through the Strait of Hormuz, impacting global markets.
- Investment Strategy Shift: As the conflict intensifies, investors have pivoted back to oil stocks; however, these stocks may lose momentum once the conflict subsides, prompting a recommendation for investors to consider more balanced midstream stocks to mitigate exposure to volatile oil prices.
- Energy Transfer's Advantage: Energy Transfer operates over 140,000 miles of pipeline across 44 states, delivering natural gas, LNG, and crude oil, with its distributable cash flow (DCF) easily covering annual distributions over the past five years, demonstrating resilience and risk mitigation capabilities.
- Future Earnings Outlook: Analysts expect Energy Transfer's earnings per unit (EPU) to rise by 20% to $1.46 by 2026, and with a current share price of $20, the valuation remains attractive at less than 14 times that estimate, making it an appealing option for income-seeking investors.
See More
AI Investment Fuels Surge in Energy Spending
- Surge in Capital Expenditure: BNP Paribas reports that AI-related capital expenditures are projected to reach $725 billion by 2026, nearly doubling last year's estimate of $365 billion, indicating robust investment demand in the energy sector.
- Significant Market Impact: The $725 billion spending is comparable to the GDP of some mid-sized European countries and nearly matches JPMorgan's market cap, highlighting the substantial influence of AI investments on the energy market, which could drive stock prices higher for related companies.
- Optimistic Industry Outlook: UBS anticipates that spending on power generation capacity will reach $511 billion by 2030, while Evercore ISI is even more bullish, forecasting expenditures of $800 billion, reflecting strong demand for energy infrastructure.
- Diverse Investment Opportunities: Investors should consider energy infrastructure firms like Hut 8, which recently signed a $9.8 billion deal leading to a stock surge, and Fluence Energy, which saw its shares double after securing supply agreements with major tech companies, showcasing the strong demand for energy solutions.
See More
Berkshire Hathaway's Portfolio Focused on Five Key Stocks
- Portfolio Concentration: Berkshire Hathaway's portfolio is heavily concentrated in five key stocks—Apple, American Express, Coca-Cola, Bank of America, and Chevron—which together account for approximately 60% of total investments, indicating a strong reliance on these core assets.
- Buffett's Cautious Strategy: Despite a strong stock market, Buffett remains cautious in his investments, refraining from significantly increasing exposure to emerging technologies and industries, reflecting his preference for familiar sectors.
- Significant Cash Flow Growth: While the portfolio has not changed dramatically, Berkshire's cash flow has grown significantly, indicating that the company can still achieve strong financial performance through stable core assets.
- Successful Investment Philosophy: Buffett emphasizes that having just one top-performing stock, like Apple, can dramatically enhance overall portfolio performance, underscoring the importance of focusing on familiar areas of expertise.
See More
Investment Insights: Analysis of Chevron and Vertiv Prospects
- Chevron Investment Advice: With oil prices returning to current levels, Chevron's stock previously saw significant increases, currently offering a 3.8% dividend yield and strong cash flow, indicating its stability and attractiveness in the market.
- Vertiv Order Outlook: Vertiv is experiencing strong order performance, with recommendations for investors to build positions gradually; despite potential short-term price fluctuations, its long-term growth potential is widely regarded, reflecting market confidence in its product demand.
- Sterling Infrastructure Risk Warning: Following a 52% increase in stock price, analysts advise against further investment in Sterling Infrastructure at current levels, emphasizing the importance of cautious investing in a high-volatility market.
- GoodRx Market Performance: GoodRx's stock performance remains relatively stable, with analysts noting limited downside risk, suggesting investors should monitor its future market performance and potential growth opportunities.
See More
Closure of Strait of Hormuz Triggers Epic Oil Supply Shock
- Supply Chain Crisis: The closure of the Strait of Hormuz has led to a dramatic reduction in global oil supply, with estimates indicating a loss of between 500 million and 1 billion barrels since the war began, while the global economy consumes over 10 million barrels daily, forcing stockpiles to an eight-year low, projected to drop to 98 days of demand by the end of May.
- Price Surge: Brent crude prices have surged 75% this year to around $110 per barrel, while jet fuel prices have skyrocketed from $85-$90 to $150-$200 per barrel; however, Chevron's earnings fell from $3 billion to $2.8 billion in Q1 due to a $2.9 billion unfavorable timing effect.
- Market Expectations: Analysts expect crude prices to remain in the $90 to $100 range as oil supplies from the Persian Gulf will not return to normal quickly, and rebuilding inventories will take time, leading to a consensus that the oil market won't recover until 2027.
- Future Outlook: Despite short-term profit pressures, Chevron's outlook for Q2 remains optimistic, benefiting from high oil prices, and with shares up about 22% this year, there is potential for further gains.
See More
