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U.S. Energy Sector Analysis

UpdatedJan 11, 2026
DataAggregated Company Financials
Companies439
  • 7D1.8%
  • 3M6.9%
  • 1Y3.1%
  • YTD1.8%

Over the last 7 days, the Energy industry has risen 1.8%, driven by gains from Chevron of 4.0%. Meanwhile, Targa Resources actually underperformed within the industry, shrinking 5.3% in the last week. This takes the industry's 12 month performance to a gain of 3.1%. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

Has the U.S. Energy Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 11 Jan 2026US$2.4tUS$1.9tUS$126.3b15.9x19.1x1.3x
Tue, 09 Dec 2025US$2.4tUS$1.9tUS$124.8b15.6x19x1.3x
Thu, 06 Nov 2025US$2.3tUS$1.9tUS$127.0b14.1x17.8x1.2x
Sat, 04 Oct 2025US$2.3tUS$1.9tUS$125.9b14x18.4x1.3x
Mon, 01 Sep 2025US$2.3tUS$1.9tUS$126.4b13.7x18.5x1.3x
Wed, 30 Jul 2025US$2.3tUS$1.9tUS$132.7b12.7x17.5x1.2x
Fri, 27 Jun 2025US$2.3tUS$1.9tUS$134.4b12x16.7x1.2x
Sun, 25 May 2025US$2.2tUS$1.9tUS$134.3b11.6x16.1x1.1x
Tue, 22 Apr 2025US$2.1tUS$1.9tUS$143.7b11.1x14.9x1.1x
Thu, 20 Mar 2025US$2.4tUS$1.9tUS$143.8b13.1x16.6x1.3x
Sat, 15 Feb 2025US$2.4tUS$1.9tUS$154.9b12.3x15.5x1.2x
Mon, 13 Jan 2025US$2.3tUS$1.9tUS$158.5b12x14.8x1.2x
Wed, 11 Dec 2024US$2.4tUS$1.9tUS$158.5b11.8x15x1.2x
Fri, 08 Nov 2024US$2.4tUS$1.9tUS$161.5b12x15x1.3x
Sun, 06 Oct 2024US$2.4tUS$2.0tUS$175.7b12.1x13.8x1.2x
Tue, 03 Sep 2024US$2.3tUS$2.0tUS$172.2b11.5x13.6x1.2x
Thu, 01 Aug 2024US$2.3tUS$1.9tUS$173.9b11.8x13.5x1.2x
Sat, 29 Jun 2024US$2.3tUS$1.9tUS$176.1b11.2x13x1.2x
Mon, 27 May 2024US$2.3tUS$1.9tUS$174.8b11.1x13.1x1.2x
Wed, 24 Apr 2024US$2.5tUS$2.0tUS$206.2b10.6x11.9x1.2x
Fri, 22 Mar 2024US$2.4tUS$2.0tUS$206.3b9.9x11.5x1.2x
Sun, 18 Feb 2024US$2.2tUS$2.0tUS$215.2b9x10.2x1.1x
Tue, 16 Jan 2024US$2.2tUS$2.1tUS$242.2b8.6x9.2x1.1x
Thu, 14 Dec 2023US$2.2tUS$2.1tUS$242.4b8.4x8.9x1x
Sat, 11 Nov 2023US$2.2tUS$2.1tUS$242.7b8.7x9.1x1.1x
Mon, 09 Oct 2023US$2.3tUS$2.2tUS$272.8b7.3x8.4x1.1x
Wed, 06 Sep 2023US$2.4tUS$2.2tUS$272.6b7.8x8.8x1.1x
Fri, 04 Aug 2023US$2.6tUS$2.2tUS$275.7b7.9x9.5x1.2x
Sun, 02 Jul 2023US$2.5tUS$2.4tUS$315.8b7.1x7.9x1.1x
Tue, 30 May 2023US$2.4tUS$2.4tUS$316.0b7x7.6x1x
Thu, 27 Apr 2023US$2.2tUS$2.4tUS$281.5b6.7x7.7x0.9x
Sat, 25 Mar 2023US$2.1tUS$2.4tUS$280.8b6.6x7.3x0.9x
Mon, 20 Feb 2023US$2.2tUS$2.3tUS$272.7b7.4x8.2x1x
Wed, 18 Jan 2023US$2.4tUS$2.3tUS$257.2b8.1x9.2x1x
Price to Earnings Ratio

9.2x


Total Market Cap: US$2.4tTotal Earnings: US$257.2bTotal Revenue: US$2.3tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Energy Sector Price to Earnings3Y Average 12.8x202420252026
Current Industry PE
  • Investors are optimistic on the American Energy industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 19.1x which is higher than its 3-year average PE of 12.8x.
  • The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.3x.
Past Earnings Growth
  • The earnings for companies in the Energy industry have declined 21% per year over the last three years,
  • Revenues have also declined 6.5% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the U.S. Energy sector?

US Market1.88%
Energy1.78%
Energy Services7.58%
Oil and Gas1.15%
Industry PE
  • Investors are most optimistic about the Energy Services industry which is trading above its 3-year average PE ratio of 25.0x.
    • Analysts are expecting annual earnings growth of 17.2%, which is higher than its past year's earnings decline of 20.4% per year.
  • Investors are most pessimistic about the Oil and Gas industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 12.4x.
Forecasted Growth
  • Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings decline of 20% per year.
  • In contrast, the Oil and Gas industry is expected to see its earnings grow by 11% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
CVX ChevronUS$162.114.0%
+US$12.5b		5.9%PE25.6x
XOM Exxon MobilUS$124.611.6%
+US$8.3b		17.0%PE17.5x
SLB SLBUS$45.2012.4%
+US$7.5b		17.0%PE18.5x
VLO Valero EnergyUS$185.2812.1%
+US$6.1b		45.7%PE37.9x
PSX Phillips 66US$142.168.9%
+US$4.7b		24.8%PE38.3x

Latest News

BKR
US$49.97
Baker Hughes
7D
6.0%
1Y
15.5%

BKR: IET Resilience And Potential Breakup Will Shape Next Cycle Outlook

Analysts have made only a small adjustment to their Baker Hughes price targets, with a blended fair value estimate now effectively unchanged at about US$53. This reflects mixed views, as some firms trimmed targets on more cautious oilfield spending expectations, while others nudged them higher on resilient U.S. activity and the ongoing strength of the Industrial & Energy Technology business.
DVN
US$35.76
Devon Energy
7D
-5.6%
1Y
-0.6%

DVN: Future Cash Returns And Basin Free Cash Flow Will Support Upside

Analysts have trimmed their fair value estimate for Devon Energy to about $57.14 from $57.76, reflecting updated price targets in the US$42 to US$47 range and refreshed assumptions for revenue growth, profit margins and future P/E multiples following recent third-quarter related research. Analyst Commentary Recent research on Devon Energy clusters around fine tuning valuation rather than making wholesale changes, with price targets now generally in the US$42 to US$47 range.
EQT
US$51.09
EQT
7D
-4.4%
1Y
4.3%

EQT: Integrated Gas Model Will Benefit From LNG And Datacenter Demand

Narrative Update on EQT The updated analyst price target for EQT edges slightly lower to about US$80. This reflects analysts' view of a somewhat higher future P/E multiple alongside revised assumptions for revenue growth, profit margins, and a fair value estimate that is broadly in line with prior work, supported by expectations for structurally tighter U.S. gas markets and EQT's low cost, vertically integrated model.
HAL
US$32.63
Halliburton
7D
10.2%
1Y
21.0%

HAL: Future Returns Will Reflect Power Demand Upside And Oilfield Activity Risks

Analysts have lifted their price target for Halliburton to US$31.72 from US$30.38, reflecting updated assumptions around slightly higher revenue growth, modestly stronger profit margins, and a marginally higher future P/E multiple. Analyst Commentary Recent Street research on Halliburton shows a mix of optimism and caution, with several firms adjusting ratings and price targets following Q3 results, sector moves, and shifting expectations for oilfield activity.
EOG
US$104.92
EOG Resources
7D
-2.2%
1Y
-20.2%
CTRA
US$24.82
Coterra Energy
7D
-6.7%
1Y
-10.6%

CTRA: Rising Gas Demand And Activism Will Drive Future Upside

Narrative Update The updated analyst price target for Coterra Energy moves slightly lower to about $32, aligning with a fair value of roughly $32.20, as analysts factor in efficiency gains, potential activism, and adjustments to broader energy sector assumptions. Analyst Commentary Recent research on Coterra Energy clusters around a similar valuation range, but analysts are highlighting different drivers and risks as they adjust their targets and ratings.
VLO
US$185.28
Valero Energy
7D
12.1%
1Y
45.7%
SLB
US$45.20
SLB
7D
12.4%
1Y
17.0%

SLB: Macro Headwinds And Weaker Oil Prices Will Pressure Future Performance

Analysts have nudged their fair value estimate for SLB up to $38 from $36, citing a modestly lower discount rate, higher assumed revenue growth, and a richer future P/E multiple. These changes are informed by recent price target moves that balance optimism on activity and digital tailwinds with caution around macro and valuation risks.
FANG
US$147.41
Diamondback Energy
7D
-3.2%
1Y
-15.7%

FANG: Future Cash Discipline And Power Project Support A Balanced Outlook

Analysts have trimmed their fair value estimate for Diamondback Energy from about $164.70 to $149.35 per share. This reflects a mix of slightly lower long term revenue growth assumptions, a higher profit margin outlook, and a reset of future P/E expectations that lines up with the recent round of modestly adjusted Street price targets.
MPC
US$176.17
Marathon Petroleum
7D
6.7%
1Y
23.8%

MPC: Capital Returns And Refining Execution Will Support Future Upside

Narrative Update: Marathon Petroleum Analyst Price Target Shift The updated analyst price target for Marathon Petroleum moves slightly lower to about US$200 from roughly US$201, as analysts fine tune their models around commodity assumptions, refining asset optimization, and the role of midstream investments and capital returns in the overall valuation. Analyst Commentary Recent research updates on Marathon Petroleum cluster around refiners and integrated oil coverage, with analysts fine tuning targets and ratings as they refresh commodity and margin assumptions.
TRGP
US$176.86
Targa Resources
7D
-5.3%
1Y
-8.5%
XOM
US$124.61
Exxon Mobil
7D
1.6%
1Y
17.0%

XOM: Cost Savings And Capital Returns Will Support Future Cash Flow Stability

We are trimming our Exxon Mobil fair value estimate slightly to $131.32, reflecting modest tweaks to margin and growth assumptions. Analysts highlight resilient free cash flow, ongoing structural cost savings, and a series of higher price targets in the US$128 to US$156 range that underscore continued confidence in the name.
CVX
US$162.11
Chevron
7D
4.0%
1Y
5.9%

CVX: Future Dividend Capacity Will Reflect Free Cash Flow And Upstream Execution

Analysts have slightly trimmed their Chevron fair value estimate to about $172.08 per share. This reflects modestly softer revenue growth and profit margin assumptions, even as recent price target increases highlight confidence in free cash flow support for dividends and the company’s longer term growth plans.
EXE
US$101.63
Expand Energy
7D
-7.4%
1Y
-0.5%

EXE: Higher Future Output And Buybacks Will Support Bullish Outlook

Analysts have nudged their price target on Expand Energy slightly higher to approximately $133.39 per share from about $132.86, reflecting modestly improved valuation multiples despite slightly weaker forecasts for revenue growth and profit margins. What's in the News Completed repurchase of 851,661 shares, totaling approximately 0.36% of shares outstanding for $99.99 million under the buyback program announced on October 29, 2024 (Key Developments) Reported no share repurchases from July 1, 2025 to September 30, 2025 under the existing buyback tranche, signaling a pause in capital return via buybacks during the quarter (Key Developments) Updated full year 2025 production guidance to 7.15 Bcfe per day, about 50 MMcfe per day above the prior midpoint, indicating a modest increase in expected output (Key Developments) Valuation Changes The fair value estimate has risen slightly to about $133.39 per share from roughly $132.86, implying a modestly higher intrinsic valuation.
PSX
US$142.16
Phillips 66
7D
8.9%
1Y
24.8%

PSX: Future Cash Flows Will Reflect Robust Capital Returns Amid Refining Margin Support

Analysts have nudged their blended price target on Phillips 66 slightly lower to approximately $149 from about $149.35, reflecting a modestly higher discount rate and softer long term revenue expectations. This is partially offset by slightly improved profit margin and future earnings multiple assumptions informed by recent target increases and ratings changes across the Street.
KMI
US$27.12
Kinder Morgan
7D
-2.1%
1Y
-3.7%