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U.S. Energy Sector Analysis

UpdatedJul 05, 2026
DataAggregated Company Financials
Companies440
  • 7D-0.8%
  • 3M-10.3%
  • 1Y20.2%
  • YTD16.5%

Over the last 7 days, the Energy industry has remained flat, although notably Marathon Petroleum gained 4.8%. The past year has been better, since the industry has gained 20% in that time. Looking forward, earnings are forecast to grow by 12% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 05 Jul 2026US$2.7tUS$1.9tUS$125.0b16x21.9x1.4x
Tue, 02 Jun 2026US$2.9tUS$1.9tUS$125.1b16x22.8x1.5x
Thu, 30 Apr 2026US$3.0tUS$1.9tUS$135.2b17.5x22x1.6x
Sat, 28 Mar 2026US$3.2tUS$1.9tUS$130.6b18.8x24.1x1.7x
Mon, 23 Feb 2026US$2.8tUS$1.9tUS$130.6b17x21.4x1.5x
Wed, 21 Jan 2026US$2.5tUS$1.9tUS$126.3b16.7x19.6x1.3x
Fri, 19 Dec 2025US$2.3tUS$1.9tUS$126.2b14.4x18.3x1.2x
Sun, 16 Nov 2025US$2.4tUS$1.9tUS$125.4b15.7x18.9x1.3x
Tue, 14 Oct 2025US$2.2tUS$1.9tUS$125.9b13.5x17.7x1.2x
Thu, 11 Sep 2025US$2.3tUS$1.9tUS$125.9b13.7x18.1x1.2x
Sat, 09 Aug 2025US$2.2tUS$1.9tUS$126.1b13x17.7x1.2x
Mon, 07 Jul 2025US$2.3tUS$1.9tUS$134.5b12.3x17.2x1.2x
Wed, 04 Jun 2025US$2.2tUS$1.9tUS$134.4b11.7x16.2x1.1x
Fri, 02 May 2025US$2.1tUS$1.9tUS$139.7b11.2x15.2x1.1x
Sun, 30 Mar 2025US$2.4tUS$1.9tUS$143.8b12.9x16.8x1.3x
Tue, 25 Feb 2025US$2.4tUS$1.9tUS$150.0b13.3x16x1.3x
Thu, 23 Jan 2025US$2.5tUS$1.9tUS$158.7b12.5x15.6x1.3x
Sat, 21 Dec 2024US$2.2tUS$1.9tUS$158.3b11.6x13.9x1.1x
Mon, 18 Nov 2024US$2.4tUS$1.9tUS$159.9b12x15.2x1.3x
Wed, 16 Oct 2024US$2.3tUS$2.0tUS$175.8b11.3x13.3x1.2x
Fri, 13 Sep 2024US$2.2tUS$2.0tUS$172.6b11x12.6x1.1x
Sun, 11 Aug 2024US$2.3tUS$2.0tUS$172.4b10.9x13.3x1.2x
Tue, 09 Jul 2024US$2.3tUS$1.9tUS$176.1b11.3x12.9x1.2x
Thu, 06 Jun 2024US$2.2tUS$1.9tUS$175.7b11.3x12.7x1.2x
Sat, 04 May 2024US$2.3tUS$1.9tUS$177.7b10.9x13x1.2x
Mon, 01 Apr 2024US$2.4tUS$2.0tUS$206.4b10.4x11.8x1.2x
Wed, 28 Feb 2024US$2.2tUS$2.0tUS$208.5b9.3x10.6x1.1x
Fri, 26 Jan 2024US$2.2tUS$2.1tUS$239.8b8.7x9.2x1.1x
Sun, 24 Dec 2023US$2.3tUS$2.1tUS$242.2b8.7x9.4x1.1x
Tue, 21 Nov 2023US$2.3tUS$2.1tUS$242.6b8.8x9.3x1.1x
Thu, 19 Oct 2023US$2.4tUS$2.2tUS$272.8b7.5x8.9x1.1x
Sat, 16 Sep 2023US$2.4tUS$2.2tUS$272.6b7.9x8.9x1.1x
Mon, 14 Aug 2023US$2.7tUS$2.2tUS$272.8b8x10x1.3x
Wed, 12 Jul 2023US$2.5tUS$2.4tUS$315.8b7x8.1x1.1x
Price to Earnings Ratio

8.1x


Total Market Cap: US$2.5tTotal Earnings: US$315.8bTotal Revenue: US$2.4tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Energy Sector Price to Earnings3Y Average 15x202420252026
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 21.9x which is higher than its 3-year average PE of 15.0x.
  • The 3-year average PS ratio of 1.2x is lower than the industry's current PS ratio of 1.4x.
Past Earnings Growth
  • The earnings for companies in the Energy industry have declined 27% per year over the last three years,
  • Revenues have also declined 7.0% 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 Market1.63%
Energy-0.85%
Oil and Gas-0.44%
Energy Services-4.26%
Industry PE
  • Investors are most optimistic about the Energy Services industry which is trading above its 3-year average PE ratio of 22.7x.
    • Analysts are expecting annual earnings growth of 20.8%, which is higher than its past year's earnings decline of 26.6% 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 14.6x.
Forecasted Growth
  • Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 21% over the next 5 years.
  • This is better than its past earnings decline of 27% 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
MPC Marathon PetroleumUS$266.354.8%
+US$3.6b		51.3%PE16.8x
VLO Valero EnergyUS$267.763.2%
+US$2.5b		85.2%PE18.9x
XOM ExxonMobil HoldingsUS$137.090.4%
+US$2.3b		22.2%PE22.4x
PSX Phillips 66US$176.422.8%
+US$1.9b		38.6%PE17.2x
FTI TechnipFMCUS$66.753.6%
+US$921.0m		91.3%PE24.6x

Latest News

XOM
US$137.09
ExxonMobil Holdings
7D
0.4%
1Y
22.2%
FANG
US$172.04
Diamondback Energy
7D
-4.4%
1Y
22.1%
CVX
US$169.20
Chevron
7D
-1.1%
1Y
14.0%
DINO
US$72.50
HF Sinclair
7D
6.2%
1Y
64.2%
Narrative Update • Jul 03

DINO: Refining Margins And Capital Returns Will Shape Balanced Forward Risk Reward Profile

Analysts have nudged the fair value estimate for HF Sinclair higher from $73.29 to $76.29. Updated price targets, including recent moves around the $78 to $79 range, reflect views that supportive refining margins and potential capital structure improvements offset more cautious assumptions on longer term fuel demand and earnings drivers.
WMB
US$73.14
Williams Companies
7D
-6.1%
1Y
24.7%
Narrative Update • Jul 02

WMB: Future Gas Infrastructure Expansion Will Shape Returns After Momentum Deal

Analysts raised the Williams Companies fair value estimate from $80.07 to $83.55, reflecting a series of higher Street price targets in the $85 to $98 range and updated assumptions around margins, capital costs, and future P/E levels. Analyst Commentary Street research on Williams Companies centers on how well the company can execute on its project backlog, maintain margins, and support its valuation after a series of price target changes across the analyst community.
SLB
US$45.13
SLB
7D
-4.0%
1Y
26.6%
Narrative Update • Jul 02

SLB: Digital And AI Expansion Will Offset Middle East Headwinds

Analysts have lifted the fair value estimate for SLB to $71.00, while moderating profit margin expectations and pointing to ongoing Middle East headwinds as the main reason recent price targets around $60 to $66 have been reset closer to updated earnings models. Analyst Commentary Recent Street commentary on SLB highlights a split picture, with several firms trimming price targets to reflect Middle East pressures while others see enough execution strength and portfolio depth to support higher fair values.
DVN
US$40.47
Devon Energy
7D
-4.1%
1Y
21.8%
VLO
US$267.76
Valero Energy
7D
3.2%
1Y
85.2%
Seeking Alpha • Jul 01

Valero Energy: Refining Boom Can Outlive The Iran War

Summary Valero Energy has benefited from extraordinary crack spreads, generating a massive windfall and driving shares to record highs. Refining sector bottlenecks, persistent low inventories, and limited new capacity support elevated margins through at least late Q3 2027. VLO's Gulf Coast positioning and aggressive buybacks could enable retirement of ~15% of shares over 18 months, with a secure 1.8% dividend yield. Despite the recent rally, I maintain a "Hold" rating, as the windfall is largely one-time, but capital returns remain robust and risk skews to sustained margins. Read the full article on Seeking Alpha
TRGP
US$258.88
Targa Resources
7D
-5.0%
1Y
49.2%
Seeking Alpha • Jul 01

Targa Resources: Growth And Cash Flow Inflection Support The Rally

Summary Targa Resources remains a 'Buy' as its Permian Basin NGL midstream footprint drives double-digit EBITDA and dividend growth. TRGP's aggressive growth cap-ex program addresses pent-up Permian demand and positions it to benefit from secular U.S. energy export growth. EBITDA guidance was raised to $5.7–$5.9 billion, with cap-ex set to decline, unlocking significant free cash flow and supporting substantial future dividend increases. I now see fair value at $290–$300, driven by inflecting free cash flow, a potential $14.50 dividend, and ongoing U.S. export market share gains. Read the full article on Seeking Alpha
BKR
US$52.78
Baker Hughes
7D
-6.7%
1Y
33.1%
Seeking Alpha • Jun 30

Baker Hughes Weighed Down By Dashed Oil Boom Hopes

Summary Baker Hughes remains a "Sell," as muted oilfield services offset booming IET growth. IET segment drives double-digit growth, fueled by U.S. LNG exports and AI data center demand. Oilfield services face persistent headwinds from weak oil prices and reduced Chinese demand. Fair value is capped at $50, with 2024 EPS now targeted at $2.30–$2.40 and a 24x multiple seen as expensive. Read the full article on Seeking Alpha
TPL
US$407.20
Texas Pacific Land
7D
2.9%
1Y
13.5%
Seeking Alpha • Jun 30

Texas Pacific Land: Why I've Decided To Initiate A 'Buy And Monitor' Position

Summary I've decided to replace my existing Permian exploration and production exposure with Texas Pacific Land Corporation. The stock shows evidence of upside capture during bullish oil price cycles. Water services and toll-booth oil and gas royalties limit downside capture in down-cycles. I enjoy the idea of CapEx being spent on growth instead of maintenance, which is a feature distinct from oil and gas producers. Multiples are high, and growth might recede to a steady state in the longer term, but I'm using this stock strategically. Risks include: potential tail risk during periods of depressed oil prices, high monthly value-at-risk, geographic concentration, and biasing into the stock's past returns. Read the full article on Seeking Alpha
FTI
US$66.75
TechnipFMC
7D
3.6%
1Y
91.3%
Seeking Alpha • Jun 29

TechnipFMC: Pricey And Not With The Best Outlook

Summary TechnipFMC plc remains a Hold as offshore oil and gas CapEx discipline and oversupply limit near-term project announcements. FTI's Subsea segment pipeline grew 13.2% YoY to $30B, but revenue recognition lags, constraining top-line acceleration. FTI shares trade at a 50%–60% premium to sector medians, with current growth rates insufficient to justify elevated valuation. Industry headwinds—falling drillship dayrates, declining CapEx, and flat subsea well counts—temper bullish outlook despite FTI backlog visibility. Read the full article on Seeking Alpha
MPC
US$266.35
Marathon Petroleum
7D
4.8%
1Y
51.3%
LNG
US$245.97
Cheniere Energy
7D
1.8%
1Y
2.7%
PSX
US$176.42
Phillips 66
7D
2.8%
1Y
38.6%
Narrative Update • Jun 24

PSX: Elevated Refining Margins Will Support Future Cash Flows

For Phillips 66, the analyst price target has been raised by about $3 to $194, as analysts point to elevated refining margins, tighter product inventories and improving refining operations as support for a higher fair value and slightly richer future P/E assumptions. Analyst Commentary Recent research on Phillips 66 centers on how refining margins, product inventories and execution on refining and midstream plans feed into valuation, earnings expectations and updated price targets.
KMI
US$32.06
Kinder Morgan
7D
-3.4%
1Y
12.8%
Narrative Update • Jun 24

KMI: Gas Backlog And Contracts Offset Legal And Execution Risks

Analysts have adjusted the Kinder Morgan price target by $2, reflecting a mix of updated revenue growth, profit margin, and P/E assumptions informed by recent research. Analyst Commentary Recent research on Kinder Morgan reflects a mix of optimism and caution, with several firms revisiting their price targets and updating their assumptions around revenue growth, profit margins, and P/E levels.