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U.S. Energy Sector Analysis

UpdatedAug 22, 2026
DataAggregated Company Financials
Companies427
  • 7D2.1%
  • 3M5.9%
  • 1Y40.8%
  • YTD36.4%

In the last week, the Energy industry is up 2.1%, with ExxonMobil Holdings up 3.1%. During this same period, the Williams Companies underperformed, falling 6.3%. This means that the industry has gained 41% over the past year. Looking forward, earnings are forecast to grow by 6.1% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 23 Aug 2026US$3.2tUS$2.1tUS$172.5b15.9x18.6x1.5x
Tue, 21 Jul 2026US$2.9tUS$1.9tUS$125.0b16.7x23.5x1.5x
Thu, 18 Jun 2026US$2.8tUS$1.9tUS$125.1b15.3x22.4x1.5x
Sat, 16 May 2026US$3.0tUS$1.9tUS$124.6b16.6x23.9x1.6x
Mon, 13 Apr 2026US$2.9tUS$1.9tUS$130.6b17.3x22.4x1.6x
Wed, 11 Mar 2026US$2.9tUS$1.9tUS$130.6b17.3x22x1.5x
Fri, 06 Feb 2026US$2.7tUS$1.9tUS$129.1b15.2x20.9x1.5x
Sun, 04 Jan 2026US$2.4tUS$1.9tUS$126.3b15.5x18.8x1.3x
Tue, 02 Dec 2025US$2.3tUS$1.9tUS$124.8b15.4x18.8x1.3x
Thu, 30 Oct 2025US$2.3tUS$1.9tUS$128.1b14.6x17.8x1.2x
Sat, 27 Sep 2025US$2.4tUS$1.9tUS$125.9b14.3x18.9x1.3x
Mon, 25 Aug 2025US$2.3tUS$1.9tUS$126.2b13.4x18.2x1.2x
Wed, 23 Jul 2025US$2.2tUS$1.9tUS$131.8b12.1x17x1.2x
Fri, 20 Jun 2025US$2.3tUS$1.9tUS$134.4b12.5x17.4x1.2x
Sun, 18 May 2025US$2.2tUS$1.9tUS$134.5b11.7x16.7x1.2x
Tue, 15 Apr 2025US$2.1tUS$1.9tUS$143.8b11.4x14.4x1.1x
Thu, 13 Mar 2025US$2.3tUS$1.9tUS$144.1b12.3x15.8x1.2x
Sat, 08 Feb 2025US$2.4tUS$1.9tUS$155.7b12.4x15.3x1.2x
Mon, 06 Jan 2025US$2.3tUS$1.9tUS$158.6b11.9x14.7x1.2x
Wed, 04 Dec 2024US$2.5tUS$1.9tUS$158.5b12.2x15.6x1.3x
Fri, 01 Nov 2024US$2.3tUS$1.9tUS$166.4b11.4x13.9x1.2x
Sun, 29 Sep 2024US$2.3tUS$2.0tUS$172.6b11.4x13.2x1.2x
Tue, 27 Aug 2024US$2.3tUS$2.0tUS$172.2b11.3x13.4x1.2x
Thu, 25 Jul 2024US$2.3tUS$1.9tUS$175.8b11.5x13x1.2x
Sat, 22 Jun 2024US$2.3tUS$1.9tUS$176.0b11.2x12.8x1.2x
Mon, 20 May 2024US$2.4tUS$1.9tUS$174.8b11.7x13.5x1.2x
Wed, 17 Apr 2024US$2.4tUS$2.0tUS$206.1b10.4x11.8x1.2x
Fri, 15 Mar 2024US$2.3tUS$2.0tUS$206.5b9.5x11.2x1.2x
Sun, 11 Feb 2024US$2.1tUS$2.0tUS$218.6b8.7x9.8x1.1x
Tue, 09 Jan 2024US$2.3tUS$2.1tUS$242.2b8.6x9.4x1.1x
Thu, 07 Dec 2023US$2.2tUS$2.1tUS$242.5b8.3x9x1.1x
Sat, 04 Nov 2023US$2.3tUS$2.0tUS$246.5b8.7x9.4x1.1x
Mon, 02 Oct 2023US$2.4tUS$2.2tUS$272.7b7.5x8.8x1.1x
Wed, 30 Aug 2023US$2.3tUS$2.2tUS$272.6b7.5x8.6x1.1x
Price to Earnings Ratio

8.6x


Total Market Cap: US$2.3tTotal Earnings: US$272.6bTotal Revenue: US$2.2tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Energy Sector Price to Earnings3Y Average 15.6x202420252026
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 18.6x which is higher than its 3-year average PE of 15.6x.
  • The 3-year average PS ratio of 1.2x is lower than the industry's current PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the Energy industry have declined 14% per year over the last three years.
  • Meanwhile revenues have remained mostly flat.
  • This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

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

US Market-1.53%
Energy2.08%
Oil and Gas2.51%
Energy Services-1.64%
Industry PE
  • Investors are most optimistic about the Energy Services industry which is trading above its 3-year average PE ratio of 21.6x.
    • Analysts are expecting annual earnings growth of 23.2%, which is higher than its past year's earnings decline of 14.0% 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 15.2x.
Forecasted Growth
  • Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 23% over the next 5 years.
  • This is better than its past earnings decline of 14% per year.
  • In contrast, the Oil and Gas industry is expected to see its earnings grow by 4.2% 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
XOM ExxonMobil HoldingsUS$165.113.1%
+US$20.6b		48.4%PE20.7x
CVX ChevronUS$205.272.6%
+US$10.3b		29.8%PE19.6x
COP ConocoPhillipsUS$134.876.4%
+US$9.7b		39.4%PE17.5x
EOG EOG ResourcesUS$153.057.3%
+US$5.5b		26.4%PE11.7x
TRGP Targa ResourcesUS$299.108.5%
+US$5.0b		83.2%PE28.4x

Latest News

XOM
US$165.11
ExxonMobil Holdings
7D
3.1%
1Y
48.4%
DVN
US$49.10
Devon Energy
7D
7.1%
1Y
39.6%
SEI
US$53.28
Solaris Energy Infrastructure
7D
-15.8%
1Y
85.9%
TRGP
US$299.10
Targa Resources
7D
8.5%
1Y
83.2%
Seeking Alpha • Aug 20

Targa Resources: Reloading The Chamber For Growth With ExxonMobil Deal

Summary Targa Resources secures a transformative 20-year midstream agreement with ExxonMobil, anchoring long-term growth and volume certainty. TRGP will invest in three new processing plants, a 70-mile pipeline, and potentially five additional plants, extending its aggressive growth trajectory. The XOM partnership delays the free cash flow inflection beyond 2028, but rising base EBITDA and project completions maintain positive FCF trends. I view TRGP as a BUY, with its premium valuation justified by robust growth prospects and a blue-chip customer base. Read the full article on Seeking Alpha
PSX
US$242.87
Phillips 66
7D
4.0%
1Y
86.9%
Narrative Update • Aug 19

PSX: Refining Margin Tailwinds Will Eventually Fade Against Overstretched Earnings

Phillips 66's analyst fair value estimate has shifted from $153.03 to $169.78 as analysts factor in higher Street price targets supported by strong refining crack spreads, tight refined product inventories, improved balance sheet progress, and solid cash generation across refining, midstream, and chemicals. Analyst Commentary Recent Street research on Phillips 66 points to a broadly supportive stance on the stock, with many firms updating models after the latest quarterly results and refining margin data.
BKR
US$62.34
Baker Hughes
7D
-3.8%
1Y
39.3%
Narrative Update • Aug 18

BKR: Future Returns Will Depend On Executing Massive LNG And Power Backlog

Analysts lifted the Baker Hughes fair value estimate from $56.13 to $57.50, reflecting higher modeled revenue growth and a slightly richer future P/E multiple, supported by a series of recent price target increases tied to strong Q2 orders, growing exposure to industrial and energy technology markets, and optimism around the Chart acquisition and new power systems capacity. Analyst Commentary Recent Street research around Baker Hughes shows a mix of optimism on growth in industrial and energy technology alongside pockets of caution.
CVX
US$205.27
Chevron
7D
2.6%
1Y
29.8%
WMB
US$70.49
Williams Companies
7D
-6.3%
1Y
23.5%
Seeking Alpha • Aug 17

Williams: Play The New Growth Cycle For Natural Gas

Summary Williams Companies, Inc. is positioned as the most natural gas-exposed midstream operator, with demand growth driving its business outlook. Critical infrastructure bottlenecks and lack of capacity are highlighted as key constraints, supporting WMB's investment thesis in expanding assets. Strategic partnerships, notably with Woodside and hyperscalers, reinforce WMB's role as a 'one-stop' partner for power innovation and behind-the-meter projects. The financial outlook emphasizes a robust backlog and investments in technology to capture rising power demand, especially from data centers and hyperscale clients. Read the full article on Seeking Alpha
FTI
US$77.45
TechnipFMC
7D
-1.5%
1Y
114.4%
COP
US$134.87
ConocoPhillips
7D
6.4%
1Y
39.4%
OKE
US$93.33
ONEOK
7D
-1.7%
1Y
24.7%
Analysis Article • Aug 13

New Forecasts: Here's What Analysts Think The Future Holds For ONEOK, Inc. (NYSE:OKE)

ONEOK, Inc. ( NYSE:OKE ) shareholders will have a reason to smile today, with the analysts making substantial upgrades...
OXY
US$61.30
Occidental Petroleum
7D
5.0%
1Y
33.8%
Seeking Alpha • Aug 13

Occidental Petroleum: Fundamental Improvements Are Still Underappreciated

Summary Occidental Petroleum remains a Buy, with valuation not reflecting its substantial operational and financial improvements. OXY advances toward its $10 billion debt milestone, enabling greater capital allocation flexibility and supporting greater shareholder returns. Production guidance and midstream income are raised, while well cost and interest expense reductions underpin a robust long-term free cash flow outlook. Intrinsic value is estimated well above current levels, despite oil price volatility and macro risks, indicating a conservative approach from the market. Read the full article on Seeking Alpha
EOG
US$153.05
EOG Resources
7D
7.3%
1Y
26.4%
Seeking Alpha • Aug 11

EOG Resources: Upgrading To Buy

Summary EOG Resources is rated a buy, upgraded for its core asset durability, international optionality, and peer-leading shareholder returns. EOG's diversified multi-basin and international portfolio supports 16 years of premium drilling inventory and robust free cash flow at sub-$50 WTI. Q2 saw a record $2.8B adjusted free cash flow, $1.8B returned to shareholders, and a fortress balance sheet with $4.1B cash and $3.1B net debt. Patience is warranted as near-term EPS dips are forecast, potentially offering better entry points despite strong long-term fundamentals. Read the full article on Seeking Alpha
AROC
US$31.80
Archrock
7D
-8.3%
1Y
26.2%
Analysis Article • Aug 08

Archrock, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Archrock, Inc. ( NYSE:AROC ) missed earnings with its latest quarterly results, disappointing overly-optimistic...
KMI
US$30.98
Kinder Morgan
7D
-5.6%
1Y
16.0%
DTM
US$126.77
DT Midstream
7D
-7.4%
1Y
24.7%