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U.S. Energy Sector Analysis

UpdatedJun 25, 2022
DataAggregated Company Financials
Companies472
  • 7D-1.7%
  • 3M-9.5%
  • 1Y24.2%
  • YTD21.7%

Over the last 7 days, the Energy industry has dropped 1.7%, driven by Chevron declining 2.4%. This takes the industry's 12 month performance to a gain of 24%. In the next few years, earnings are forecast to decline by 2.9% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Sun, 26 Jun 2022US$1.9tUS$1.8tUS$110.4b12.9x
Tue, 24 May 2022US$2.2tUS$1.8tUS$109.5b14.8x
Thu, 21 Apr 2022US$2.2tUS$1.6tUS$90.2b16.1x
Sat, 19 Mar 2022US$2.0tUS$1.6tUS$91.6b15.3x
Mon, 14 Feb 2022US$1.9tUS$1.5tUS$71.7b18.1x
Wed, 12 Jan 2022US$1.7tUS$1.4tUS$22.2b19.3x
Fri, 10 Dec 2021US$1.5tUS$1.4tUS$23.3b16.9x
Sun, 07 Nov 2021US$1.6tUS$1.4tUS$21.9b20.2x
Tue, 05 Oct 2021US$1.5tUS$1.2t-US$15,278,487,126.0021.5x
Thu, 02 Sep 2021US$1.3tUS$1.2t-US$16,086,788,527.1415.1x
Sat, 31 Jul 2021US$1.3tUS$1.2t-US$16,086,788,527.1415.2x
Tue, 04 May 2021US$1.3tUS$1.0t-US$59,400,657,075.4413.2x
Fri, 05 Feb 2021US$1.0tUS$989.6b-US$153,947,087,686.209.4x
Mon, 09 Nov 2020US$732.4bUS$1.1t-US$129,663,756,284.896.2x
Sun, 02 Aug 2020US$890.2bUS$1.2t-US$116,435,769,729.317.6x
Wed, 06 May 2020US$935.7bUS$1.4t-US$66,908,498,477.737x
Sat, 08 Feb 2020US$1.4tUS$1.5tUS$19.0b11.4x
Fri, 01 Nov 2019US$1.4tUS$1.5tUS$55.3b8.7x
Mon, 05 Aug 2019US$1.6tUS$1.5tUS$81.4b10.9x
Median PE Ratio

10.8x


Total Market Cap: US$1.6tTotal Earnings: US$81.4bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Energy Sector Median PE3Y Average 11.8x202020212022
Current Industry PE
  • Investors are optimistic on the industry, and appear confident in long-term growth rates.
  • The industry is trading at a PE ratio of 17.1x which is higher than its 3-year average PE of 6.3x.
  • The industry is trading close to its 3-year average PS ratio of 1.0x.
Past Earnings Growth
  • The earnings for companies in the Energy industry have grown 11% per year over the last three years.
  • Revenues for these companies have grown 5.1% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market6.56%
Energy-1.67%
Oil and Gas-1.44%
Energy Services-4.00%
Industry PE
  • Investors are most optimistic about the Energy Services industry which is trading above its 3-year average PE ratio of 15.2x.
  • Analysts are expecting annual earnings growth of 43%, which is higher than its past year's earnings decline of 1.8% per year.
  • Investors are most pessimistic about the Oil and Gas industry, which is trading close to its 3-year average of 11.6x.
Forecasted Growth
  • Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 43% over the next 5 years.
  • This is better than its past earnings decline of 1.8% per year.
  • In contrast, the Oil and Gas industry is expected to see its earnings decline by 7.1% 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 Exxon MobilUS$86.900.9%
+US$3.3b		34.4%PS14.2x
OXY Occidental PetroleumUS$57.523.3%
+US$1.7b		74.8%PS8.3x
KMI Kinder MorganUS$16.482.7%
+US$975.0m		-9.9%PS36.2x
HP Helmerich & PayneUS$43.9413.1%
+US$534.9m		31.4%PS3x
OKE ONEOKUS$54.572.2%
+US$527.0m		-3.5%PS16.2x
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Latest News

DVN

US$53.77

Devon Energy

7D

-7.3%

1Y

80.7%

COP

US$90.91

ConocoPhillips

7D

-3.0%

1Y

48.3%

XOM

US$86.90

Exxon Mobil

7D

0.9%

1Y

34.4%

PXD

US$223.48

Pioneer Natural Resources

7D

0.8%

1Y

35.3%
Jun 23

Pioneer Natural Resources: Get Your Annualized Yield Of 13%

Pioneer Natural Resources openly discusses the fact that it has one of the highest dividend yields, combined with share repurchases when compared with its peers. Pioneer declares that with WTI at $100, shareholders should expect $27 in dividends, along with share repurchases, the yield reaches 13%. Pioneer Natural Resources has a very strong balance sheet, where it has an eye towards net debt to EBITDAX of 0.1x by year-end. Pioneer Natural Resources is priced at approximately 6x free cash flow. I rate the stock a buy.

SLB

US$35.06

Schlumberger

7D

-4.3%

1Y

5.1%
Jun 23
Is Schlumberger Limited (NYSE:SLB) Trading At A 30% Discount?

Is Schlumberger Limited (NYSE:SLB) Trading At A 30% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Schlumberger Limited...

OXY

US$57.52

Occidental Petroleum

7D

3.3%

1Y

74.8%
Jun 23

Occidental Petroleum: Now At 3.5x Free Cash Flow, This Is Cheap

Occidental Petroleum has seen its shares sell off together with the rest of the oil sector. Occidental carries approximately $24 billion of net debt. This is getting in the way of Occidental ramping up its capital return program. During Q1, Occidental's total shareholder yield was 3.6% on an annualized basis. Even if the capital returns increased, I don't see a path towards a meaningfully large increase. That being said, at 3.5x free cash flow, the business is clearly very cheaply priced. I rate this stock a buy.

PSX

US$84.20

Phillips 66

7D

-7.0%

1Y

-6.5%
Jun 22

Phillips 66: 6% Capital Return Program

Phillips 66 is well-positioned for high crude oil prices. Yet note that its refining business is its smallest segment. Phillips 66 carries more than $11 billion of net debt, a significant sum. This will get in the way of Phillips 66 meaningfully increasing its capital return to shareholders. By my estimates, PSX has an approximate 6% total shareholder return. This is fairly attractive and something to consider. Altogether, there's a positive risk-reward in PSX stock. But there are still some risks worthwhile discussing.

OKE

US$54.57

ONEOK

7D

2.2%

1Y

-3.5%

CHK

US$83.80

Chesapeake Energy

7D

4.4%

1Y

57.7%

CVX

US$144.77

Chevron

7D

-2.4%

1Y

34.9%
Jun 21

Chevron: Sell Peak Optimism

Chevron's stock price and level of investor optimism likely peaked in early June. A recession in energy demand and a windfall income tax levied by Uncle Sam could crater the stock later in the year. I have a 12-month price target of $110 to $120, as crude oil and natural gas supply/demand is rebalanced going into 2023.

MRO

US$22.05

Marathon Oil

7D

-8.7%

1Y

56.7%
Jun 18
There's Been No Shortage Of Growth Recently For Marathon Oil's (NYSE:MRO) Returns On Capital

There's Been No Shortage Of Growth Recently For Marathon Oil's (NYSE:MRO) Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...

KMI

US$16.48

Kinder Morgan

7D

2.7%

1Y

-9.9%

BKR

US$28.47

Baker Hughes

7D

-5.0%

1Y

20.9%

VLO

US$103.93

Valero Energy

7D

-7.6%

1Y

26.6%

HP

US$43.94

Helmerich & Payne

7D

13.1%

1Y

31.4%

TPL

US$1,519.96

Texas Pacific Land

7D

4.4%

1Y

-3.6%
Jun 15

Why I Sold My Remaining Texas Pacific Land Shares

Texas Pacific Land's stock is only up about 3% since my March 16, 2021 article, but oil is up about 81% and natural gas is up 260%. Their largest shareholder, Horizon Kinetics, strongly supports the company's move into cryptocurrency mining. Approved drilling permits in Permian Basin so far in 2022 give a mixed picture for future company revenue. Still, no stock split yet after transforming from a trust to a corporation in 2021.