Investors have been waiting for energy stocks to find their sweet spot. And the same can be said for oil and gas companies when it comes to the price of oil.
In the last 12 months, energy stocks have been among the worst performers. That’s only become worse since the beginning of April when crude oil prices have fallen below the $60 level.
At first glance, that may seem odd, considering that Donald Trump is an unapologetic advocate for fossil fuels. However, it hasn’t taken investors long to realize that “Drill, Baby, Drill” may not be beneficial for oil and gas stocks.
Lower regulations will make it easier for oil companies to get through the permitting process. But unless oil prices are at or above $80, it’s not profitable for these companies to take advantage of that. And now energy companies are weighing the potential impact of tariffs along with clear signs that consumers are wearing out.
That creates a challenging but not insurmountable environment for energy stocks, and here are three companies that investors may want to keep on their watchlist.
Hold on to Exxon Mobil Stock Now for Big Gains Later
[content-module:Forecast|NYSE: XOM]Exxon Mobil Corp. (NYSE: XOM) is one of the world’s largest integrated oil companies. One reason it gets the nod over a company like Chevron Corp. (NYSE: CVX) is that Exxon is already seeing the benefits from its acquisition of Pioneer Natural Resources in 2024.
That acquisition was a key reason the company achieved record production in the Permian Basin and Guyana, which allowed Exxon to generate nearly $31 billion in free cash flow while reducing operating costs by $2.7 billion.
XOM stock has been down sharply since the Trump tariff plan was announced.
That drop turned the stock negative year-to-date and taken also down over 14% in the last 12 months. But it’s not the floor for oil prices that may concern investors; it’s the ceiling for XOM stock, which has been trading in a defined range since September 2022
In the first three months of the year, the stock was up over 10%, easily outpacing the broader market. That’s where the price of oil matters. ExxonMobil will be profitable even if oil stays around $58, but it will put a lid on the XOM stock price. However, investors can collect a growing, high-yield dividend while they wait.
Kinder Morgan Doesn’t Need Higher Oil Prices
[content-module:Forecast|NYSE: KMI]Over the last 180 days, Kinder Morgan Inc. (NYSE: KMI) has been one of the few green shoots in the energy sector, and with good reason.
The company operates a pipeline network spanning over 83,000 miles throughout the United States and Canada. It transports a range of fuels, including oil, natural gas, and liquefied natural gas (LNG). The pipeline operator collects a fee from customers to reserve capacity and additional fees based on the volume of the fuels it transports, ensuring a steady revenue stream regardless of commodity prices.
Even if oil demand remains suppressed in 2025, Kinder Morgan is likely to benefit from increased demand for natural gas from data centers and companies reshoring operations. Investors also get an attractive 4.56% dividend yield from KMI stock.
Cheniere Is Well-Positioned for Increased LNG Demand
[content-module:Forecast|NYSE: LNG]According to the U.S. International Energy Administration (IEA), demand for LNG is expected to reach 14.2 billion cubic feet per day in 2025, a 19% year-over-year increase. The agency expects demand to grow by another 15% in 2026. The gains are expected as Europe looks to the United States to help replace the LNG it was receiving from Russia.
That’s why investors should consider Cheniere Energy Inc. (NYSE: LNG). The company owns a 50% stake and the incentive distribution rights in Cheniere Energy Partners Inc. (NYSE: CQP), giving it access to the Sabine Pass facility in Louisiana, the world’s largest LNG export facility, as well as other LNG terminals.
LNG stock was down 4.97% as of the market close on April 8, 2025. However, it’s up 30% in the last 12 months. Analysts have a Moderate Buy rating on the stock, with a $239.79 price target, which would be a 17% gain.
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