3 High-Yield Energy Stocks That Can Survive in Today's Fast-Changing Energy Landscape
Investment
The Motley Fool

3 High-Yield Energy Stocks That Can Survive in Today's Fast-Changing Energy Landscape

July 27, 2025
12:08 PM
6 min read
AI Enhanced
moneystocksfinancialenergynatural gasmarket cyclesseasonal analysismarket

Key Takeaways

These energy stocks can supply you with durable dividend income.

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Quick insights and key information

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6 min read

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investment

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Published

July 27, 2025

12:08 PM

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The Motley Fool

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Key Topics
moneystocksfinancialenergynatural gasmarket cyclesseasonal analysismarket

Market analysis reveals Interestingly, The energy market changes rapidly

Crude prices initially rallied into the $80s to start this year

Meanwhile, However, oil soon reversed course, plunging into the $60s on tariff-driven concerns (something worth watching)

While oil prices bounced off that bottom, it's anyone's guess where crude prices will go next

Given how quickly things can change in the energy market, many companies have taken steps to ensure they can survive the industry's ups and downs

Furthermore, 63%), Energy Transfer (ET), and ExxonMobil (XOM -0, in today's market environment. 33%) stand out to a few Fool

On the other hand, Com contributing analysts for their ability to handle whatever the market throws their way (an important development), in today's financial world

That makes them ideal options for those seeking attractive and durable dividend income

However, Image source: Getty Images, amid market uncertainty

On the other hand, Additionally, Chevron is built to survive anything that comes its way Reuben Gregg Brewer (Chevron): There's one feature that investors shouldn't overlook Chevron: its balance sheet

With a debt-to-equity ratio of around 0. 2 times at the end of the second quarter, it has one of the strongest financial positions among its integrated energy peer group (which is quite significant)

However, Most of the time, investors pay more attention to oil prices and geopolitical events than to balance sheets

But Chevron's ability to survive whatever comes its way is partly tied to its financial strength (an important development), given the current landscape

For example, Chevron just the acquisition of Hess for roughly $53 billion

At the same time, Inking a deal of that scale requires both size and financial strength

At the same time, But here's the interesting thing: The deal was agreed upon back in October 2023, amid market uncertainty

The transaction was bogged down in the courts because of Hess' relationship with Chevron's peers

Few companies could have afforded to stick around, regardless of how attractive the deal was, for as long as Chevron did

And the energy giant's balance sheet strength was a key factor in its resilience to the headwinds the deal faced

But that's not the only place where a strong balance sheet has been a huge benefit

Furthermore, Oil prices are highly volatile, leading to material swings on the top and bottom lines for a company Chevron

And yet, Chevron has managed to increase its dividend annually for 38 consecutive years

This demonstrates that has the balance sheet capacity to add debt during the hard times so it can muddle through until the good times return (at which point it reduces leverage again) (an important development), given current economic conditions

On the other hand, With an attractive 4. 7% dividend yield, even conservative investors should appreciate Chevron's ability to weather all the storms that have come its way for 38 years and counting

A mising high-yield stock with big plans Neha Chamaria (Energy Transfer): These are challenging times to be an investor in the energy sector

However, Oil prices are volatile, and the global energy landscape is changing in favor of cleaner energy sources

Un crude oil and coal, however, the demand for natural gas is jected to rise steadily in the coming decades, driven by growing demand for electricity, among other things

Nevertheless, Given the dynamics, a stock Energy Transfer not only can survive in today's changing landscape but also thrive in the long term (fascinating analysis)

That's because Energy Transfer is a massive natural gas player that generates steady cash flows and pays big dividends

Energy Transfer operates over 130,000 miles of pipeline

Additionally, Over 50% of its jected growth capital expenditures of $5 billion for 2025 will be spent on natural gas pipelines and natural gas liquids capacity expansions

It's also constructing eight natural-gas-fired power-generation plants to support its operations in Texas

However, The company recently bagged its first commercial deal to supply natural gas to Texas data centers, in this volatile climate

Energy Transfer, therefore, has strong growth catalysts and the financial fortitude to back its growth plans (something worth watching)

However, The company also pays a steady dividend and is targeting 3% to 5% annual dividend growth in the long term

When combined with a high yield of 7. 4%, Energy Transfer stock makes for a compelling buy case today

Built to thrive in any energy market Matt DiLallo (ExxonMobil): ExxonMobil built its not to survive but to thrive in the rapidly changing energy market

Moreover, The energy giant has an unmatched global portfolio of low-cost up oil and gas duction assets complemented by a leading ducts solutions (refining, chemicals, and specialty ducts), given the current landscape

On the other hand, Exxon is also building a growing low-carbon solutions

What the re reveals is se es are dering strong and growing earnings even in the face of continued commodity price volatility

For example, last year was Exxon's third-most fitable year in the past decade, despite commodity prices hovering toward the low end of their historical range for the most part, in today's financial world

The company's growing scale gives it a significant competitive advantage, enabling it to leverage its size and reduce costs (fascinating analysis)

Furthermore, Since 2019, ExxonMobil has achieved $12. 1 billion in annual cost savings, and it jects total annual cost savings to reach $18 billion by 2030

Those continued cost savings will put it in an even stronger position to weather changes in the oil market

Exxon also boasts one of the strongest balance sheets in the energy sector

This leads to the conclusion that tells us that gives it the flexibility to borrow money during periods of lower oil prices, allowing it to continue funding its growth (quite telling), given the current landscape

It repays that debt when commodity prices imve

The oil giant's combination of low costs, scale, and balance sheet strength puts its dividend (which yields over 3, in this volatile climate. 5%) on a very sustainable foundation

Moreover, The oil giant has increased its payout for 42 consecutive years, a feat achieved by only 4% of companies in the S&P 500

Exxon expects to achieve $20 billion in earnings growth and $30 billion in cash flow growth by 2030 (an important development)

On the other hand, These targets represent compound annual growth rates of 8% for earnings and 10% for cash flow, based on an average oil price of $65 per barrel, which is below current market levels, given current economic conditions

At the same time, This should vide the oil giant with ample fuel to continue increasing its high-yielding dividend, amid market uncertainty

This combination of financial strength and visible growth puts ExxonMobil in an excellent position to excel in today's shifting energy market.