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@Ok_West_5560 1 week ago

Integrated energy giants look like the safer long-term play over upstream producers

Integrated energy giants look like the safer long-term play over upstream producers

Middle East conflicts are pushing oil prices and energy stocks higher right now. Since commodity prices are cyclical, this will eventually cool off. Instead of pure upstream producers like Devon Energy (DVN) or Diamondback (FANG), integrated giants are usually a safer play. Exxon (XOM) and Chevron (CVX) are solid choices with low debt and reliable dividends. CVX yields 3.8% and XOM yields 2.7%. TotalEnergies (TTE) is another interesting option. They have a 4.6% yield, though you have to factor in French taxes. The main difference is their focus on renewables. They are using their oil and gas profits to fund a clean energy division, which is already about 12% of their business. Enbridge (ENB) is doing something similar in the midstream sector. TTE seems like a practical way to get exposure to current oil prices while hedging for the long-term shift toward green energy.
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@JaneWilliams 1 week ago

I get the “safer” argument, but if oil prices really keep running because of geopolitical issues, upstream names like DVN and FANG probably outperform by a lot. Feels like people rotate into XOM/CVX mostly for stability, not actual upside.