Zacks Industry Outlook Highlights Exxon, Chevron and BP

For Immediate ReleaseChicago, IL – July 1, 2026 – Today, Zacks Equity Research discusses Exxon Mobil Corp. XOM, Chevron Corp. CVX and BP plc BP.Industry: Oil & Gas - IntegratedLink: https://www.zacks.com/commentary/2945215/3-integrated-energy-stocks-to-gain-from-promising-industry-trendThe crude pricing environment is still promising for the integrated energy company's exploration and production operations. The integrated players also have a stable midstream business that generates cashflows during all the business cycles, thereby making the prospects of the Zacks Oil and Gas Integrated International industry promising.Due to their integrated business model, Exxon Mobil Corp, Chevron Corp. and BP plc are well-positioned to make the most of the promising business environment.About the IndustryThe Zacks Oil and Gas Integrated International industry covers companies primarily involved in upstream, midstream and downstream operations. These companies have upstream businesses in the United States (including prolific shale plays and the deepwater Gulf of Mexico), Asia, South America, Africa, Australia and Europe. Midstream operations of energy companies entail transporting oil, natural gas liquids and refined petroleum products.In downstream businesses, the firms buy raw crude to produce refined petroleum products. The companies' downstream activities involve chemical businesses that manufacture raw materials for making plastics. The integrated players are now gradually focusing on renewables, leading to the energy transition. The firms aim to lower emissions from operations and cut the carbon intensity of the products sold.3 Trends Shaping the Future of the IndustryFavorable Oil Price to Aid Cash Flows: The price of West Texas Intermediate ("WTI") crude is hovering around the $70 per barrel mark. The oil price is significantly higher than the shut-in prices of key resources in the United States, which is still promising for the exploration and production business of integrated players in the industry.Sturdy Midstream Demand: With the possibility of upstream activities remaining advantageous, thanks to handsome commodity prices, oil and gas production is expected to stay satisfactory. This will likely boost the demand for pipeline and storage assets since more commodities will need to be transported and stored. Importantly, the midstream business has lower exposure to commodity price volatility since shippers generally book pipeline assets for the long term, thereby generating stable fee-based revenues.Business Diversification: International integrated energy companies are gradually investing in the renewable business. Thus, by diversifying operations, companies will be able to capitalize on the mounting demand for cleaner energy.Zacks Industry Rank Indicates Bullish ProspectsThe Zacks Oil and Gas Integrated International industry is part of the broader Zacks Oil - Energy sector. The industry carries a Zacks Industry Rank #99, which places it in the top 40% of more than 250 Zacks industries.The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Before we present a few stocks that you may want to bet on or keep an eye on, let's take a look at the industry's recent stock market performance and valuation picture.Industry Outperforms the S&P 500, Lags the SectorThe Zacks Oil and Gas Integrated International industry has outperformed the Zacks S&P 500 composite over the past year, but lagged the broader Zacks Oil - Energy sector over the same time frame.The industry has rallied 23.5% over this period compared with the S&P 500's surge of 22% and the broader sector's improvement of 24.7%.Industry's Current ValuationSince oil and gas companies are debt-laden, it makes sense to value them based on the Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) ratio. This is because the valuation metric takes not just equity into account but also the level of debt.On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 5.93X, lower than the S&P 500's 18.21X. It is also below the sector's trailing 12-month EV/EBITDA of 6.50X.Over the past five years, the industry has traded as high as 7.37X and as low as 2.79X, with a median of 4.18X.3 Integrated International Stocks to Focus onBP is an integrated energy giant and is well-positioned to capitalize on oil prices, which are still promising, through its upstream operations. Increasing global demand for LNG will continue to support natural gas. Therefore, BP, currently carrying a Zacks Rank #3 (Hold), is well-positioned to benefit from the rising demand for clean energy. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.With upstream businesses contributing the most to its earnings, ExxonMobil's business outlook seems promising, thanks to handsome oil prices. Investors should also keep in mind that #3 Ranked XOM, has a strong balance sheet, on which it could rely during an unfavorable business environment. The debt to capitalization of ExxonMobil is at 15.44%, lower than the 29.6% of the industry's composite stocks. Coming to the integrated energy giant's dividend commitment story, over the past 43 years, ExxonMobil has been rewarding its shareholders with annual dividend hikes at an average rate of 5.8%.Chevron is an integrated energy giant with a stable business model. In the Permian, the most prolific basin in the United States, CVX, with a Zacks Rank of 3, has a strong footprint. Also, the company has a pristine balance sheet with significantly lower debt capital exposure than the industry's composite stocks.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks