Energy stocks have surged in 2026, driven by a confluence of favorable factors. Oil prices have remained elevated near $70 per barrel, as OPEC+ production discipline has tightened global supply while demand from Asia, particularly China and India, continues to recover and grow. Geopolitical tensions in the Middle East and Eastern Europe have added risk premiums to crude prices. At the same time, natural gas markets have benefited from increased LNG export capacity and Europe’s ongoing need to diversify away from Russian supplies.
The analysts at Goldman Sachs started to warm up to the energy sector last year, as it continued to underperform the overall market. The tables have turned, and energy is now outperforming the S&P 500 by a substantial margin. In their first-quarter Energy Portfolio Strategy report, they highlight ten leading companies across six sector silos that are top picks at Goldman Sachs. They said this in the report when discussing energy stocks and the sector as a whole:
The repricing of Energy equities has been significant this year, with the XLE +23% vs the S&P +1%. The strength has been driven by positive GDP revisions, a broader tech rotation, as well as positive oil momentum amid smaller than expected surpluses and geopolitical uncertainty. We continue to value equities using a $70 Brent and $3.75 Henry Hub mid-cycle view. In this report, we discuss 10 ideas where we still see attractive total return, with ~19% average total return.
We screened the top 10 stock picks for the greatest upside relative to Goldman Sachs’ target prices and reliable dividend yields. In other words, we sought the top total-return candidates in the group. All are rated Buy at Goldman Sachs.
Why we recommend Goldman Sachs stocks
Chris Hondros / Getty ImagesGoldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years.
Cheniere Energy
As the leading U.S. LNG exporter, with a small 0.94% dividend, Cheniere Energy Inc. (NYSE: LNG) is positioned to benefit from both domestic AI-driven demand and international energy needs. Natural gas accounts for 43% of U.S. electricity production, and Cheniere’s ability to scale operations quickly makes it a key player. The company’s export capabilities also provide a hedge against fluctuations in the domestic market. Some on Wall Street believe electricity demand growth could increase by as much as 160% by 2030.
Cheniere Energy is a producer and exporter of liquefied natural gas (LNG) in the United States. The Company provides clean and secure LNG to integrated energy companies, utilities, and energy trading companies worldwide. The company operates two natural gas liquefaction and export facilities: one at Sabine Pass, Louisiana (Sabine Pass LNG Terminal), and another near Corpus Christi, Texas (Corpus Christi LNG Terminal).
The Sabine Pass LNG Terminal, which features natural gas liquefaction facilities comprising six operational trains, has a total production capacity of approximately 30 million tons per annum (mtpa) of LNG.
The Corpus Christi LNG Terminal near Corpus Christi, Texas, consists of three trains for a total production capacity of approximately 15 mtpa of LNG, three LNG storage tanks, and two marine berths. It also owns and operates a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several large interstate and intrastate pipelines.
The Goldman Sachs price target for the shares is $275, representing a 25% gain.
EQT
This company is one of the largest natural gas producers in the U.S. EQT Corp. (NYSE: EQT) has a 1.14% dividend, is particularly active in the Appalachian Basin, and is also noted for its low-cost production. It is a premier, vertically integrated American natural gas company with production and midstream operations focused on the Appalachian Basin. It has operations in Pennsylvania, West Virginia, and Ohio.
Its strategic location in the Southeast, particularly near data center hubs such as Northern Virginia, makes it a key supplier of AI-driven energy services. EQT has secured agreements to supply natural gas to major data center campuses, including the redevelopment of a former coal plant in Homer City, Pennsylvania, into a natural-gas-powered data center.
EQT owns or leases approximately 610,000 net acres in Pennsylvania. Most of the acreage is in the state’s southwestern region, with the majority in Greene and Washington Counties. The company is developing the Marcellus Shale and Upper Devonian Shale in this area. It also owns or leases 405,000 net acres in West Virginia. Most of the acreage is located in the northwestern region of the state, with the majority located in Doddridge, Marion, Tyler, and Wetzel Counties.
It owns or leases 65,000 net acres in eastern Ohio and is developing the Utica Shale in Belmont County. It operates Utica wells throughout its Ohio acreage. The Marcellus Shale lies at depths of 1 mile or more beneath the surface throughout much of Ohio, Pennsylvania, New York, and West Virginia.
One of our top 24/7 Wall St. writers conducted a thorough review of the EQT shares and explained in depth why they are a massive buy now.
The Goldman Sachs price target is $66. Hitting the target would be a 16% gain.
Golar LNG
This is a new addition to the Goldman Sachs Conviction List and offers a 2.26% dividend and significant upside to the target price. Golar LNG Ltd. (NASDAQ: GLNG) designs, owns, and operates marine infrastructure for the liquefaction of natural gas and the regasification, storage, and offloading of liquefied natural gas (LNG). Its fleet comprises two floating liquefied natural gas vessels (FLNGs).
The company’s segments include:
FLNG
Corporate and Other
Shipping
The FLNG segment covers operations of FLNG vessels and projects. It converts LNG carriers into FLNG vessels, builds new ones, and contracts them to customers. This segment includes vessels such as FLNG Hilli, FLNG Gimi, and MKII FLNG.
The Shipping segment focuses on the transportation operations of LNG carriers.
The Corporate and Other segment includes administrative tasks, ship operations, and maintenance services. It also provides FLNG commercial, operational, and technical support; crew management services and supervision; and corporate secretarial, accounting, and treasury services.
Golar LNG operates in:
Bermuda
the United Kingdom
Norway
Cameroon
Croatia
Goldman Sachs has set a $56 target price, representing a 27% gain from current levels.
Viper Energy
Viper Energy Inc. (NASDAQ: VNOM) owns and acquires mineral and royalty interests in oil and natural gas properties in the Permian Basin. With a 5.39% dividend yield, this mid-cap energy play offers significant upside relative to the Goldman Sachs target price. Viper Energy is an independent oil and natural gas company focused on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves, primarily in the Permian Basin in West Texas.
The company primarily focuses on oil and natural gas properties in the Permian Basin, which covers approximately 75,000 square miles centered on Midland, Texas.
The Viper Energy assets consist of mineral and royalty interests underlying 1,197,638 gross and 34,217 net royalty acres, primarily in the Permian Basin.
It’s estimated that proved oil and natural gas reserves totaled 179,249 thousand barrels of crude oil equivalent (MBOE). The company’s proven undeveloped reserves include approximately 529 gross horizontal well locations. The company’s proved reserves include approximately 50% oil, 25% natural gas liquids, and 25% natural gas.
A Goldman Sachs price target of $54 represents a stunning 23% gain from current levels.
Vistra
This utility giant will work in tandem with big tech to provide the power needed for data centers and cloud computing, and pays a small 0.56% dividend. Vistra Corp. (NYSE: VST) is an integrated retail electricity and power generation company that provides essential resources to customers, businesses, and communities from California to Maine.
The company operates a reliable fleet of power-generation facilities, including natural gas, nuclear, coal, solar, and battery energy storage, while adopting an innovative, customer-centric approach to its retail business.
Its segments include
Retail
Texas
East
West
Asset Closure
The Retail segment sells electricity and natural gas to residential, commercial, and industrial customers.
The Texas and East segments are engaged in electricity generation, wholesale energy sales and purchases, commodity risk management activities, fuel procurement, and logistics management.
The West segment comprises results from the CAISO market, including battery ESS projects at the Moss Landing power plant site.
The Asset Closure segment is engaged in decommissioning and reclaiming retired plants and mines.
Goldman Sachs’ price target for the shares is $205, representing a 28% gain.