Chicago, IL – July 1, 2026 – Today, Zacks Equity Research discusses Exxon Mobil Corp. XOM, Chevron Corp. CVX and BP plc BP.
Industry: Oil & Gas – Integrated
Link: https://www.zacks.com/commentary/2945215/3-integrated-energy-stocks-to-gain-from-promising-industry-trend
The 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 Industry
The 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 Industry
Favorable 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.