Trump's Energy Plans: 2 Hot Oil Stocks That Could Soar Over the Next 5 Years

Core Viewpoint - Trump's energy policies are expected to significantly benefit oil stocks, particularly those with disciplined growth strategies and strong financials [1][2][3] Group 1: Trump's Energy Plans - President Trump declared a "national energy emergency" and aims to boost U.S. oil and gas production while lowering energy prices through increased supply [1][2] - The focus on oil stocks has returned, but the potential for lower commodity prices poses a challenge for producers [2] Group 2: ExxonMobil - ExxonMobil is the largest oil producer in the U.S. and has made a significant acquisition of Pioneer Natural Resources for nearly $60 billion, which will more than double its production in the Permian Basin [4] - The company plans to invest approximately $140 billion in growth projects from 2025 to 2030, expecting $20 billion in incremental earnings and $30 billion in incremental cash flows by 2030 [5] - At a Brent Crude Oil price of $65 per barrel, ExxonMobil could generate nearly $165 billion in surplus cash flow by 2030, with a strong likelihood of returning cash to shareholders through dividends or share repurchases [6] - The Department of Energy has granted an export permit extension for the Golden Pass LNG terminal, which is expected to start operations later this year [7] - Overall, ExxonMobil's strong financials and growth plans position it well to benefit from Trump's energy initiatives [8] Group 3: Enterprise Products Partners - Enterprise Products Partners operates in the midstream sector, allowing it to benefit from increased drilling activities without being directly affected by crude oil prices [9][10] - The company has $7.5 billion in major projects under construction, with $6 billion expected to come online this year, which will enhance cash flows [11] - As capital spending is expected to decrease from 2026 onward, more cash could be allocated to shareholders, as Enterprise Products has a history of consistent dividend increases and share repurchases [12][13] - The company has experienced exceptional growth over the past five years and is well-positioned for continued success under Trump's administration, with a current dividend yield of 6.5% [14]