Oil’s Outlook Looks Ugly—That’s Why These 3 Energy Plays Matter

Industry Overview - Crude oil prices are expected to struggle in 2026 due to an excess supply that the U.S. Energy Information Administration (EIA) predicts will persist, potentially averaging $55 per barrel in the first quarter [2] - The downward pressure on oil prices is likely to negatively impact stocks in the oil and gas industry in the short term, as their performance is closely correlated with resource prices [3] Company Insights - Expand Energy Corp. (NASDAQ: EXE), primarily a liquefied natural gas (LNG) producer, has shown resilience despite lower natural gas prices, outperforming analyst earnings per share estimates by nine cents and exceeding revenue predictions by nearly $1 billion [5] - The company has strategically acquired approximately 75,000 net acres in the Western Haynesville region, which has contributed to increased productivity and reduced costs [5] - Despite underperforming the broader market with a year-to-date return of 6.5% compared to the S&P 500's 17.2%, Expand Energy's strong quarterly results may present a value opportunity for investors [4][5] Investment Opportunities - Investors with a long-term perspective may find opportunities in lesser-known energy sector stocks, such as Expand Energy, Mach Natural Resources, and Archrock, as they may offer value plays amid the current market conditions [3][6]