Core Viewpoint - Canadian Natural Resources (CNQ) is recommended as a core position in energy portfolios due to its substantial low-cost reserve base and low maintenance capital requirements [1]. Company Analysis - The analysis is conducted by Energess Resources, which has over 15 years of experience in oil and gas operations, focusing on production engineering and field-level supervision [1]. - The analysis aims to provide objective, actionable insights for investors to better understand the energy sector, emphasizing fundamentals such as valuation, capital and operational efficiency, asset quality, and shareholder alignment [1]. - Initial coverage will focus on exploration and production (E&P) companies in the United States and Canada, with plans to expand to midstream and royalty companies in the future [1]. Investment Perspective - Investments in the energy sector can yield strong total returns and enhance diversification in long-term portfolios when approached with discipline and a value-oriented strategy [1]. - Despite the cyclical nature of commodity prices, quality companies with experienced management can deliver shareholder value even in challenging pricing environments [1].

Group 1 - Energess Resources aims to provide objective, actionable company-level analysis for investors in the energy sector, focusing on fundamentals such as valuation, capital and operational efficiency, asset quality, and shareholder alignment [1] - Initial coverage will focus on exploration and production (E&P) companies in the United States and Canada, with plans to expand to midstream and royalty companies in the future [1] - The company emphasizes that investments in energy can yield strong total returns and enhance diversification in long-term portfolios when approached with discipline and a value-tilt [1] Group 2 - The author has over 15 years of experience in oil and gas operations, including roles as a production engineer and field-level supervisor across various asset types [1] - The analysis will stay current with quarterly results and key developments in the energy sector [1] - Quality companies with experienced management can provide shareholder value even in challenging pricing environments due to the cyclical nature of commodity prices [1]

Group 1 - Elliott Gue is a recognized expert in the energy sector, with extensive education and experience, including a bachelor's and master's degree from the University of London [1] - Gue has been acknowledged as "the world's leading energy strategist" during the 2008 G-8 Summit in Tokyo, highlighting his influence and expertise in the field [1] - In October 2012, Gue launched the Energy & Income Advisor, an online newsletter focused on identifying profitable opportunities in the energy sector, including growth stocks and high-yielding utilities [1] Group 2 - The Energy & Income Advisor includes contributions from Roger Conrad, who provides analysis on master limited partnerships and Canadian energy stocks, ensuring a comprehensive approach to energy investment [1]

Core Insights - Exxon Mobil Corp. and Chevron Corp. reported mixed first-quarter 2025 results, with both companies exceeding earnings estimates but falling short on revenue expectations due to declining crude oil prices [1] Earnings in Focus - Exxon reported earnings per share of $1.76, surpassing the Zacks Consensus Estimate of $1.72, but down from $2.06 year-over-year. Revenue was $83.13 billion, missing the estimate of $84.49 billion but slightly improving from $83.08 billion a year ago [2] - Chevron's earnings per share were $2.18, exceeding the Zacks Consensus Estimate of $2.15, but down from $2.93 year-over-year. Revenue decreased by 2% year-over-year to $47.6 billion, missing the consensus mark of $48.7 billion [3] ETFs in Focus - **Energy Select Sector SPDR (XLE)**: The largest energy ETF with $26.3 billion in assets under management (AUM) and an average daily volume of 24 million shares. It holds 23 securities, with Exxon and Chevron at 23.7% and 15.1% allocations, respectively [4] - **Vanguard Energy ETF (VDE)**: Tracks 112 energy stocks with $6.6 billion in AUM and an average volume of 730,000 shares. Exxon and Chevron have allocations of 23.8% and 14.1%, respectively [6] - **iShares U.S. Energy ETF (IYE)**: Tracks the Russell 1000 Energy Index, holding 41 stocks with Exxon and Chevron at 23.1% and 14.1% allocations, respectively. It has $1.1 billion in AUM and an average daily volume of 735,000 shares [7][8] - **Fidelity MSCI Energy Index ETF (FENY)**: Follows the MSCI USA IMI Energy Index, holding 110 stocks with Exxon and Chevron at 23.7% and 14.1% allocations, respectively. It has $1.3 billion in AUM and trades around 2 million shares daily [9][10] - **Strive U.S. Energy ETF (DRLL)**: Seeks broad market exposure to the U.S. energy sector, holding 41 stocks with Exxon and Chevron at 24.3% and 20.7% allocations, respectively. It has $256 million in AUM and an average daily volume of 53,000 shares [11]