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Here Are 2 Energy Stock-Buying Strategies To Employ During the Iran Conflict
The Motley Fool· 2026-03-23 06:47
Core Viewpoint - Oil prices have experienced significant volatility due to the ongoing conflict with Iran, with Brent oil prices fluctuating from around $60 to nearly $120 per barrel, and currently below $110 [1] Group 1: Investment Strategies - Investors are advised to consider oil stocks that can perform well regardless of oil price fluctuations, such as ExxonMobil, which is focusing on profitability and cost savings to grow its earnings capacity by $25 billion and cash flow by $35 billion by 2030 [3] - ExxonMobil's strategy is projected to generate $145 billion in surplus cash at a Brent oil price of $65, allowing for continued dividend growth and share repurchases [3] - Another strategy involves investing in pipeline stocks like Kinder Morgan, which has limited direct exposure to commodity prices, generating stable cash flow primarily from long-term contracts [5][6] Group 2: Company Profiles - ExxonMobil (XOM) has a market cap of $665 billion, with a current price of $159.66 and a dividend yield of 2.53% [4][5] - Kinder Morgan (KMI) has a market cap of $73 billion, with a current price of $32.94 and a dividend yield of 3.56%, deriving 70% of its cash flow from take-or-pay contracts [6][7]