Core Insights - The energy sector faced significant challenges in 2025, with oil prices under pressure due to oversupply concerns, leading to a stagnant performance compared to broader equity markets [1][3] - Despite the struggles, growth stocks in the energy sector, such as Cenovus Energy, TechnipFMC, and Valero Energy, are gaining attention as potential investment opportunities as the market transitions into 2026 [2][12] Energy Sector's Performance - The Oil/Energy sector delivered only 7% returns in 2025, while the S&P 500 surged by 20%, indicating a stark contrast in performance [3] - Crude oil prices fell to around $60 per barrel, over 20% lower than the beginning of the year, reflecting a supply-demand mismatch [3] Importance of Growth Stocks - Growth stocks in the energy sector focus on expanding volumes and improving efficiency rather than solely relying on commodity price cycles [5] - These companies are positioned for long-term gains through innovation and strategic investments in clean energy and advanced technologies [5][10] Potential for Upside Surprises - Growth stocks can outperform expectations, with even modest improvements in financial metrics leading to significant stock performance [6] - Investors looking beyond short-term volatility may find that growth stories develop quietly before gaining broader market recognition [6] Opportunities from Underperformance - Historical trends show that prolonged underperformance in energy stocks can lead to opportunities as weaker players exit the market, improving the competitive landscape for stronger companies [9] - Low prices can accelerate market rebalancing, leading to production cuts and tighter fundamentals, which may create attractive entry points for growth-focused investors [10] Growth Prospects for 2026 - The energy landscape heading into 2026 is nuanced, with expected subdued oil prices but growing demand for natural gas, LNG infrastructure, and efficiency-driven technologies [11] - Companies like Cenovus Energy, TechnipFMC, and Valero Energy are highlighted as having growth drivers tied to structural shifts in energy production and consumption [12] Company-Specific Insights - **Cenovus Energy**: Focuses on low-cost oil sands and refining assets, with a disciplined growth strategy and a Zacks Rank of 1, indicating strong potential for earnings growth [15][17] - **TechnipFMC**: A global provider of subsea and surface technologies, positioned for steady growth with a Zacks Rank of 2 and a focus on energy transition goals [18][20] - **Valero Energy**: One of the largest independent refiners, with a significant renewables footprint and a projected earnings growth of 25.1% for 2026, holding a Zacks Rank of 2 [21][23]

Core Insights - Par Pacific has entered a joint venture with Mitsubishi Corp. and Eneos to produce renewable fuels at its Kapolei refinery, acquiring a 36.5% equity stake for $100 million [3][4] - The new facility is expected to produce approximately 61 million gallons per year of renewable diesel, sustainable aviation fuel, renewable naphtha, and low carbon liquefied petroleum gases, with completion anticipated by the end of 2025 [6] - Par Pacific's retail operations have seen significant growth, with a nearly $10 million increase in operating income for fiscal 2024 and over 20% year-over-year gains in the second quarter [4][5] Company Developments - The joint venture, named Alohi Renewable Energy, LLC, will allow Par Pacific to lead operations while retaining the majority interest [3] - The initiative aims to reduce greenhouse gas emissions and provide reliable fuels to consumers in Hawaii [4] - Par Pacific operates around 89 convenience store locations in Hawaii and approximately 30 more in Idaho and Washington, under various banners [4] Financial Performance - The retail division's success is attributed to strong fuel margins and reduced operating costs [5] - The company has positioned itself as a notable player in the convenience store industry, with its retail arm being recognized as a quieter success story [6]

Core Viewpoint - Plug Power is positioning itself as a leader in the hydrogen economy, focusing on expanding its integrated ecosystem and securing significant projects to drive growth and profitability in the coming years [1][16]. Expansion of Hydrogen Economy - Plug Power has expanded its partnership with Allied Green Ammonia, securing a deal to supply 2 gigawatts (GWs) of proton exchange membrane (PEM) electrolyzers for a $5.5 billion sustainable fuels project in Uzbekistan [3][4]. - This project aims to produce sustainable aviation fuel, green urea, and green diesel, with government backing from Uzbekistan [3]. Project Developments - The collaboration with Allied Green continues from a previous commitment to supply 3 GWs of electrolyzers for a green ammonia facility in Australia [4]. - A final investment decision (FID) for the Australian project is expected in Q4 2023, later than the initial Q2 expectation, with manufacturing and delivery of PEM electrolyzers planned for 2027 [5]. Growth Targets - Plug Power is targeting a 30% compound annual growth rate in its energy business and applications business through 2030, driven by its electrolyzer and cryogenic solutions [7]. - The company anticipates 2025 to be a transformational year, aiming for a positive gross margin run rate and significant annual savings through its Project Quantum Leap [8]. Financial Challenges - The company has faced challenges in financing its operations, with net cash used in operating activities amounting to $728.6 million in 2022, $1.1 billion in 2023, and $828.6 million in the previous year [10]. - To fund operations, Plug Power has raised capital through issuing new stock, leading to a significant increase in outstanding shares and a decline in stock price by over 90% in the past three years [11][13]. Funding and Future Outlook - Plug Power has raised $280 million by selling over 185 million shares and secured a $525 million credit facility, along with a $1.66 billion loan guarantee from the U.S. Department of Energy [14]. - Despite these efforts, the company does not expect to reach profitability until 2028, raising concerns about potential future dilutive equity issuances [15].

Core Viewpoint - Calumet, Inc. is undergoing a governance transition with the nomination of Julio Quintana and Karen Narwold for election to the Board of Directors, following the retirement of Jim Carter and Dan Sheets after their terms end at the 2025 Annual Meeting [1][2][3] Group 1: Board Changes - Jim Carter and Dan Sheets will not seek re-election and will retire at the end of their terms, marking a significant transition for the Board [2] - The Board collaborated with Spencer Stuart and Wasserstein Debt Opportunities to identify qualified independent director candidates [2][3] Group 2: Contributions and Achievements - The outgoing directors contributed to key milestones, including the transition to a C-Corporation, the establishment of Montana Renewables, and securing a $1.4 billion Department of Energy loan [3] - The Board's efforts have laid the groundwork for Calumet's next phase, focusing on deleveraging, cash flow growth, and expanding Montana Renewables into a leading producer of sustainable aviation fuel [3] Group 3: New Board Nominees - Julio Quintana has extensive experience in the oil and gas sector, having served as President and CEO of Tesco Corporation and held various roles at Schlumberger and Unocal Corporation [4][5] - Karen Narwold has a strong background in corporate governance, having served as Executive Vice President and General Counsel at Albemarle Corporation, and holds leadership roles in other companies [6][8] Group 4: Company Overview - Calumet, Inc. manufactures and markets a diverse range of specialty branded products and renewable fuels, operating twelve facilities across North America [9]