3 Top Energy Stocks to Buy in 2025

Chevron - Chevron has a strong balance sheet with a debt-to-equity ratio of 0.2, providing flexibility to leverage during energy downturns [1] - The company offers an attractive 4.5% dividend yield, making it a compelling investment [1] - Chevron has a 37-year streak of annual dividend increases, showcasing its reliability [13] - As an integrated energy company, Chevron operates across upstream, midstream, and downstream sectors, which helps mitigate industry volatility [8] Enterprise Products Partners - Enterprise Products Partners had a solid year in 2024, with a 5% growth in distributable cash flow in Q3 and a 5% increase in distribution payments [14] - The company has several organic expansion projects expected to enter commercial service in 2025, driving cash flow growth [2] - The acquisition of Pinon Midstream for $950 million is expected to add$0.03 per unit in 2025, with further upside potential [3] - The company’s distribution yield is 6.8%, significantly higher than the S&P 500 average of 1.2% [9] Occidental Petroleum - Occidental Petroleum has sufficient cash to repay debt maturing in 2025 and aims to further reduce debt even in a low-oil price environment [5] - The company has already achieved 90% of its $4.5 billion debt reduction target within three months of the CrownRock acquisition, driven by strong Q3 cash flow [16] - CrownRock’s assets in the Permian Basin are contributing to Occidental’s production and cash flows [11] - Occidental’s low-carbon ventures and OxyChem businesses are additional growth catalysts [11] Energy Sector Overview - Energy stocks in the S&P 500 underperformed in 2025, with the Energy Select Sector SPDR Fund up only 1%, compared to the S&P 500’s 25% rally [6] - Occidental Petroleum was one of the largest underperformers in 2024, losing 19% of its value, partly due to debt from the CrownRock acquisition [10] - Chevron, Enterprise Products Partners, and Occidental Petroleum are expected to deliver strong performances in 2025 [12]