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Oil & Gas Value Stocks: 10 Picks for 2026

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  Published in Stocks and Investing on Sunday, January 18th 2026 at 4:48 GMT
      Locale: UNITED STATES, UNITED ARAB EMIRATES, CANADA, UNITED KINGDOM, SAUDI ARABIA

Please read the disclaimer at the end of this article; this is not financial advice.

Understanding the Landscape & Investment Considerations

Before diving into the specific stocks, it's crucial to acknowledge the headwinds facing the oil and gas industry. The ongoing push for decarbonization, increasing environmental regulations, and the emergence of alternative energy sources all pose challenges. Successful companies must demonstrate adaptability, innovation, and a commitment to both operational efficiency and sustainable practices.

Several factors are driving current market conditions. Geopolitical tensions, especially regarding access to resources, continue to influence price fluctuations. Advances in extraction technology, particularly in shale production, have expanded supply but also increased price sensitivity. Finally, investor sentiment toward traditional energy companies remains a significant variable.

The Value Picks: A Closer Look

Here's an examination of ten companies that, as of early 2026, present a compelling case for value investing in the oil and gas sector:

1. Chesapeake Energy (CHK): Having undergone significant restructuring following past financial difficulties, Chesapeake remains a dominant player in U.S. natural gas production. The company's reduced debt load and renewed focus on operational efficiency suggest potential for improved profitability. However, continued monitoring of gas prices is essential.
2. EQT Corporation (EQT): As the largest natural gas producer in the U.S., EQT's shale production capabilities provide a strong revenue stream. A relatively low price-to-book ratio indicates potential undervaluation, but investors must consider the company's ongoing operational challenges and environmental liabilities.
3. Devon Energy (DVN): Devon's diversified asset base and commitment to shareholder returns make it an attractive option. Their ability to adapt to changing market conditions and leverage technological advancements will be crucial for continued success.
4. Occidental Petroleum (OXY): With a global footprint, Occidental benefits from a diversified portfolio of oil and gas assets. Their ongoing investments in enhanced oil recovery techniques and strategic acquisitions could drive future growth.
5. Marathon Petroleum (MPC): As an integrated downstream company, Marathon's refining and logistics operations provide a degree of insulation from raw material price volatility. Investment in infrastructure and processing capabilities remains a priority.
6. Phillips 66 (PSX): Similar to Marathon, Phillips 66's diversified operations in refining, chemicals, and midstream provide stability. The company's focus on petrochemicals offers a potential avenue for growth beyond traditional oil and gas.
7. ExxonMobil (XOM): A stalwart of the industry, ExxonMobil offers stability and a track record of shareholder returns. While traditionally slower to embrace renewable energy, the company is increasingly investing in carbon capture and other low-emission technologies.
8. ConocoPhillips (COP): Focused on high-return projects, ConocoPhillips' disciplined approach to capital allocation is a positive indicator for long-term value. Geographic diversification mitigates some geopolitical risks.
9. BP (BP): BP's significant investments in renewable energy alongside its core oil and gas business demonstrate a commitment to the energy transition. This dual approach could position the company for long-term sustainability.
10. Chevron (CVX): Chevron's global operations and integrated business model offer stability and scale. The company's investments in technological innovation and exploration efforts are key to maintaining competitiveness.

Looking Ahead: The Evolving Energy Future

The oil and gas sector is entering a period of significant transformation. Companies that can effectively manage the transition to a lower-carbon future - through innovation, strategic partnerships, and a focus on operational excellence - are most likely to thrive. While these ten stocks present potential opportunities, thorough research and a clear understanding of the risks involved are essential for any investment decision. The future energy landscape will require adaptation, resilience, and a long-term perspective.

Disclaimer: Investing in the oil and gas sector carries inherent risks, including price volatility, geopolitical instability, regulatory changes, and environmental concerns. This list is not financial advice and is for informational purposes only. Investors should conduct their own thorough due diligence, consult with a qualified financial advisor, and carefully consider their individual risk tolerance before making any investment decisions. Past performance is not indicative of future results.