Published on 9 May 2024 on Zacks via Yahoo Finance

3 Stocks to Buy From the Promising Integrated US Energy Industry

Despite the volatilities and uncertainties affecting the energy market, upstream businesses benefit from highly favorable oil prices. Additionally, integrated energy players' midstream operations remain robust due to steady fee-based revenues derived from pipeline and storage assets, thereby improving the prospects for the Zacks Oil & Gas US Integrated industry.Leading contenders in the industry poised to capitalize on this favorable business environment include ConocoPhillips COP, Marathon Oil Corporation MRO and Berry Corporation BRY.

About the Industry

The Zacks Oil & Gas US Integrated industry comprises companies primarily involved in upstream and midstream energy businesses. The upstream operations entail oil and natural gas exploration and production in the prolific shale plays of the United States. The integrated energy companies are also engaged in midstream businesses through gathering and processing facilities along with transportation pipeline networks and storage sites. Overall, the upstream business is positively correlated to oil and gas prices. The produced commodity volumes are transported through midstream assets, generating stable fee-based revenues. The integrated energy players in the United States also have access to downstream operations wherein the transported oil volumes are converted to finished products, comprising gasoline, natural gas liquids and diesel, through refining activities.