Crude oil prices show little sign of slowing their ascent (and probably won’t), meaning it’s a great time to consider energy stocks. Yeah, it may not align with contemporary politics and ideologies of pushing green solutions. However, the hydrocarbon industry aligns with reality. That’s the most important consideration.

On the domestic political front, President Joe Biden is simply not popular. Therefore, I doubt that he can adopt a draconian approach to the hydrocarbon industry. That’s one reason why crude oil prices may rise. On the international front, geopolitical flashpoints will likely reduce supplies for western nations. That’s coming in a time of heightened demand, which could bode well for energy stocks.

Finally, the fallout in electric vehicle demand suggests that this mobility platform is still too expensive for most Americans. So, hydrocarbons will likely be relevant for longer than expected. Again, it’s a great time to consider the below energy stocks.

Chevron (CVX)

Chevron (CVX) logo on gas station sign with

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As an integrated hydrocarbon giant, Chevron (NYSE:CVX) is one of the most recognizable names among energy stocks. Further, with crude oil prices projected to rise, it’s one of the top ideas to add to your portfolio. Analysts rate shares a consensus strong buy with a $181.87 average price target, implying over 14% upside potential. The high-side target lands at $203.

To be fair, analysts at the moment don’t see much happening for the next two years. For fiscal 2024, they’re projecting earnings per share to reach $12.05. That’s lower than last year’s print of $12.22. That said, for fiscal 2025, they’re looking at $13.56.

On the top line, covering experts anticipate revenue to hit $183.84 billion. If so, that would mean a loss of 1.7% from last year’s tally of $187.07 billion. And in fiscal 2025, sales might reach $183.88 billion, which is just not that remarkable.

However, because of the shifting fundamentals – particularly the possible fading of relevance of the EV sector – CVX is worth consideration.

Occidental Petroleum (OXY)

Person holding cellphone with logo of American company Occidental Petroleum Corp. (OXY) on screen in front of website. Focus on phone display. Unmodified photo.

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Based in Houston, Texas, Occidental Petroleum (NYSE:OXY) operates under the exploration and production segment or the upstream component of the hydrocarbon value chain. It’s one of the top energy stocks to buy for diverse exposure to the underlying industry. In addition to its upstream business, it also features a midstream and marketing (downstream) unit.

Presently, Wall Street analysts peg OXY a consensus moderate buy. For full disclosure, the average price target sits at $68.71. That’s basically where the price of OXY stock trades now. However, the high-side target calls for $80.

For the current fiscal year, analysts are looking for EPS of $3.66. Admittedly, that’s a disappointing projection from last year’s print of $3.69. However, it must be stated that the most optimistic target calls for an EPS of $5.39.

On the top line, sales are projected to hit $30.05 billion. That’s up 3.9% from last year. Also, with the fundamentals so favorable for energy stocks, the high-side sales target of $32.15 billion isn’t unreasonable.

Kinder Morgan (KMI)

Kinder Morgan logo on a sign outside the company headquarters in Houston.

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One of the top energy stocks listed under the oil and gas midstream sector, Kinder Morgan (NYSE:KMI) arguably represents a no-brainer investment. While EVs have seen accelerated sales over the past several years, the world continues to run on oil. And that’s because most drivers continue to drive combustion-powered vehicles for a variety of reasons. So, midstream services like storage and transportation will likely blossom.

Currently, analysts rate shares a consensus moderate buy. That’s not surprising given the fundamental relevance. Also, the average price target comes in at $20, implying over 10% upside potential. I think this might be understated, though the high-side target is $22. That implies over 21% upside, which is more reasonable in my opinion.

For fiscal 2024, covering experts believe EPS will hit $1.22. Notably, that’s an improvement over last year’s print of $1.06. On the top line, they’re looking for sales of $17.72 billion. That’s a very solid gain of 16.9% over last year’s haul of $15.16 billion. And for fiscal 2025, revenue could fly to $18.38 billion.

Overall, with crude oil prices rising, KMI is a great buy for forward-thinking investors.

Marathon Petroleum (MPC)

Marathon Oil gas station carport on sunny day with blue sky background

Source: Jonathan Weiss/shutterstock.com

Headquartered in Findlay, Ohio, Marathon Petroleum (NYSE:MPC) operates under the oil and gas refining and marketing segment. As a downstream specialist, Marathon stands to benefit from a cynical reality. No matter what happens in the economy, people need to move about. Since most transportation and mobility occurs via combustion power, MPC could swing higher. That’s really the bullish case for most hydrocarbon energy stocks.

Analysts agree, rating MPC stock a consensus moderate buy. However, shares have already gained 37% on a year-to-date basis. Therefore, the average price target of $196.21 reflects 6% downside risk. In my opinion, that just means the experts need to reassess their targets based on present and projected realities. Notably, though, the high-side estimate calls for a price per share of $249.

For the current fiscal year, analysts are seeking EPS of $17.69. That’s low compared to last year’s print of $23.63. Even the most optimistic target here calls for $23.45 EPS. And circumstances don’t improve on the top line, with projected sales of $138.4 billion implying an 8% decline from last year.

However, the high-side revenue target stands at $160 billion. That might be more reflective of the current paradigm in energy stocks.

VAALCO Energy (EGY)

EGY Stock

Moving over to the speculative side of investment ideas for rising crude oil prices, VAALCO Energy (NYSE:EGY) is an independent energy firm. It focuses on the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids. Given the geopolitical flashpoints and the implied reduction of critical commodity supplies, EGY stock could see significant demand.

To be sure, the market has already responded, with shares up nearly 54% YTD. However, crude prices may continue running up as geopolitical flashpoints and tensions throughout the world show no sign of abating. Therefore, analysts rate EGY a unanimous strong buy with an $8.20 average price target. That implies 17% upside potential. Further, the high-side target calls for $9.07.

For the current fiscal year, experts are anticipating EPS of $1. If so, that would be a significant bump up from last year’s EPS of 62 cents. However, the forecasted revenue of $430.27 million would be down 5.4% from 2023’s print of $455.07 million.

However, the current realities of energy stocks imply that the high-side target of $484.3 million is within the realm of possibility.

Transocean (RIG)

Transocean logo on a laptop screen. RIG stock.

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A Switzerland-based enterprise, Transocean (NYSE:RIG) along with its subsidiaries provides offshore contract drilling services for oil and gas wells worldwide. Per its public profile, Transocean contracts mobile offshore drilling rigs, related equipment and work crews to drill oil and gas wells. Again, with military conflict likely to crimp supplies of critical commodities, RIG is one of the energy stocks to watch.

To be fair, RIG is also one of the riskiest ideas to exploit rising crude oil prices. Right now, analysts peg shares a consensus hold. Within the assessment among eight experts, there’s one sell rating which isn’t particularly encouraging. However, the average price target stands at $7.64, which implies growth potential of nearly 24%.

Still, for speculators, Transocean deserves to be on your radar. For fiscal 2024, analysts project a loss per share of four cents, a major improvement over last year’s loss of 96 cents. On the revenue front, the company could ring up $3.64 billion, up 28.4% from 2023’s result of $3.8 billion. Further, fiscal 2025 sales could hit $4.03 billion, nearly 11% higher than projected 2024 revenue.

Halliburton (HAL)

The Halliburton (HAL) logo on the website homepage. HAL stock price prediction.

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Based in Houston, Texas, Halliburton (NYSE:HAL) provides products and services to the energy industry worldwide. It operates through two segments: Completion and Production and Drilling and Evaluation. As an equipment and services specialist, Halliburton offers myriad relevancies to energy stocks overall. So, it stands to be a beneficiary should crude oil prices continue to rise.

What’s more, analysts rate shares a unanimous strong buy. And that’s among 14 experts, which is quite impressive. Overall, the average price target clocks in at $47.36, implying over 19% upside potential. However, the high-side estimate calls for a price per share of $54.

For the current fiscal year, covering experts are looking for EPS to land at $3.41. If so, that would be a notable bump up from last year’s EPS of $3.13. For fiscal 2025, the bottom line could expand to earnings of $3.92 per share.

On the top line, revenue might reach $24.27 billion. That would be 5.4% above last year’s tally of $23.02 billion. And fiscal 2025 could jump up to $26.12 billion or 7.6% above projected 2024 revenue.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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