Energy Stocks Caught in Whipsaw Between Oil Prices and Treasury Yields
Energy stocks have been caught in a tug-of-war between surging oil prices and whipsaw moves in Treasury yields. This volatile mix has led to sharp swings that can punish or reward investors within a single session.
SIMPLY WALL STREET took a closer look at three large-cap producers: NOV, Viper Energy, and Saipem. These companies are directly exposed to the fresh macro shocks affecting the energy sector.
NOV provides equipment, systems, and services that help oil and gas producers drill wells and keep production flowing globally. The company generates about US$5.0 billion from energy equipment and US$3.8 billion from energy products and services. NOV is poised to benefit from higher crude prices as they pull more drilling budgets back into the system.
Viper Energy owns mineral and royalty interests in Permian Basin oil and gas acreage, collecting production-linked payments without funding drilling. The company reports about US$1.9 billion from acquiring oil and natural gas properties in the United States. Viper Energy's royalties rise or fall with Permian production and crude pricing.
Saipem builds and services large offshore and onshore energy projects worldwide, tying its fortunes closely to global oil and gas spending. The company generates about €12.5 billion from asset-based services, €6.2 billion from energy carriers, and €1.3 billion from offshore drilling. Saipem's future revenues are under material pressure due to the accelerating move away from fossil fuels and stricter climate policies.