To The Moon

💬 Let’s Discuss: Which energy sector are you bullish on right now—oil or LNG? Share your top picks amid the Strait of Hormuz tensions!

The sudden upheaval in the Strait of Hormuz has not only brought global oil prices close to the $100 mark but also triggered a repricing of “safety” and “scarcity” in the energy market. Amid this geopolitical game, the outlines of the winners have become clear: one group consists of U.S. onshore oil and gas giants that can avoid supply disruptions and reap the dividends of rising oil prices; the other includes industry leaders reshaping the global energy trade pattern and benefiting from the structural shortage of liquefied natural gas (LNG).

Below are 3 selected oil stocks and 3 LNG stocks. Whether due to geographical advantages or industry barriers, they have demonstrated unique investment value in the current situation.

Oil Sector: Onshore Advantages and Oil Price Dividends

When overseas supply becomes unreliable, U.S. oil companies with stable domestic resources become natural safe havens. They not only directly benefit from rising oil prices but also gain opportunities for valuation revaluation due to the strategic safety of their assets.

1. $Chevron(CVX)$: A Giant with Resilience and Returns

As a global oil and gas giant, Chevron’s advantage in a volatile environment lies in its diversified operations and financial stability. Analyst Salisbury pointed out that Chevron is expected to benefit from its existing layout in Venezuela, and the expansion plan of local operations provides the company with additional growth options. More importantly, the 3.6% dividend yield offers a solid return buffer for investors seeking certainty currently. Bank of America rates the stock a “Buy” with a target price of $206.

2. $SLB Ltd(SLB)$: A Tech Moat in International Oilfield Services

When energy security becomes a top priority, maintaining and expanding oil and gas production in domestic and friendly regions has become a consensus among countries. As a leading global oilfield services company, SLB is at the forefront of the industry in international and offshore oilfield services. Analyst Saurabh Pant believes that although the U.S. shale market is recovering, SLB’s medium-term growth engine will come from the international market. Emerging businesses such as digitalization and data center solutions have also added new appeal to traditional energy investments. Bank of America’s target price is $55.

3. $Devon(DVN)$: An Integrator with Scale Effects

Among independent U.S. onshore oil and gas producers, Devon Energy is seeking stronger pricing power through integration. Once its merger plan with Coterra Energy is completed, it will become one of the largest oil and gas exploration and production companies in the United States. Analyst Kalei Akamine believes that this scale advantage is expected to drive an upgrade in the company’s stock rating. Against the backdrop of tight supply, larger independent producers have more advantages in accessing capital and locking in profits. Bank of America rates the stock a “Buy” with a target price of $46.

LNG Sector: Strategic Assets Reshaping Global Gas Flows

With crude oil transportation hindered, the situation for natural gas is even more severe—because 20% of global LNG trade flows through the Strait of Hormuz, a proportion that is particularly critical for the Asian market. This has directly triggered a revaluation of the LNG value chain, from production facilities to transport ships, all of which have become scarce resources.

1. $Cheniere(LNG)$: A Stable Premium for the Global Leader

As the largest LNG producer in the United States and the second-largest in the world, Cheniere Energy is an unavoidable name in any LNG investment discussion. Its two major export facilities in Louisiana and Texas are the heart of U.S. energy exports. Although approximately 90% of the company’s output is locked in by long-term contracts, limiting its extreme flexibility in the spot market, this also means stable, visible cash flow and strong risk resistance. The remaining 10% exposure is sufficient for the company to obtain excess profits in the current high-price environment.

2. $Venture Global, Inc.(VG)$: A Latecomer with Expansion Momentum

If Cheniere represents stability, then Venture Global represents growth and flexibility. The company recently made a Final Investment Decision (FID) for the second phase of its Louisiana project and secured over $8 billion in financing, with a total financing amount of $20.7 billion. Analysts expect this move to make the company surpass Cheniere and become the largest LNG exporter in the United States. Large-scale new capacity, especially commissioning in the current high-price environment, means enormous potential for future profit growth.

3. $FLEX LNG ORD(FLNG)$: The “Shovel Seller” of Maritime Transportation

While everyone is focusing on the gas itself, the bottleneck in the transportation link cannot be ignored. Since natural gas needs to be cooled to minus 162 degrees Celsius for transportation, specialized LNG carriers are an indispensable but supply-constrained link in global trade. Flex LNG operates a relatively young and modern fleet, and most of its ships have long-term leases signed. As analyst Vince Stanzione put it, this makes the stock a “defensive, high-dividend” LNG shipping target. The approximately 10% dividend yield is highly attractive in a volatile market, while a small exposure to the spot market retains performance flexibility.

In summary, whether it is oil producers rooted in the domestic market or LNG companies controlling core logistics links, they have built a unique “supply security” barrier amid the current energy crisis. For investors, this may be the key to hedging macro risks and deploying in the energy transformation.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.

Click to access the activity

Other helpful links:

• 💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉

• How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.