Three Energy Stocks ETF Investors Should Watch for 2026

The energy sector delivered modest returns throughout 2025, with energy stocks in the S&P 500 gaining roughly 4% versus the broader market’s 18% advance. Oil prices remained pressured, creating headwinds for many traditional energy producers. Yet despite this muted performance, energy remains fundamental to global economic activity, and several well-positioned companies are generating outsized cash flows that support growing dividends.

For investors seeking exposure to energy through individual stocks or considering energy positions alongside ETF holdings, here are three energy stocks worth evaluating—companies positioned to deliver meaningful returns over the next several years through a combination of rising cash generation and disciplined capital allocation.

ConocoPhillips: Oil and Gas Producer Entering Its Growth Phase

ConocoPhillips stands out among oil and gas producers for maintaining one of the deepest and most cost-efficient operating portfolios in the sector. The company operates profitably even when crude settles in the mid-$40 range, with dividend support requiring roughly $50 per barrel. With oil currently trading in the low $60s, ConocoPhillips generates substantial surplus cash flow—the company produced $6.1 billion in free cash flow during the first nine months of 2025.

The company’s cash generation capability is set to expand meaningfully. Three large-scale liquefied natural gas projects and the Willow oil project in Alaska are progressing toward completion by decade-end. Management expects these initiatives to add an incremental $6 billion in annual free cash flow by 2029, assuming a $60 oil price environment. This represents substantial growth for an already cash-generative business.

That expanding cash flow provides fuel for ConocoPhillips to accelerate shareholder returns. The company recently increased its dividend payout by 8% and targets dividend growth ranking in the top decile of S&P 500 constituents. Additionally, ConocoPhillips continues to repurchase shares opportunistically. This dual approach—rising dividends coupled with buyback activity—could drive robust total returns for investors positioned for the long term.

Oneok: Midstream Business Expanding Through Strategic Integration

Oneok operates as one of America’s largest energy midstream companies, benefiting from stable, regulated cash flows backed by long-term customer contracts. The company’s current dividend yield of 5.6% reflects this cash generation strength.

Oneok’s growth trajectory accelerated through a series of transformational acquisitions. The 2023 acquisition of Magellan Midstream Partners expanded the company’s footprint into crude oil and refined product infrastructure. Building on that, Oneok acquired Medallion Midstream and a controlling interest in EnLink for $5.9 billion in 2024, followed by acquisition of the remaining EnLink stake for $4.3 billion in 2025. These consolidation moves position Oneok to realize hundreds of millions in cost synergies over coming years.

Beyond acquisitions, Oneok is advancing organic expansion projects, including the Texas City Logistics Export Terminal and the Eiger Express Pipeline. These projects are expected to commence commercial operations by mid-2028, adding incremental revenue streams. The combination of merger synergies and organic growth should support 3-4% annual dividend increases, a compelling proposition for income-focused investors seeking energy stock exposure.

NextEra Energy: Utility Investing Heavily to Support Growing Power Demand

NextEra Energy operates as a diversified energy infrastructure company combining a regulated utility with a renewable energy development platform. Florida-based utility operations generate steadily increasing regulated earnings, while the energy resources division benefits from long-term contracts supporting its growing asset base.

The company is positioned to capitalize on rising U.S. power demand. NextEra’s Florida utility plans to invest upwards of $100 billion through 2032 to support the state’s energy requirements. Meanwhile, the energy resources platform is deploying billions into electricity transmission infrastructure, gas pipeline expansion, and renewable energy development. These investments should drive earnings-per-share growth exceeding 8% annually through 2035.

Such earnings momentum supports NextEra’s dividend growth trajectory. The company intends to increase its payout by 10% in the coming year, with further increases at a 6% compound annual rate through at least 2028. The combination of earnings expansion and rising dividend distributions positions NextEra Energy to generate compelling total returns for investors maintaining a multi-year investment horizon.

Evaluating Energy Stocks as Part of a Diversified Portfolio

ConocoPhillips, Oneok, and NextEra Energy each demonstrate distinct competitive advantages: a traditional producer capturing cost efficiencies, a midstream consolidator realizing synergies, and a utility-led infrastructure developer investing for the future. All three maintain clear visibility into revenue and cash flow growth, supporting confident dividend policies.

These companies collectively illustrate why energy stocks merit consideration within diversified investment portfolios. The sector’s fundamental role in powering economic activity, combined with these companies’ disciplined capital allocation and commitment to shareholder returns, positions them as potential sources of consistent returns regardless of broader market conditions.

Investors evaluating energy stocks for their portfolios—whether considering direct positions or energy-focused ETF allocations—should evaluate these companies based on their individual risk tolerance and time horizon. The energy sector’s long-term demand fundamentals remain robust, and these three companies are well-positioned to benefit from that secular tailwind.