The Energy Disconnect: High Oil, Low Valuations, Big Upside?

Market disconnect: Oil supply is disrupted and prices are high, yet energy stocks barely moved.

Valuation gap: Energy trades at a large discount to the S&P 500 despite rising earnings expectations.

Capital discipline: Producers aren’t repeating past boom‑and‑bust cycles; spending remains restrained.

Cash generation: High prices + low capex = surging free cash flow across the sector.

Structural support: Supply recovery will be slow, and governments still need to refill reserves.

Investor takeaway: Energy remains one of the few sectors with cheap valuations and improving fundamentals.

U.S. Majors / Large‑Cap Upstream

XOM, CVX, COP

U.S. Shale Leaders

EOG, PXD, FANG, DVN, MRO

Global Integrated Majors

SHEL, TTE, BP

Refiners

VLO, MPC, PSX

Oilfield Services

SLB, HAL, BKR

Canadian Oil Sands

SU, CNQ, CVE

-Chart from WSJ