Iran Talks Could Shake Oil Prices This Week: 3 Energy Stocks I Wouldn't Hesitate to Buy Amid The Uncertainty.

Iran Talks Could Shake Oil Prices This Week: 3 Energy Stocks I Wouldn't Hesitate to Buy Amid The Uncertainty.
The war with Iran has reached a pivotal moment. President Trump issued an ultimatum late last week that Iran must reopen the Strait of Hormuz within 48 hours, or the U.S. would start destroying the country's power plants. The President extended that deadline by five days on Monday morning following constructive dialogue with Iran over the weekend.
If those talks lead to peace, oil prices could drop significantly. However, a collapse in the talks would likely trigger a reescalation of the conflict, driving oil prices higher. Here are three energy stocks to buy amid the current uncertainty, as they should thrive no matter what happens next.
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Energy Transfer
Energy Transfer (NYSE: ET) is a diversified energy infrastructure company with operations spanning the U.S. It owns pipelines, processing plants, storage facilities, and export terminals that primarily operate under long-term, fixed-rate agreements. Roughly 90% of its earnings come from stable fee-based sources, limiting the impact of commodity price volatility on its earnings.
The master limited partnership (MLP) -- an entity that sends investors a Schedule K-1 Federal tax form each year -- plans to invest over $5 billion in commercially secured growth capital projects this year. That's part of a multi-billion-dollar backlog of projects that should come online through 2030. Most of those projects will support growing natural gas demand, including AI data centers and liquefied natural gas (LNG) export terminals.
Energy Transfer's expansion projects should drive strong earnings growth over the next several years. That supports the MLP's plans to grow its high-yielding distribution (currently 7%) by 3% to 5% per year.
Clearway Energy
Clearway Energy (NYSE: CWEN)(NYSE: CWENA) is one of the country's largest clean power producers. It operates wind, solar, and natural gas assets. The company sells its electricity under long-term, fixed-rate power purchase agreements with utilities and large corporations.
The clean power producer has clear growth visibility through the end of the decade. It has already secured $1 billion of growth investments that will enter commercial service over the next two years. Meanwhile, its parent company, renewable energy developer Clearway Energy Group (CEG), has either already offered or has the projects in its pipeline to support its affiliate's growth in later years. This visibility drives Clearway's outlook that it will grow its cash flow per share at a 7% to 8% annual rate through 2030. Meanwhile, Clearway expects to grow its cash flow per share at a 5% to 8%+ annual rate beyond 2030, powered by additional acquisitions from CEG, fleet enhancements, and third-party deals. As a result, it should have plenty of power to continue increasing its 4.8%-yielding dividend.