Trump administration eases greenhouse gas regulations; related energy stocks may benefit

2026-02-22 07:45:20

The Trump administration recently eased greenhouse gas emission restrictions, improving the regulatory environment for the energy industry. As global integrated energy giants, ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) cover the entire value chain from oil and gas production, transportation, to refining, with diversified businesses effectively hedging industry fluctuations.

Both companies possess significant financial advantages, being among the lowest debt-to-equity ratio in the industry, and they can maintain operations and dividend payments during industry downturns through borrowing. Notably, they have achieved consecutive annual dividend increases for over 30 years. Currently, ExxonMobil’s dividend yield is 2.8%, and Chevron’s is 3.9%, both above market levels.

While regulatory relaxation benefits the entire industry, diversified giants may benefit more moderately compared to more focused companies. Due to potential regulatory reversals, ExxonMobil and Chevron, with their comprehensive layouts and solid financials, are better positioned for long-term resilience. In the context of energy transition and policy fluctuations, their stable income and risk resistance still hold investment value.

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