Energy sector

About the Energy sector

The energy sector covers companies that explore for, produce, refine, transport and sell oil, natural gas and coal, along with the firms that provide equipment and services to them.

Earnings follow commodity prices closely, so results can swing widely from one year to the next. Integrated oil and gas companies combine production with refining and distribution, which smooths part of the cycle, and many return a large share of their cash flow to shareholders through dividends and buybacks.