Energy Stocks to Watch Despite Gloomy Oil Outlook

Oil prices are expected to struggle in 2026 due to excess supply, with the US Energy Information Administration projecting an average crude oil price of $55 per barrel for Q1. This could negatively impact oil and gas stocks in the short term. However, investors looking for value plays may consider lesser-known energy sector names like Expand Energy Corp. (NASDAQ: EXE), Mach Natural Resources LP (NYSE: MNR), and Southwestern Energy Co. (NYSE: SWN) with caution. These companies have underperformed the market YTD but have strong potential for growth in the long term.