2 Energy Stocks to Load Up on in the Second Half of 2026

The prices of oil and natural gas have been in the news lately, thanks to the geopolitical conflict in the Middle East. When the conflict started, energy prices rose. Now that the conflict seems to be nearing an end, energy prices have fallen back to pre-conflict levels.

The really big lesson here isn't that oil and natural gas prices are volatile, but that energy is vital to the world's normal functioning. Which is why you should consider buying Chevron (NYSE: CVX) and/or Enterprise Products Partners (NYSE: EPD) in the second half of 2026.

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Chevron gives you exposure to the entire industry

Given the world's reliance on energy, most investors should have some exposure to it. Chevron is a solid choice because it is one of the world's largest energy companies. It is also one of the world's most diversified energy companies, with a global portfolio of assets and exposure across the entire energy value chain. Basically, it can put money to work wherever management believes it will produce the highest returns.

On top of that, Chevron is also run conservatively. That shows up on the balance sheet, given the company's low debt-to-equity ratio of 0.25x. And it shows up in the dividend, which has been increased for decades despite the inherent volatility of the energy sector. On top of that, the dividend yield is an attractive 4.2% right now. For most investors, Chevron is a good choice in the energy patch.

Enterprise is better for conservative income investors

That said, Chevron's business will wax and wane along with oil prices. There's no way around that for an oil-producing company. If you don't want to take on that commodity risk but still want energy exposure, you should consider Enterprise Products Partners. The master limited partnership (MLP) is one of the largest midstream operators in North America.

Midstream businesses own the energy infrastructure assets that help to move oil and natural gas around the world. They charge fees for the use of their assets, so energy demand is more important than oil and gas prices. Demand tends to remain strong most of the time, so Enterprise generates reliable cash flows to cover its lofty 6% yield. The distribution has increased every year since the MLP became public.

Don't focus on energy prices; focus on the business

Energy prices go up and down. In fact, Chevron and other large energy companies have been warning that oil prices don't accurately reflect current industry fundamentals. That suggests oil prices may rise again when investor emotions cool and industry fundamentals once more become important. That could make now a good time to buy Chevron.

But the truth is, Chevron is usually a good way to get exposure to the energy sector. Unless, of course, you don't want to take on commodity risk. In that case, high-yield Enterprise will probably be a better choice.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.