U.S. Crude oil prices fell 2.56% on Tuesday, January 21, with U.S. crude closing at $76.89 per barrel. Global benchmark Brent crude also declined, settling at $79.29 per barrel, a decrease of 86 cents or 1.07%. The drop in oil prices came as President Donald Trump, following his inauguration on Monday, announced that his administration was considering imposing 25% tariffs on Canada and Mexico. These tariffs could potentially slow economic growth and, in turn, impact fuel demand.
In addition to the tariff considerations, President Trump signed a series of executive actions aimed at boosting domestic energy production. He declared a national energy emergency, sought to roll back restrictions on offshore drilling that were implemented during the Biden administration, and lifted the pause on new liquified natural gas (LNG) exports. These moves are expected to stimulate the U.S. energy sector by increasing domestic production and easing regulatory constraints.
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In an interview with Yahoo Finance on January 22, Andy Lipow, President at Lipow Oil Associates, discussed the implications of President Trump’s declaration of a national energy emergency and his push for increased oil and gas production in the United States.
Andy Lipow noted that while the Trump Administration’s policy of “drill baby drill” aims to boost domestic oil production, it does not necessarily translate into immediate or significant increases in exploration and production. The decision to invest in new drilling operations, especially in high-cost areas such as the offshore Gulf of Mexico and Alaska, depends on the financial viability and the current price of crude oil. Despite the easing of regulations and the availability of more acreage, oil companies will weigh the potential financial rewards of investing large sums of money to increase production.
Lipow acknowledged that the United States is already at peak oil production, outpacing both Russia and Saudi Arabia. This trend has developed over the past decade, and while the U.S. is expected to set another production record in 2025, the impact on global oil prices is not straightforward. The market is more influenced by the Administration’s policies overseas, such as sanctions on Russian oil exports and Iranian oil production. According to Lipow. the imposition of 25% tariffs on oil imports from Canada and Mexico could divert these supplies elsewhere, potentially raising the cost of gasoline and diesel for U.S. consumers. This is contrary to the Trump Administration’s goal of lowering energy costs. Lipow expressed that the combination of these factors, including sanctions on Russia, Iran, and Venezuela, coupled with slow global oil demand growth, is likely to result in higher prices throughout the year.
Lipow believes that the rollback of executive orders, such as lifting the freeze on new liquefied natural gas (LNG) permits, is seen as positive for U.S. energy production. The recent opening of new LNG export facilities in Louisiana and Corpus Christi, along with several more facilities coming online in the next couple of years, is expected to boost U.S. energy exports.
The Trump administration’s focus on supporting domestic energy production through regulatory rollbacks, increased access to resources, and incentives for new projects is expected to provide much-needed relief for companies currently facing challenges. With that in context, let’s take a look at the 10 worst performing energy stocks in 2024.
A chart showing the trend of the energy sector’s stock prices.
Our Methodology
To compile our list of the 10 worst performing energy stocks in 2024, we used the Finviz and Yahoo stock screeners to find stocks that have experienced the most significant decline over the last year and have a market cap of more than $1 billion as of January 21. We then narrowed our choices to 10 stocks with the worst performance. We also included their market cap and hedge fund sentiment, which was taken from Insider Monkey’s Hedge Fund database of 900 elite hedge funds as of Q3 of 2024. The list is sorted in descending order of their performance as of January 21.
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10 Worst Performing Energy Stocks in 2024
10. Transocean Ltd. (NYSE:RIG)
1-Year Performance as of January 21: -27.09%
Market Cap as of January 21: $3.44 Billion
Number of Hedge Fund Investors: 30
Transocean Ltd. (NYSE:RIG) is an offshore contract drilling company that provides services for oil and gas wells. The company owns and operates one of the largest fleets of ultra-deepwater and harsh-environment drilling rigs. Transocean Ltd.’s (NYSE:RIG) primary clients are oil majors and independent exploration companies seeking to develop resources in challenging environments.
Transocean Ltd.’s (NYSE:RIG) portfolio of assets, includes the only two eighth-generation ultra-deepwater drillships in the world, the Deepwater Atlas and the Deepwater Titan. These state-of-the-art rigs are equipped with cutting-edge technology, including 1,700 short-ton hoisting capability and 20,000-psi well control equipment, making them highly sought after by customers. By leveraging its high-specification fleet, Transocean Ltd. (NYSE:RIG) is well-positioned to capitalize on the growing demand for deepwater and ultra-deepwater drilling services.
Transocean Ltd. (NYSE:RIG) is engaged in active discussions with customers for projects commencing in 2026 and beyond. The company is seeing significant interest in its services, particularly in regions such as the Gulf of Mexico, Africa, and Brazil. In the Gulf of Mexico, Transocean Ltd. (NYSE:RIG) is expecting multiple programs to commence in 2026, with an average duration of around 12 months. Similarly, in Africa and the Mediterranean, the company is anticipating between 10 and 15 programs to start in 2026, driven by development projects in Nigeria, Angola, Ivory Coast, and Ghana. By securing long-term contracts and expanding its presence in these regions, Transocean Ltd. (NYSE:RIG) is confident of achieving sustained growth and increasing its market share. Transocean Ltd. (NYSE:RIG) is also focused on deleveraging its balance sheet and enhancing its financial stability. The company is committed to deploying excess cash to debt repayment, with the goal of reducing its net debt-to-EBITDA ratio to less than 3.5 times.
9. PBF Energy Inc. (NYSE:PBF)
1-Year Performance as of January 21: -27.49%
Market Cap as of January 21: $3.52 Billion
Number of Hedge Fund Investors: 32
PBF Energy Inc. (NYSE:PBF) is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oils, petrochemical feedstocks, and other petroleum products. The company operates a network of refineries in the United States, primarily serving domestic fuel markets.
PBF Energy Inc. (NYSE:PBF) has launched a comprehensive cost-savings program aimed at achieving $200 million in annual savings by the end of 2025. The initiative focuses on reducing energy consumption, optimizing maintenance and turnaround activities, and streamlining third-party spending. By implementing these measures, the company expects to improve its operational efficiency, reduce costs, and enhance its competitiveness in the market. Additionally, PBF Energy Inc. (NYSE:PBF) is exploring opportunities to monetize its underutilized assets, including the development of available real estate, to generate additional revenue streams.
PBF Energy Inc. (NYSE:PBF) is also investing in renewable energy sources, including renewable diesel, to diversify its product offerings and reduce its environmental footprint. The company’s partnership with Eni, an Italian energy company, has enabled it to develop a competitive renewable diesel product that is well-positioned to capitalize on the growing demand for sustainable energy solutions. The company believes that its investment in renewable energy will not only contribute to a more sustainable future but also provide a hedge against fluctuations in traditional energy markets.
8. Energy Fuels Inc. (NYSEAMERICAN:UUUU)
1-Year Performance as of January 21: -28.29%
Market Cap as of January 21: $1.07 Billion
Number of Hedge Fund Investors: 11
Energy Fuels Inc. (NYSEAMERICAN:UUUU) is a U.S. company that produces uranium, vanadium, and rare earth elements, which are essential for clean energy technologies and advanced manufacturing. The company primarily supplies materials for clients in the energy, defense, and industrial sectors. Energy Fuels Inc. (NYSEAMERICAN:UUUU) has a diverse portfolio of assets, including the White Mesa Mill in Utah, which is the only fully licensed and operating conventional uranium mill in the United States.
Energy Fuels Inc. (NYSEAMERICAN:UUUU) is focusing on growing its uranium production. The company has a number of development projects in the pipeline, including the Sheep Mountain project in Wyoming and the Roca Honda project in New Mexico. These projects have the potential to significantly increase the company’s uranium production in the coming years, and Energy Fuels Inc. (NYSEAMERICAN:UUUU) is working to advance them through the development process. The company is also exploring opportunities to expand its existing operations, including the White Mesa Mill, which has the capacity to process up to 2,000 tonnes of uranium per year.
Energy Fuels Inc. (NYSEAMERICAN:UUUU) recently completed the acquisition of Base Resources, a leading producer of mineral sands, which has significantly enhanced the company’s portfolio of assets and provided access to new markets and opportunities. The acquisition has also brought new expertise and capabilities to the company, particularly in the area of physical metallurgy.
7. CVR Energy, Inc. (NYSE:CVI)
1-Year Performance as of January 21: -29.10%
Market Cap as of January 21: $2.12 Billion
Number of Hedge Fund Investors: 16
CVR Energy, Inc. (NYSE:CVI) is an independent refiner and marketer of petroleum products in the United States. The company operates two refineries, one in Coffeyville, Kansas, and the other in Wynnewood, Oklahoma. CVR Energy, Inc. (NYSE:CVI) is also a significant producer of nitrogen fertilizers, with two manufacturing facilities in the United States.
CVR Energy, Inc. (NYSE:CVI) is focusing on strengthening its balance sheet, improving its ability to navigate market conditions, and executing its upcoming turnaround safely, on time, and on budget. To achieve this, CVR Energy, Inc. (NYSE:CVI) is exploring access to capital markets, which could include non-core asset sales, and is suspending its dividend to preserve cash. The company is prioritizing internal cost-cutting initiatives, reducing hiring, and focusing its capital spend on projects that are critical to safe and reliable operations. CVR Energy, Inc. (NYSE:CVI) is also exploring ways to optimize its business and identify accretive opportunities. The company is considering the potential conversion of its Wynnewood renewable diesel unit to 100% sustainable aviation fuel (SAF), which could provide a new source of revenue and growth.
CVR Energy, Inc. (NYSE:CVI) is confident in its ability to navigate the current challenging environment and emerge stronger and more competitive. The company’s refineries are well-positioned to benefit from the expected recovery in refining margins, driven by improving demand fundamentals and the potential for additional refining capacity rationalization in the US and globally.
6. HF Sinclair Corporation (NYSE:DINO)
1-Year Performance as of January 21: -30.93%
Market Cap as of January 21: $6.81 Billion
Number of Hedge Fund Investors: 25
HF Sinclair Corporation (NYSE:DINO) is a diversified energy company involved in refining, marketing, and producing fuels. The company operates a network of refineries and logistics assets to manufacture and distribute fuels, lubricants, and specialty products. HF Sinclair Corporation (NYSE:DINO) is also investing in renewable diesel production to serve environmentally conscious markets.
HF Sinclair Corporation (NYSE:DINO) is focusing on growing its lubricants and specialties business. The company has introduced digital tools to improve visibility into its supply chain and manufacturing cost structures and has developed new products, such as Circosol 5100, a rubber processing technology for the tire and construction industry, and Innovate, a dielectric immersion cooling fluid technology for the data center and digital mining space. These new products are expected to drive growth in the segment and provide significant value to the company’s customers.
HF Sinclair Corporation (NYSE:DINO) is prioritizing the expansion of its branded sites and has signed new contracts to convert stores to branded wholesale over the next six to 12 months. The company believes that its marketing business provides a significant opportunity for growth and is focused on getting more value out of its brand. Furthermore, the company is also working to reduce costs across its operations, with a focus on maintenance and operational efficiencies.
5. Dorian LPG Ltd. (NYSE:LPG)
1-Year Performance as of January 21: -36.03%
Market Cap as of January 21: $1.01 Billion
Number of Hedge Fund Investors: 20
Dorian LPG Ltd. (NYSE:LPG) is a leading owner and operator of modern Very Large Gas Carriers (VLGCs) used for the transportation of liquefied petroleum gas (LPG). The company serves major LPG exporters and importers, facilitating global trade in propane and butane. Dorian LPG Ltd.’s (NYSE:LPG) business model revolves around long-term charter agreements and spot market operations.
Dorian LPG Ltd. (NYSE:LPG) is committed to reducing its environmental impact and promoting sustainability throughout its operations. The company has made significant investments in scrubber technology, which has yielded substantial cost savings and reduced emissions. Dorian LPG Ltd. (NYSE:LPG) is also exploring the potential of wind-assisted ship propulsion systems, which offer a promising solution for reducing fuel consumption and lowering greenhouse gas emissions.
Dorian LPG Ltd. (NYSE:LPG) is also prioritizing investments in fleet renewal and expansion. The company has recently announced the addition of a new VLGC to its fleet, which is scheduled for delivery in 2026. Furthermore, the company is retrofitting some of its existing vessels to enable it to carry ammonia to diversify its cargo capabilities and capitalize on emerging trends in the energy market.
4. TORM plc (NASDAQ:TRMD)
1-Year Performance as of January 21: -44.18%
Market Cap as of January 21: $1.89 Billion
Number of Hedge Fund Investors: 25
TORM plc (NASDAQ:TRMD) is a prominent international marine shipping company specializing in transporting petroleum products. The company manages a fleet of around 90 product tanker vessels, which are designed to transport energy and refined petroleum products from refineries.
TORM plc (NASDAQ:TRMD) has been actively renewing and expanding its fleet to improve operational efficiency and capitalize on market opportunities. Recently, the company purchased eight second-hand MR vessels for $340 million, built between 2014 and 2015 at Hyundai Mipo Dockyard, these vessels are part of its ongoing fleet replenishment program. Furthermore, TORM plc (NASDAQ:TRMD) remains focused on maintaining a robust cash position and a secure debt maturity profile. With no major capital expenditure commitments, the company enjoys the financial flexibility to pursue new opportunities as they emerge. Additionally, the company is dedicated to sustainability and innovation, ensuring its operations comply with evolving industry standards and environmental regulations.
TORM plc (NASDAQ:TRMD) is also focusing on leveraging current market dynamics influenced by geopolitical tensions and the restructuring of global trade routes. The company has observed a shift in trade patterns favoring longer distances, driven by sanctions on Russia and Houthi attacks in the Middle East. These developments have led to longer voyages and increased ton-mile demand, resulting in a tight supply-demand balance in the product tanker market. With a fleet optimized for long-haul trade, the company is well-positioned to benefit from these trends.
3. Kosmos Energy Ltd. (NYSE:KOS)
1-Year Performance as of January 21: -44.43%
Market Cap as of January 21: $1.67 Billion
Number of Hedge Fund Investors: 27
Kosmos Energy Ltd. (NYSE:KOS) is a full-cycle deepwater oil and gas exploration and production company. The firm focuses on projects in the Atlantic Margins, including West Africa, the Gulf of Mexico, and South America. Kosmos Energy Ltd. (NYSE:KOS) generates revenue through hydrocarbon production and by selling crude oil and natural gas to global markets. The company is known for its partnerships with governments and major energy players.
Kosmos Energy Ltd. (NYSE:KOS) is pursuing a comprehensive strategy that includes investing in new projects, optimizing existing operations, and prioritizing free cash flow generation. In the Gulf of Mexico, the company has successfully achieved first production at the Winterfell project and completed two production enhancement projects at Kodiak and Odd Job, both of which are performing strongly. In addition, Kosmos Energy Ltd. (NYSE:KOS) is advancing its drilling campaign in Equatorial Guinea, which is anticipated to support the company’s objective of increasing production by 50% to approximately 90,000 barrels of oil equivalent per day.
Kosmos Energy Ltd. (NYSE:KOS) is also committed to strengthening its financial resilience and discipline. The company has implemented measures to extend debt maturities, enhance liquidity, and streamline its capital structure. With no maturities in 2025 and only a small obligation in 2026, which is expected to be covered by free cash flow, the company is well-positioned financially. Furthermore, Kosmos Energy Ltd. (NYSE:KOS) is actively managing price volatility through its rolling hedging program, with approximately 45% of its first-half 2025 oil production hedged at a downside protection level of around $70 per barrel.
2. Ultrapar Participações S.A. (NYSE:UGP)
1-Year Performance as of January 21: -51.44%
Market Cap as of January 21: $2.94 Billion
Number of Hedge Fund Investors: 10
Ultrapar Participações S.A. (NYSE:UGP) is a Brazilian conglomerate operating in fuel distribution, chemicals, and storage services. The company’s main business is distributing liquefied petroleum gas (LPG) through Ultragaz and fuels through its network of retail gas stations under the Ipiranga brand. Ultrapar Participações S.A. (NYSE:UGP) also operates chemical plants and logistics terminals that serve industrial clients across Brazil.
Ultrapar Participações S.A. (NYSE:UGP) is focused on investing in new energy sources and technologies to diversify its portfolio and decrease reliance on traditional fuels. Ultragaz, the LPG distributor, is poised to play a key role in the company’s growth strategy, with an emphasis on expanding its customer base and increasing its share in emerging energy solutions, such as biomethane and electricity. Additionally, the company is exploring ways to leverage its logistics and storage expertise to bolster the growth of its energy businesses. For instance, Ultracargo is expanding its storage capacity and developing new terminals to meet the rising demand for fuel and other energy products.
Ultrapar Participações S.A. (NYSE:UGP) is also making strategic investments in its Texaco brand, which is expected to drive the company’s expansion within the Brazilian market. Furthermore, the company is identifying opportunities to support Hidrovias do Brasil, a company in which Ultrapar Participações S.A. (NYSE:UGP) holds a stake while continuing to enhance its logistics and storage capabilities to facilitate the growth of its energy-related operations.
1. Cosan S.A. (NYSE:CSAN)
1-Year Performance as of January 21: -64.87%
Market Cap as of January 21: $2.39 Billion
Number of Hedge Fund Investors: 11
Cosan S.A. (NYSE:CSAN) is a Brazilian holding company with operations in energy, agriculture, and logistics. Cosan S.A. (NYSE:CSAN) operates its energy business through Raízen, a joint venture with Shell that specializes in producing and distributing ethanol, sugar, and other bioenergy products. Additionally, the company manages its natural gas distribution business under Compass.
Cosan S.A. (NYSE:CSAN) is prioritizing advancements in production yields and efficiency by investing in cutting-edge agricultural techniques and biotechnology. These efforts aim to enhance the company’s ethanol production efficiency. Additionally, the company is pursuing new markets and applications for its ethanol, particularly in the industrial and chemical sectors, where it serves as a versatile raw material in various processes. By expanding its customer base and diversifying applications, Cosan S.A. (NYSE:CSAN) aims to minimize reliance on the automotive fuel market and establish alternative revenue streams.
Cosan S.A. (NYSE:CSAN) is also leveraging digital technologies to optimize supply chain management and enhance operational efficiency, ensuring it remains at the forefront of industry trends. The company is investigating the potential of IoT (Internet of Things) and AI (Artificial Intelligence) to monitor and optimize processes throughout the production chain, from sugarcane cultivation to ethanol refining and distribution.
Furthermore, Cosan S.A.’s (NYSE:CSAN) management team has identified several key priorities to drive growth and improve profitability in the future. One of the main focus areas is portfolio management, where the company is actively exploring opportunities to optimize its portfolio and create value for shareholders. This includes evaluating options for its subsidiaries, such as Moove and Compass, and considering alternatives such as initial public offerings (IPOs) or private placements. Additionally, Cosan S.A. (NYSE:CSAN) has been actively managing its debt profile to reduce costs and improve its financial flexibility.
While we acknowledge the potential of Cosan S.A. (NYSE:CSAN) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CSAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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