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CXProWealth

Energy

Data cutoff
All research on Energy
Modeled fair value
XLE · US Energy Sector
-1.1Somewhat expensive
507090110130150FAIRMARKET
P10–P90P25–P75Median fair valueToday's market price = 100

Today’s price sits at the 68.7th percentile of modeled fair value 33% of modeled scenarios put fair value above the market.

Median fair value
90.0
index, market = 100
Upside to median
-10.0%
Last close
$65.14
2026-09-11
Confidence
moderate-high
73/100
Modeled returns

Return distributions, not point forecasts

Percentiles describe the spread of scenario outcomes under the stated method. The width of the range carries as much information as the midpoint.

One year

modeled
P90
+24.0%
P75
+13.0%
Median
0.0%
P25
-12.0%
P10
-26.0%

50% of modeled scenarios end positive.

A 5.4% combined dividend and buyback yield, less a negative fundamental contribution of roughly 4% as the EIA's forecast oil-price decline works through sector earnings, less 20% convergence of the modeled fair-value gap. Dispersion is taken from the oil-price scenario family. Scenario-implied beat probability is read off the modeled return distribution at the 4.35% one-year Treasury par-yield hurdle and is diagnostic only.

Three years, annualised

modeled
P90
+12.0%
P75
+7.0%
Median
+1.0%
P25
-4.5%
P10
-11.0%

Shareholder yield less the earnings decline implied by the EIA path toward $67 Brent in the second half of 2027, partly offset by capital discipline and a higher terminal free-cash-flow conversion, with 45% convergence of the modeled fair-value gap spread across three years.

Against the Treasury hurdle

1y Treasury
4.35%
Expected excess
-4.4%
Basis
proxy

The weakest modeled edge in this report: a 0.0% one-year median sits roughly 4.35 percentage points below the one-year Treasury par yield, and the modeled tenth-to-ninetieth-percentile range spans minus 26% to plus 24%.

Instruments

5 in this asset class

SymbolValuationFair valueLast close1y modeled
XLE
US Energy Sector
-1.1Somewhat expensive90.0$65.140.0%
XOP
Oil and Gas Producers
-1.6Expensive85.0$195.72-2.0%
USO
US Crude Oil
-1.9Expensive82.0$154.90-5.0%
BNO
Brent Crude Oil
-1.8Expensive83.0$61.37-4.5%
UNG
Natural Gas
+0.4Somewhat cheap105.0$10.17+4.0%