Buy These 5 Ultra-High-Yield Dividend Energy Stocks As Mideast War Drums Beat

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When you combine the geopolitical bounce the major oil benchmarks are receiving from the Israeli attack and the counter attack from Iran with global oil demand, which is projected to rise to 106 million barrels per day in 2025, up from 104.5 million in 2024, driven by non-OECD countries such as India you have all the ingrediants for a witches brew of price increases. Add in a dash of cold weather in the Northern Hemisphere this year and robust petrochemical demand, and you have all the tailwinds for the black gold to trade higher, or at a minimum, hold onto the recent huge gains.

24/7 Wall St. Key Points:

• After months of rising short interest in the oil and gas sector, some of the traders are throwing in the towel
• Major hedge funds are closing short positions as the potential for all-out war has increased
• Many energy companies have traded sideways for the last year, and offer tremendous value and dividends
• Would ultra-high-yield energy stocks be a good fit for you? Why not contact a financial advisor in your area and set up a complete portfolio review soon? Click here to get started today. (Sponsored)

Oil prices had dropped earlier this year to levels not seen in almost four years. Despite OPEC+’s efforts to increase production, the potential for strong sanctions against Iran and Russia had put oil back on the front burner on Wall Street. Then the attack by the Israelis, which reportedly also targeted some leaders of the Iranian Revolutionary Guard, caught Wall Street and many of the short-sellers in the wilderness, and forced them to cover short positions. Iran, in response to the attack, has reportedly launched hundreds of missiles back at Israel. 

Why do we cover Ultra-High-Yield energy stocks?

While only suited for some, those trying to build solid passive income streams can do exceptionally well with some of these top energy companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can use a barbell approach to get passive income streams that make a significant difference.

Civitas Resources

Civitas Resources, Colorado’s first carbon-neutral energy producer, is leading the state’s oil and gas industry in its commitment to sustainable operations. Trading at a dirt-cheap 5.33 times estimated 2025 earnings with a massive dividend, this company could be a total return gem for 2025 and 2026. Civitas Resources Inc. (NYSE: CIVI) is an independent exploration and production company. It is focused on the acquisition, development, and production of crude oil and liquids-rich natural gas from its premier assets in the DJ Basin in Colorado and the Permian Basin in Texas and New Mexico.

Its development facilities are located in counties across the Front Range of northern and central Colorado, as well as southeastern New Mexico and western Texas.

The DJ Basin assets are comprised of over 356,800 net acres located in Weld, Arapahoe, Adams, and Boulder counties, Colorado. Its operations in the DJ Basin target the Niobrara and Codell formations.

The company’s Permian Basin assets comprise over 120,400 net acres located in Upton, Reagan, Glasscock, Martin, Midland, Reeves, and Loving counties in Texas, as well as Eddy and Lea counties in New Mexico.

Civitas Resource operations in the Permian Basin primarily target the Spraberry and Wolfcamp formations of the Midland Basin and the Wolfcamp and Bone Spring formations of the Delaware Basin.

Morgan Stanley has an Overweight rating with a $40 target price.

Enterprise Products Partners

Enterprise Products Partners is an American midstream natural gas and crude oil pipeline company with its headquarters in Houston, Texas. This company is one of the largest publicly traded energy partnerships, paying a very reliable dividend. Enterprise Products Partners L.P. (NYSE: EPD) provides various midstream energy services, including:

• Gathering
• Processing
• Transporting and storing natural gas, natural gas liquids (NGL), and fractionation
• Import and export terminalling
• Offshore production platform services

The company has four reportable business segments:

• Natural Gas Pipelines and Services
• NGL Pipelines and Services
• Petrochemical Services
• Crude Oil Pipelines and Services

One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.

JPMorgan has an Overweight rating with a $38 target price objective.

HF Sinclair Corporation

This company is one of the highest-yielding refinery stocks, providing a compelling way to capitalize on the sector’s rebound. HF Sinclair Corporation (NYSE: DINO) is an independent energy company that produces and markets light products, such as gasoline, diesel fuel, jet fuel, renewable diesel, and other specialty products.

It has five segments:

• Refining
• Renewables
• Marketing
• Lubricants & Specialties
• Midstream

The refining segment, which includes asphalt operations, has facilities in:

• El Dorado
• Tulsa
• Puget Sound
• Navajo
• Woods Cross
• Parco

The Renewables segment includes the operations of the Artesia, Cheyenne, and Sinclair RDUs and the Artesia PTU.

The Marketing segment includes branded fuel sales.

The Lubricants & Specialties segment comprises the operations of Petro-Canada Lubricants, Red Giant Oil, and Sonneborn, as well as specialty lubricant products produced at its Tulsa West refinery.

The Midstream segment comprises petroleum products, crude pipelines, terminals, tankage, loading rack facilities, and refinery processing units that primarily support its refining operations.

Morgan Stanley has an Overweight rating and a $44 target price objective.

TXO Partners

TXO Partners acquires, develops, optimizes, and exploits conventional oil, natural gas, and natural gas liquid reserves. With a massive dividend and trading near a 52-week low, TXO Partners L.P. (NYSE: TXO) is a master limited partnership that focuses on the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquids (NGL) reserves in North America.

The Company’s acreage positions are concentrated in three main areas:

•  Permian Basin of West Texas and New Mexico
•  San Juan Basin of New Mexico and Colorado
•  Williston Basin of Montana and North Dakota

Its assets consist of approximately 1,117,628 gross (549,229 net) leasehold and mineral acres located primarily in the Permian Basin, San Juan Basin, and Williston Basin. The assets include a 50% interest in Cross Timbers Energy, LLC, also known as Cross Timbers.

As an operator, it designs and manages the development, recompletion, or workover of all the wells it operates, and supervises operation and maintenance activities on a day-to-day basis. The Company markets the majority of the natural gas, NGL, crude oil, and condensate production from the properties on which it operates.

Raymond James has a Strong Buy rating with a $26 target price.

USA Compression Partners

USA Compression Partners, LP, provides natural gas compression services under term customer contracts. While perhaps less known than their peers, this top company pays shareholders one of the largest dividends in the industry.  USA Compression Partners, LP. (NYSE: USAC) provides natural gas compression services.

The company offers compression services to:

• Oil companies and independent producers
• Processors
• Gatherers
• Transporters of natural gas and crude oil, as well as operating stations

USA Compression Partners primarily provides natural gas compression services to infrastructure applications, including centralized natural gas gathering systems, processing facilities, and gas lift applications for crude oil wells.

Raymond James has assigned another Outperform rating to this company, along with a $30 target price. 

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