Top 4 Energy Stocks Set to Soar With U.S.-EU Trade Pact

Juicing the Energy Sector

The just announced trade deal between the U.S. and European Union is poised to light a fuse under domestic energy stocks. The Framework Agreement on Reciprocal, Fair, and Balanced Trade detailed in a joint statement this morning, is a game-changer for transatlantic energy markets. 

The European Union has committed to purchasing $750 billion in U.S. liquefied natural gas (LNG), oil, and nuclear energy products through 2028, aiming to reduce reliance on Russian energy and strengthen energy security. 

This deal also eliminates EU tariffs on U.S. industrial goods and addresses non-tariff barriers to facilitate energy trade. Coupled with $600 billion in EU investments in U.S. strategic sectors, the agreement creates a robust platform for American energy companies to expand their market presence in Europe. 

While this rising tide is likely to lift many energy stocks, four companies stand out as prime beneficiaries, poised to capitalize on the increased demand and favorable trade terms.

Cheniere Energy (LNG)

The biggest beneficiary of all is likely to be Cheniere Energy (NYSE:LNG), a leading U.S. LNG exporter, because it is ideally positioned to benefit from the EU’s $750 billion energy procurement commitment. 

Operating major LNG facilities like Sabine Pass and Corpus Christi, Cheniere has the infrastructure to meet Europe’s growing demand for reliable, non-Russian gas. The deal’s focus on removing non-tariff barriers streamlines export processes, enabling Cheniere to scale up shipments efficiently. 

With long-term contracts already in place with European buyers, the company is set to secure additional deals, boosting revenue and cash flow. 

Cheniere’s stock has risen 12.5% year-to-date and is up 2.5% in morning trading today, reflecting investor confidence in its export-driven growth. As Europe accelerates its shift to U.S. LNG, Cheniere’s operational expertise and capacity expansions make it a top winner.

NextEra Energy (NEE)

NextEra Energy (NYSE:NEE), a global leader in renewable energy, stands to gain from the EU’s push for sustainable energy alongside LNG imports. The trade deal’s $600 billion investment in U.S. strategic sectors, including clean energy, aligns with NextEra’s strengths in wind, solar, and nuclear power. 

With Europe already embracing green energy and aiming to meet ambitious carbon reduction goals, NextEra’s expertise in delivering scalable renewable solutions positions it to secure partnerships and contracts. 

Its subsidiary, NextEra Energy Resources, generates over 50% of its revenue from clean energy, and new EU investments could fund joint ventures or grid modernization projects. NextEra’s stock, up 6% in 2025 and rising again today, is bolstered by its diversified portfolio and strong balance sheet, making it a key player in the transatlantic energy transition.

Enterprise Products Partners (EPD)

Enterprise Products Partners (NYSE:EPD), a midstream energy giant, is set to thrive as the U.S. ramps up LNG and oil exports to Europe. EPD’s extensive pipeline network and export terminals, including its Houston Ship Channel facilities, are critical for transporting and processing energy for international markets. 

The trade deal’s emphasis on diversified energy supplies and reduced trade barriers enhances EPD’s ability to handle increased export volumes. With a 6.7% dividend yield and 26 years of consecutive distribution increases, EPD offers investors stability and growth potential. 

The company’s $2 billion in infrastructure investments positions it to capture a significant share of the $750 billion EU energy offtake, making it a standout beneficiary.

Energy Transfer (ET)

A second midstream giant, Energy Transfer (NYSE:ET), with its vast network of pipelines, storage, and export facilities, is another major winner from the U.S.-EU trade deal. Operating key LNG export terminals like Lake Charles, ET is well-equipped to meet Europe’s surging demand for U.S. gas. 

The agreement’s commitment to $750 billion in energy purchases directly benefits ET’s midstream operations, as it facilitates the transport of LNG and oil to coastal terminals for export. Recent expansions in ET’s export capacity, coupled with the deal’s tariff reductions, enhance its competitive edge. 

With a 7.5% dividend yield, and despite a 10.6% drop in its stock this year, Energy Transfer offers both income and the potential for a rebound in growth, driven by the transatlantic energy boom.

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