Oil, Uranium, or Renewables? 3 Energy Plays for a Changing Market

Key Points

• The 2026 midterm results could reshape U.S. energy policy and the outlook for oil, uranium, and clean energy investments.
• Permian Resources has increased production while maintaining cost discipline, while NexGen Energy offers exposure to uranium demand.
• The iShares Global Clean Energy ETF provides diversified renewable energy exposure, although its performance remains sensitive to policy changes.

The results of the 2026 midterms have analysts and investors continuing to speculate about the United States' path forward in the Iran war. It's no secret that rising oil and gas prices have made for a favorable environment for some energy firms, but a shift in the situation in the Gulf could mean that those companies lose out on their big refining earnings gains. This is especially concerning because some firms—including major producers like Exxon Mobil NYSE: XOM and Chevron Corp. NYSE: CVX—have already experienced a decline in their production earnings as well.

The investments below offer different types of energy exposure, including domestic oil and gas production, uranium, and renewable power. Two individual energy stocks that stand out for these reasons are Permian Resources Corp. NYSE: PR and NexGen Energy Ltd. NYSE: NXE, while the green energy exchange-traded fund iShares Global Clean Energy ETF NASDAQ: ICLN takes a broader view.

Permian Balances Production Growth With Managed Costs

At a market capitalization of almost $19 billion, Permian is a large producer with a special focus on natural gas and natural gas liquids (NGLs) in addition to crude oil. It is this mix that helps to distinguish the company from upstream producers of oil products exclusively—in its Q3 2026 earnings report, Permian noted that its oil production volume increased by 5% quarter over quarter, but its total production volume soared by 22% over the same period.

While other energy firms have suffered as a result of cost increases that have eaten into or even outweighed their growth in other areas, Permian has been able to maintain cost discipline, with record-low total controllable cash costs per barrel of oil equivalent.

This means that the company was able to generate an impressive $846 million in adjusted free cash flow last quarter, a massive boon that has helped to fund major acquisitions as well as a dividend yield of 2.85%. The company stands out to analysts, with 90% of those rating the stock assigning it a Buy as well as nearly 19% in overall upside potential, despite already surging by 56% year to date (YTD).

NexGen Capitalizes on Uranium's Demand and Growth, But Risks Remain

NexGen's focus is on uranium exploration and development in Canada at a time in which uranium prices have quietly risen alongside oil and gas. For NexGen, this means opportunities to shore up its already strong balance sheet, including about CAD 970 million ($694 million) as of the end of Q2 2026.

Uranium is an overlooked but critical player in the AI boom, and NexGen is building its portfolio of contracts to include agreements with U.S. utilities, including a recent term sheet for the future sale of 1.3 million pounds of uranium to an undisclosed buyer.

To continue financing its massive construction projects, NexGen will need to strike a careful balance among execution, cost management, and financing, and it remains heavily affected by uranium prices as well. This means there are risks for investors to monitor, and these have largely been reflected in NXE's share price trends this year: the stock is down about 17% YTD.

Nonetheless, Wall Street is optimistic about NXE's turnaround prospects, with five Buy ratings and a single Sell, and a bullish prediction of roughly 80% upside.

ICLN: A Broader Bet on Clean Energy

A single investment that provides access to more than 100 global clean energy names, ICLN includes companies in wind, solar, and other renewable corners of the energy market. While the fund has underperformed the broader energy sector so far this year, declining by about 2% YTD, a domestic shift in power toward the Democratic Party could revive efforts to restore clean energy tax credits or other incentives, although any legislation could still face potential opposition from the White House.

ICLN is not the most specialized clean energy fund, as there are alternatives with a particular focus on solar, nuclear, or wind power, respectively. However, for an annual fee of 0.38% and with its robust trading volume and asset base, ICLN may appeal as an all-around bet on this portion of the energy market.

Nonetheless, investors should be mindful that a handful of individual positions have outsized weighting in ICLN's portfolio, with its largest holding accounting for approximately 9% of assets.

Clean energy has not received the same broad boost that oil and gas have in 2026, making ICLN a somewhat contrarian investment choice well suited for investors anticipating a change to the broader energy landscape.