Investing

Hold On! OPEC+ May Not Start Output Hikes in April: 4 Ultra-High-Yield Energy Stocks to Buy Now

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Over the long holiday weekend, it was reported that OPEC+, scheduled to start monthly oil production hikes, may be rethinking the plan. Brent crude has been trading near the $75 a barrel level, while West Texas Intermediate has been seen just below $71. Both of the major benchmarks have traded sideways for months. After rallying in January to start the year, they have sold off in February as traders began to price in the effects of President Trump’s tariffs. One wildcard for investors looking at the sector is that Russian oil output is likely ready to fall as sanctions continue to take a toll. The country has no choice and does not have enough sanction-free tankers to move their product around the world.

24/7 Wall St. Key Points:

  • For the first time in a while, gasoline prices were lower in 2024.

  • The U.S. Energy Information Association (EIA) expects pump prices to decline by $0.11 in 2025.

  • High-yield energy stocks are bargain-priced and pay dependable dividends.

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We screened our 24/7 Wall St. high-yield energy stock database for stocks with the biggest dividends and upside potential. Buying energy stocks before the busy summer travel season has often worked, and 2025 could also play out that way. We found four Buy-rated across Wall Street, and it makes sense for investors looking for dependable passive income streams.

Why do we cover high-yield energy dividend stocks?

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High-yield energy dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

CVR Energy

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CVR Energy is a diversified holding company primarily focused on renewable fuels and petroleum refining.

This Ichan Enterprises subsidiary is the perfect idea now, with oil way off the 52-week highs and paying shareholders a strong 10.78% dividend. CVR Energy Inc. (NYSE: CVI) engages in petroleum refining, marketing, and nitrogen fertilizer manufacturing activities in the United States with its subsidiaries.

It operates in two segments:

  • Petroleum
  • Nitrogen Fertilizer

The Petroleum segment refines and supplies gasoline, crude oil, distillate, diesel fuel, and other refined products. It also owns and operates a coking medium-sour crude oil refinery in southeast Kansas and a crude oil refinery in Wynnewood, Oklahoma, as well as supporting logistics assets. This segment primarily serves retailers, railroads, farm cooperatives, and other refiners/marketers.

The Nitrogen Fertilizer segment owns and operates a nitrogen fertilizer plant in North America that utilizes a pet coke gasification process to produce nitrogen fertilizer products and a nitrogen fertilizer facility in East Dubuque, Illinois, that produces nitrogen fertilizers in the form of ammonia and urea ammonium nitrate (UAN), nitric acid, and liquid and granulated urea.

This segment primarily markets UAN products to agricultural customers and ammonia products to agricultural and industrial customers in Ohio, West Virginia, western Maryland, eastern Kentucky, central Tennessee, Western Virginia, northwestern Georgia, and northern Alabama.

The Eagle Ford shale formation stretches across south Texas.

Kimbell Royalty Partners

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Kimbell Royalty Partners acquires and owns mineral and royalty interests in oil and natural gas properties.

While this is definitely an off-the-radar energy play, it is a safe way to play the sector while getting huge 10.53% dividends. Kimbell Royalty Partners L.P. (NYSE: KRP) is an oil and gas mineral and royalty company. It owns mineral and royalty interests in over 17 million gross acres in 28 states and onshore basins in the continental United States. It includes ownership of more than 130,000 gross wells, with over 51,000 wells in the Permian Basin.

Its properties include:

  • The Permian Basin
  • Mid-Continent
  • Appalachian
  • Eagle Ford
  • Bakken
  • Terryville/Cotton Valley/Haynesville
  • DJ Basin/Rockies/Niobrara

The Permian Basin extends from southeastern New Mexico into West Texas. The Mid-Continent area contains fields in Arkansas, Kansas, Louisiana, New Mexico, Oklahoma, Nebraska, and Texas, as well as the Granite Wash, Cleveland, and Mississippi Lime formations.

The Appalachian Basin covers most of Pennsylvania, eastern Ohio, West Virginia, western Maryland, eastern Kentucky, central Tennessee, Western Virginia, northwestern Georgia, and northern Alabama.

The Eagle Ford shale formation stretches across south Texas.

Mach Natural Resources

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Independent upstream oil and gas company Mach Natural Resources acquires, develops, and produces oil, natural gas, and NGL.

This 2023 IPO is trading below the initial offering price. Mach Natural Resources L.P. (NYSE: MNR) recently conducted a secondary offering to purchase more producing assets. The company will pay a massive 12.41% dividend.

Mach Natural Resources is an independent upstream oil and gas company focused on acquiring, developing, and producing oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, southern Kansas, and the Texas panhandle.

The analysts at Raymond James noted that Mach is led by Tom Ward, co-founder of Chesapeake Energy. Mach is another entrant into the E&P MLP space. It is a pure-play operator in the Anadarko Basin. It leverages its strong position (1 million net acres) to become the primary consolidator in the region.

Mach’s midstream position and lower base decline (~20%) allow the company to target a lower reinvestment rate (~30%) relative to the overall industry. In addition, it is one of the only exploration and production companies organized as a limited partnership as it is an oil and gas producer.

TXO Partners

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TXO Partners acquires, develops, optimizes, and exploits conventional oil, natural gas, and natural gas liquid reserves.

With a massive 12.48% dividend and trading not far from a 52-week low, this company is a bargain at current levels. TXO Partners L.P. (NYSE: TXO) is an oil and natural gas company. It focused on acquiring, developing, optimizing, and exploiting conventional oil, natural gas, and natural gas liquid reserves in North America.

Its acreage positions are concentrated in the Permian Basin of West Texas and New Mexico and the San Juan Basin of New Mexico and Colorado.

Back in the summer of 2024, Bob Simpson, the company’s board chair and chief executive officer, made a statement by purchasing 100,000 company shares.

Trading at a ridiculously cheap 9.5 times estimated 2025 earnings, the stock is a passive income winner and is a potential total return grand slam.

Two Blue Chip Dividend Giants Make Up Almost 40% of Warren Buffett’s Portfolio

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