A Friendlier Regulatory Environment May Be on the Horizon for These 2 Energy Stocks as the Trump Administration Rolls Back Greenhouse Gas Regulation

By Reuben Gregg Brewer – Feb 22, 2026 at 1:15AM ESTKey PointsRegulatory changes can have a material impact on energy company results over time.Rolled-back limits on greenhouse gas emissions affect energy companies, but investors should still stick to diversified giants like Exxon and Chevron.We’re bullish on these 10 stocks ›NYSE: CVXChevronMarket Cap$370BToday's Changeangle-down(-0.57%) $1.06Current Price$183.72Price as of February 20, 2026 at 3:58 PM ETThe U.S. government is softening its stance on greenhouse gases, which is good news for these energy industry giants...for now.Energy is vital to the modern world, with oil and natural gas expected to play a big role for decades to come. However, the shift toward cleaner energy sources is a long-term headwind that investors have to carefully consider when investing in the energy sector. The U.S. government's softening stance on greenhouse gases is a broad positive, but investors should still stick with industry giants like ExxonMobil (XOM 2.44%) and Chevron (CVX 0.57%). Here's why. A little bit of everything Exxon and Chevron are both globally diversified integrated energy companies. That means they have operations across the entire energy value chain, including producing oil and natural gas, transporting those fuels, and processing them into chemicals and refined products, such as gasoline. You probably know Exxon and Chevron from the gas stations you see, but they are much bigger entities than that. Image source: Getty Images. The diversification in Exxon and Chevron's businesses helps to soften the peaks and valleys inherent in the volatile energy sector. An additional benefit these two energy giants offer is their financial strength, as they have the lowest debt-to-equity ratios in their peer group. During industry downturns, Exxon and Chevron take on debt to support their businesses and dividends. Notably, each company has increased its dividend annually for over three decades. When energy prices recover, as they always have historically, leverage is reduced. ExpandNYSE: XOMExxonMobilToday's Change(-2.44%) $-3.69Current Price$147.28Key Data PointsMarket Cap$614BDay's Range$146.46 - $150.8152wk Range$97.80 - $156.93Volume26MAvg Vol19MGross Margin21.56%Dividend Yield2.74% Good for now, but for how long? The U.S. government's easing of greenhouse gas restrictions is good for the entire energy sector, so Exxon and Chevron will benefit. That said, they may not benefit as much as more focused businesses. For example, a refiner that makes gasoline could see higher demand for a longer period of time if internal combustion engine vehicles aren't forced out of the market by strict regulations on emissions. ExpandNYSE: CVXChevronToday's Change(-0.57%) $-1.06Current Price$183.72Key Data PointsMarket Cap$370BDay's Range$182.32 - $184.8952wk Range$132.04 - $187.90Volume373KAvg Vol11MGross Margin13.79%Dividend Yield3.76% But regulations change, and a future administration could reinstate the regulations that are currently being eased. This is why most investors will be better off owning proven industry leaders with widely diversified businesses. Exxon and Chevron will benefit from a friendly regulatory environment, and they are likely to be best prepared to deal with increased regulations if, or perhaps when, they come along. Given the inherent volatility of the energy sector, all good news needs to be taken with a grain of salt. It is still highly advisable to invest conservatively with reliable dividend payers like Exxon and Chevron. And as a bonus, you'll be able to collect Exxon's well-above-market 2.8% yield or Chevron's 3.9% yield while you ride out the industry's regulatory swings.Read NextFeb 21, 2026 •By Courtney CarlsenIs Chevron the Smartest Dividend Investment You Can Make in 2026?Feb 21, 2026 •By Matt DiLalloAll It Takes is $3,000 in Chevron to Generate Hundreds in Passive IncomeFeb 18, 2026 •By Lawrence Rothman, CFAChevron vs. ExxonMobil: Which Oil Dividend Giant Is the Better Buy for Income Investors?Feb 17, 2026 •By Justin PopeWant Decades of Passive Income? 3 Stocks to Buy Right NowFeb 12, 2026 •By Daniel FoelberI Said I'd Buy Chevron Over ConocoPhillips in 2026, and Chevron Is Already Up 19% This Year. Is the High-Yield Dividend Stock a Buy Near Its All-Time High?Feb 11, 2026 •By Matt DiLalloThis Stock Could Be a Top Performer in Its Sector By the End of 2026About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedChevronNYSE: CVX$183.72 (0.57%) $1.06ExxonMobilNYSE: XOM$147.28 (2.44%) $3.69*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.