Utility Tuesday: Oil and Gas Insiders Add $6M While FCF Yields Hit 8%

This Week's Setup

Fear sits at 39 on the index, but this week's utility screen surfaces oil and gas names with drawdowns between 8% and 20% off 52-week highs, free cash flow yields between 3.8% and 8.3%, and insiders adding $5 million to $6 million over the last six months.

The S&P 500 CAPE at 38.9 keeps broad-market valuations in expensive territory, yet these energy names trade at EV/EBITDA multiples between 5.7x and 13.4x with interest coverage ratios that clear seven turns or better.

Revenue growth ranges from a 5.5% contraction at Valero to 60% expansion at EQT, while net debt-to-EBITDA ratios span from near-zero at Baker Hughes to four turns at MPLX, a midstream partnership carrying a 7.8% distribution yield.

Quick Scan

The 8 Names

1. EQT Corporation (EQT)

EV/EBITDA: 5.7 | Interest coverage: 7.8x | 52w drawdown: 20%

EQT trades at 10.4x earnings with an 8.3% free cash flow yield and a 9.7% earnings yield, the richest cash-generation profile on this week's screen. Revenue grew 60% year-over-year, driven by data center-fueled gas demand that pushed the company into a new digital infrastructure fund.

Insiders added $5.7 million over six months, acquiring 583,874 net shares. The buying represents 15.1% of all insider transactions in the period, with selling at just 2.1%.

Analysts assign a $70.04 target (28% upside), but the 20% drawdown reflects execution risk around volume commitments and pipeline capacity as the company scales into infrastructure deals. Next earnings land July 21 with a $0.56 EPS estimate.

2. EOG Resources, Inc. (EOG)

EV/EBITDA: 6.1 | Interest coverage: 28.1x | 52w drawdown: 8%

EOG delivers a 15.2% return on invested capital with a 63% gross margin, the strongest profitability on the list. The 4.7% free cash flow yield sits above the 2.9% dividend yield, creating 1.6x payout cover.

Three insiders added shares in late May: Lynn Dugle (two separate buys), Charles Crisp, and Ray Walker. The $5.5 million in six-month insider buys brings net shares acquired to 138,766 across the period.

Revenue declined 3.4% year-over-year despite the ROIC strength, flagging volume headwinds in a period when peers like EQT posted 60% growth. The company reports July 21.

3. ConocoPhillips (COP)

EV/EBITDA: 6.8 | Interest coverage: 11.3x | 52w drawdown: 14%

Analysts see 22% upside to a $142.77 target from the current $117, supported by a 13.5% ROIC and a 5.1% free cash flow yield. The company trades at 19.9x earnings with a 2.9% dividend yield.

Insiders added $6 million over six months, with three executives purchasing in May: Andres Felipe Mejia Cardona, Ricardo Jaramillo Mejia, and Sylvia Escovar Gomez. Insider buying outpaced selling 1.19% to 0.99%.

The 25% gross margin sits far below EOG's 63%, reflecting a higher cost structure in the upstream portfolio. Revenue grew 7.7% year-over-year, but the margin gap limits earnings leverage. August 6 earnings expect $2.88 per share.

4. Valero Energy Corporation (VLO)

EV/EBITDA: 9.1 | Interest coverage: 6.4x | 52w drawdown: 2%

Valero sits 2% off its 52-week high with a 6.5% free cash flow yield, the second-highest on the list after EQT. The company generated $5.7 million in insider buys over six months, acquiring 210,697 net shares.

Three insiders purchased in May: Marie Ffolkes and Randall Weisenburger on May 11, Eric Fisher on May 20. Buying represented 15% of insider transactions, with selling at 1.1%.

Revenue fell 5.5% year-over-year and the 4.4% gross margin reflects refining's commodity-spread economics. Analysts assign a $259.47 target just 0.2% above the current price, signaling consensus sees limited upside. July 30 earnings expect $9.93 per share on $38.7 billion revenue.

5. MPLX LP (MPLX)

EV/EBITDA: 13.5 | Interest coverage: 5.8x | 52w drawdown: 8%

MPLX delivers a 7.8% distribution yield backed by a 7.3% free cash flow yield and a 19.2% ROIC, the highest on the list. The fee-based midstream model insulates cash flows from commodity price swings.

Three insiders purchased in May: Garry Peiffer, Ray Walker, and Frank Semple, all on May 19. Insider activity over six months logged $5 million, though net shares added were zero due to offsetting sales.

Net debt-to-EBITDA sits at 4.1x, the highest leverage ratio on the screen. The 13.5x EV/EBITDA multiple prices in the fee stability, but any distribution cut would re-rate the unit price. August 4 earnings expect $1.17 per unit.