General Electric Company (GE), Exxon Mobil Corporation (XOM): How the Dow (.DJI)’s Energy Stocks Have Fared in 2013

If you only expect to see traditional industrial companies in the Dow Jones Industrial Average , then you’re way behind the times. The Dow now includes companies from nearly every sector of the market.

Energy stocks don’t make up a huge portion of the Dow, with only two traditional integrated oil and gas companies in the average. But given their size, those stocks have a big impact on the Dow. Let’s take a look at how these companies have fared so far in 2013 and what their prospects are for the rest of the year and beyond.

Dow Energy Stocks Total Return Price data by YCharts.

It’s no mistake that I’ve included General Electric Company (NYSE:GE) on this list. Despite the extensive reach that the conglomerate has across many industries, GE has focused heavily on energy as part of its core strategy for boosting its growth. Just yesterday, GE reaffirmed its commitment to energy by making a buyout bid for Lufkin Industries, Inc. (NASDAQ:LUFK), boosting its presence in the oil services sector and building more capacity as it grows into an energy infrastructure giant. GE’s exposure to the booming energy sector is a big part of how it has been able to recover so strongly from its financial-crisis depths.

For Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM), on the other hand, production and pricing have been ongoing obstacles to growth. Given their size, it’s incredibly difficult for these oil supermajors to find enough new energy-producing assets to make up for the natural rate of decline in any given well’s production levels. Yet although Exxon is projecting just 2% to 3% annual growth in production over the next four years, Chevron hopes for better results, with its plan to raise its production by a million barrels per day representing growth of between 9% and 10% annually.