Why These Energy Stocks Are Losing This Week

In this article, we are going to discuss the energy stocks that are losing this week.

The energy sector suffered a massive blow this week after the West Texas Intermediate (WTI) crude price plunged even further to just over $57, a level it last hit in 2021 during the COVID-19 pandemic. The sharp decline comes as a result of OPEC+ announcing a larger-than-expected output increase for June. This follows a similar production boost announced for May, meaning that the group is now bringing more than 800,000 bpd of additional supply to the market over the course of two months.

Instead of acting like a stabilizing force in global oil markets, Saudi Arabia has now adopted an aggressive strategy aimed at disciplining overproducing members like Kazakhstan and Iraq, and expanding its own market share. This could also be a part of the country’s efforts to build good relations with Donald Trump, who has repeatedly called on Riyadh to increase production and bring prices down.

Goldman Sachs has now cut its forecast for US crude prices this year by $3 to $56 per barrel. With oil currently hovering around the $58 mark, many US shale producers will struggle to break even, forcing them to potentially stop drilling and cut jobs. In fact, two big American shale producers revealed earlier this week that they are cutting capital expenditure in response to sliding oil prices, prompting industry warnings that US production had peaked and could begin to decline.

Our Methodology

To collect data for this article, we have referred to several stock screeners to find energy stocks that have fallen the most between April 30 to May 7, 2025. The following are the Energy Stocks that Lost the Most This Week. The stocks are ranked according to their share price decline during this period.

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10. SM Energy Company (NYSE:SM)

Share Price Decline Between Apr. 30 – May. 7: 6.98%

SM Energy Company (NYSE:SM) is an independent energy company focused on the exploration, exploitation, development, acquisition, and production of natural gas and crude oil in the United States.

The share price of SM Energy Company (NYSE:SM) took a hit despite the company reporting positive financial results last week. SM posted an adjusted EPS of $1.76 and beat estimates by $0.14. The company’s revenue of $844.54 million was also up by over 50% YoY and topped expectations by $20.74 million. SM has outlined plans to increase oil production by 30% in FY 2025, with its capex guidance maintained at $1.3 billion. So the recent downturn in stock price could be a result of wider investor concerns regarding the oil and gas industry.

9. Targa Resources Corp. (NYSE:TRGP)

Share Price Decline Between Apr. 30 – May. 7: 7.03%

Targa Resources Corp. (NYSE:TRGP) is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America.

Targa Resources Corp. (NYSE:TRGP) missed forecasts in its Q1 2025 results reported last week, posting an EPS of $0.97 against expectations of $1.98. The company’s revenue of $4.56 billion also fell below estimates by $337.16 million. That said, the firm’s adjusted EBITDA rose by 22% YoY to a record $1.18 billion, while it also raised its quarterly dividend by 33% last month to $1 per share.