10 Toxic Energy Stocks to Sell Now That the Blue Wave is Here

8. Range Resources Corporation (NYSE:RRC)

Short % of Float: 7.18%

Market Cap: $12.04 Billion

Range Resources Corporation (NYSE:RRC) is a leading US independent natural gas and NGL producer with operations focused in the Appalachian Basin. Natural gas has lately been in the spotlight in the United States, since the country’s consumption of the fuel is expected to hit record highs, driven by LNG exports and ⁠power demand from AI data centers.

The company made headlines in October when it was announced that EQT would acquire ‌Range Resources in a $13 billion all-stock deal, creating the largest natural gas producer in the United States. The transaction is expected to close in the first quarter of 2027, but must still be approved by shareholders of both companies and pass regulatory approval.

Range Resources’ established footprint in the Marcellus Shale, one of the most productive natural gas formations in the US, is particularly attractive. The company is known for its liquids-rich natural gas assets, which include valuable NGLs, as well as smaller amounts of condensate. This drives down its breakeven, especially in the current environment when oil prices are high, as NGLs and condensate tend to track the price of oil.

However, oil prices are cyclical, and the current exceptionally high prices are expected to normalize if a breakthrough is achieved in the US-Iran war. This could put a serious dent in Range Resources’ earnings, especially since its liquids production reached a record level of 133,173 bpd in Q3 2026.

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7. Texas Pacific Land Corporation (NYSE:TPL)

Short % of Float: 7.22%

Market Cap: $19.64 Billion

Texas Pacific Land Corporation (NYSE:TPL) is one of the largest landowners in the State of Texas with approximately 900000 acres of land in West Texas. The company monetizes these assets through oil and gas royalties, water sales, produced water royalties, pipeline easements, surface leases, etc. This means that TPL can capitalize on increased drilling and infrastructure development without the capital intensity of traditional E&P firms. This results in extraordinary profitability and free cash flow conversion that consistently ranks among the highest in the sector.

TPL’s underappreciated water services segment further bolsters its economics. The business supports fracking operations and is becoming increasingly important amid the high drilling activity in the Permian Basin.

TPL’s outlook has also received a boost from the ongoing AI boom, including partnerships linked to data center development in West Texas. The company’s land, energy access, and critical water resources position it as a potential beneficiary of the hyperscaler expansion and AI infrastructure buildout.

However, despite its attractive royalty business model, Texas Pacific Land Corp is not immune to the energy cycle. The company acknowledges that its revenue is directly impacted by commodity prices and the development and operating decisions of its customers. The landowner also remains completely unhedged. Additionally, a potential slowdown in data center buildout could also hurt the company’s outlook.

Here is what Jim Cramer Says About Texas Pacific Land Corporation.

6. DT Midstream, Inc. (NYSE:DTM) 

Short % of Float: 7.66%

Market Cap: $12.21 Billion

DT Midstream, Inc. (NYSE:DTM) is a pure-play natural gas infrastructure company that owns, operates, and develops systems to move, store, and process natural gas. This means that customers can access multiple services through a single infrastructure provider rather than arranging separate transportation and gathering agreements with several companies. Another attractive aspect of DTM is that it largely operates a toll booth business model, which protects it from the cyclicality of natural gas prices.

DTM’s investment thesis increasingly revolves around the rising natural gas demand from LNG export and electricity generation, including data centers. In its Q3 2026 earnings call, the company’s management cited third-party forecasts indicating that the US natural gas demand could rise by more than 25 Bcf per day through 2030.

The midstream operator’s financial performance has also been encouraging. Its nine-month adjusted EBITDA increased from $845 million in 2025 to $914 million in 2026, representing a growth of 8.2%. The company also raised its full-year 2026 adjusted EBITDA guidance range to $1.185 billion – $1.225 billion, implying a YoY growth of 7% at the midpoint.

That said, despite the favorable long-term outlook for natural gas demand, DT Midstream is not immune to a near-term weakness in markets. If natural gas prices remain weak for an extended period, producers may curtail drilling and production activity, limiting the volumes available to DTM’s gathering systems.

Additionally, the prospects of a potential AI bubble also pose a significant threat. If the data center demand ultimately proves less durable than current trends imply, then the natural gas demand would also grow much more slowly than projected.

Reaves W H & Co Inc, stated the following regarding DT Midstream, Inc. in its Q3 2026 investor letter:

“DT Midstream shares were weak in the quarter alongside domestic natural gas prices, which declined as Permian supply increased. The stock may trade with natural gas prices in the short term, but commodity prices have limited impact on the company’s earnings and growth outlook. We continue to see significant opportunities to expand capacity to serve growing power generation demand in the Midwest and LNG export growth along the U.S. Gulf Coast.”

Click HERE for our detailed analysis of DT Midstream, Inc..

5. Plains GP Holdings, L.P. (NASDAQ:PAGP)

Short % of Float: 8.20%

Market Cap: $5.20 Billion

Plains GP Holdings, L.P. (NASDAQ:PAGP) is a corporate umbrella entity created to hold an indirect, non-economic controlling general partner interest and an indirect limited partner stake in Plains All American Pipeline MLP. PAGP Issues a standard Form 1099 to its shareholders, making it simpler for retail investors who want to avoid the K-1 forms associated with MLPs.

PAA is an integrated midstream infrastructure company that connects crude oil supply to key demand centers in the U.S. and Canada. Its interconnected system of gathering, intra-basin transportation, and long-haul pipelines allows it to transport crude oil from production sites to major marketing hubs like Corpus Christi, Houston, and Cushing.

The midstream operator has been mainly focused on bolt-on acquisitions and recently closed the Silver Creek acquisition for approximately $585 million, expanding its footprint in the Powder River Basin. Another major growth catalyst for the company is the expansion of the Cactus III pipeline by 75,000 barrels per day, which came online in August 2026. In the third quarter, the firm also announced a 10-year agreement with a large integrated producer to expand its Permian Midland gathering system. However, that will not contribute until the fourth quarter of 2027.

That said, Plains All American is among the large midstream operators with the highest commodity-related exposure, up to 15% of its EBITDA. While this has worked in the company’s favor in the current high-priced environment, it will be a major headwind when oil prices normalize. Additionally, most of the firm’s pipelines and volumes come from the prolific Permian Basin, so a potential slowdown in drilling and production activity if crude prices fall could also hurt earnings.

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