Share repurchases are gaining importance across the energy space as companies look to balance shareholder returns with capital discipline amid elevated oil prices and geopolitical uncertainty. Brent recently climbed above $105 per barrel, while WTI approached $95 as concerns over Middle East supply disruptions persisted. Against this backdrop, Phillips 66 (PSX Quick QuotePSX - Free Report) , HF Sinclair (DINO Quick QuoteDINO - Free Report) and Eni S.p.A. (E Quick QuoteE - Free Report) — each carrying Zacks Rank #1 (Strong Buy) — stand out with recently strengthened buyback programs. You can see the complete list of today’s Zacks #1 Rank stocks here.

Why Share Buybacks Matter for Energy Investors

Share buybacks allow companies to deploy surplus cash toward repurchasing their own stock, reducing the number of shares outstanding and potentially supporting earnings per share over time. Unlike dividends, repurchases can be adjusted as business conditions change, making them particularly useful in the cyclical energy sector. When undertaken at attractive valuations and supported by healthy cash flows, buybacks can enhance per-share value while signaling management’s confidence in the company’s financial position.

This flexibility is especially relevant now. Oil prices remain elevated as the U.S.-Iran ceasefire talks stay deadlocked, prolonging uncertainty surrounding the Strait of Hormuz, although recovering regional exports and Saudi Arabia’s restored East-West pipeline have tempered some price gains. Such an uncertain backdrop makes disciplined capital allocation increasingly important. For investors, companies combining operational strength with sizable repurchase programs may offer an additional avenue for shareholder returns beyond dividends.

3 Stocks Stepping Up Share Buybacks

With stock repurchases gaining traction in the energy space, let’s take a look at some recent capital deployment activities.

Phillips 66: Phillips 66 is a diversified energy company active across refining, midstream, chemicals, marketing, specialties and renewable fuels. Its network connects crude oil, natural gas liquids and other feedstocks with refineries, pipelines, export facilities and end markets. The company also operates a large commercial platform that links North American supply with customers around the world.

Its integrated model is designed to reduce earnings volatility and improve cash flow durability. Phillips 66 continues to invest in midstream expansion, refining reliability, chemicals and renewable fuels, while focusing on core markets and cost control. The company also places strong emphasis on shareholder returns through dividends and share repurchases.

Phillips 66 strengthened its shareholder-return framework when its board approved a $10 billion increase to its share repurchase authorization on July 29, 2026. The move came as the remaining authorization under the existing program was approaching its limit. PSX said the expanded authorization supports long-term shareholder value alongside its dividend, disciplined capital investment and continued debt reduction, highlighting its balanced capital-allocation approach.

HF Sinclair: HF Sinclair is an integrated downstream energy company with businesses in refining, midstream, marketing, renewable fuels and lubricants. Its refining network is supported by pipeline and terminal assets, while marketing operations help connect fuel production with end customers. The company has exposure to renewable diesel and specialty products, giving it a wider mix than a pure refiner.

HF Sinclair is working to simplify its portfolio and sharpen its focus. It plans to separate the Lubricants & Specialties business into an independent company and retire base oil refining assets in Mississauga. The remaining company will focus on refining, midstream, marketing and renewables, with cash returns and disciplined reinvestment as key priorities.

HF Sinclair refreshed its capital-return strategy on Aug. 26, 2026, with a new $1.5 billion share repurchase program. The authorization replaced all existing repurchase programs, under which approximately $11 million remained. DINO may execute repurchases in the open market, through privately negotiated transactions or other permitted methods, with the timing and amount depending on market conditions and other relevant considerations.

Eni: Eni is a global energy company with operations spanning oil and gas production, LNG, power, refining, biofuels and renewable energy. Its upstream business has a broad international footprint, while newer platforms such as Enilive and Plenitude are expanding its presence in lower-carbon fuels, renewables and retail energy. The group is also building LNG and gas projects across several regions.

Eni combines traditional energy assets with transition-focused businesses to diversify cash flow and support long-term growth. It is advancing major developments in Asia, Africa and South America, while continuing to invest in biorefineries, renewable capacity and energy infrastructure. Its strategy also emphasizes disciplined capital spending and shareholder distributions.

Eni stepped up shareholder distributions again in July, expanding its 2026 share buyback plan to €3.4 billion from the previously revised €2.8 billion, a 20% increase. The latest amount is more than double its initial €1.5 billion guidance. Eni attributed the increase to strong execution and the market environment, underscoring its policy of sharing cash-flow upside with its shareholders.