Energy Sector Divergence: Phoenix Banks on Decades of Cash Flow While Siemens Weighs Wind Spin-Off
The global energy market is currently pulling investors in two heavily contrasting directions. On one side of the equation, traditional commodity players are digging in for the long haul, actively betting on the sheer duration of their assets to outlast market volatility. On the other, European powerhouses are riding record stock highs while navigating intense, immediate pressure to restructure their renewable energy divisions.
The Long Game in the Williston Basin
For Phoenix Energy, the core strategy starts with a fairly blunt reality check. According to CEO Ferrari, commodity companies simply cannot rely on high price environments to meet their financial obligations. Instead, Phoenix is putting its money where returns hold up even when the market goes sideways, focusing heavily on expanding its mineral portfolio in the Williston Basin.
Mineral rights serve as the company’s defensive backbone. Because they generate reliable income without the operational costs or capital risks tied to active drilling programs, Phoenix views them as the ultimate cycle-resilient asset. It’s a model that has consistently met investor expectations, and management clearly expects that trend to continue.
Ferrari argues that the broader market has a massive blind spot when it comes to asset duration. While investors obsess over fluctuating quarterly oil prices and short-term drilling cycles, Phoenix is quietly building a portfolio designed to monetize decades of production. “We think that mineral rights’ biggest hidden value is time,” Ferrari noted. Once a drill bit actually breaks ground, royalty checks can keep flowing in for 30 to 40 years without a single dollar of additional capital outlay. It’s an engine of compounding returns that becomes especially attractive during softer price environments. In an industry defined by wild price swings, Phoenix is treating time—not commodity pricing—as its ultimate edge.
Siemens Energy Hits Record Highs Amid Restructuring Talk
Meanwhile, the dynamic is entirely different over at Siemens Energy, where the focus is squarely on immediate corporate restructuring amid a soaring valuation. The company’s stock has been on an absolute tear recently, driven largely by a blowout first quarter in 2026 that saw both revenues and profits surge. During Thursday’s XETRA trading, shares ticked up 0.21 percent to €169.70, peaking earlier in the session at €170.40. That leaves the stock hovering just pennies below its all-time high of €171.65, a benchmark it hit only yesterday.
Despite the market rally, the immediate spotlight has shifted to Thursday’s annual general meeting in Berlin. While the in-person event is also being broadcast to shareholders online, the real tension lies in what management plans to do with its struggling wind power subsidiary, Siemens Gamesa. An activist investor began pushing for a spin-off back in December, and that demand is expected to dominate the conversation.
Not everyone is on board with a quick offload, though. Ingo Speich from Deka Investment, a major shareholder, warned against letting the unit go on the cheap. Divesting right now would basically mean selling below value, Speich noted, urging the board not to “squander Gamesa.”
Beyond the high-stakes debate over the wind division, shareholders are also tackling standard corporate housekeeping. The agenda includes voting on a proposed dividend of €0.70 per eligible share, officially discharging the executive and supervisory boards, and signing off on future compensation structures for board members.