Investment grade energy bonds are issued by integrated oil companies, exploration and production companies, refiners, and pipeline operators rated BBB‑/Baa3 or higher. Earnings swing with oil and gas prices, so ratings depend on how much debt a company carries through the cycle. ExxonMobil and Chevron are rated in the AA category; most other issuers are A or BBB.
For investment grade net lease investors, energy shows up through fuel and convenience stores. The key point is the obligor: most branded gas stations are owned or leased by independent dealers, so an oil company’s rating rarely stands behind a station lease, while convenience chains such as 7-Eleven, Circle K, and Casey’s sign leases in their own names. See the investment grade bonds hub and the gas station depreciation guide.
Energy Bond Yields Today
Most energy issuers are rated in the AA, A, and BBB categories. As of October 1, 2026, the ICE BofA US Corporate index yields by rating category were AA 5.80%, A 5.84%, and BBB 6.19%, and the BB high yield index yielded 7.03%. Individual bonds trade above or below their category depending on maturity and the issuer’s credit. The table updates each business day.
| Index (rating category) | Effective yield | Option-adjusted spread | Spread range since history start |
|---|---|---|---|
| AA | 5.80% | 61 bps | 41 to 73 bps (low Aug 18, 2025; high Apr 7, 2025) |
| A | 5.84% | 73 bps | 59 to 115 bps (low Jan 22, 2026; high Oct 20, 2023) |
| BBB | 6.19% | 106 bps | 92 to 163 bps (low May 29, 2026; high Oct 20, 2023) |
| Investment grade composite | 5.99% | 86 bps | 73 to 133 bps (low Jan 22, 2026; high Oct 20, 2023) |
| BB | 7.03% | 204 bps | 150 to 311 bps (low Aug 28, 2026; high Oct 20, 2023) |
ICE BofA US Corporate (AAA to BBB) and US High Yield (BB to CCC) index effective yields and option-adjusted spreads, from the Federal Reserve Bank of St. Louis (FRED), as of October 1, 2026. The range covers the daily history FRED currently publishes for these series, which begins October 3, 2023. Updated each business day.
What Drives Energy Credit
Commodity prices. Oil and natural gas prices drive cash flow. Agencies rate producers on how their balance sheets hold up at low prices.
Consolidation. ExxonMobil completed its acquisition of Pioneer Natural Resources on May 3, 2024, and Chevron completed its acquisition of Hess on July 18, 2025, after an arbitration ruling cleared Hess’s Guyana interest. Large stock-funded deals like these added production without a large increase in debt.
Refining margins. Refiners earn the spread between crude oil and fuel prices, which is volatile.
Pipelines and LNG. Midstream companies earn fees under long-term contracts, which supports BBB ratings even with high debt.
Convenience retail. Convenience chains earn more from inside sales than fuel, and several have grown through acquisitions, such as 7-Eleven’s purchase of Speedway in 2021.
Energy Issuers That Are Also NNN Tenants
These oil, refining, and convenience store companies appear as net lease tenants or as the brand on leased stations. The table shows each one’s rating as it stands in our database. Ratings come from our ratings database and update automatically; n/a means no verified rating is on file. A corporate rating applies to a lease only if the rated entity signs or guarantees it.
| Issuer (rated entity) | S&P | Moody’s | Index yield for rating category | NNN median asking cap (listings) |
|---|---|---|---|---|
| ExxonMobil | AA- | Aa2 | 5.80% (AA) | 7.15% (5) |
| Chevron | AA- | Aa2 | 5.80% (AA) | 7.25% (7) |
| BP | A- | A1 | 5.84% (A) | fewer than 5 listings |
| Phillips 66 | BBB+ | Baa1 | 6.19% (BBB) | fewer than 5 listings |
| Marathon (Marathon Petroleum Corporation) | BBB | Baa2 | 6.19% (BBB) | fewer than 5 listings |
| Valero | BBB | Baa2 | 6.19% (BBB) | fewer than 5 listings |
| Sunoco | BB+ | n/a | 7.03% (BB) | fewer than 5 listings |
| 7-Eleven | A- | Baa2 | 5.84% (A) | 5.00% (134) |
| Circle K (Alimentation Couche-Tard Inc.) | BBB+ | Baa1 | 6.19% (BBB) | 5.25% (33) |
| Casey's General Stores | NR | n/a | not rated | fewer than 5 listings |
| Murphy USA | BB+ | n/a | 7.03% (BB) | 5.00% (7) |
| Wawa (Wawa Inc) | n/a | n/a | not rated | 5.00% (53) |
| Sheetz (Sheetz, Inc.) | n/a | n/a | not rated | 5.25% (13) |
| QuikTrip | n/a | n/a | not rated | 5.83% (8) |
| Love's Travel Stops | NR | NR | not rated | fewer than 5 listings |
| Kum & Go (FJ Management, Inc.) | n/a | n/a | not rated | fewer than 5 listings |
Ratings from our ratings database (S&P Global Ratings and Moody’s rating actions and issuer filings); n/a means no verified rating is on file. Index yield is the ICE BofA effective yield for the issuer’s rating category via FRED, as of October 1, 2026, not a quote on the issuer’s own bonds. NNN median is the median asking cap rate on active listings InvestmentGrade.com tracks, as of October 9, 2026. Shaded rows are not investment grade or not rated.
Bond Index Yield vs. NNN Cap Rate
For convenience and fuel tenants with enough active listings, the table compares the bond index yield for the tenant’s rating category with the median asking cap rate on its listings. Oil company brands are left out because their stations are usually leased to independent dealers.
| Tenant | S&P / Moody’s | Index yield (category) | Median asking cap rate (listings with a cap rate) | Spread |
|---|---|---|---|---|
| 7-Eleven | A- / Baa2 | 5.84% (A) | 5.00% (134) | −84 bps |
| Circle K (rated entity: Alimentation Couche-Tard Inc.) | BBB+ / Baa1 | 6.19% (BBB) | 5.25% (33) | −94 bps |
| Murphy USA | BB+ / n/a | 7.03% (BB) | 5.00% (7) | −203 bps |
Showing 3 tenants. Index yield is the ICE BofA effective yield index for the tenant’s rating category (US Corporate AAA, AA, A or BBB index; US High Yield BB, single-B or CCC and lower index), using the S&P rating, or the Moody’s equivalent where S&P does not rate, from the Federal Reserve Bank of St. Louis (FRED), as of October 1, 2026. It is an index average, not a quote on the company’s own bonds. Median asking cap rate is the median of asking cap rates (stated, or computed from stated income and price when no rate is stated) on active listings InvestmentGrade.com tracks, listings last observed October 5, 2026; asking cap rates are not closed-sale cap rates. Spread is the median asking cap rate minus the index yield. Ratings are the agency ratings in our ratings database for the entity shown; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company. The entity that signs or guarantees a given lease can differ, so confirm the lease obligor. Shaded rows are below investment grade. NR means the agency does not rate the entity; n/a means no verified rating is on file. Not shown because fewer than 5 active listings with a published cap rate were observed: Sunoco. Not shown because there is no verified public agency rating: Casey's General Stores, Wawa, Sheetz.
The full tenant-by-tenant comparison is in the bond-to-NNN spread table.
Other Major Energy Bond Issuers
Other large energy bond issuers. This roster does not show ratings, which change; confirm the current rating with S&P, Moody’s, or Fitch or the issuer’s investor relations site.
| Subsector | Issuers (ticker) |
|---|---|
| Exploration and production | ConocoPhillips (COP); EOG Resources (EOG); Occidental Petroleum (OXY) |
| Pipelines and midstream | Enterprise Products Partners (EPD); Kinder Morgan (KMI); Williams Companies (WMB); Energy Transfer (ET); ONEOK (OKE) |
| Liquefied natural gas | Cheniere Energy (LNG) |
Energy Bond Risks
- Commodity price swings. Low prices reduce cash flow and can lead to downgrades for producers with high debt.
- Energy transition. Long-term demand for fuel is uncertain, which affects how agencies view very long-dated debt.
- Dealer credit at gas stations. A station leased to an independent dealer carries the dealer’s credit, not the oil company’s.
- Environmental liabilities. Fuel sites carry storage tank and contamination risks that leases should allocate clearly.
Frequently Asked Questions
What are investment grade energy bonds?
Bonds rated BBB‑/Baa3 or higher issued by integrated oil companies, producers, refiners, pipeline companies, and LNG exporters.
Does ExxonMobil or Chevron back a gas station lease?
Usually not. Most branded stations are owned or leased by independent dealers or distributors who buy fuel from the oil company. The oil company’s rating applies only if it signs or guarantees the lease.
Is the Chevron and Hess deal complete?
Yes. Chevron completed its acquisition of Hess on July 18, 2025.
Can a ground lease owner depreciate a convenience store?
Not if the investor owns only the land. Land is not depreciable; depreciation is available only on buildings and improvements the investor owns. Any after-tax advantage over a bond depends on the improvements owned, 1031 exchange eligibility, and the investor’s tax situation.
What is the bond-to-NNN spread for 7-Eleven?
Today the median asking cap rate on 7-Eleven listings is 5.00% against an A index yield of 5.84%, a spread of −84 bps. 7-Eleven, Inc. is rated in our database; check whether a specific lease is signed by 7-Eleven, Inc. or a subsidiary.
Own or Buying Energy Net Lease Property?
If you own a convenience store or fuel property with maturing debt or are weighing a sale, we can review refinance and sale options and find buyers among private investors, family offices, and 1031 exchange buyers.
On the majority of NNN transactions, the listing broker pays a cooperating commission, so there is typically no separate fee to you as the buyer for professional representation.
Find it: on market and off market net lease properties, sourced and underwritten for your criteria.
Fund it: acquisition, refinance, and recapitalization financing through our lender relationships.
Exit it: a buyer pool that includes institutions, family offices, and 1031 exchange buyers.
Exchange it: 1031 exchanges into or out of net lease property, run against the deadlines.
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Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced fluctuate continuously and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker-dealer, registered investment advisor, or tax professional before making any investment decision. For SEC investor education, visit investor.gov.
