Purpose: This study examines how investors’ sentiment impacted the profit spreads of three major energy companies: BP PLC, Chevron, and Exxon Mobil, from 2014 to 2024. Given the recent spike in volatility in the oil industry caused by COVID-19 and the Russia-Ukraine crisis, it is necessary to examine how investor emotions impact profit spreads in addition to the more traditional causes. Methodology: We investigate the relationship between a weekly investor sentiment index and daily profit spreads using a MIDAS regression approach. Additionally, the results are compared using standard linear regressions. Weekly data for January 3, 2014, to May 6, 2024, and daily data for January 9, 2014, to May 9, 2024, are used in the study. Results: We expect the MIDAS regressions to show a nuanced link between profit spreads and investor mood. A nuanced influence would be suggested by the mixed positive and negative signs across different lags, even if some lagged sentiment variables would have statistically significant coefficients. This could be different from what regular linear regressions find. Chevron The analysis of Chevron's daily stock returns using MIDAS regressions suggests that investor sentiment might not have a clear-cut impact. While a strong negative mean reversion effect exists (where yesterday's return influences todays in the opposite direction), the sentiment index's coefficients in the MIDAS regressions were not statistically significant. This indicates other factors likely play a larger role in influencing Chevron's daily returns. This could be because the oil and gas industry focus on long-term projects and may prioritize stable cash flow, making daily stock prices less responsive to short-term investor sentiment. However, limitations exist in this analysis, and a larger dataset or further analysis might be needed for a more definitive conclusion. Exxon Mobil Examining MIDAS regressions for Exxon Mobil revealed an unclear link between investor sentiment and daily stock returns. Unlike a standard regression, some lags of the sentiment index showed statistically significant relationships in MIDAS, but the positive and negative signs suggest a complex influence. This contrasts somewhat with the inconclusive results for Chevron, but could be due to the oil and gas industry's focus on long-term factors and Exxon Mobil's potential prioritization of stable cash flow, limiting the daily price impact of investor sentiment. While limitations exist, these results suggest investor sentiment might not significantly affect Exxon Mobil's daily stock price, potentially influencing its profit spread in a way that differs from other companies. BP PLC Analyzing MIDAS regressions for Exxon Mobil (DEXXON) and BP (DBP) revealed an unclear influence of investor sentiment on their daily stock returns. While there were some statistically significant coefficients for lagged sentiment terms in the MIDAS regressions, the mixed positive and negative signs across different lags suggest a complex relationship, not a clear positive or negative impact. This is similar to the findings for Chevron and strengthens the notion that investor sentiment might not be a major driver for daily stock prices in the oil and gas industry. This could be due to the industry's focus on long-term factors like global oil prices and the potential prioritization of stable cash flow by these companies, limiting the daily price impact of short-term sentiment swings. It's important to remember that limitations exist, and further analysis or a larger dataset might be necessary for a more definitive answer. However, these results suggest investor sentiment might not significantly affect the daily stock price of these oil and gas companies, potentially influencing their profit spreads in a way that differs from companies in other sectors. Research limitations: This study acknowledges limitations inherent to the MIDAS framework. The model might not capture all factors influencing daily profit spreads. Additionally, the chosen period might not fully capture long-term trends. Originality: This study adds to the body of knowledge by looking into the impact of investors‘sentiment on profit spreads in the energy industry, which has recently experienced increasing volatility as a result of global events. It uses the MIDAS approach to model the dynamic link between high-frequency investor sentiment and low-frequency profit spreads. It also compares the findings of MIDAS regressions to typical linear regressions to gain a more complete insight. [ABSTRACT FROM AUTHOR]