Oil Prices Jump and These 3 Oil And Gas Stocks Stand Out

Oil prices are back in focus after U.S. strikes on Iranian targets, the end of a ceasefire, and a fresh clampdown on Iranian crude exports pushed Brent and WTI up by more than 5%. For energy investors, that kind of shock can quickly reshape expectations around cash flows, costs, and risk across oil and gas producers. This article looks at how that news links to a curated screener of large, financially solid oil and natural gas stocks, and highlights 3 stocks that appear positively exposed to these developments, which may help you decide whether they deserve a closer look or a place on your watchlist.

Overview: Chord Energy is an independent U.S. producer focused on acquiring, drilling and operating oil and gas wells in the Williston Basin, selling crude oil, natural gas and liquids to refiners and marketers connected to key pipeline and rail networks.

Operations: Chord Energy generates all of its US$5.0b in revenue from exploration and production of crude oil, NGLs and natural gas in the United States.

Market Cap: US$6.3b

Chord Energy gives you direct exposure to U.S. oil prices at a time when Middle East tensions and sanctions on Iran are pushing Brent and WTI higher. The company still screens as good value on P/S and against Simply Wall St’s fair value estimate. Its Williston Basin assets, longer lateral drilling and use of advanced analytics are aimed at keeping breakevens low, while buybacks and a 4.45% dividend indicate a focus on returning cash. At the same time, Chord is currently unprofitable, carries higher-risk borrowings and depends on a concentrated shale footprint, so investors need to weigh the upside from strong free cash flow potential against volatility in earnings, regulation and the global energy transition.

Chord Energy’s mix of cash returns, a single basin focus and current valuation hints at a story investors may be underestimating, and the real twist may sit inside the 4 key rewards and 2 important warning signs

Overview: Baytex Energy is a Canadian oil and gas producer that acquires, develops, and operates fields across the Western Canadian Sedimentary Basin, supplying light and heavy crude, condensate, natural gas liquids, and natural gas to North American markets.

Operations: Baytex Energy generates all of its CA$1.5b in revenue from oil and gas exploration and production in Canada.

Market Cap: CA$4.0b

Baytex Energy offers direct exposure to higher oil prices at a time when Middle East tensions and tighter Iranian export controls are lifting Brent and WTI. The stock currently trades below some fair value estimates and analyst price targets. The company is currently loss making, with negative Return on Equity and all liabilities funded by higher risk borrowing, but it is returning cash through dividends and sizable buybacks and guiding to higher production. For investors, the key consideration is how this mix of projected earnings growth, active capital returns, tariff and currency risks, and continued insider selling fits together, and what that balance looks like once the detailed risk and reward factors are unpacked.

Baytex Energy’s mix of cash returns, higher risk borrowing and loss making status raises big questions about what is really driving the story. Walk through the 3 key rewards and 1 important warning sign and see what might be hiding in plain sight.

Overview: Santos is a long-established Australian energy company that explores for, produces, transports and sells oil and gas across Australia, Papua New Guinea, Alaska and Timor-Leste, supplying crude, LNG, LPG and other products to regional and global buyers.

Operations: Santos generates most of its revenue from Papua New Guinea at about US$2.5b, alongside sizeable contributions from Queensland & NSW at US$1.1b, Western Australia at US$779m and the Cooper Basin at US$486m, with smaller amounts from Northern Australia & Timor-Leste.

Market Cap: A$23.0b

Investors looking at Santos today are getting exposure to a major LNG and oil exporter that benefits directly when global oil benchmarks jump, as seen after the latest flare up in US Iran tensions. The appeal is a mix of contracted, largely oil linked LNG sales that support cash generation, company wide cost targets, and growing use of carbon capture to keep large projects investable. Set against that are funding and execution risks on capital intensive assets, pressure on margins, and questions about how secure future dividends are if earnings or free cash flow fall short. The full picture of how those moving parts fit together, and whether current pricing fairly reflects them, is where the story gets interesting.

Santos appears to be a story where long term LNG contracts and oil linked pricing could be masking a crucial swing factor, and the real inflection point sits inside the 2 key rewards and 1 important major warning sign

The three stocks covered here are just a starting point, and the full Energy Sector (Oil & Gas Producers) screener surfaces 44 more companies that fit similar size and financial health criteria, each with its own potential narrative around oil price exposure and balance sheet strength. Use Simply Wall St to identify, filter and analyze the specific catalysts and narratives that matter most to you so you can focus on the highest conviction ideas in this corner of the energy sector.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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