Oil And Gas Stocks For Higher Oil Prices After Iran Tensions

Oil and gas producers are back in the spotlight as tensions between the U.S. and Iran rise, threats to Iranian infrastructure grow, and crude prices react to fears around the Strait of Hormuz. For investors, this kind of geopolitical shock can quickly reshape risk, pricing power, and cash flow expectations across the Energy Sector, especially for Oil & Gas Producers. This article looks at 3 stocks from a focused screener that appear positively exposed to the current news backdrop and is intended to help you decide whether they deserve a closer look in your own research or a place on the watchlist.

Baytex Energy (TSX:BTE)

Overview: Baytex Energy is a Calgary based oil and gas producer focused on acquiring, developing, and operating assets in the Western Canadian Sedimentary Basin, with a mix of light and heavy oil, condensate, natural gas liquids, and natural gas.

Operations: Baytex generates all of its CA$1.49b in revenue from oil and gas exploration and production assets in Canada.

Market Cap: CA$4.25b

Baytex Energy may appeal to investors who expect higher oil prices from geopolitical shocks and who believe this could feed directly into cash flow. The company is highly sensitive to crude moves and has efficiency gains, reserve replacement, and a shareholder return plan through buybacks and dividends. At the same time, Baytex is currently unprofitable, has a history of widening losses, relies entirely on higher risk borrowing for funding, and faces tariff, oil price, and currency uncertainty that could affect margins. With analysts indicating potential upside from current levels and the company actively shrinking its share count, the key consideration is whether the risks around volatile oil and policy shocks are an acceptable trade off at today’s valuation.

Baytex Energy’s shrinking share count and sensitivity to crude prices could be masking a much bigger swing in shareholder outcomes. Before you decide how to play it, review the 3 key rewards and 1 important warning sign

Beach Energy (ASX:BPT)

Overview: Beach Energy is an Adelaide headquartered oil and gas producer that explores, develops, and operates onshore and offshore fields across Australia and New Zealand, supplying hydrocarbons such as liquefied natural gas, liquefied petroleum gas, condensate, oil, and various natural gases.

Operations: Beach Energy generates A$2.10b in revenue from exploration, development, and production of hydrocarbons, with sales primarily sourced from Victoria, South Australia, Western Australia, and New Zealand.

Market Cap: A$2.01b

Beach Energy stands out in this oil and gas producers screener because it combines leverage to higher oil and gas prices with concrete growth projects, including the Waitsia Gas Project and ongoing drilling in fields such as Stunsail and Kangaroo. These projects are intended to support future LNG exports and domestic gas supply. The stock is currently loss making, with declining reserves and higher funding risk, and analysts expect a turn to profitability. The shares trade below some estimates of future cash flow value. For investors who can tolerate project execution, reserve replacement, and regulatory risks, the combination of potential earnings recovery and exposure to any sustained uplift in energy prices makes Beach Energy a company that may warrant closer scrutiny.

Beach Energy’s stalled earnings and ambitious LNG projects could be masking a sharper turn in the story, and the full picture only starts to emerge once you see the analyst forecasts for Beach Energy

Santos (ASX:STO)

Overview: Santos is a large Adelaide based oil and gas producer that explores, develops, transports, and sells hydrocarbons across Australia, Papua New Guinea, Alaska, and Timor-Leste, with a growing focus on decarbonization technologies such as carbon capture and storage.

Operations: Santos generates most of its revenue from Papua New Guinea at US$2.54b and Australia at roughly US$2.53b, with key business segments including PNG at US$2.54b, Queensland & NSW at US$1.13b, Western Australia at US$779m, and the Cooper Basin at US$486m.

Market Cap: A$24.89b

Santos gives investors direct exposure to oil linked LNG pricing at a time when geopolitical tensions have pushed Brent above US$85 per barrel and energy security is back in focus. A large portion of its LNG portfolio is tied to oil prices, while long term contracts, major growth projects like Barossa and Pikka, and early progress in carbon capture support revenue visibility and future cash generation. On the other hand, recent earnings pressure, heavy capital spending, external borrowing, and environmental and regulatory risks around projects such as Papua LNG mean outcomes can vary widely depending on execution and policy. For investors who can accept those trade offs, the combination of oil price leverage and LNG growth potential at Santos may be a key consideration.

Santos’ oil linked LNG portfolio, long term contracts, and major projects like Barossa and Pikka could be hiding a much sharper earnings swing than markets are pricing in right now, and the analyst forecasts for Santos might reveal the one pressure point that decides which way it breaks.

The three oil and gas producers in this article are just a starting point, and the full Energy Sector – Oil & Gas Producers screener surfaces 45 more companies with equally compelling narratives tied to exploration, production, and energy security themes. Use Simply Wall St to analyze and filter these stocks by the specific catalysts and narratives that matter most to you, so you can identify the opportunities that best align with your own views and risk tolerance.

Take Control of Your Investment Journey

If Beach Energy or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond Energy?

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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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