3 Oil Stocks Retail Investors Are Watching As Crude Nears $90

Global energy stocks are back in focus as oil trades near $90 a barrel, shipping routes face fresh disruption and gold hovers around multi month highs. Markets are split between optimism and caution, which creates room for mispricing. This article walks through 3 stocks from our Global Energy & Oil Producers screener that look particularly exposed to these cross currents and explains how the current backdrop could help or hurt each one.

The 3 stocks below are just a starting sample from this Global Energy & Oil Producers idea. The full screen surfaced 23 more companies with equally detailed stories that are not covered here. To identify and analyze the setups that best fit your own view on energy markets, head straight to the Global Energy & Oil Producers screener.

Tullow Oil (LSE:TLW)

Overview: Tullow Oil is a London based energy company that develops, produces and sells oil and gas, with a core focus on offshore fields in Ghana and additional interests in Côte d’Ivoire. It is a pure play upstream producer, so its fortunes are closely tied to crude prices and field performance.

Operations: Tullow Oil generates almost all of its revenue from Ghana, which contributed about $833 million, with a much smaller contribution of roughly $33 million from other activities and a negative $19 million from corporate items.

Market Cap: £223 million

Investors looking at Tullow Oil right now are staring at a high risk, high reward way to get direct exposure to oil prices as they trade near $90 a barrel. The company is tightly linked to its Ghana assets and uses a hedging program that still leaves a large portion of production exposed to higher prices, as recent cargoes priced at $90 to $130 a barrel have shown. Analysts are expecting earnings improvement in the coming years and Tullow currently trades on what looks like a relatively low P/S multiple, yet the balance sheet carries heavy debt and shareholders’ equity is negative. For investors who can live with volatility and country concentration, the mix of potential cash flow upside and real financial risk makes this a stock that may warrant closer examination.

High oil linked cash flow potential and a stretched balance sheet make Tullow Oil hard to ignore right now. Get the full picture in the 3 key rewards and 2 important warning signs (2 are major!)

Build your own high risk, high reward energy shortlist

Tullow Oil and the two other stocks in this article all surfaced from a single Simply Wall St screener, but the real edge comes from building your own filters around valuation, balance sheet, risks and cash flow potential. Use our flexible Screener to shape ideas that fit your style, or jump straight into any of our curated Investing Ideas.

Dana Gas PJSC (ADX:DANA)

Overview: Dana Gas PJSC is a Sharjah headquartered energy company that explores, produces, processes and sells natural gas and petroleum products across the Middle East and North Africa, with operations spanning the United Arab Emirates, the Kurdistan Region of Iraq and Egypt.

Operations: Dana Gas PJSC generates about $376 million of revenue from integrated oil and gas activities, primarily from the Kurdistan Region of Iraq at $291 million, with Egypt contributing $81 million and the United Arab Emirates $4 million.

Market Cap: AED6.1b

Dana Gas PJSC stands out in this screener because it links a sizeable MENA gas resource base to visible demand at a time when oil hovering near $90 a barrel has renewed attention on regional supply security. The KM250 expansion in Kurdistan, new gas sales agreements and an active Egypt drilling program give the company several avenues to grow volumes and spread costs. At the same time, a high dividend yield and recent earnings momentum contribute to its income profile. On the other hand, reliance on hydrocarbon prices, receivables from regional governments and funding through external borrowing introduce risks to cash flows and payouts. For investors focused on yield and volume growth potential in MENA gas, this is a company that may merit close monitoring.

Dana Gas PJSC sits at the crossroads of MENA gas demand, high dividends and expansion projects that could reshape its income story. See how the full 4 key rewards and 1 important warning sign might be masking one crucial twist investors often miss

Ithaca Energy (LSE:ITH)

Overview: Ithaca Energy is a London based company that develops and produces oil and gas across a portfolio of fields in the UK North Sea, including the Northern, Central and Southern regions, West of Shetland and the Moray Firth. It focuses on mature and growth projects on the UK Continental Shelf and operates as a subsidiary of DKL Energy Limited.

Operations: Ithaca Energy generates about $3.1b of revenue entirely from oil and gas exploration, development, production and related activities in the North Sea.

Market Cap: £4.0b

Ithaca Energy provides focused exposure to North Sea oil and gas at a time when crude is near $90 a barrel and supply concerns are back in the headlines. Its story is not just about price leverage. The company has turned profitable, is paying a high dividend linked to 30% of post tax operating cash flow and is openly pursuing acquisitions, including potential interest in assets that larger majors may sell. At the same time, high debt, concentration in a mature basin and ongoing debate over UK windfall taxes and future North Sea policy mean cash flows are not guaranteed. That mix of income potential, M&A optionality and policy risk may make Ithaca a candidate for closer consideration by investors who can handle volatility.

Ithaca Energy’s high dividend and acquisition push can seem like a clear advantage, yet the full story is more complex. Read the 3 key rewards and 2 important warning signs

Seeking Fresh Alternatives Before They Fly

Some of the most interesting breakout stories may still be under the radar for now. Before momentum accelerates and prices rise, review these fresh stock ideas while they may still be timely.

• Identify income workhorses that could help keep portfolios funded in a range of conditions by checking the curated 5 dividend fortresses before others react to changing yields.
• Follow companies providing the infrastructure for AI by scanning the hand picked 57 AI infrastructure stocks while these opportunities may still be priced for curiosity rather than peak attention.
• Look for cash generative miners with sensitivity to metal prices using the focused 29 elite gold producer stocks before any renewed momentum changes valuations beyond your preferred range.

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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