Oil Stocks to Watch if Higher Crude Prices Keep Holding

With the U.S. turning the screws harder on Iran and ship traffic through the Strait of Hormuz still far from normal, energy markets are on edge again. Geopolitics is suddenly back on your portfolio radar, and some companies could feel that pressure more than others. This article walks through 3 stocks from our Global Oil & Gas Producers screener that appear positioned to benefit if higher oil and gas prices persist.

The stocks covered below are only a small sample from this idea, and the full screen surfaced 51 more companies with equally detailed narratives that are not covered here. If you want to identify your own potential winners, head straight into the Global Oil & Gas Producers screener to analyze, filter and focus on the highest conviction plays.

Paramount Resources (TSX:POU)

Overview: Paramount Resources is a Calgary based upstream oil and gas company that explores for and develops conventional and unconventional petroleum and natural gas reserves in western Canada, with large positions in the Duvernay and Montney formations at Willesden Green, Sinclair and Kaybob that give it direct exposure to commodity prices.

Operations: Paramount Resources currently generates all of its reported revenue, about CA$1.05 billion, from operations in Canada.

Market Cap: CA$4.71 billion

Paramount Resources provides pure upstream exposure to Canadian oil and gas at a time when supply risks in places like the Strait of Hormuz influence price expectations. The stock is flagged as trading below some estimates of fair value. The company is focusing on its Montney and Duvernay acreage, with higher production guidance out to 2027 that could increase its sensitivity to price movements. On the other hand, thin profit margins, a modest 4.3% ROE, a dividend not fully backed by free cash flow and reliance on external funding are important pressure points. In addition, recent insider selling highlights that while there may be potential upside, the associated risks require close attention.

Paramount Resources looks like a pure play on Canadian oil and gas that some investors may be underrating. Before you decide where you stand, review the 2 key rewards and 4 important warning signs (1 is major!)

Build your own oil and gas opportunity shortlist

Paramount Resources and the two other stocks in this article all came out of a single screener, which shows what is possible when you fine tune filters around valuation, cash flows and balance sheet strength. Use our flexible Screener to create your own set of candidates, or browse any of our curated Investing Ideas for ready made starting points.

Athabasca Oil (TSX:ATH)

Overview: Athabasca Oil is a Calgary based upstream producer focused on thermal bitumen projects in the Athabasca region and light oil in the Duvernay, so its revenue is closely tied to crude prices that sit at the center of this Global Oil & Gas Producers theme. For investors looking for direct exposure to Canadian oil with scale and established assets rather than an exploration story, Athabasca Oil offers a relatively pure play on sustained or higher oil prices.

Operations: Athabasca Oil generates essentially all of its CA$1.29 billion revenue from Canada, with about CA$1.28 billion from its Athabasca Thermal Oil segment and CA$103 million from Duvernay Energy after eliminations.

Market Cap: CA$5.15 billion

Athabasca Oil provides concentrated leverage to crude prices at a time when supply risks around the Strait of Hormuz keep the upside case in focus. The company’s own guidance points to a liquids heavy production mix and funded growth in its thermal and Duvernay assets. Forecasts of strong earnings and revenue growth indicate meaningful operating momentum; however, the stock already trades well above one DCF estimate of fair value, and margins have pulled back from last year’s levels. In addition, reliance on external funding and recent earnings volatility contribute to a higher risk, oil geared profile that may appeal to investors who are carefully weighing commodity exposure against balance sheet and profitability pressure points.

Athabasca Oil’s growth story and oil leverage are attracting attention, yet the market may not be pricing every angle of that trade. Review the 1 key reward and 1 important warning sign to see what could be missing.

PetroTal (TSX:TAL)

Overview: PetroTal is a Houston based upstream oil and gas company that acquires, develops and produces crude in Peru, anchored by its 100% owned Bretaña Norte field in Block 95. As a pure producer tied directly to Brent pricing, PetroTal fits neatly into the Global Oil & Gas Producers theme for investors looking for focused exposure to moves in global oil benchmarks.

Operations: PetroTal generates all of its reported revenue, about US$235 million, from oil and gas exploration and production in Peru.

Market Cap: CA$479 million

PetroTal offers direct leverage to higher oil prices, with all production coming from Peruvian fields that reference Brent crude, at a time when supply risks in the Strait of Hormuz keep the upside case in play. The stock also trades at a steep discount to one estimate of fair value and has been profitable, although recent revenue and earnings for H1 2026 were weaker than the prior year and profit margins compressed from above 20% to single digits. Considering management that is still relatively new, country and logistics risk, and a higher risk funding mix, PetroTal becomes a higher octane way to play the theme that may appeal to investors who do the extra work on its valuation, route options and Peru specific risk profile.

PetroTal’s valuation gap and Brent linked exposure suggest that the market may not be fully pricing in this story yet. Scan the DCF valuation analysis for PetroTal to see what the market might be missing.

Seeking Fresh Alternatives Before They Fly

Fresh opportunities move fast, and the strongest ideas often gain momentum before most investors even look up. Scan these under the radar for now picks while it matters, then consider your options.

• Spot steady earners that could keep portfolios grounded while markets swing by reviewing the list of solid balance sheet and fundamentals (12 results).
• Explore potential growth themes in digital assets and infrastructure by checking the curated 20 cryptocurrency and blockchain stocks.
• Review metal producers that might be positioned for long term demand shifts by focusing on the 32 elite gold producer stocks.

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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