Oil And Gas Stocks Worth A Closer Look As Energy Risks Rise

Energy markets are back in the spotlight as Middle East risks flare up, oil supply routes look more fragile and Asia-Pacific stocks react while U.S. traders are on the sidelines. That mix can shake prices, reset expectations and open gaps between perception and reality. This article walks through three large oil and gas producers exposed to the latest news, explaining why each could be worth a closer look or a wider berth right now.

The stocks profiled below are just a sample of the large energy producers on the radar right now. The full screen surfaced 23 more companies with equally interesting narratives that are not covered in this article. If you want to identify and analyze your own highest conviction ideas across the sector, head straight to the Global Energy Producers and Oil & Gas Majors screener.

Northern Oil and Gas (NOG)

Overview: Northern Oil and Gas is a U.S. focused independent producer that acquires and develops crude oil and natural gas assets, giving investors direct exposure to upstream energy production that sits at the heart of the Global Energy Producers and Oil & Gas Majors screener theme. By concentrating on production and development rather than operating its own field services, the company offers a relatively pure play on U.S. oil and gas price trends within a large cap, quality filtered peer group.

Operations: Northern Oil and Gas generates all of its US$2.0b in revenue from oil and gas exploration and production in the United States, making it a concentrated upstream U.S. producer.

Market Cap: US$2.7b

For investors looking at Northern Oil and Gas through the lens of large, upstream energy producers, this stock offers a direct link to oil and gas prices, a history of acquisitions aimed at stable, long life production, and a focus on capital efficiency through its non operating model. At the same time, you are dealing with an unprofitable company today, a high dividend that is not fully covered by earnings or free cash flow, and a balance sheet shaped by sizeable debt issuance. This raises questions about how it will respond if commodity prices cool. Management has highlighted a strong M&A backlog and the potential for improved long term pricing, and the key issue is how these choices translate into sustainable cash returns for shareholders over the next few years.

Northern Oil and Gas depends on whether its non operating model and acquisition pipeline can transform today’s unprofitable picture into durable cash returns. Get the full context in the 3 key rewards and 2 important warning signs (2 are major!)

Golar LNG (GLNG)

Overview: Golar LNG designs, converts and operates floating liquefaction vessels that turn natural gas into LNG at sea. This gives you exposure to global LNG and gas price dynamics through long term infrastructure rather than direct drilling. The stock fits the Global Energy Producers and Oil & Gas Majors screener as a large, listed energy company where cash flows depend on LNG demand, contract terms and charter rates instead of pure upstream production.

Operations: Golar LNG generates about US$503 million of revenue from its first FLNG unit and about US$20 million from corporate and other activities, so most income currently comes from a single liquefaction asset.

Market Cap: US$5.3b

Golar LNG may be relevant if you want energy exposure that ties into LNG pricing and long dated contracts rather than short term spot oil moves. The company controls floating liquefaction assets backed by a reported US$17b EBITDA backlog and is adding more capacity. This setup could support long term cash generation if LNG demand and contract terms hold up. Recent earnings show profitable operations and a dividend, while the P/E sits well above many oil and gas peers and the payout is not fully backed by free cash flow. Combined with project, funding and customer concentration risks, this creates a stock where the potential upside around LNG infrastructure growth is clear, but the risk profile is significant.

Golar LNG is tied to a single FLNG asset, yet a reported US$17b EBITDA backlog and premium P/E suggest investors may be missing something in the risk reward trade off. Read the 4 key rewards and 2 important warning signs (1 is major!)

California Resources (CRC)

Overview: California Resources is a U.S. upstream oil and gas producer and carbon management company that supplies crude oil, natural gas liquids and natural gas to California buyers, while also developing carbon capture and storage projects under its Carbon TerraVault platform. It combines traditional production with power generation assets and emerging CO2 storage infrastructure, giving investors exposure to both commodity prices and potential low carbon revenue streams within the Global Energy Producers and Oil & Gas Majors theme.

Operations: California Resources generates about US$3.4b of revenue from its Oil and Natural Gas segment, with total reported revenue of roughly US$3.7b coming entirely from the United States.

Market Cap: US$4.8b

California Resources may warrant close attention if you want direct U.S. oil and gas exposure in a market where local supply security is back in focus and recent Middle East events have pushed global energy prices higher. The stock combines a conventional upstream business, midstream expansion through the Crimson Midstream acquisition, and a growing carbon management arm that could reshape future earnings. At the same time, the company is currently unprofitable, carries funding and dividend coverage risks, and depends heavily on California permitting and takeaway infrastructure. Investors who believe that higher-for-longer energy prices, along with progress on carbon capture and local infrastructure, can outweigh those pressures may view California Resources as one of the more interesting risk reward profiles in this screener group.

California Resources could be where carbon storage ambitions and traditional drilling finally converge, yet the real swing factor may be hiding in the 4 key rewards and 2 important warning signs

Seeking Alternatives Before The Crowd

Fresh opportunities do not wait. While attention is locked on today’s headlines, other stocks build quiet breakout momentum under the radar for now. Do not delay and consider acting early.

• Spot resilient balance sheets before others by scanning the list of solid balance sheet and fundamentals (53 results) that filters for companies with financial strength while it still matters.
• Explore potential income momentum with the 11 dividend fortresses and see which high yield payers could help keep portfolios supported if prices start dropping elsewhere.
• Identify early movers in electrification and grid upgrades through the 39 power grid technology and infrastructure stocks while these infrastructure plays are still flying below most investors’ radars.

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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