3 Oil Stocks That Could Benefit If Crude Prices Stay Higher

Surging June inflation at 5%, rising rate hike expectations for 2026, and oil prices near six week highs due to the US Iran war have put Energy Sector Stocks, Oil & Gas Producers, firmly in the spotlight. Higher transport costs and fears of further supply disruption are reshaping how investors think about risk, pricing power, and cash flow resilience across this part of the market. This article picks out 3 stocks from the Energy Sector Stocks, Oil & Gas Producers screener that appear positively exposed to the current news backdrop. It aims to help you decide whether they deserve a closer look or a wider berth in your portfolio.

Chord Energy (CHRD)

Overview: Chord Energy is a Houston based independent oil and gas producer that acquires, develops, and operates crude oil, natural gas, and natural gas liquids assets in the Williston Basin, selling production to refiners and marketers connected to pipeline and rail infrastructure.

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

Market Cap: US$7.6b

Chord Energy provides exposure to US shale at a time when higher oil prices, driven by the US Iran conflict and rising transport costs, are affecting cash flow potential for efficient producers. The company pairs longer lateral drilling and data driven operations with a sizeable Williston Basin footprint, which could influence margins and free cash flow if oil prices remain firm. At the same time, Chord is currently unprofitable, carries funding risk through external borrowing, and has seen insider selling and a dividend that is not well covered by earnings. How these cross currents affect valuation, future profitability and shareholder returns is a key consideration for investors.

Long laterals, data driven drilling and a US$7.6b footprint give Chord Energy real leverage to firm oil prices, but the unprofitable status and funding reliance raise sharper questions the 4 key rewards and 2 important warning signs

Peabody Energy (BTU)

Overview: Peabody Energy is a Saint Louis based coal producer that supplies thermal coal for power generation and metallurgical coal for steelmaking, operating mines across Australia and the United States to serve electricity utilities, industrial users, and steel manufacturers.

Operations: Peabody Energy generates most of its revenue from Powder River Basin coal at about US$1.2b and Seaborne Metallurgical coal at about US$1.1b, with additional contributions from Seaborne Thermal at about US$840.9m and Other U.S. Thermal at about US$723.1m.

Market Cap: US$2.8b

Peabody Energy sits at the crossroads of tight global coal supply, geopolitical energy shocks, and domestic policy support, which together keep investor attention on how this coal producer converts price and volume conditions into cash flow. The company is currently loss making and relies entirely on external borrowing for liabilities. Analysts see a path to profitability, higher margins and stronger earnings, helped by an optimized mine portfolio, rare earths progress in the Powder River Basin, and metallurgical coal exposure linked to steel demand. At the same time, long term decarbonization goals, environmental liabilities and regulatory risk hang over the story. This is why understanding Peabody’s sensitivity to fuel costs, coal price benchmarks and upcoming results is so important.

Peabody Energy’s loss making status and coal exposure are only half the story; the real tension is how future earnings might respond to steel, power demand and fuel costs, which is exactly what the analyst forecasts for Peabody Energy hints at before one crucial twist.

Talos Energy (TALO)

Overview: Talos Energy is a Houston based oil and gas producer focused on offshore exploration and production in the United States and Mexico, with an additional carbon capture and sequestration segment that targets longer term decarbonization projects.

Operations: Talos Energy generates about US$1.7b in revenue from its Upstream segment, almost entirely from operations in the United States.

Market Cap: US$2.5b

Talos Energy gives investors targeted exposure to higher oil prices through offshore Gulf of Mexico assets at a time when transport cost driven inflation and supply disruptions are pushing crude near six week highs. The stock screens as deeply discounted relative to estimated fair value, and analysts highlight potential for stronger earnings and free cash flow as efficiency programs, high margin projects and the Shell deepwater acquisition are integrated. However, Talos is still loss making, relies fully on external borrowing and carries concentrated Gulf of Mexico and upstream oil risk. The key consideration for investors is how that mix of potential upside and balance sheet pressure compares with its current valuation and the possible impact of a sustained period of higher oil prices.

Talos Energy’s offshore upside, discounted valuation and carbon capture option together raise a sharper question: how does the market view the next chapter for earnings and cash flows? This is exactly what the analyst forecasts for Talos Energy starts to unpack before one crucial detail shifts the whole picture.

The three companies in this article are only a starting point. The full Energy Sector Stocks, Oil & Gas Producers screener surfaces 36 more stocks that pair solid balance sheets, sizeable market values and distinct narratives that could matter if oil prices stay elevated. If you want to identify which opportunities line up with the exact catalysts and storylines discussed here, use the Energy Sector Stocks (Oil & Gas Producers) screener to filter for the specific risk, pricing power and cash flow angles that match your highest conviction ideas.

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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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