Santos Stock And 2 Energy Names Exposed To Oil Route Risks

Rising risks around key Middle East shipping routes, including fresh attacks on tankers near Oman and threats to close the Strait of Hormuz, have pushed oil prices up more than 1% and refocused attention on supply security. For energy sector investors, that kind of headline risk can quickly reshape expectations for producers, pipelines, and integrated companies with global reach. This article looks at 3 large oil and gas stocks from our Energy Sector screener that appear most exposed to the latest U.S. Iran flare up. You will see where the news may support them and where it could add pressure.

Central Petroleum (ASX:CTP)

Overview: Central Petroleum Limited is an Australian oil and gas producer that develops, processes, and sells natural gas, crude oil, and condensate from large onshore acreage across the Amadeus, Wiso, and Georgina Basins in the Northern Territory. The company focuses on supplying energy to domestic and Asian customers from its Brisbane base.

Operations: Central Petroleum generates all of its A$46.9 million in revenue from producing assets in Australia.

Market Cap: A$53.3 million

Central Petroleum stands out as a smaller pure-play producer that could be highly sensitive to the recent spike in oil and gas prices, especially given its role in supplying Australian and Asian markets as energy security concerns rise. Long term gas contracts, improving margins and high quality earnings give the company a clearer revenue base than many peers. However, reliance on a concentrated set of onshore assets and long term contracts introduces its own risks. The completed share buyback and net cash position add flexibility for future capital returns or growth projects, while the CFO transition announced in July 2026 is a governance development investors should track closely.

Central Petroleum’s steady contracts and net cash position could be masking a much bigger story for a small producer tied to security of supply. See how the analysis report for Central Petroleum reframes the upside and the one risk investors often overlook.

Santos (ASX:STO)

Overview: Santos is a large Australian oil and gas company that explores, produces, transports, and sells natural gas, LNG, crude oil, and related products across Australia, Papua New Guinea, Alaska, and Timor-Leste, while also developing decarbonization technologies such as carbon capture and storage. It supplies energy to regional and global customers from its base in Adelaide, with operations spanning both upstream fields and midstream infrastructure.

Operations: Santos generates most of its revenue from Papua New Guinea at A$2.5b, followed by Queensland and New South Wales at A$1.1b, Western Australia at A$779m, the Cooper Basin at A$486m, and smaller contributions from Northern Australia and Timor-Leste.

Market Cap: A$25.4b

Santos gives you direct leverage to global oil and LNG pricing at a time when supply routes are under fresh scrutiny, yet its story is about more than short term price moves. The core LNG portfolio is heavily contracted and largely oil linked. This can support cash generation even as projects like Barossa and Pikka ramp up and narrow 2026 production guidance. At the same time, earnings fell sharply last year, margins have softened, and the dividend is not fully covered by earnings or free cash flow, so funding and payout quality need close attention. Santos is also investing in carbon capture and lower emissions projects, which may reshape how investors think about long term risk and opportunity in a large hydrocarbon producer.

Santos has an LNG portfolio that looks built for stability, yet funding, margins, and carbon projects raise fresh questions. Get the fuller story in the 2 key rewards and 1 important major warning sign and see what the headline risk might be hiding.

Imperial Petroleum (IMPP)

Overview: Imperial Petroleum is a Greece based shipping company that owns and operates a mixed fleet of tankers and drybulk carriers, moving refined oil products, crude oil and bulk commodities like iron ore, coal and grains for global producers, refiners and industrial customers.

Operations: Imperial Petroleum generates all of its US$190.6 million in revenue from transportation shipping activities, reported out of Greece.

Market Cap: US$211.6 million

Imperial Petroleum sits at the intersection of geopolitics and energy flows, with a tanker heavy fleet that can benefit when Middle East shipping routes are disrupted and vessel availability tightens. The company combines profitability, high quality earnings and liquidity with exposure to freight rate swings, short term charter risk in its newer drybulk vessels and ongoing regulatory and sanctions uncertainty that can change trade patterns. Recent earnings show what can happen when shipping rates and volumes move in its favor, yet the same leverage can work in reverse if routes reopen and day rates cool. A central question for investors is how sustainable this mix of earnings power and risk is in an environment where chokepoints such as the Strait of Hormuz are in focus.

Imperial Petroleum’s earnings power, liquidity and tanker exposure suggest the recent headlines might be masking something bigger. See how the 4 key rewards and 1 important major warning sign could reshape your view of its shipping risk and reward mix.

The three stocks in this article are just a starting point, and the full screener surfaced 38 more companies with equally compelling energy stories inside the Energy Sector (Oil & Gas Producers) screener. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction energy sector opportunities.

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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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