3 Oil And Gas Stocks With Direct Exposure To Higher Crude Prices

Rising U.S. yields, hawkish Fed expectations and fresh geopolitical risk around the Strait of Hormuz are pulling money toward perceived safety while pushing crude prices higher, which can rapidly reorder which stocks look resilient and which look exposed. That mix of fear and opportunity can move share prices faster than earnings reports. This article explains how those forces affect oil and gas producers and highlights three stocks from the screener that appear positively exposed to the latest headlines.

The stocks covered below are just a small sample, and the full screen surfaced 19 more listed oil and gas producers with similarly compelling setups that are not discussed in this article. To go beyond the short list here, identify and analyze your own highest conviction ideas straight from the Listed Oil & Gas Producers Benefiting from Higher Crude Prices screener.

Precision Drilling (TSX:PD)

Overview: Precision Drilling provides land-based drilling, completion and production services that give oil and gas producers geared exposure to higher crude prices.

Operations: Precision Drilling generates about CA$1.6b from Contract Drilling Services and CA$291 million from Completion and Production Services, primarily in Canada and the United States.

Market Cap: CA$1.5b

Precision Drilling matters for this higher crude prices screen because its onshore rigs and related services directly track producers’ appetite to spend.

"Strong rig utilization, disciplined capital management, and technological innovation are driving margin expansion, earnings stability, and diversified, resilient revenue streams for Precision Drilling."

What happens to that earnings profile if a single unseen pressure on dayrates and rig budgets shifts faster than current expectations?

That pressure point is exactly where Precision Drilling’s story can accelerate or stall, and the full narrative for Precision Drilling unpacks how rig leverage, contracts and capital returns could all respond.

Ensign Energy Services (TSX:ESI)

Overview: Ensign Energy Services provides contract drilling and well servicing to oil and gas producers, giving direct leverage to higher crude-driven activity.

Operations: Ensign generates about CA$1.6b from oilfield services, with roughly CA$852 million in the United States, CA$499 million in Canada and CA$296 million internationally.

Market Cap: CA$654 million

Ensign Energy Services matters for this higher crude prices screen because its rig fleet and well services tend to see more work when producers respond to stronger pricing with fresh drilling plans.

"Growing reliance on high spec triples and deeper wells in North America pushes Ensign to operate closer to equipment limits. This can increase maintenance intensity and downtime risk and put pressure on net margins."

What happens to that profitability path if one moving piece in those high spec programs shifts faster than current expectations for Ensign Energy Services?

That moving piece is the hinge. The full narrative for Ensign Energy Services shows where Ensign Energy Services could see activity accelerate, risks fade and rig leverage start to decouple.

Seadrill (SDRL)

Overview: Seadrill runs offshore drilling rigs for oil and gas producers worldwide, giving the business direct exposure to higher crude driven projects.

Operations: Seadrill generates about US$1.5b from oil and gas contract drilling, with key exposure to Brazil, Angola and the United States.

Market Cap: US$2.9b

Seadrill sits closer to the screener theme than most, because its offshore rigs tend to come back into focus when higher crude prices push oil majors and national producers toward longer duration exploration campaigns.

"Although Seadrill is pointing to tightening floater utilization and higher expected offshore project approvals that could support strong contract coverage, the stock already trades at about 1.8x P/S versus sector averages. While management expects an inflection to strong free cash flow from mid 2026 as higher dayrates on repriced Petrobras contracts and lump sum mobilization receipts arrive, the trailing 12 month free cash flow margin remains negative."

The real swing factor is whether one quiet line in the cash flow bridge shifts enough to turn that projected cycle into durable, self funded growth.

That quiet swing line is exactly where Seadrill’s cycle can shift, and the full narrative for Seadrill outlines how contract coverage, leverage and cash generation could change from here.

Seeking Fresh Alternatives Before Momentum Flips

Breakout moves rarely wait. Fresh ideas gain momentum while slower investors get caught reacting after prices start flying. Scan these curated picks that are under the radar for now and consider them before conditions change.

• Identify cash generative compounders early by working through a curated 5 high quality undervalued stocks before valuations adjust and potential mispricing gaps narrow.
• Explore structural growth themes by scanning 84 AI infrastructure stocks while demand for data centers and networking hardware is still developing, rather than waiting until revenue trends are widely reported.
• Look for strong balance sheets that may be better positioned to navigate shocks by filtering through the curated list of solid balance sheet and fundamentals (7 results) while some quality businesses may still be overlooked.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com