Energy Stocks With Pricing Power as Fuel Costs Stay High
Inflation is not just a headline in Nepal right now; it is a real cost shock rippling through global energy markets as fuel and power prices react to the West Asia crisis. With wholesale inflation in Nepal at 8.47% and fuel and energy costs up 48.14%, investors in large North American and UK-based energy stocks are watching closely to see which companies might absorb higher costs and which could benefit from pricing power. This article walks through 3 stocks from the Energy Sector Stocks screener that appear particularly exposed to this news, helping you decide whether they belong on your watchlist.
Oil States International (OIS)
Overview: Oil States International provides specialized equipment and consumable products that support the full oil and gas well life cycle, along with infrastructure for offshore production systems, subsea pipelines, drilling rigs, and selected industrial and military applications worldwide.
Operations: Oil States International generates most of its revenue from Offshore Manufactured Products at about US$429.9 million, followed by Downhole Technologies at about US$123.0 million and Completion and Production Services at about US$101.5 million.
Market Cap: US$521.9 million
Oil States International sits at the intersection of higher energy prices and rising offshore spending, which could be especially important as the West Asia crisis keeps fuel and power costs elevated and supports demand for complex offshore and subsea equipment. The company has been shifting toward higher margin offshore and international work, building a backlog that includes traditional oil and gas projects plus more than 50 renewable projects. A recent buyback program indicates management is willing to return capital when conditions allow. On the other hand, Oil States International is still working through losses, carries funding risk from external borrowing, and has a relatively new management team, so the thesis depends on whether this offshore tilt and anticipated profitability improvement can offset those pressures in a volatile energy market.
Oil States International’s offshore tilt and growing renewable backlog could be the missing piece in your energy exposure, but the real story sits in how its profitability journey stacks up in the analysis report for Oil States International
Patterson-UTI Energy (PTEN)
Overview: Patterson-UTI Energy is a Houston based oilfield services company that helps oil and gas producers drill and complete wells by providing contract drilling rigs, shale focused hydraulic fracturing fleets, wireline and cementing services, and specialized drill bits and tools across key onshore basins in North America and abroad.
Operations: Patterson-UTI Energy generates most of its revenue from Completion Services at about US$2.8b and Drilling Services at about US$1.5b, with Drilling Products contributing about US$337.8 million and Other Operations about US$23.3 million.
Market Cap: US$3.9b
Patterson-UTI Energy operates in an environment of rising global energy costs, with its drilling and completion activity closely tied to periods when producers respond to higher prices by investing more in wells. The company combines automation, digital drilling and lower emission fleets, together with the Ulterra and NexTier deals, to offer a fuller suite that can support premium pricing and stronger margins if activity holds up. At the same time, investors need to weigh its current losses, heavy capital needs, insider selling and reliance on external funding against signals of undervaluation and analysts’ expectations for a profitability turnaround. How these factors interact with the inflation shock in fuel markets, and whether the risk reward trade off still appeals, are central to the investment story.
Patterson-UTI Energy’s losses, heavy capex and funding needs are only half the picture; the real tension lies in how analysts frame its turnaround in the analyst forecasts for Patterson-UTI Energy and what that implies if activity stalls.
TETRA Technologies (TTI)
Overview: TETRA Technologies is a Spring, Texas based energy services and solutions company that supplies clear brine fluids, calcium chloride products, ultra pure zinc bromide for batteries, and water and flowback services that support oil and gas drilling, completions, and production across the United States and international markets.
Operations: TETRA Technologies generates most of its revenue from Completion Fluids & Products at about US$375.2 million, with Water & Flowback Services contributing about US$254.9 million.
Market Cap: US$1.2b
TETRA Technologies stands out because its business is tied not only to traditional oilfield activity, which can see more activity when energy prices spike, but also to emerging areas such as zinc bromide electrolytes for grid scale batteries and produced water desalination. That mix has attracted attention as analysts model strong earnings growth and point to projects like the Arkansas bromine facility and Oasis water solutions as potential long term drivers, even though current margins are still recovering and the company carries high debt and heavy capex commitments. If you are looking for an energy stock with both exposure to higher service demand and future facing chemicals and water treatment, the tension between that growth potential and the funding and execution risks is what makes TETRA Technologies worth a closer look.
TETRA Technologies’ mix of oilfield exposure, zinc bromide batteries and water solutions hints at a story investors have only half seen so far, and the real twist sits inside the analyst forecasts for TETRA Technologies
The 3 stocks covered here are only a starting point, with the full Energy Sector Stocks screener surfacing 42 more companies that carry equally compelling energy narratives and risk profiles in light of the current fuel and power shock. To identify the setups that best fit your view on inflation, pricing power, capital intensity and balance sheet strength, analyze the full Energy Sector Stocks screener.
Take Control of Your Investment Journey
If Patterson-UTI Energy or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.
Seeking Fresh Alternatives Beyond Energy?
New stock stories move fast, and the strongest setups can be flying before most investors notice. Scan fresh ideas under the radar for now, then position yourself early.
- Spot resilient compounders before broader momentum catches them by reviewing the 78 resilient stocks with low risk scores, which currently look structured to handle shocks while still pursuing growth.
- Look for potential infrastructure beneficiaries by scanning the curated 35 power grid technology and infrastructure stocks that support grid upgrades and electrification projects while interest is still developing.
- Focus on cash generative AI stocks by concentrating on the hand picked 65 profitable AI stocks that aren't just burning cash that already pair earnings with sector momentum, so you are not reacting after the fact.
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