3 Energy Stocks To Watch As Inflation Pushes Oil Prices Back Into Focus

Inflation is heating up again, and this time the pressure is coming from the factory gate and the fuel pump at the same moment, with PPI and energy costs jumping sharply just as consumers face higher gasoline and shelter bills. That mix can punish some sectors while creating fresh openings for others. This article walks through three energy stocks exposed to this news shock and explains how each could be affected, so you can decide whether they deserve a place on your watchlist.

The three stocks covered below are just a small sample, and the full screen surfaced 53 more U.S.-listed energy companies with equally compelling stories across integrated oil and gas, refiners, and oilfield services that are not discussed here. If you want to identify which of those might fit your own thesis, head straight into the Energy Sector Stocks (Integrated Oil & Gas, Refiners, and Oilfield Services) screener.

Riley Exploration Permian (REPX)

Overview: Riley Exploration Permian is an independent producer focused on oil, gas, and natural gas liquids in the Permian Basin across Texas and New Mexico, giving investors direct exposure to commodity price moves tied to the screener’s energy theme.

Operations: Riley Exploration Permian generates about US$484 million from oil and gas exploration and production activities, entirely from operations within the United States.

Market Cap: US$1.03b

Riley Exploration Permian sits in the middle of this energy sector screen, with production tied closely to upstream pricing and a development pipeline that could matter even more if higher oil and gas prices persist.

"The shift in development activity to New Mexico, where Riley Exploration Permian sees significant long-term growth potential, is expected to impact future revenue growth positively."

The key factor to watch is how one less visible pressure on Riley Exploration Permian’s cost base ultimately shapes margins and cash returns.

Those margin pressures are the real story, and the full narrative for Riley Exploration Permian explores whether Riley Exploration Permian’s shift toward New Mexico activity is quietly accelerating or potentially affecting future cash returns.

Northern Oil and Gas (NOG)

Overview: Northern Oil and Gas is an independent US producer that acquires and develops crude oil and natural gas assets tied closely to the Energy Sector Stocks screener theme.

Operations: Northern Oil and Gas generates about US$2.0b in revenue from oil and gas exploration and production, entirely within the United States.

Market Cap: US$2.8b

Higher PPI and fuel costs have pushed energy back into the spotlight, and Northern Oil and Gas gives investors direct exposure to those commodity price moves through a pure play acquisition and production model.

"The company's continued focus on acquiring long dated, stable production assets, alongside recent deals like Utica and Duvernay, keeps shifting Northern Oil and Gas toward a larger base of lower decline volumes that can support steadier revenue and cash flow over time."

What happens to that cash flow story if one less visible pressure on financing costs and future well economics starts to bite harder?

If that pressure on future well economics has your attention, the full narrative for Northern Oil and Gas explains how Northern Oil and Gas could turn financing headwinds into an accelerating opportunity.

Diamondback Energy (FANG)

Overview: Diamondback Energy is a Permian Basin focused oil and gas producer, giving direct exposure to crude linked revenues in the screener’s energy theme.

Operations: Diamondback Energy generates about US$16.2b in upstream revenue from oil and gas production, entirely within the United States.

Market Cap: US$55.3b

Diamondback Energy sits at the heart of this energy screen because its Permian production is closely tied to the same oil and fuel pricing pressures now reshaping inflation headlines.

"Ongoing consolidation in the Permian Basin, with Diamondback Energy positioned as a consolidator that has already integrated large acquisitions and realized lower lease operating expense through automation and pump by exception, supports further scale driven synergies that can help sustain EBITDA margins and free cash flow."

The real test is how one unresolved cost pressure in the Permian ultimately shows up in Diamondback Energy’s long term cash generation.

If that unresolved cost pressure has you curious, the full narrative for Diamondback Energy shows how Diamondback Energy could turn efficiency gains into accelerating, more resilient cash generation potential.

Seeking Fresh Alternatives Before Momentum Flips

Opportunities move fast when new themes catch a bid, and laggards get left behind as money chases breakout momentum. Scan fresh ideas while they are still under the radar for now and consider them early.

• Identify cash generative growth stories at an early stage by scanning the 38 profitable AI stocks that aren't just burning cash before investor attention shifts more heavily toward the sector and early entry points become harder to find.
• Review potential income ideas by using the 8 dividend fortresses while yields remain elevated and before pricing moves significantly.
• Look for resilient balance sheet strength by filtering the list of solid balance sheet and fundamentals (25 results) before market momentum changes the valuation profile of the most robust names.

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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