Energy Stocks With Rising Oil Price Exposure Retail Investors May Want To Watch

Energy stocks are back under the spotlight as the Iran war keeps gas and power costs elevated, with U.S. households paying an estimated $450 more on energy and consumers absorbing a $60b hit overall. Higher gasoline, diesel and jet fuel prices are filtering through to everything from shipping to airfares, raising questions about which companies might be helped or hurt by this pressure. This article looks at 3 large, established energy stocks that are directly exposed to these trends and is intended to help you assess where the current backdrop could be creating potential opportunities or risks to consider.

Overview: Obsidian Energy is a Calgary based oil and gas producer focused on exploring, developing, and operating light oil, heavy oil, and natural gas fields across Western Canada.

Operations: The company generates CA$491.9 million in revenue from oil and gas exploration and production, all from Canada.

Market Cap: CA$769.9 million

Investors considering Obsidian Energy in the context of elevated global fuel prices are looking at a producer whose earnings are forecast by analysts to grow very quickly, with the stock trading well below some estimates of fair value. At the same time, recent results show a revenue drop to CA$90.2 million in Q1 2026 and a net loss of CA$18.7 million, alongside higher reliance on external borrowing and a CA$6.4 million one off loss, so the risk side is real. Management has extended its credit facility to support acquisitions and capex, reaffirmed production guidance and is buying back shares, which suggests there is more to this story than the recent loss line alone.

Obsidian Energy’s rapid analyst growth forecasts, sitting beside a recent loss and buybacks, hints at a story the market may not be pricing correctly. As a result, it could be worth reviewing the analyst forecasts for Obsidian Energy

Overview: Kimbell Royalty Partners is a Fort Worth based partnership that owns and acquires mineral and royalty interests across U.S. oil and natural gas fields, giving investors exposure to production volumes and commodity prices without directly funding drilling or operating wells.

Operations: Kimbell Royalty Partners generates about US$315.7 million in revenue from oil and gas producing activities in the United States.

Market Cap: US$1.6b

Kimbell Royalty Partners stands out in a period of higher fuel prices because its royalty model ties cash flow to commodity prices while leaving drilling and operating costs to third party operators. Recent Mesa Royalties acquisitions in Permian basins add fresh production and reserves to that base. At the same time, high leverage, distributions that are not fully covered by earnings and reliance on external funding introduce balance sheet risk, especially if energy prices soften or acquisition yields tighten. Strong recent earnings growth, a double digit distribution yield and disciplined cost control have caught analyst attention. However, the combination of elevated valuation multiples and governance questions means investors who want the full picture need to look closely at how sustainable this income stream is and what could change it.

Kimbell Royalty Partners’ accelerating earnings and double digit distribution yield could be masking a more complex story about leverage and acquisition risk, so it is worth reading the 4 key rewards and 2 important warning signs

Overview: Surge Energy is a Calgary based oil and gas producer focused on exploring, developing and operating light and medium crude oil and natural gas assets across Western Canada, with positions in Sparky Alberta, Southeast Saskatchewan, Greater Sawn, Nevis and Manitoba.

Operations: Surge Energy generates about CA$479.1 million in revenue from oil and gas exploration and production, all from Canada.

Market Cap: CA$923.8 million

Investors watching crude prices climb on the back of the Iran war may find Surge Energy interesting because it offers concentrated exposure to light and medium oil, with production that is nearly 90% liquids and Q1 2026 volumes of 23,893 boe/d. The stock screens as very cheap relative to some cash flow estimates, and analyst forecasts point to strong earnings and revenue growth. Yet Q1 2026 showed a revenue figure of CA$75 million alongside a net loss of CA$24.68 million, so the path is not smooth. Add in a 5.6% dividend that is not fully covered by earnings, insider selling and high P/E expectations, and you have a higher risk oil producer that may warrant a deeper look.

Surge Energy’s combination of very low earnings expectations, a 5.6% dividend and recent losses suggests there is more to the story than investors may realize, so reviewing the analyst forecasts for Surge Energy could help clarify what the current numbers are indicating.

The three stocks highlighted here are a useful starting point, but they are only a slice of the opportunities Simply Wall St identified in the energy space. The full Energy Sector Stocks screener surfaces 27 more large, established companies with similarly compelling stories. Use the platform to identify and analyze the specific catalysts, risk factors and operational narratives that matter to you so you can focus on the highest conviction energy sector 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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