Geopolitics is back on the front page, and energy stocks are feeling the impact. Renewed conflict around the Strait of Hormuz, disrupted tanker traffic, higher war risk premiums, and a jump of around 2% in Brent and 2.3% in WTI have all sharpened the focus on supply security and pricing power. For investors, that can mean fresh risks for some companies and potential openings for others that meet solid financial and health criteria. This article walks through three stocks from our Energy Sector screener that appear especially exposed to the latest U.S. Iran tensions and related oil market moves.

Permian Resources (PR)

Overview: Permian Resources is an independent oil and gas producer focused on drilling and developing crude oil and liquids rich natural gas reserves in the Delaware Basin, part of the wider Permian Basin. Its wells and acreage in Reeves County, Texas, and Lea County, New Mexico, make it a concentrated play on one of the most productive U.S. shale regions.

Operations: Permian Resources generates about US$5.1b in revenue from exploration and production of oil and natural gas, entirely from operations in the United States.

Market Cap: US$16.0b

Investors looking at Permian Resources today are weighing a company with strong Delaware Basin assets, high historical gross margins and a clear focus on free cash flow against real exposure to commodity price swings and capital intensive drilling. The recent spike in Brent and WTI tied to U.S. Iran tensions directly benefits an independent producer like this, and management has spoken about flexing activity depending on returns, supported by hedging and an investment grade balance sheet. At the same time, net margins have narrowed, dividend coverage by free cash flow is under pressure, and recent insider selling and M&A activity highlight execution risk. The question is how these strengths and vulnerabilities stack up when oil markets stay volatile and geopolitical risk remains elevated.

Permian Resources looks like an oil producer where strong Delaware Basin assets and an investment grade balance sheet could be masking a more complex story around margins, capital intensity and hedging. Before oil volatility sets the tone, review the 3 key rewards and 4 important warning signs

RPC (RES)

Overview: RPC is an oilfield services company that supports oil and gas producers with pressure pumping, cementing, coiled tubing, wireline, rental tools and other services used to drill, complete and maintain wells. Its operations span both onshore and offshore projects in the United States and several international regions.

Operations: RPC generates about US$1.7b in revenue, with roughly US$1.66b from Technical Services and US$90m from Support Services.

Market Cap: US$1.2b

RPC provides exposure to higher oil prices through its pressure pumping and completion services. Its investment in advanced tools, cleaner natural gas powered equipment and acquisitions like Pintail is intended to support more resilient earnings as activity cycles. At the same time, profit margins have compressed to around 1.1%, recent one off losses cloud the earnings picture, and a high P/E multiple means expectations are already demanding in a sector known for volatility. With geopolitical tension around Iran associated with higher oil prices and management only cautiously leaning into stronger pricing, the key consideration is whether RPC can use its balance sheet flexibility and technology focus to achieve a margin recovery that would justify its valuation.

RPC’s compressed margins and high P/E suggest expectations may be running hot, yet its balance sheet flexibility and technology focus hint at a different story. Study the 2 key rewards and 3 important warning signs

Flowco Holdings (FLOC)

Overview: Flowco Holdings is an energy services company that helps U.S. oil and gas producers keep wells flowing efficiently by providing production optimization equipment like high pressure and conventional gas lift systems, plunger lifts and vapor recovery units, along with methane abatement and digital monitoring solutions to manage emissions at the wellsite.

Operations: Flowco Holdings generates about US$521.4m in revenue from Production Solutions and US$316.4m from Natural Gas Technologies, partly offset by US$60.9m of eliminations.

Market Cap: US$1.9b

Flowco Holdings sits in a position that may appeal to investors watching U.S. energy security move back into focus, as producers under pressure to keep output high and emissions in check rely on the company’s rental heavy gas lift and vapor recovery fleets. The stock currently appears deeply undervalued relative to estimated cash flow and analyst fair value. Income-focused investors may also note rising dividends and active buybacks, with around 6.4% of the float repurchased recently. Set against that are thinner profit margins, an earnings decline over the past year and elevated funding risk from external borrowing, all in a sector that has underperformed. A key question for investors is whether Flowco’s production linked model and OpEx focused services can turn current volatility into a longer run advantage for shareholders.

Flowco Holdings looks like an underappreciated way to link U.S. production, emissions control and shareholder returns, yet the real story sits in the balance between thinner margins and funding risk. Get the full context in the 4 key rewards and 1 important warning sign

The three stocks covered here are only a starting point, and the full Energy Sector filter on Simply Wall St flags 46 more companies in the Energy Sector (Oil & Gas Producers and Services) screener with equally compelling narratives tied to oil prices, supply risks and balance sheet strength. Use the platform to identify and analyze the specific catalysts, financial profiles and risk factors that matter most so you can focus on your highest conviction energy plays.

Take Control of Your Investment Journey

If Permian Resources 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.

Curious About Alternative Stock Paths?

Fresh opportunities move fast, and the best setups rarely stay under the radar for long. Spot new momentum before the crowd, while it matters, and get in early.

• Capture steady income ideas by reviewing a curated group of dependable payers in the 8 dividend fortresses before yields get compressed by chasing buyers.
• Track the next wave of infrastructure growth by scanning companies powering AI build outs with the 52 AI infrastructure stocks while many investors are still catching up.
• Spot potential breakout miners by checking producers in the 33 elite gold producer stocks before stronger bullion sentiment pulls more attention and narrows your entry window.

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.