Geopolitical shocks in the Gulf, higher oil prices, and disrupted trade routes are reshaping the risk and opportunity profile for energy related stocks. For investors, this kind of tension can quickly change which companies are better placed to handle supply risks, cost pressures, and swings in demand. This article focuses on three large oil and gas producers from a curated screener that targets size and financial strength. Each stock is exposed to the current news backdrop in different ways, and the sections ahead highlight why some investors may see them as potential beneficiaries of the recent escalation.

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Chord Energy (CHRD)

Overview: Chord Energy is an independent oil and gas producer focused on acquiring, developing and producing crude oil, natural gas and natural gas liquids in the Williston Basin, supplying refiners and marketers that are connected to pipeline and rail infrastructure across the United States.

Operations: Chord generates about US$5.0b in revenue from exploration and production of crude oil, NGLs and natural gas, all from within the United States.

Market Cap: US$7.6b

For investors looking for leveraged exposure to higher oil prices without Middle East operational risk, Chord Energy sits in an interesting spot. It is a pure play U.S. shale producer with a concentrated, low breakeven Williston Basin portfolio and a track record of free cash flow that has supported dividends and buybacks. Recent Q1 results came in ahead of expectations, production guidance has been raised, and analysts have lifted price targets after the Iran crisis pushed oil higher. However, the story is not one sided. The stock still carries concentration risk in a single basin, ongoing environmental and regulatory uncertainty, and a dividend that is not yet well covered by earnings. The key consideration is how investors weigh those trade offs against the potential upside in this new geopolitical backdrop.

Chord’s rising guidance and free cash flow story look powerful. However, the real hinge is how those cash returns stack up against the single basin risk in the 4 key rewards and 2 important warning signs

Viper Energy (VNOM)

Overview: Viper Energy owns and acquires oil and gas mineral and royalty interests in the Permian Basin, collecting a share of production revenue without paying for drilling or day to day field operations. It is majority owned by Permian producer Diamondback Energy.

Operations: Viper generates about US$1.6b in revenue from owning and acquiring mineral and royalty interests in the United States.

Market Cap: US$16.3b

For investors looking for exposure to higher oil prices linked to Gulf tensions, Viper Energy offers a cleaner royalty model in the Permian, where high margins and low breakeven costs are a central part of the story. Recent Q1 numbers, a higher 2026 oil production outlook and the Riverbend acquisition all point to growing volumes on acreage where Viper collects royalties. The latest base and variable dividends and ongoing buybacks indicate that management is focused on returning cash. On the other hand, current unprofitability, a dividend not yet covered by earnings and reliance on external borrowing highlight funding and governance risks. The key question is whether a high oil price backdrop and ramping Permian activity can offset those risks over time.

Viper’s royalty income is tied to accelerating Permian activity, but current unprofitability and funding needs leave a big question mark. Get the full picture in the 3 key rewards and 2 important warning signs (1 is major!)

Hess (HES)

Overview: Hess is a long established U.S. based oil and gas company that explores, develops, produces and sells crude oil, natural gas liquids and natural gas across multiple regions, including the United States, offshore Guyana, Malaysia and the Malaysia/Thailand Joint Development Area.

Operations: Hess generates most of its US$14.5b revenue from Exploration and Production at about US$12.5b, with Midstream activities contributing around US$1.5b.

Market Cap: US$45.5b

Hess provides exposure to a large, globally diversified producer that is closely linked to movements in oil prices, which are currently being influenced by Gulf supply disruptions and heightened geopolitical risk. Earnings growth has been strong, returns on equity are high, and profitability is supported by higher production and cost discipline. At the same time, the stock is described as trading well below an estimated fair value. A relatively high P/E, significant debt funding and recent insider selling introduce additional considerations for investors. The key focus is how this combination of growth, valuation and funding risk develops as Hess advances its major projects and navigates a more volatile energy market environment.

Hess appears to be a growth story framed within a broader discussion of valuation and debt. Before deciding whether that combination is a strength or a potential warning sign, read the 3 key rewards and 2 important warning signs

The three stocks covered here are only a starting point. The full Energy Sector Stocks (Oil & Gas Producers) screener reveals 30 more companies with equally compelling energy narratives that might suit different risk and income preferences.

Use Simply Wall St to identify, filter and analyze the specific catalysts and stories that matter to you so you can focus on the highest conviction opportunities in the sector.

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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.