Energy stocks are sitting at the crossroads of geopolitics and supply risk, with the latest tensions around Iran, partial reopening of the Strait of Hormuz, and ongoing shipping disruptions reshaping how investors think about oil and gas producers. This article looks at how that backdrop connects to large, financially healthy companies in the Energy Sector, focusing on Oil & Gas Producers that could be directly exposed to these developments. You will see 3 stocks from this screener that appear more positively aligned with these catalysts. This may help you decide whether they deserve a closer look or a place on your watchlist.

New Hope (ASX:NHC)

Overview: New Hope (ASX:NHC) is an Australia based resources group centered on open cut thermal coal mining in Queensland and New South Wales, supported by port handling, logistics, agricultural activities, and smaller oil and gas interests serving customers across Asia and other international markets.

Operations: New Hope generates most of its revenue from coal mining, with Coal Mining NSW at about A$1.09b and Coal Mining QLD (including treasury and investments) at about A$449.8m, alongside smaller contributions from Other activities at about A$86.2m and unallocated interest revenue of about A$12.4m.

Market Cap: A$4.7b

New Hope provides exposure to global energy security themes through a largely Australian coal portfolio that is physically removed from Middle East shipping risks and directly linked to Asia’s power markets. Management highlights that diesel accounts for roughly 13% of its cost base and about 20% of the cost to put coal on a ship, so higher fuel prices are significant. Any coal price uplift from supply disruptions affects all of New Hope’s volumes. At the same time, the company faces clear headwinds, including structural pressure on thermal coal demand, ESG related funding challenges, and earnings that recently declined sharply from one off swings and thinner margins. How those conflicting forces, together with its dividend and buyback track record, ultimately affect investors is a central consideration.

New Hope’s coal cash flows and capital returns story looks incomplete without understanding how its diesel exposure, coal price sensitivity and capital allocation fit together. For more detail, review the 1 key reward and 3 important warning signs (1 is major!).

Core Natural Resources (CNR)

Overview: Core Natural Resources (NYSE:CNR) produces, sells, and exports metallurgical and thermal coal from a portfolio of underground and surface mines across Pennsylvania, Colorado, West Virginia, and Wyoming, supported by its own export terminal in the Port of Baltimore.

Operations: Core Natural Resources generates most of its revenue from High CV Thermal coal at about US$2.2b and Metallurgical coal at about US$1.2b, with smaller contributions from its Powder River Basin operations at about US$731.4m, Core Marine Terminal at about US$90.7m, and Other activities at about US$16.1m.

Market Cap: US$4.19b

Investors watching the fallout from Middle East shipping disruptions may find Core Natural Resources interesting because it is a U.S. based coal producer with sizeable export exposure and its own Baltimore terminal, positioned to sell into international markets when seaborne prices react to supply shocks or fuel shortages. Management has talked about flexing more volumes into export markets when overseas demand is stronger, while also pursuing share buybacks and dividends funded by free cash flow. At the same time, the company is still tied to coal, with clear ESG and regulatory risks, and an inexperienced board alongside elevated CEO pay for a business that only recently returned to profit. How those positives and pressure points net out is where the real story begins for Core Natural Resources.

Core Natural Resources is trying to balance coal exports, free cash flow returns, and governance questions, and the missing piece is how those trade offs show up in the analysis report for Core Natural Resources

Meren Energy (TSX:MER)

Overview: Meren Energy (TSX:MER) is an oil and gas exploration and production company focused on offshore and onshore assets across Nigeria, Namibia, South Africa, and Equatorial Guinea, with producing deepwater interests in Nigeria supported by a portfolio of development and exploration projects across West and Southern Africa.

Operations: Meren Energy currently generates about $600m in revenue from International Oil and Gas Exploration.

Market Cap: CA$1.41b

Meren Energy gives you direct exposure to African offshore oil projects at a time when Middle East shipping routes remain uncertain and Iranian exports face interruptions, which keeps attention on producers that are less exposed to those chokepoints. The company combines a large project pipeline, including the fully funded Venus development and Preowei, with a high 10.06% dividend. This comes alongside ongoing losses, weaker historic earnings, and a balance sheet funded entirely by external borrowing. Management is relatively new, execution on long lead projects is critical, and a recent analyst downgrade highlights how much patience may be required. The current share price sits well below some valuation estimates, which suggests investors may be missing an important part of the Meren Energy story.

Meren Energy’s high 10.06% yield and fully funded Venus project raise the question of what the market might be missing about its future. Get the fuller picture in the analyst forecasts for Meren Energy

The three stocks here are just a starting point. The full Energy Sector - Oil & Gas Producers screener surfaces 31 more large, financially healthy oil and gas producers, each with its own potential catalysts and narratives. Use Simply Wall St to identify and analyze companies across that screener based on the specific supply risks, dividend profiles, capital allocation choices, and regional exposures that matter most to your highest conviction 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.