Oil prices are back above $100/bbl, renewed tension around key shipping routes, and rising inflation worries have pushed energy sector stocks into the spotlight again. For investors, this kind of shock can quickly reshape risks and potential opportunities across large oil and gas producers, from upstream explorers to integrated majors. Some stocks may gain from tighter supply and stronger pricing power, while others could face higher funding costs and pressure from more volatile markets. This article looks at 3 stocks from our Energy Sector Stocks (Oil & Gas Producers) screener that appear most exposed to the latest news catalysts, and why that matters for your portfolio decisions.

RPC (RES)

Overview: RPC, Inc. provides a broad set of oilfield services and equipment, including pressure pumping, cementing, coiled tubing, wireline and rental tools, that support drilling, completion and maintenance work for oil and gas wells across onshore and offshore markets worldwide.

Operations: RPC generates most of its revenue from Technical Services at about US$1.66b, with Support Services contributing around US$90.0m, and the majority of overall revenue coming from the United States at roughly US$1.72b versus about US$31.1m from international markets.

Market Cap: US$1.28b

Investors watching oil at US$100/bbl may find RPC interesting because it sells the services that help producers keep wells drilling and flowing, so activity levels often move with commodity prices. The company is leaning into more advanced tools and cleaner, gas powered pressure pumping fleets, which could help it stand out. At the same time, RPC is working through very thin profit margins, earnings that recently declined sharply and a P/E that looks demanding, all in a highly competitive pressure pumping market. How those tensions between growth potential, valuation and execution risk resolve is what makes RPC worth a closer look for energy focused investors.

RPC’s thin margins and demanding P/E could be masking something important in its story, and the full picture only comes into focus when you compare its valuation with the DCF valuation analysis for RPC

Santos (ASX:STO)

Overview: Santos is a large Australian oil and gas producer that explores for, develops, and sells crude oil and natural gas, with key operations across Australia, Papua New Guinea and Alaska, and an increasing focus on liquefied natural gas and decarbonization technologies such as carbon capture and storage.

Operations: Santos generates most of its revenue from Papua New Guinea at about US$2.54b, with sizeable contributions from Queensland & NSW at roughly US$1.13b and Western Australia at around US$779m, while the Cooper Basin adds about US$486m and other segments are much smaller.

Market Cap: A$25.82b

With Brent above $100/bbl, Santos stands out because a large share of its LNG portfolio is oil linked and backed by long term contracts, which can support cash flow when energy prices stay elevated. At the same time, investors need to weigh this against funding risk, a dividend that is not well covered by free cash flow, and earnings that recently declined 33.2% even though longer term growth has been positive. The development of projects like Papua LNG and Moomba CCS, together with a refreshed and highly independent board, could reshape both growth potential and ESG credentials. However, the trade off between valuation, balance sheet quality and future profitability is where the real story gets interesting.

Santos has earnings that recently declined 33.2% but an LNG portfolio tied to $100/bbl Brent, so the real question is how that tension between cash flow, funding risk and project delivery plays out in the 2 key rewards and 1 important major warning sign

Expro (XPRO)

Overview: Expro is an energy services company that helps oil and gas producers drill new wells, manage flow from existing wells, and keep subsea and surface infrastructure running safely across onshore and offshore fields worldwide.

Operations: Expro generates most of its revenue from North and Latin America at about US$551.9m, with Europe and Sub-Saharan Africa contributing roughly US$488.4m, the Middle East and North Africa around US$351.7m, and Asia-Pacific about US$191.7m.

Market Cap: US$1.78b

Expro is tightly linked to production activity. Brent above $100/bbl and rising energy security concerns are drawing fresh attention to its well construction and flow management services, especially in offshore and international markets where its backlog and contracts are concentrated. The company is pairing that backdrop with technology-heavy offerings, acquisitions such as Enhanced Drilling that broaden its toolkit, and cost initiatives that aim to lift margins from a currently modest 2.3%, even as earnings recently declined and one-off losses add noise. For investors, the tension between a high P/E multiple, low current profitability and forecasts for strong earnings growth is where both the potential opportunity and the key risks sit.

Expro’s high P/E with only 2.3% margins suggests the story is still forming, and the real question is how earnings expectations line up with that pricing in the analyst forecasts for Expro

The three energy stocks in this article are only a starting point, and the full Energy Sector Stocks (Oil & Gas Producers) screener surfaces 44 more large cap oil and gas companies with equally compelling narratives and risk reward trade offs. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet strength and earnings stories that matter most so you can focus on the highest conviction ideas in this part of the market.

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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.