Oil prices recently spiked as much as 8.7% on renewed US Iran tensions and fresh strikes in the Middle East, putting energy stocks back in the spotlight. When conflict risk rises around key shipping routes like the Strait of Hormuz, some companies can benefit from higher pricing power while others face higher costs and supply pressure. This article looks at three large oil and gas producers from our Energy Sector screener that are closely tied to these developments. It is intended to help you assess where the current mix of geopolitical risk, inflation concerns, and market volatility may offer opportunity or call for extra caution.

ProPetro Holding (PUMP)

Overview: ProPetro Holding is an energy services company that provides hydraulic fracturing, wireline, cementing and power generation services, mainly to oil and gas producers in Texas and New Mexico. It also supplies power for non oil and gas uses such as industrial projects and data centers.

Operations: ProPetro generates most of its revenue from hydraulic fracturing services at about US$839.1m, followed by wireline at US$217.4m and cementing at US$121.4m, almost entirely in the United States.

Market Cap: US$1.51b

ProPetro Holding gives you direct exposure to US shale completions and an emerging power generation business at a time when Middle East tensions are reminding markets how fragile oil supply chains can be. Management highlights a tight frac market, limited spare capacity and disciplined spending. These factors can support pricing power if higher oil prices keep activity firm. The long term Caterpillar power deal and growing PROPWR contracts offer more recurring cash flow. Set against that, ProPetro is still loss making, has relied on new shares and borrowing, and is concentrated in the Permian with exposure to large customers. If you want to understand whether those risks outweigh the potential upside from its evolving business model, this is where to focus next.

ProPetro’s tight frac capacity and new power contracts hint at an underappreciated upside story, but the company’s losses and customer concentration raise serious questions, the 2 key rewards and 1 important warning sign

NOV (NOV)

Overview: NOV Inc. supplies the equipment, technology, and services that oil and gas producers use to drill wells, complete them, and move hydrocarbons, while also serving industrial and renewable energy projects worldwide. Its portfolio spans everything from drill bits and downhole tools to offshore rigs, subsea flexible pipe, process systems, and digital solutions.

Operations: NOV generates most of its revenue from Energy Equipment at about US$5.0b, with Energy Products and Services contributing roughly US$3.9b and a US$167m eliminations and corporate adjustment.

Market Cap: US$6.6b

NOV sits at the center of global oilfield spending. A sharp oil price spike tied to Middle East disruptions can support long term demand for its rigs, subsea systems, and digital tools as producers look to secure supply. Analysts expect strong earnings growth even though revenue is only projected to rise modestly. This view is helped by cost cuts, higher margin technology and software, and offshore project backlogs. In addition, recent buybacks and a regular dividend indicate a clear focus on capital returns. Set against that, NOV is working through very weak net margins, a high P/E, geopolitical supply chain challenges, and boardroom change. The key question is whether future spending on complex projects will be enough to justify today’s rich expectations.

NOV’s earnings potential and offshore backlog are only half the story. The real tension is how current expectations stack up against execution risk; the analyst forecasts for NOV could reveal what the market is missing.

Expro Group Holdings (XPRO)

Overview: Expro Group Holdings is a Houston based energy services company that helps oil and gas producers drill, construct, maintain, and safely manage wells onshore and offshore, using specialized tools and services across the full life of a well.

Operations: Expro Group generates most of its revenue in North and Latin America at about US$551.9m, followed by Europe and Sub-Saharan Africa at US$488.4m, the Middle East and North Africa at US$351.7m, and Asia-Pacific at US$191.7m.

Market Cap: US$1.63b

Expro Group sits at the center of global efforts to secure oil supply, which is front of mind again after fresh US Iran strikes pushed Brent sharply higher. Its well construction and well management services are tied to offshore and international projects that management views as attractive for energy security, and recent subsea contract wins and buybacks suggest confidence in that pipeline. At the same time, Expro Group is working through earnings volatility, a recent quarter that swung from profit to a small loss, and a P/E multiple that is high relative to peers, all in a sector exposed to geopolitics and the energy transition. The key consideration is how that mix of contract growth, execution risk, and valuation fits with your expectations for future activity and cash flows.

Expro Group’s offshore contract wins and buybacks suggest an accelerating story that many investors may be underestimating. The analysis report for Expro Group Holdings could reveal how one underappreciated risk or catalyst changes the picture.

The three stocks covered here are just a sample of the opportunities tied to energy security and pricing power, and the full Energy Sector (Oil & Gas Producers) screener surfaces 43 more companies with equally compelling risk and reward stories. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction ideas in this space.

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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.