Oil markets are once again at the center of global headlines, with the US Iran conflict, disrupted exports and fragile shipping routes reminding investors how quickly energy flows can change. That kind of stress can punish some stocks and support others, and few sectors react as directly as large integrated oil and gas and midstream infrastructure. This article walks through 3 stocks exposed to these shocks so you can evaluate where the risks and potential rewards currently stand.

The three stocks covered next are just a sample, and the full screen surfaced 26 more large integrated oil and gas and midstream infrastructure companies with similarly detailed stories that are not included here. If you want to go straight to the source and identify your own highest conviction ideas, analyze the full Global Integrated Oil & Gas and Midstream Energy Infrastructure screener.

Vallourec (ENXTPA:VK)

Overview: Vallourec is a French industrial company that makes high performance steel tubes and related services that are essential for oil and gas drilling, pipelines, refineries, LNG facilities and emerging areas like geothermal, hydrogen and carbon capture. It also supplies tubular products for machinery and vehicles and has mining and charcoal operations that support its steel production.

Operations: Vallourec generates most of its revenue from its Tubes segment at about $3.9b, with smaller contributions from Mine & Forest at about $382 million and Holding Companies & Other at about $151 million, partly offset by around $252 million of inter segment transactions.

Market Cap: €4.15b

Vallourec sits right at the heart of global energy infrastructure at a time when war in the Middle East is disrupting export routes and pushing producers to secure future supply. The company is seeing solid offshore and Middle East activity, new multi year offshore line pipe contracts in Brazil and Angola, and an 11.33% dividend yield, but that income is not well covered by earnings or free cash flow. You also have meaningful exposure to oil and gas cycles, high fixed cost plants and FX swings. For investors willing to accept these risks, the mix of premium tubular products, active share buybacks and a large planned 2026 shareholder return program raises important questions about how the current valuation reflects this evolving story.

Vallourec’s high yield and upcoming 2026 shareholder return plan have investors talking, but the real story sits in how those cash returns stack up against its risk profile in the 4 key rewards and 1 important major warning sign

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Vallourec and the two other stocks in this article all came from a single Simply Wall St screener, but the real edge is in tailoring filters to what matters most to you. Use our flexible Screener to combine valuation, growth, balance sheet and dividend criteria, or lean on any of our curated Investing Ideas.

NOV (NOV)

Overview: NOV is a Houston based equipment and technology company that supplies the rigs, drilling tools, production systems and related services that oil and gas producers, as well as some industrial and renewable projects, rely on to find, develop and move hydrocarbons around the world.

Operations: NOV generates most of its revenue from its Energy Equipment segment at about $5.0b, with its Energy Products and Services segment contributing about $3.8b, partly offset by around $181 million of eliminations and corporate items.

Market Cap: $7.5b

NOV is firmly tied to global energy investment, so any period of tighter oil supply and supported prices can push producers to commit more capital to drilling and offshore projects, which feeds into demand for its equipment and services. The company has been working through weak profit margins, a recent large one off loss and a dividend that is not well covered by earnings. However, recent results showed improving segment profitability, a solid backlog and management confidence in offshore and international activity through 2027. With analysts expecting faster earnings growth than the broader US market and NOV actively returning cash through buybacks and dividends, the key question is how comfortably that opportunity sits alongside its higher P/E and exposure to geopolitical and order cycle risks.

NOV’s improving margins and solid backlog are only half the story. See how the company’s order cycle risks and cash returns really stack up in the 2 key rewards and 3 important warning signs

Medco Energi Internasional (IDX:MEDC)

Overview: Medco Energi Internasional is an Indonesia based energy group that explores for and produces oil and gas across Indonesia, Asia, Africa, the Middle East and the UK, while also running independent power plants in gas, geothermal and other renewables and operating copper and gold mining projects.

Operations: Medco Energi Internasional generates most of its revenue from Exploration for and Production of Oil and Gas at about $1.9b, with additional contributions from Trading at about $731 million, Power at about $177 million and Services at about $65 million, partly offset by around $417 million of inter segment eliminations.

Market Cap: IDR32.5 trillion

Medco Energi Internasional sits at the center of today’s oil market story, with upstream exposure that can benefit from tighter global crude supply and a growing gas and renewables portfolio that aims to steady cash flows as energy systems change. Analysts have highlighted earnings growth potential and a P/E below both peer and industry averages, while a recent Simply Wall St DCF analysis indicates a trading level below its estimated future cash flow value. On the other hand, higher leverage, interest cover concerns and an unstable dividend history indicate additional risk. The real question is how you weigh that valuation gap against the funding risks and governance profile.

Medco Energi Internasional’s mix of upstream oil, gas and renewables creates an interesting valuation story that many investors may be underestimating. See how that gap, leverage and governance all fit together in the analysis report for Medco Energi Internasional

Curious To See What You Might Be Missing?

Some stocks are already building breakout momentum while others are dropping under the radar for now. Before the crowd catches up and pricing shifts, consider reviewing the ideas that interest you.

• Scan for potential cash generative compounders with resilient balance sheets using our curated list of solid balance sheet and fundamentals (435 results) while it still reflects opportunities the crowd has not fully chased.
• Explore income streams that may hold up when markets swing by reviewing the hand picked 444 dividend fortresses before yields and entry points move away from today’s levels.
• Review potential infrastructure-related opportunities by checking the curated 38 power grid technology and infrastructure stocks while these ideas remain mostly off the radar and pricing still appears to be at an earlier stage.

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.