Inflation headlines are softening just as Brent crude oil jumps from $70 to $90 a barrel and renewed U.S. and Iran tensions keep energy markets on edge. That mix of sticky business costs, strong wages and higher oil prices can reshape which energy sector stocks look more resilient or more exposed to shocks. This article looks at how that backdrop could affect a handful of larger oil and gas producers from our Energy Sector Stocks screener and highlights 3 stocks that appear positively exposed to the latest news, helping you decide whether they deserve a closer look or a spot on your watchlist.

Tamarack Valley Energy (TSX:TVE)

Overview: Tamarack Valley Energy is a Calgary based oil and gas producer focused on exploring and developing the Clearwater and Charlie Lake plays in Alberta, where it extracts and sells crude oil, natural gas and natural gas liquids from the Western Canadian sedimentary basin.

Operations: Tamarack Valley Energy generates all of its CA$1.4b in revenue from oil and gas exploration and production activities in Canada.

Market Cap: CA$6.3b

Tamarack Valley Energy gives you direct exposure to higher crude prices, but the story is more than just a commodity bet. The company is leaning on enhanced recovery techniques and acquisitions in Clearwater and Charlie Lake to support production stability and long term inventory, while working to trim costs and use free cash flow for debt reduction and dividends, which recently moved to CA$0.05 per share quarterly. At the same time, a history of losses, sensitivity to Canadian heavy oil pricing and reliance on external borrowing mean inflation in service costs or a weaker oil tape could quickly squeeze margins. How those trade offs stack up is what really decides whether Tamarack deserves a place on your watchlist.

Tamarack Valley Energy’s push to use free cash flow for debt reduction and dividends could be masking a deeper twist in the story. Before you decide where it fits on your watchlist, scan the DCF valuation analysis for Tamarack Valley Energy.

Athabasca Oil (TSX:ATH)

Overview: Athabasca Oil is a Calgary based producer focused on thermal heavy oil in Northern Alberta and light oil and gas in the Duvernay, giving investors exposure to both long life bitumen projects and liquids rich shale plays in the Western Canadian Sedimentary Basin.

Operations: Athabasca Oil generates about CA$1.3b in revenue from its Athabasca Thermal Oil segment and CA$77m from Duvernay Energy, with all reported revenue coming from Canada after group eliminations.

Market Cap: CA$5.2b

Athabasca Oil stands out when oil prices climb because it is a pure upstream producer with thermal projects and Duvernay liquids production that are tightly linked to crude benchmarks. Rising Brent and stronger Western Canadian pricing can feed directly into cash flow. Analysts expect earnings growth above 20% a year, yet the stock is priced well below one estimate of fair value and carries a P/E that sits under peer and industry averages, which some investors view as an opportunity. At the same time, profit margins have narrowed, earnings declined over the past year and the business relies on external borrowing despite a new CA$500m credit facility and sizeable liquidity. How that trade off between oil leverage, valuation and funding risk nets out is where the real story lies.

Athabasca Oil’s mix of shrinking margins, strong crude exposure and a P/E below peers hints that something in the story is being mispriced. See how the full picture looks in the analysis report for Athabasca Oil

Flowco Holdings (FLOC)

Overview: Flowco Holdings is a Houston based oilfield services company that helps U.S. producers run wells more efficiently, renting and servicing gas lift and plunger lift equipment and providing methane reduction and vapor recovery systems, backed by digital monitoring tools.

Operations: Flowco Holdings generates about US$521.4m of revenue from Production Solutions and US$316.4m from Natural Gas Technologies, with total revenue of roughly US$777.5m coming from the United States after eliminations.

Market Cap: US$1.8b

Flowco Holdings sits at the intersection of higher oil prices and tightening methane rules, renting high pressure gas lift and vapor recovery units that help U.S. producers keep barrels flowing while cutting emissions. Analysts see fast earnings growth and point to a large gap between the current share price and their targets, even as profit margins are still compressed and the business relies heavily on external borrowing. Add in consistent share repurchases, a rising dividend and index moves that tilt Flowco toward “growth defensive” investors, and you have a stock that some see as positioned to benefit if elevated energy prices and energy security themes keep operators focused on production optimization rather than new drilling.

Flowco Holdings looks like a growth story hiding inside an oilfield services stock, with earnings expectations, emissions regulations and buybacks all pulling in the same direction, but the real twist sits inside the analyst forecasts for Flowco Holdings

The three stocks in this article are just a starting point, and the full Energy Sector Stocks (Oil and Gas Producers) screener surfaced 44 more companies with equally compelling energy stories that you have not seen yet. Use Simply Wall St to identify, analyze and filter for the specific catalysts and narratives that matter to you so you can focus on the highest conviction opportunities in this corner of the energy sector.

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If Flowco Holdings or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead 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.