Oil and gas stocks are back in the spotlight after Saudi Aramco reported a 33% jump in Q2 profits, helped by higher prices linked to Iran war-related supply disruptions and its ability to keep exports flowing through the East West pipeline. With Exxon, Chevron and other global majors also reporting stronger profits, the shock waves from the Middle East conflict are rippling across the sector. This article highlights 3 large cap stocks from our Global Oil & Gas Sector screener that appear closely exposed to these news driven trends and explains why some investors are watching them so closely right now.

Dana Gas PJSC (ADX:DANA)

Overview: Dana Gas PJSC is a Sharjah based energy company that explores for, produces, processes, and sells natural gas and petroleum products across the United Arab Emirates, the Kurdistan region of Iraq, and Egypt. It also develops gas infrastructure and related services, including transmission and gas sweetening.

Operations: Dana Gas generates all of its US$352 million in revenue from integrated oil and gas activities, with around US$267 million from the Kurdistan region of Iraq, US$81 million from Egypt, and US$4 million from the United Arab Emirates.

Market Cap: AED6.0b

Investors watching the impact of higher regional energy prices are paying close attention to Dana Gas. The company has been lifting production in Kurdistan and Egypt, supported by projects like KM250 and a US$100 million Egypt drilling program, which is already linked to rising output and new reserves. At the same time, its business carries clear risks. These include reliance on government and utility customers for timely payments, exposure to commodity price swings, and the need to keep large projects and funding on track. For investors who want more than headlines about higher oil and gas prices, Dana Gas offers a detailed case study in how a Middle East producer is trying to convert infrastructure, contracts, and cost control into resilient cash flows.

Dana Gas looks like it could be turning careful project execution into something more powerful, yet the real story may sit in how its contracts, cash flows, and regional risks all fit together in the analysis report for Dana Gas PJSC

Obsidian Energy (TSX:OBE)

Overview: Obsidian Energy is a Calgary based producer of oil and natural gas, focused on developing and operating light oil, heavy oil, and natural gas fields across Western Canada.

Operations: Obsidian Energy generates all of its CA$543.7 million in revenue from oil and gas exploration and production activities in Canada.

Market Cap: CA$1.0b

Obsidian Energy is drawing fresh attention as a beneficiary of higher global oil and gas prices, especially with earnings now in positive territory and forecasts pointing to strong growth in both earnings and revenue. Recent results show net income of CA$42 million in Q2 2026, while production guidance for 2026 has been raised on the back of acquisitions and a more active drilling program. At the same time, the company carries clear risks, including a relatively high P/E ratio, low 2% return on equity, and greater reliance on external borrowing and higher risk funding. For investors tracking Canadian producers that are more tightly leveraged to commodity price swings, Obsidian Energy is a stock that warrants closer inspection.

Obsidian Energy’s earnings turnaround and higher production guidance suggest a story that many investors may be underestimating. See how the analyst forecasts for Obsidian Energy compare with its high P/E, low ROE and funding risks.

Patterson-UTI Energy (PTEN)

Overview: Patterson-UTI Energy provides drilling, completion and drilling products services to oil and gas producers, combining contract and directional drilling, hydraulic fracturing, wireline and cementing with in house drill bit design, digital drilling tools and automation software across the U.S. and selected international markets.

Operations: Patterson-UTI Energy generates about US$1.47b from Drilling Services, US$2.84b from Completion Services, US$340.8 million from Drilling Products and US$25 million from Other Operations.

Market Cap: US$3.9b

Patterson-UTI Energy gives you geared exposure to higher oilfield activity as producers respond to stronger oil prices and renewed interest in drilling and pressure pumping capacity. The company combines a large U.S. rig and frac fleet with higher specification, lower emission equipment and automation tools that can support better pricing and margins when utilization is high, which analysts currently expect. At the same time, Patterson-UTI is not without real risks. The business is still working through losses, relies on higher risk funding, faces cost inflation and has seen insider selling and relatively new leadership. How those strengths and fault lines balance out, especially with growing LNG driven gas demand and Middle East related disruptions, is where the investment case becomes more complex.

Patterson-UTI’s push toward higher-spec rigs and automation could be masking a very different risk-reward balance. See how the 3 key rewards and 2 important warning signs might shift if day rates or activity experience an unexpected change.

The three stocks here are just a starting point, with the full Global Oil & Gas Sector screener surfacing 35 more companies that share similar catalysts and storylines in the global oil and gas sector. Use Simply Wall St to identify and analyze the specific cash flow trends, balance sheet strength, and contract or pricing narratives that matter most, so you can focus on your highest conviction ideas.

Take Control of Your Investment Journey

If Dana Gas PJSC 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.

Curious To Explore High Potential Alternatives

Fresh ideas move fast. Some stocks are already building breakout momentum while others are still under the radar for now. Do not get caught reacting late; consider acting proactively.

• Spot potential breakout small caps before enthusiasm goes flying by using a curated set of 223 elite penny stocks with strong financials that keeps quality and balance sheet strength front and center.
• Follow the momentum of smarter automation by scanning a hand picked universe of 36 robotics and automation stocks that are building the tools behind factory upgrades and next generation logistics.
• Track the next infrastructure wave by monitoring a focused group of 36 power grid technology and infrastructure stocks where grid upgrades, reliability and efficiency sit at the core of each business.

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.