Oil and gas stocks are back in focus after fresh U.S. strikes on Iran, a spike then pullback in Brent crude, and renewed questions about how secure flows through the Strait of Hormuz really are. For investors, this kind of news can quickly reshape expectations around supply risk, inflation, and earnings for energy heavyweights. The screener used here filters for larger, financially solid companies in the sector, and this article looks at three stocks whose exposure to these headlines could be positive. The goal is to help you judge whether they deserve a closer look or a wider margin of caution.

Forum Energy Technologies (FET)

Overview: Forum Energy Technologies is a Houston based equipment supplier that supports oil, gas, defense and renewable energy projects, with products ranging from drilling and completions hardware to artificial lift systems, subsea robots and industrial valves used by operators and service companies around the world.

Operations: Forum Energy Technologies generates about US$488.4 million from its Drilling and Completions segment and US$319.1 million from Artificial Lift and Downhole, with the United States contributing roughly US$391.2 million of revenue alongside meaningful sales in Canada and the Middle East.

Market Cap: US$536.7 million

Forum Energy Technologies sits at the center of equipment demand for producers that may respond to higher and more volatile oil prices, which is why the recent tension around Iran and the Strait of Hormuz matters. Management highlights limited direct Middle East exposure, but also notes potential longer term benefits from tighter inventories, energy security spending, and growth in offshore and international markets. The stock also reflects a relatively small market value, active buybacks that have already reduced the share count, and a shift from losses to positive earnings in recent quarters. Against these potential positives, investors still need to weigh execution risk, reliance on industry activity levels, and ongoing use of external borrowing, which makes the full story worth understanding in more depth.

Forum Energy Technologies is already shifting from losses to earnings, yet the real question is how durable that turn really is. For a deeper look at this topic, it is worth reading the 3 key rewards and 1 important warning sign

Valeura Energy (TSX:VLE)

Overview: Valeura Energy is an upstream oil and gas company focused on exploring, developing, and producing petroleum and onshore natural gas, with core assets in Thailand and legacy exposure to Turkey, all managed from its headquarters in Singapore.

Operations: Valeura Energy generates about US$542.2 million from oil and gas exploration and production, with most revenue tied to Thai operations that are priced off the Dubai benchmark.

Market Cap: CA$1.14b

Valeura Energy is tightly linked to international oil benchmarks and has emphasized that its Thai barrels are priced off Dubai, which has recently traded at a very large premium to Brent during Middle East disruptions. Management has talked about Dubai linked pricing of roughly $150 to $160 a barrel in periods of heightened tension, which can create powerful swings in cash flow when buyers are focused on security of supply. At the same time, the company is running an intensive drilling program in the Gulf of Thailand, with recent wells at Nong Yao lifting production and management maintaining 2026 guidance of 19,500 to 22,500 barrels per day. The catch is that recent quarterly revenue and net income have been lower than the prior year, profit margins have contracted from 34.6% to 2.7%, and the P/E multiple is high even though some models still flag the stock as trading below estimated fair value. Add in reliance on external borrowing and modest revenue growth forecasts versus the wider Canadian market, and Valeura Energy becomes a company where you might see real upside from any sustained period of elevated Dubai pricing, but also need to think carefully about volatility, execution risk on Thai developments, and how comfortable you are with paying up for that exposure.

Valeura Energy’s Dubai linked pricing and Thai growth plans may be masking a risk reward profile that differs from what its recent margin squeeze suggests, so it is worth reading the 3 key rewards and 1 important warning sign

Cardinal Energy (TSX:CJ)

Overview: Cardinal Energy is a Calgary based oil and gas producer that acquires, develops, and optimizes conventional petroleum and natural gas assets across Alberta, British Columbia, and Saskatchewan.

Operations: Cardinal Energy generates about CA$461.9 million from oil and gas exploration and production, all from Canadian assets.

Market Cap: CA$1.92b

Cardinal Energy gives you direct, TSX listed exposure to higher oil prices at a time when tensions around Iran and the Strait of Hormuz have pushed supply risk back onto the agenda. The company pairs a high liquids weighting and low debt profile with a 6.61% dividend yield. However, recent earnings softness, a CA$50.0 million one off loss, and dividend coverage that is thin on free cash flow all raise questions about how dependable that payout is. Forecast earnings growth above 60% a year and a share price that screens well below some fair value estimates make the valuation story interesting. Even so, recent insider selling and reliance on external funding mean the full risk reward balance deserves closer inspection.

Cardinal Energy’s high yield, low debt and recent earnings softness create a story that feels incomplete, especially with a CA$50.0 million loss and insider selling in the mix, so it is worth reading the 3 key rewards and 4 important warning signs (1 is major!)

The three oil and gas stocks highlighted here are only a small sample of what is out there. The full Energy Sector Stocks (Oil & Gas Producers) screen surfaces 46 more companies that carry equally compelling stories across size, region, and exposure to global supply risk, so it is worth scanning the full Energy Sector Stocks (Oil & Gas Producers) screener to see what you might be missing. With Simply Wall St, you can identify and analyze companies by the specific catalysts that matter to you, from balance sheet strength through to sensitivity to benchmark pricing and potential supply disruptions, so you can focus on the highest conviction opportunities for your own portfolio.

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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.