Energy stocks are back in the spotlight as US and China trade frictions, shifting central bank signals and rising crude prices reshape risk across equities and commodities. For investors, that mix can punish some positions while creating fresh openings in others, and the gap can widen quickly. This article focuses on three global energy stocks that are directly exposed to these headlines and explains why they may be of interest to you now.

The three stocks covered below are just a sample, and the full screen surfaced 12 more large energy companies with equally compelling narratives that are not included in this article. To identify and analyze your own highest conviction ideas across integrated oil and gas producers and oilfield services, head straight into the Global Energy Sector (Integrated Oil & Gas and Oilfield Services) screener.

Precision Drilling (TSX:PD)

Precision Drilling is a Calgary based contractor that runs high spec onshore rigs, automation software and environmental solutions for oil, gas and geothermal producers, backed by completion and production services such as workovers, well maintenance and camp support. Most of its CA$1.9b revenue comes from Contract Drilling Services at about CA$1.6b, with Completion and Production Services contributing roughly CA$291 million. The stock has a market value of about CA$1.5b, which puts it squarely in mid cap territory for energy services.

Investors looking at Precision Drilling today are really looking at a geared play on stronger oil and gas prices and rising demand for high spec rigs, automation and lower emission drilling. The company is investing heavily in its Alpha and EverGreen platforms, buying back stock and pushing to reduce debt. However, it still carries meaningful leverage, recent losses in Q2 2026 and relies on higher risk external funding. For investors seeking exposure to a rig contractor that could potentially benefit from higher commodity prices but that also has execution and balance sheet risk attached, this is a story that may warrant closer monitoring.

Precision Drilling’s push into high spec rigs, automation and lower emission drilling could be masking a very different balance sheet story. Before you judge the trade off between upside and leverage, review the 3 key rewards and 1 important warning sign

Build your own high spec rig and energy contractor shortlist

Precision Drilling and the two other energy stocks in this article all came out of a single screener, which you can easily adapt to your own process. Use our customisable Screener to mix filters such as valuation, future growth, balance sheet strength and risk, or jump straight into our curated Investing Ideas.

Yantai Jereh Oilfield Services Group (SZSE:002353)

Yantai Jereh Oilfield Services Group is a China based oilfield equipment and services company that also has growing exposure to new energy and recycling technologies. Most of its CN¥16.0b revenue comes from the oil and gas industry, with about CN¥1.2b from new energy and recycling, and sales are split fairly evenly between China and overseas markets. The stock is a large cap with a market value of about CN¥169.5b.

Yantai Jereh Oilfield Services Group gives you direct exposure to global oil and gas spending, while also building a foothold in battery and renewables related recycling. Analysts expect fast earnings and revenue growth. Yet the stock trades well below one estimate of fair value even though its P/E is far above the sector average. That mix of growth expectations, valuation gap and solid current profitability offers a setup in which energy prices and capex plans react to higher macro and geopolitical risk. At the same time, weaker profit margins, reliance on higher risk borrowing and questions around board independence mean investors need to weigh the upside story against governance and funding pressure that could matter if conditions tighten further.

Yantai Jereh Oilfield Services Group sits at the crossroads of high growth expectations and a stretched P/E that many investors may be glossing over. Get the full context with the analyst forecasts for Yantai Jereh Oilfield Services Group and see what the market might be missing.

Transocean (RIG)

Transocean provides offshore contract drilling services to oil and gas producers, supplying ultra deepwater floaters and harsh environment rigs along with crews and equipment. The company generates all of its approximately US$4.1b revenue from the provision of contract drilling services. Transocean is a large cap stock with a market value of about US$6.4b.

Transocean gives you focused exposure to offshore drilling at a time when higher crude prices and energy security concerns are pushing major producers to commit to deepwater projects. This is supported by a contract backlog that grew by about US$3.1b in the first half of 2026 and includes multi year Equinor work worth over US$1b. Recent quarters show positive net income, strong free cash flow and credit rating upgrades. However, the stock still carries a heavy debt load, relies on higher risk external funding and depends on dayrates staying firm in a volatile market influenced by US and China trade frictions and central bank policy shifts. For investors who can tolerate that mix of leverage and earnings sensitivity, Transocean is a stock that may deserve a closer look as offshore utilization tightens and the Valaris acquisition approaches completion in late 2026.

Transocean’s growing backlog and recent credit rating upgrades hint at a story that many investors may be underestimating. Get the full 2 key rewards and 2 important warning signs and see how the leverage and dayrate story really fits together.

Seeking Alternatives Before The Crowd Moves

Fresh opportunities can move from quiet to breakout quickly. Momentum shifts, under the radar for now, often get caught once prices start flying. Scan what others miss and act now.

• Spot income workhorses before yields get compressed by late buyers by scanning our curated 4 dividend fortresses, built to highlight payouts that still look supported.
• Track early movers supporting AI build outs while they are still under the radar for now by reviewing the focused 56 AI infrastructure stocks and the companies powering that demand.
• Catch potential turning points in monetary regimes by checking the tightly filtered 30 elite gold producer stocks, which highlights producers with meaningful leverage to bullion prices.

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.