Oil Price Shock Puts Granite Ridge Resources Stock And Energy Peers In Focus

Oil prices have jumped to multi month highs after strikes on Iranian assets and rising risk in the Strait of Hormuz, and that surge is rippling through global markets. Some energy related stocks in our Global Oil & Gas Producers screener are catching investor attention as a result. This article walks through 3 stocks that screens suggest are reacting positively to the news so you can decide whether they deserve a place on your watchlist.

The three stocks covered below are only a small sample of the Global Oil & Gas Producers idea. The full screen surfaces 58 more companies that also meet the same basic size, return, health, dividend and risk filters. If you want to identify and analyze your own highest conviction angles on this theme, head straight to the Global Oil & Gas Producers screener.

Granite Ridge Resources (GRNT)

Granite Ridge Resources is a non operated oil and natural gas exploration and production company that gives you direct upstream exposure to U.S. crude and gas pricing, which is exactly what the Global Oil & Gas Producers theme targets. It generates all of its roughly US$472 million in revenue from oil and natural gas development, exploration and production, entirely in the United States, through a portfolio of wells across basins such as the Permian, Eagle Ford, Bakken and Haynesville. The stock has a market cap of about US$663 million, so it sits firmly in the mid cap producer camp.

Granite Ridge Resources offers a pure play on U.S. upstream volumes at a time when higher crude prices are back in focus, yet the story is not just about short term price moves. The company leans on a diversified, non operated footprint across key shale basins and is actively acquiring new inventory, which can support cash flow growth if projects perform as planned. At the same time, investors need to weigh a high headline dividend against weaker coverage, reliance on external funding and the earnings volatility highlighted by recent impairments and swings between profit and loss. If you want to understand whether this mix of upside exposure and financial risk lines up with your own risk tolerance, Granite Ridge deserves a closer look beyond the headline yield.

Granite Ridge Resources offers high yield and direct exposure to U.S. shale, yet the real story sits in the details of its balance sheet and cash flows. Before you rely on that income stream, review the Granite Ridge Resources financial health report

Topaz Energy (TSX:TPZ)

Topaz Energy is a Canadian royalty and infrastructure energy company that fits the Global Oil & Gas Producers theme by giving you indirect exposure to oil and gas production volumes and pricing through its royalty interests and processing assets. Most of its roughly CA$275 million in revenue comes from royalties, with about CA$94 million from infrastructure such as gas processing and related handling and water facilities, all generated in Canada. The stock has a market cap of about CA$5.0b, so it sits firmly in large cap territory for this theme.

Topaz Energy is interesting if you want oil and gas exposure without owning a traditional producer. Its asset light royalty model and infrastructure portfolio convert a large share of revenue into cash, which supports a mid single digit dividend yield and gives the stock clear leverage to any sustained strength in crude and gas prices following the recent Middle East escalation. At the same time, the company leans heavily on a small group of operators for production, uses external borrowing to fund its liabilities, and pays a dividend that is not fully covered by earnings or free cash flow, so you need to be comfortable with concentration and funding risk. With analysts flagging both meaningful upside to their fair value estimates and ongoing questions around valuation, income coverage and long term energy transition pressures, there is more to unpack before deciding how Topaz fits in your portfolio.

Topaz Energy’s royalty cash engine and mid single digit yield could be masking an even bigger story around income sustainability and growth options. Get the full picture in the analysis report for Topaz Energy

Helmerich & Payne (HP)

Helmerich & Payne provides drilling rigs and related technologies to oil and gas producers, which links it tightly to the Global Oil & Gas Producers theme as activity and day rates often move with upstream spending. The company generates most of its roughly US$4.0b in revenue from its North America Solutions segment at about US$2.2b, with International Solutions at about US$944 million and Offshore Solutions at about US$714 million, and a smaller US$232 million contribution from other activities such as real estate. Helmerich & Payne has a market cap of about US$4.4b.

Helmerich & Payne provides direct exposure to drilling activity at a time when higher crude prices and concern about supply routes are putting rig capacity back in the spotlight. The company’s large fleet of high-spec rigs, growing international contracts and push into digital drilling tools are central to the story. These factors sit alongside pressure from cost inflation, periods of low utilization and a dividend that is not fully supported by current earnings. For investors assessing how this mix of growth projects, funding risk and oil price sensitivity could affect the business, Helmerich & Payne may warrant closer examination before deciding where it fits on a watchlist.

Helmerich & Payne’s rig fleet and digital drilling tools could be setting up a very different earnings path than many expect. Before you decide how it fits your watchlist, review the analysis report for Helmerich & Payne

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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.

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