3 U.S. Energy Stocks Investors Are Watching As Oil And Gas Prices Stay High

Inflation is heating back up, fuel and wholesale costs are biting, and policy risks around war, tariffs and the midterms are reshaping where money can quietly work for or against you. That mix is punishing some corners of the market while lifting others tied to elevated oil and gas prices. This article examines three US energy stocks related to those developments and outlines key points to consider as you make portfolio decisions.

The three stocks covered below are just a starter pack, and the full screen surfaced 25 more U.S. energy producers and infrastructure companies with equally compelling stories that are not included here. To go deeper, analyze and identify your own highest-conviction ideas directly through the U.S. Energy Producers and Infrastructure Benefiting from Elevated Oil & Gas Prices screener.

Overview: Natural Gas Services Group rents and services natural gas and electric compression equipment that keeps U.S. oil and gas production facilities flowing.

Operations: Natural Gas Services Group generates about US$182 million from compression rentals, with smaller contributions from sales and aftermarket services, entirely in the United States.

Market Cap: US$401 million

Natural Gas Services Group sits right in the flow of elevated U.S. gas production, supplying the compression units producers rely on when volumes stay high and infrastructure runs hard. That is exactly where this screener is focused.

“The accelerating growth in global LNG exports and increasing demand from sectors like AI data centers and power generation are driving higher natural gas production, which directly benefits Natural Gas Services Group through strong contracted rental growth and high utilization of compression assets and can support future revenues and EBITDA.”

What ultimately happens to rental margins if one persistent cost pressure continues to build faster than customers accept higher pricing?

If that pressure is what you are weighing, read the full narrative for Natural Gas Services Group to see how contracting, balance sheet strength, and growth optionality could offset it.

Overview: Viper Energy owns mineral and royalty interests across the Permian Basin, collecting oil and gas income when operators drill and produce.

Operations: Viper Energy generated about US$1.9b from acquiring oil and natural gas properties, with all activity tied to assets in the United States.

Market Cap: US$16.2b

Viper Energy appears in this screener because its revenue is closely tied to oil and gas prices, collecting a share of production revenue without funding drilling budgets or field operating crews.

“Viper avoids drilling capital, but it also gives up drilling control. Operators decide when to develop the acreage.”

What ultimately happens to cash generation, dividends, and growth will depend on how assumptions about future operator activity develop over time.

That trade off is exactly what the full narrative for Viper Energy unpacks, showing where Viper Energy’s royalty model could accelerate, stall, or quietly decouple from headline oil moves.

Overview: California Resources produces oil, gas and power in California and runs carbon capture and storage projects through its Carbon TerraVault platform.

Operations: California Resources reports about US$3.4b from Oil and Natural Gas, with total US revenue of roughly US$3.7b.

Market Cap: US$4.8b

California Resources matters in this screener because it is tightly tied to California fuel pricing, local energy security and inflation driven oil and gas moves, giving the business direct exposure to the same forces pushing fuel costs higher for consumers.

“Recent and potential regulatory reforms in California aimed at improving oil and gas permitting and supporting local energy security may provide California Resources with increased operational flexibility and access to its extensive project inventory, which could support higher production levels and revenue growth.”

The key issue is how one unresolved pressure on California Resources’ cost structure ultimately affects margins if pricing power weakens.

If that cost squeeze is what you are weighing, read the full narrative for California Resources to see how California Resources could turn regulatory shifts into accelerating cash power.

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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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