Oil Stocks Are Hot. Here Are 9 Worth Getting To Know.

• International E&P and Canadian E&P groups both gained 49% year-to-date, with international E&P rising 15% since the Iran war started versus 7% for Canadian stocks
• Field services giants SLB and Halliburton lead a group up 38% in 2025, positioned to benefit from deepwater projects, Middle East growth, and Venezuela oil infrastructure rebuilding
• U.S. LNG exports hit record highs in March 2025 on war-driven panic buying, while offshore drilling outlook is expected to improve from late 2026 despite current challenges

Summary

Market Context:

Oil and gas stocks have surged amid the Iran war and rising oil prices. IBD tracks 241 energy stocks across 10 industry groups, with two sectors leading performance.

Top-Performing Sectors:

• International exploration and production (14 stocks): +49% year-to-date, +15% since Iran war onset
• Canadian exploration and production (9 stocks): +49% YTD, +7% since war began
• Oil and gas field services (29 stocks): +38% YTD, +7% past month
• Oil and gas drillers (9 stocks): +36% YTD, +7% since war started
• Integrated oil (22 stocks): +36% YTD, +6% since war began

Key Companies by Sector:

*Drilling:* Noble Corporation, Transocean, and Valaris lead by market value. Transocean's $5.8 billion acquisition of Valaris (announced February) will create the drillship leader. The group ranks No. 3 out of 197 IBD-tracked industry groups.

*Field Services:* SLB (formerly Schlumberger) and Halliburton dominate, betting on deepwater projects and Middle East/Asia growth. Tidewater outperformed, growing revenue 1% and adjusted EBITDA 7% in 2025. This group ranks No. 4 among IBD groups.

*Exploration & Production:* ConocoPhillips and Occidental Petroleum are stalwarts, while smaller Vista Energy (Mexico-based, targeting Argentina's Vaca Muerta shale) shows exceptional growth—tripling production and quadrupling earnings since 2021. Vista stock earns a perfect 99 Composite Rating. The group ranks No. 5 overall.

Market Outlook:

U.S. oil production expected to plateau through 2026, while natural gas production rises due to data center demand. U.S. LNG exports hit record highs in March 2025.