Energy Stocks on the Radar as Oil Prices Remain Above $90
Oil prices have stayed above $90 due to war-disrupted supply routes and a more hawkish Fed, pushing energy stocks back into focus for investors concerned about inflation and portfolio resilience.
Viper Energy (VNOM), with a market cap of roughly $16.3 billion, offers pure-play exposure to Permian volumes and oil prices through its royalty model, which benefits from high crude with relatively low operating costs.
The company has generated about $1.9 billion from acquiring oil and natural gas properties across the Permian Basin in the United States, but earnings have been volatile, and dividend coverage has not always been comfortable.
Baytex Energy (TSX:BTE) is a pure upstream producer with all CA$1.7b of revenue coming from oil and gas exploration and production in Canada, focusing on light and heavy oil, condensate, and natural gas.
The company has a market cap of about CA$4.9 billion, offering large-cap exposure to Canadian crude and gas volumes closely tied to global pricing, but it also comes with real risk, including a history of losses, reliance on external debt funding, and sensitivity to tariffs or weaker oil.