Energy Stocks Rebound as Oil Prices Spike Above $100

The recent surge in oil prices to above $100 has significant implications for various energy-related stocks. Government bond yields are also increasing, and inflation concerns are on traders' minds. This mix can alter investors' perceptions of integrated oil giants and pure refiners.

Some companies appear better positioned when crude prices spike and money becomes more expensive. Others face substantial pressure due to the changing market conditions. Three stocks covered in this article are Gas Plus, Gevo, and Green Plains, each offering unique exposure to the energy sector.

Gas Plus is a Milan-based natural gas producer with upstream operations focused on Italy. The company generated around €37 million from retail activities and roughly €17 million from network and transportation, within a business valued at about €282 million. As oil prices rise, Gas Plus' pricing power becomes a crucial factor in determining its future performance.

Gevo is another energy player that targets low-carbon liquid fuels instead of crude-based earnings. The company's revenue comes mainly from GevoND, GevoRNG, and Gevo, with a market value near $315 million. Gevo has positioned itself to decarbonize the fuel ecosystem and capture a growing addressable market via its modular ATJ plants and first-mover advantage in cost-competitive SAF production.

Green Plains is a low-carbon fuel refiner that converts corn into ethanol, distillers grains, and renewable corn oil. The company generated about $1.7 billion from ethanol-related operations and $170 million from agribusiness, with a market value of around $1.1 billion. However, Green Plains' future earnings profile may be impacted by shifting fuel policies, particularly the potential decline in demand for corn-based ethanol due to increasing regulatory scrutiny.