Energy Stocks Under Pressure from Rising Geopolitical Tensions

The rise in geopolitical tensions between Iran and other countries has put the energy sector on high alert. This increase in risk may lead to sharp moves in oil and gas producer stocks, as well as related services companies.

Three energy stocks that could be affected by these developments are Ensign Energy Services (TSX:ESI), Paramount Resources (TSX:POU), and Cactus (WHD). Ensign provides drilling rigs and well services to oil and gas producers in Canada, the US, and international markets.

With a market cap of CA$728.4m, Ensign has been working to grow long-term contracts and upgrade its higher-spec rigs, which could help with revenue visibility and balance sheet resilience if conditions tighten further.

However, the company is still loss-making and carries meaningful borrowings, making it a high-risk investment opportunity.