Oil Price Volatility Drives Attention to Upstream Energy Stocks

With oil prices fluctuating rapidly due to a mix of factors including a climbing dollar and rising Middle East risks, certain sectors are being punished while others benefit. Upstream energy stocks, in particular, are under scrutiny as their revenues are closely tied to oil and gas prices.

Obsidian Energy (TSX:OBE) is one such upstream producer that generates all of its CA$543.7 million in revenue from oil and gas exploration and production activities in Canada. Its pure-play profile makes it a focused bet on current oil price moves, with steadily producing around 28,000 boe/d across various commodities.

Amplitude Energy (ASX:AEL) is another upstream producer that explores, develops, and produces natural gas and low-cost oil in South East Australia. Its cash flow depends on how much gas it can push through Orbost and Athena and the price it receives in an increasingly tight East Coast market.

Capricorn Energy (LSE:CNE) is an independent upstream oil and gas company that explores, develops, and produces fields with a major focus on onshore assets in Egypt's Western Desert. Its revenue closely ties to global and regional oil and gas prices.