Three Energy Stocks That Rely Directly on Crude Oil Prices

The energy sector is currently one of the most closely watched corners of the market due to ongoing tensions in the Strait of Hormuz, inflation and interest rate concerns, and crude oil prices hovering around $89 per barrel. For investors seeking direct exposure to movements in crude prices, three stocks stand out: GeoPark (GPRK), Greenfire Resources (GFR), and California Resources (CRC). These companies offer a mix of upstream oil production, natural gas exploration, and carbon management projects that can benefit from higher crude prices.

GeoPark is a pure-play oil and natural gas exploration and production company focused on Latin America. It generates the majority of its revenue from Colombian barrels sensitive to Brent pricing. The company's return to profit and dividend restart make it an attractive option for investors willing to accept potential risks tied to balance sheet health and country exposure.

Greenfire Resources, on the other hand, is an upstream oil producer focused on extracting bitumen from the Athabasca oil sands in Alberta. Its cash flows are heavily geared to realized crude prices, making it a sensitive stock to movements in the market. Despite being undervalued on a discounted cash flow basis and carrying forecast revenue and earnings growth, Greenfire Resources faces risks tied to its balance sheet and external funding.

California Resources is an independent energy company producing crude oil, natural gas liquids, and natural gas in California while developing carbon capture and storage projects. It offers direct exposure to California-focused upstream production alongside emerging low-carbon revenue streams tied to CO2 storage and power generation assets. However, the company relies on external borrowing, faces regulatory uncertainty, and has seen insider selling in recent months.