Three U.S. Oil and Gas Stocks Feeling the Squeeze from Higher Crude Prices
Higher crude prices are putting energy back in the spotlight as fuel costs ripple through household budgets and corporate balance sheets. Weatherford International, Archrock, and SM Energy are three U.S. oil and gas stocks that could feel the pressure.
Weatherford International is a global oilfield services player with revenue spread across drilling, completion, production, and other lines. The company's expanding portfolio of advanced technologies, such as managed pressure drilling, positions it to benefit from complex oilfield operations. However, the balance between higher activity and pricing power depends on unseen pressures.
Archrock is a natural gas compression specialist with U.S.-focused energy infrastructure business built around services. Its revenue comes primarily from contract operations, but long lead times for new equipment create an entry barrier for competitors. The company's pricing power could be accelerating due to supply delays and contract risk might be quietly building.
SM Energy is a pure exploration and production player with straightforward exposure to crude and natural gas liquids pricing. It generates cash from wellhead production, which can fund dividends and buybacks if oil prices remain supportive. However, critical cost pressures in its key shale basins could influence how much of that potential reaches investors.