US Energy Stocks Feel the Pinch of Higher Oil and Gas Prices

Three U.S. energy stocks are exposed to higher oil and gas prices due to inflation above 3%, expensive fuel, and war-driven energy shocks, which are squeezing household budgets.

The stocks highlighted include Big Sky Industrial (BSIN), Sable Offshore (SOC), and Prairie Operating (PROP). Big Sky Industrial is a Houston-based independent energy company that acquires, explores, and develops industrial gas, oil, and natural gas assets. It has a market cap of US$75 million and gives direct exposure to higher hydrocarbon prices while building a specialist industrial gas and carbon management business.

Sable Offshore, also based in Houston, produces crude oil and natural gas from three platforms in federal waters offshore California. It has a market cap of US$796 million and is still loss-making despite forecasts pointing to strong earnings and revenue growth over the next few years.

Prairie Operating is another Houston-based independent energy company that acquires and develops crude oil, natural gas, and natural gas liquids resources in the United States. It has a market cap of US$113 million and provides direct exposure to oil and NGL prices through its liquids-heavy production mix.