top energy stocks 2025 – The Investment Journal

The situation in the Middle East just got a lot more real…

Over the weekend, U.S. forces launched airstrikes on three nuclear facilities inside Iran. It wasn’t a warning shot—it was a message, and the market heard it loud and clear.

Crude prices surged overnight as fears mounted that Iran could retaliate by closing the Strait of Hormuz, the world’s most critical oil chokepoint.

JPMorgan analysts wasted no time issuing a bold projection: if the conflict escalates and the strait is shut down, oil could spike to $120–130 per barrel.

Let’s be clear: this isn’t some doomsday speculation… Roughly 20% of the world’s oil moves through that waterway.

If tankers stop sailing, global supply tightens overnight—and countries will scramble to secure barrels. That’s when domestic producers in the U.S. step into the spotlight.

This is a potential supercycle moment for U.S. shale—and investors who know where to look could lock in big gains…

Devon Energy: The Giant That Gets Stronger in a Crisis

Start with Devon Energy (NYSE: DVN), one of the top-tier U.S. oil producers by output and efficiency.

Devon pumps over 800,000 barrels of oil equivalent per day from massive holdings in the Permian, Anadarko, and Eagle Ford basins. These are mature, high-productivity plays with low decline rates, and Devon’s break-even price hovers around $45 per barrel.

In Q1 2025, Devon generated a staggering $1 billion in free cash flow with oil in the mid-$70s. Now imagine what that looks like with WTI at $130…

We’re talking about potentially doubling free cash flow, which the company can use to reward shareholders through buybacks, dividends, or even tuck-in acquisitions to expand its footprint.

Devon isn’t chasing growth for growth’s sake. Management is committed to capital discipline, with a net debt-to-EBITDAX ratio of just 1.0x and a firm grip on operating costs.

That gives them the flexibility to ramp up production or simply rake in higher profits. Either way, shareholders win.

Civitas Resources: The Mid-Cap with Momentum

Next, we turn to Civitas Resources (NYSE: CIVI), a fast-rising mid-cap producer that’s built a reputation for operating efficiently in the Permian Basin.

After recent acquisitions, Civitas has grown its oil production to more than 150,000 barrels per day, and it’s using smart hedging strategies to lock in prices and minimize downside.

Civitas is no stranger to volatility, and they’ve positioned themselves well for this kind of breakout…

The company was already free cash flow positive at $70 oil—at $130, they could be printing money. In 2024, Civitas guided for over $1.1 billion in free cash flow at current prices.

Higher crude could turn that into a war chest.

What makes Civitas especially attractive is its capital allocation. Rather than blowing cash on overexpansion, it has been focused on shareholder returns through dividends and share repurchases.

If oil prices surge, you can expect more of the same—plus a potential step up in drilling activity that could push production even higher in a very short time frame.

Civitas is also incredibly lean…

It runs a tight ship with low overhead, meaning more of that revenue falls straight to the bottom line. In a high-price oil environment, that kind of efficiency becomes a powerful profit engine.

Prairie Operating Company: The Small-Cap Sleeper Hit

Now for the wild card that’s not so wild—Prairie Operating Company (NASDAQ: PROP)…

This is the kind of stock that most institutional investors won’t touch until it’s already doubled. But if you’re looking for maximum leverage to higher oil prices, this tiny Denver-based operator could be your moonshot.

Prairie recently completed a $603 million acquisition of DJ Basin assets from Bayswater Exploration, transforming it overnight into a legitimate small-cap producer.

Its daily output now tops 25,000 barrels of oil equivalent, and it controls more than 55,000 net acres with around 600 high-quality drilling locations.

That’s the kind of inventory you want when prices go vertical.

The company’s 2025 EBITDA guidance sits between $350–370 million based on current pricing around $60 a barrel.

If oil jumps to $120–130, those numbers could easily and quickly blow past $500 million, fueling rapid expansion…

And with a market cap still under $200 million, it wouldn’t take much for the stock to rerate—hard.

Prairie’s low breakeven costs, nimble structure, and expanding production base make it one of the most potentially explosive small-cap oil names in the market right now.

The upside is huge—and the risks are pretty minimal thanks to tight operations and a focus on expanding shareholder value..

The Big Picture: U.S. Shale Reclaims the Throne

For the last several years, U.S. oil producers have kept their heads down…

They’ve cut costs, sold off junk assets, and gotten lean. And Wall Street mostly ignored them, favoring tech and AI and all the shiny objects with flashier narratives.

But none of that matters if the world can’t keep the lights on.

If oil hits $120 or higher, cash will start pouring into the sector again.

Investors looking for stable income will chase Devon.

Growth-minded funds will rediscover Civitas.

And savvy traders hunting for 5x or even 10x returns will start piling into names like Prairie.

And here’s the kicker: these companies don’t need oil to stay at $130 forever.

Even a six-month spike would generate windfall profits. And if prices stabilize at $100 or even $90? These firms are still minting money.

This isn’t about timing the top…

It’s about positioning ahead of a squeeze—and letting disciplined U.S. operators do what they do best: extract maximum profit from the ground up.

The Bottom Line: The Window Is Narrow, but the Potential Is Massive

Nobody knows how long this current conflict will last…

Iran could respond with restraint—or it could retaliate tomorrow and trigger a full-blown regional escalation. But the market is already pricing in risk, and history tells us that energy shocks of this scale don’t go away quietly.

If oil surges, U.S. producers will benefit. Some more than others.

Devon offers scale and predictability. Civitas combines discipline with growth potential.

And Prairie Operating Company? That’s your potentially extreme high-reward play on a market that could be on the edge of a seismic shift.

Don’t wait for CNBC to tell you it’s happening. By then, the big money will already be in.

Now’s your chance to get ahead of it.

Neither The Investment Journal nor the author have a financial position in any of the companies mentioned in this article. An affiliate of The Investment Journal has been retained for marketing services by Prairie Operating Co. between June and August, 2025; however, this is not a sponsored post. This content is for informational purposes only and should not be considered investment advice or a solicitation to buy or sell any securities.

If you’ve glanced at oil prices recently, you probably noticed they’re on the move — and not in a small way. After months of relatively stable crude prices, the market has suddenly snapped to attention as tensions between Israel and Iran heat up, sending both WTI and Brent crude soaring. Investors are waking up to what seasoned commodity traders already know: nothing rattles global oil markets like conflict in the Middle East.

But here’s the twist — while the drama plays out half a world away, the biggest winners may be oil producers right here in the United States.

Let’s break down why this conflict is pushing prices higher, and how U.S.-focused companies — especially Devon Energy, U.S. Energy Corp., and Prairie Operating Company — are perfectly positioned to capitalize on this volatility.

When Missiles Fly, Oil Rallies

The Middle East has long been a powder keg, but the current standoff between Israel and Iran is dangerously close to boiling over. In just the past few weeks, both countries have launched strikes against each other’s critical infrastructure — with rumors swirling that Iran may attempt to choke off the Strait of Hormuz, a narrow passageway through which nearly 20% of the world’s oil supply flows daily.

An image of a map of the Strait of Hormuz as well as a chart depicting the percentage of global oil shipments transported through the Straight each day. Source: U.S. Energy Information Administration and ClipperData, Inc.

Even the threat of disruption in that region sends shockwaves through global markets. Why? Because oil, unlike most commodities, is deeply intertwined with geopolitics. When producers or transport routes are at risk, traders rush to price in that uncertainty — and that means higher prices across the board.

As this latest conflict escalates, it’s not just a regional issue. It’s a global supply risk. And when global supply is in question, demand shifts to where oil is safest and most accessible: the good old U.S. of A.

Domestic Oil Is Suddenly Worth a Whole Lot More

What investors are realizing — and what you should be paying close attention to — is that U.S.-based oil production becomes far more valuable in times like this. It’s not subject to international shipping lanes, foreign sanctions, or political sabotage. It’s drilled, piped, refined, and sold domestically.

And that’s why the spotlight is turning toward smaller, more nimble U.S. producers that operate exclusively on American soil. They don’t have to worry about supply chains being bombed or refineries being targeted. They just need to keep pumping — and enjoy the rising prices.

Let’s look at three companies that are about to ride this wave.

Devon Energy: The Established Powerhouse

Devon Energy (NYSE: DVN) is far from a penny stock — it’s a heavyweight in the U.S. oil patch. With operations across the Permian Basin, Eagle Ford, Anadarko Basin, and Powder River, Devon has one of the most diversified domestic asset portfolios in the industry. It’s a major producer, churning out more than 800,000 barrels of oil equivalent per day.

But here’s the key: it’s all U.S.-based…

An image of a recent map of Devon Energy’s domestic oil production asset base. Source: Devon Energy Q3 2023 Earnings Presentation

That means Devon gets the full benefit of higher oil prices without taking on the geopolitical risk that international producers face. While oil majors with global exposure have to worry about shipping routes and foreign governments, Devon just keeps drilling — and banking higher profits.

The company has been laser-focused on shareholder returns lately, with billions in free cash flow and a generous dividend. Rising oil prices only supercharge those cash flows, giving Devon more ammunition to return value to investors.

U.S. Energy Corp.: The Underdog with Upside

Now, let’s shift to a much smaller name with big leverage to rising prices — U.S. Energy Corp. (NASDAQ: USEG). This is a lean, nimble oil and gas company operating exclusively in the United States, with a focus on low-decline, high-margin assets in the Rockies and Gulf Coast.

An image of the U.S. Energy Corp. logo Source: U.S. Energy Corp. Investor Relations

Unlike some overextended peers, USEG has no debt and a clean balance sheet, which gives it room to grow production without financial strain. Its current production may be modest — just over 1,000 barrels per day — but when oil prices spike, even small volumes can generate serious cash for companies like this.

The beauty of a small player like USEG is that it’s pure. It doesn’t have downstream assets, international complications, or sprawling corporate overhead. It just drills, sells oil, and keeps the profits. And when the price per barrel jumps like it is now, those profits can rise exponentially.

In a high-volatility market, small domestic oil producers are often the fastest movers — and USEG fits that profile perfectly.

Prairie Operating Company: The Newcomer with Explosive Growth

Finally, we have Prairie Operating Company (NASDAQ: PROP), a newer name that’s starting to attract serious investor interest — and for good reason.

PROP operates primarily in the Denver-Julesburg (DJ) Basin, one of the most prolific onshore basins in the U.S. While still early in its growth curve, the company has aggressive plans for 2025: it expects to bring 25–28 new wells online and ramp production up to 7,000–8,000 barrels per day — nearly triple its 2024 output.

That kind of growth is impressive on its own, but in a rising oil price environment, it becomes potentially explosive. PROP is guiding for more than $100 million in EBITDA next year — and that estimate could prove conservative if oil continues its upward march.

For investors looking for a high-upside domestic play with momentum on its side, Prairie might be the dark horse that delivers the biggest gains.

The Takeaway: This Is America’s Energy Moment

While international oil producers scramble to manage risk in the Middle East, American companies with domestic-only operations are sitting in the catbird seat. They don’t have to worry about tankers being targeted or pipelines being blown up halfway across the world.

Instead, they’re focused on drilling, producing, and cashing in on a price surge they had no hand in creating — but will fully benefit from.

Devon Energy is the reliable giant with a long track record. U.S. Energy Corp. is the small-cap sleeper with leverage to every price uptick. And Prairie Operating is the growth rocket, ready to capitalize on a perfect storm of rising production and surging oil prices.

If you’re looking for a way to profit from global instability without global risk, these are the names to watch.

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