Oil Prices Are Rising. Here Are the 3 Best Energy Stocks to Buy Right Now.

Crude oil has finally broken out of its sleepy price range, and the usual suspects in the energy world (the supermajors) are getting a lot of attention. Those usual suspects tend to be where investors stop looking, which is a shame, because the more interesting opportunities lie one rung below the megacaps. These are companies with smaller market caps, leaner cost structures, and direct leverage to either pricing, production growth, or service demand.

Three of these energy companies stand out right now for very different reasons.

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1. Permian Resources: An operator that keeps lowering its breakeven

Permian Resources (NYSE: PR) has turned into one of the most efficient shale operators in the country. In its first-quarter 2026 update, the company reported record oil production of roughly 192,300 barrels per day. It lowered drilling and completion costs to about $685 per lateral foot, a 6% reduction versus 2025's average. Management raised the midpoint of full-year oil production guidance by 3,500 barrels per day while keeping its capital budget intact, a rarer kind of guidance update -- more output without more spending.

For investors new to energy, the reason this matters is simple: When crude prices rise, the operator with the lowest cost per barrel captures the largest share of the increase in cash flow. The company also recently received investment-grade credit ratings from S&P Global and Moody's, which lowers its future borrowing costs.

The risk is the same risk every shale name carries -- Permian Resources is still a price taker on oil and gas, and weak natural gas pricing can dent realized revenue.

2. Kosmos Energy: A small LNG story most investors are missing

Kosmos Energy (NYSE: KOS) holds a 27% stake in the Greater Tortue Ahmeyim project off Mauritania and Senegal, and that single asset is reshaping the company's cash flow profile.

In its first-quarter 2026 release, Kosmos reported total net production of about 74,800 barrels of oil equivalent per day, up roughly 25% year over year, with full-year liquified natural gas (LNG) cargo guidance of 32 to 36 gross cargoes. Management is also targeting more than a 50% year-over-year reduction in operating costs per barrel of oil equivalent at the project.

The appeal here is the mismatch between Kosmos's size and what it owns. LNG export capacity is difficult and expensive to expand, and the Greater Tortue Ahmeyim LNG Project is already producing above its 2.7 million tonnes per year nameplate capacity.

The risk here is concentration: A problem at one floating LNG vessel or a renegotiation in either host country would hit results disproportionately.

3. Weatherford: A services company with rising international exposure

Weatherford International (NASDAQ: WFRD) offers a different angle on this same trend. It is an oilfield services company, which means it gets paid when operators spend more, regardless of whether oil sits at $75 or $90 per barrel.

On its first-quarter 2026 call, management flagged a $30 million to $50 million first-half profit impact tied to the Middle East conflict but pointed to a stronger second half driven by project ramps in Argentina, Brazil, and Australia.

Weatherford's international and offshore mix tends to lag U.S. shale activity by a few quarters, meaning it is just starting to see the benefits of the current oil cycle in its order book. The risk worth flagging is operational: Service companies have thinner margins and higher fixed costs than producers, so any project slip quickly flows through to earnings.

Interesting ways to benefit from energy production

If oil prices keep trending higher, the cleanest exposure usually comes from spreading bets across three different parts of the value chain. Permian Resources is the low-cost operator, Kosmos Energy is the LNG growth story, and Weatherford International is the international services rebound. None of them is without risk, but together they offer a more interesting way to play higher crude than buying the most-mentioned name on every cable segment.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moody's and S&P Global. The Motley Fool has a disclosure policy.