ZACKSยท2025-04-07 13:40Industry Overview - Crude oil prices have declined nearly 15% year to date, reaching $61.99 per barrel, the lowest since 2021, driven by recession concerns and OPEC+'s unexpected decision to accelerate production cuts [1][4] - The U.S. tariffs imposed during the Trump administration are negatively impacting energy markets, with tariff rates on key trade partners ranging from 10% to 34%, leading to revised global economic growth projections [3] - OPEC+ has raised crude output by 411,000 barrels per day in May, significantly exceeding expectations, which has added pressure on crude prices amid existing macroeconomic uncertainties [4] Investment Opportunities - The current pullback in the energy sector may present a strategic buying opportunity for long-term investors, as the decline is seen as driven by short-term volatility rather than fundamental issues [2][5] - Identified companies such as Prairie Operating Co. (PROP), HighPeak Energy (HPK), and Flotek Industries (FTK) are highlighted as potential investments that could benefit from a recovery in oil prices [2][5] Company Analysis - Prairie Operating Co. (PROP): An independent oil and gas company focused on the DJ Basin, with a Zacks Rank 1. The company is expected to see a 334.3% increase in 2025 earnings, with forecasts rising from $2.44 to $4.92 per share over the past 60 days [10][11] - HighPeak Energy (HPK): A rapidly growing independent oil and gas producer in the Midland Basin, also holding a Zacks Rank 1. The company anticipates a 156.7% increase in 2025 earnings, with estimates jumping 93% in the last 60 days [12][13] - Flotek Industries (FTK): Specializes in advanced chemical technologies and data analytics for the energy sector, holding a Zacks Rank of 2. The company expects a 38.2% increase in 2025 earnings, with a 9.3% rise in estimates over the past 60 days [14][15]