4 Value Energy Stocks to Buy As Oil Settles Above $100 a Barrel

Oil Market Overview - Oil prices have surged due to ongoing geopolitical tensions in the Middle East, with WTI crude rising 3.25% to $102.88 per barrel, the highest close since July 2022, and Brent crude reaching $112.78 per barrel, the strongest settlement in nearly four years [1][2][9] - The conflict involving the U.S., Israel, and Iran has entered its fifth week, with escalating tensions and additional U.S. troop deployments, raising concerns about further military action against Iran [2][3] Supply Disruptions - The closure of the Strait of Hormuz, a critical chokepoint for global crude shipments, has significantly constrained oil supply, leading to warnings from analysts about potential further spikes in oil prices if disruptions continue [3] Investment Opportunities - The current supply-driven rally is creating favorable conditions for energy producers, with select value stocks such as Drilling Tools International Corp. (DTI), California Resources Corporation (CRC), Eni SpA (E), and Matador Resources Company (MTDR) being highlighted for their strong value scores and positive earnings estimate revisions [4][9] Drilling Tools International Corp. (DTI) - DTI is a global oilfield services provider focusing on specialized downhole tools for horizontal and directional drilling, expanding its presence in EMEA and APAC to reduce reliance on the U.S. market [5][6] - The company has a Zacks Rank 1 (Strong Buy) and a Value Score of B, with EPS estimates for 2026 and 2027 indicating year-over-year increases of 90% and 68%, respectively [7] California Resources Corporation (CRC) - CRC is benefiting from improved regulatory momentum in California, allowing it to restart development activities and support production growth [10] - The merger with Berry Corporation is expected to enhance operational efficiency and deliver $80-$90 million in annual synergies within the first year [11] - CRC also holds a Zacks Rank 1 and a Value Score of B, with positive EPS revisions indicating growth potential [12] Eni SpA (E) - Eni is a leading integrated energy company diversifying into cleaner energy while maintaining stable output through new project startups across various regions [13][14] - The company has a Zacks Rank 1 and a Value Score of A, with EPS estimates for 2026 and 2027 showing year-over-year growth of 38% and 1%, respectively [15] Matador Resources Company (MTDR) - Matador focuses on shale and unconventional resources, with core operations in the Delaware Basin and a strong drilling inventory providing visibility for future growth [16][18] - The company maintains a strong liquidity position and generates positive free cash flow, allowing for operational funding and shareholder returns [18][19] - MTDR has a Zacks Rank 2 (Buy) and a Value Score of A, with EPS estimates for 2026 and 2027 indicating significant year-over-year increases of 225% and 19%, respectively [19]