The energy sector is the clear beneficiary of rising oil prices spurred by the war in Iran. While most of the market wobbles, the energy sector is soaring, especially companies at the top of the oil and gas pipeline.

While most energy companies benefit from oil prices over $100/bbl, the gains aren't evenly distributed. Since upstream companies are responsible for the exploration and production (E&P) of oil by extracting it from the ground, they're the ones with revenue most tightly tied to the commodity's price.

And now that oil prices are skyrocketing, so are the stocks of E&P companies with domestic sources of production.

Today, we'll look at upstream oil and gas stocks with mostly domestic production that are poised to rally further should oil prices continue their ascent.

Here are the five best-positioned ones.

Devon Energy Corp.

Devon Energy (NYSE:DVN) has fundamental and technical tailwinds hitting its sails at the moment, and the stock could be in the middle of an impressive breakout. On the fundamental side, the company is seeking to complete its merger with Coterra Energy through an all-stock deal, creating one of the largest shale operators in the industry. Expected to close sometime in mid-2026, the Coterra deal would give the company access to more than 750,000 acres in the Delaware Basin, and it projects 1.6 million barrels of production per day by the end of 2027. Despite the positive news surrounding the stock, it still trades at just 12 times forward earnings, and 1.7 times sales, making it one of the cheaper E&P stocks currently on the market.

DVN shares are up more than 25% to start the year, and the technical signals indicate that the rally could still be in the early stages. The stock traded in an extremely tight range for most of 2025 following the Liberation Day rebound in April, but signs of buying pressure began forming in September with a Golden Cross. The stock has broken out above the 50-day and 200-day moving averages now, and the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) both hint that the next leg up is imminent following a brief consolidation period.

Turn Market Volatility Into Clear Setups

When headlines and earnings drive fast moves, speed and focus matter. Benzinga Pro scanners help you cut through the chaos and surface opportunities that fit your criteria in minutes, not hours. Start Free Access

Ovintiv Inc.

Ovintiv (NYSE:OVV) is a E&P company operating in the Permian Basin that recently underwent restructuring to improve its asset portfolio. The company acquired NuVista Energy to expand its footprint in the Montney region, and also announced a $3.0 billion sale of its Anadarko assets. The new portfolio is expected to improve the company's already impressive bottom line and increase free cash flow, which can help enhance shareholder value through buybacks and dividends. Ovintiv posted a massive Q4 2025 earnings beat; its $1.39 EPS was 40% above analysts' projections, and its $2.15 billion in quarterly revenue was a 9% upside surprise.

OVV shares have a unique combination of value and momentum right now, trading at just 11 times forward earnings with a 2.2% dividend yield and a comfortable 25% dividend payout ratio (DPR). The stock also has tremendous technical momentum, with a bullish MACD crossover triggering a move above the 50-day moving average. The RSI is creeping into overbought territory, but the movement has been slow, and the tightness of the MACD and signal lines suggests the upward momentum isn't driving outsized volatility (yet).

Occidental Petroleum Corp.

Occidental Petroleum (NYSE:OXY) remains one of Warren Buffett's favorite stocks, and his Berkshire Hathaway owns more than 26% of the company. After its Q4 2025 earnings results, it’s not hard to see reasons why. Occidental posted a 67% upside surprise on EPS ($0.31 versus $0.18 expected), and its OxyChem divestiture freed the company from $5.8 billion in debt. It also received Overweight upgrades from both Wells Fargo and Piper Sandler last week, with Wells Fargo boosting its price target to $69.

OXY shares are among the big winners so far this year, up more than 40% year-to-date (YTD), with a rally that could intensify further as the Iran war raises oil prices. The stock has strong support along the 50-day moving average, and now a Golden Cross and soaring MACD have boosted the trend. OXY is the most expensive stock here, trading at 29 times forward earnings and 2.7 times sales, but the upward momentum is hard to ignore at this point.

Expand Energy Corp.

Expand Energy (NYSE:EXE) boasts the most natural gas production capacity in North America, and while its stock is actually down 3% to start 2026, it could have the most upside potential of any entry on our list today. The stock trades at just 11.6 times forward earnings and 2.1 times sales, with a 2.96% dividend yield and a steady 42% DPR. Expand Energy also posted a top and bottom line earnings beat in Q4 2025, with YOY revenue growth of more than 63%.

If the rally in EXE shares is getting started, the evidence is coming from the MACD and RSI. A bullish MACD crossover has occurred during price consolidation around the 50-day and 200-day moving averages, and the RSI has risen above 50, a level where upward momentum often takes root.

ConocoPhillips

Last but not least, one of the largest E&P firms in the U.S. exchanges – ConocoPhillips (NYSE:COP), the $147 billion market cap driller that generates nearly $60 billion in annual sales. Like Occidental, ConocoPhillips investors have to pay a higher premium to get the security of a large-cap oil producer; 23 times forward earnings and 2.5 times sales to be exact. But ConocoPhillips also offers a 2.8% dividend yield with a 50% DPR, and its stock breakout has strong technical momentum.

The uptrend formed late last year when a bullish MACD crossover triggered a price breakout above the 50-day and 200-day moving averages, followed by a momentum-building Golden Cross formation in January. The RSI is now trading in the upper bound of its range, but is still a tick below the overbought threshold that could stimulate sellers. The upward momentum remains strong here and should continue to hold as long as oil trades near $100/bbl.

Image via Shutterstock