Undervalued energy stocks to watch as Q3 earnings season gears up

As the third-quarter 2026 earnings season gets underway, investors are assessing opportunities across the U.S. energy sector, with stock valuations offering one way to identify companies that may be trading below their fundamental worth.

A quantitative screen of energy stocks highlights 14 companies with favorable valuation grades, led by Plains GP Holdings (PAGP).

Plains GP Holdings tops the list with an A+ valuation grade from Seeking Alpha, while Alliance Resource Partners (ARLP), Hess Midstream (HESM), Kimbell Royalty Partners (KRP), National Energy Services Reunited (NESR) and Northern Oil and Gas (NOG) follow with A grades. Seven additional companies, including Energy Transfer (ET), MPLX (MPLX) and Sunoco (SUN), received A- grades.

Seeking Alpha's valuation grade measures how attractively a stock is priced relative to its fundamentals, with A+ indicating the most undervalued rating and F the most overvalued. The screen ranks the companies according to their valuation grades, providing a snapshot of stocks that currently score favorably on the platform's quantitative valuation metrics.

Here is the list:

1. Plains GP Holdings, L.P. (PAGP), Valuation grade: A+

2. Alliance Resource Partners, L.P. (ARLP), Valuation grade: A

3. Hess Midstream LP (HESM), Valuation grade: A

4. Kimbell Royalty Partners, LP (KRP), Valuation grade: A

5. National Energy Services Reunited Corp. (NESR), Valuation grade: A

6. Northern Oil and Gas, Inc. (NOG), Valuation grade: A

7. Black Stone Minerals, L.P. (BSM), Valuation grade: A-

8. Delek Logistics Partners, LP (DKL), Valuation grade: A-

9. Energy Transfer LP (ET), Valuation grade: A-

10. MPLX LP (MPLX), Valuation grade: A-

11. Plains All American Pipeline, L.P. (PAA), Valuation grade: A-

12. Sunoco LP (SUN), Valuation grade: A-

13. USA Compression Partners, LP (USAC), Valuation grade: A-

14. Western Midstream Partners, LP (WES), Valuation grade: A-

Energy ETFs: (XLE), (AMLP), (VDE), (XOP), (OIH), and (IXC)

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