3 Oil Stocks to Buy on the Dip After Crushing Q3 Expectations: CVI, DK, NOG

Oil stocks are retreating as crude prices have pulled back amid easing geopolitical tensions between the United States and Iran. However, with Brent crude still near $90 a barrel and West Texas Intermediate (WTI) crude above $80, oil prices remain elevated by historical standards, and lingering uncertainty over Middle East supply disruptions could keep energy markets volatile.

Against this backdrop, the pullback may present an intriguing buying opportunity in select energy stocks that recently crushed Q3 earnings expectations.

In particular, CVR Energy CVI), Delek US Holdings DK), and Northern Oil and Gas NOG) have shown strong profitability and cash-flow potential, positioning them to benefit from favorable energy market conditions.

CVR Energy – CVI

Stock Price: $38 | 52 Week Range: $19.62-$63.51

Refining giant CVR Energy delivered exceptional Q3 results, with adjusted earnings surging to $4.00 per share from EPS of $0.40 a year ago, and crushing the Zacks Consensus Estimate of $3.09 by nearly 30%.

Revenue jumped 69% year over year to $3.28 billion, exceeding expectations of $2.17 billion by more than 50%. Strong refining margins fueled the impressive quarter, with petroleum segment adjusted EBITDA soaring to $565 million from $120 million in Q3 2025.

CVR also announced plans to acquire two Marathon Petroleum MPC) refineries, potentially expanding its earnings and cash flow generation capabilities.

Delek US Holdings – DK

Stock Price: $63 | 52 Week Range: $25.85-$82.27

Delek US Holdings has been another standout, posting Q3 adjusted earnings of $10.53 per share, which crushed expectations of $7.59 by nearly 39% and skyrocketed from EPS of $1.52 in the prior-year quarter.

Revenue climbed 52% to $4.39 billion and comfortably topped estimates of $3.88 billion by 13%, supported by favorable refining margins and improved operational efficiency.

Encouragingly, Delek raised its annualized cash flow improvement target to at least $250 million from $220 million, while outlining plans for $100 million in Q4 share repurchases and significant debt reduction.

Northern Oil and Gas – NOG

Stock Price: $23 | 52 Week Range: $17.18-$31.17

Northern Oil and Gas offers more direct exposure to energy commodity prices, making its recent pullback particularly interesting following a strong Q3 report.

NOG delivered Q3 adjusted earnings of $1.32 per share, surpassing estimates of $0.92 by an impressive 43% and improving 28% from EPS of $1.03 in the comparative quarter. Revenue increased 45% to $697.69 million, and exceeded expectations of $581.35 million by 20%.

Record production helped NOG generate $148.6 million in free cash flow, up 25% YoY, while management raised its full-year production guidance.

Adding to its appeal for income investors, NOG recently declared another $0.45 quarterly dividend, equivalent to an annualized payout of $1.80 per share and a very generous yield near 8%.

Bottom Line

Following their impressive Q3 results. CVR Energy, Delek US Holdings, and Northern Oil and Gas stock are each sporting a Zacks Rank #1 (Strong Buy).

Although declining crude prices remain a potential headwind, persistent geopolitical uncertainty and favorable refining economics could support profitability. More importantly, as compelling buy-the-dip candidates, these companies' improving cash flow profiles provide opportunities to strengthen their balance sheets, reward shareholders, and fund future growth.

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This article originally published on Zacks Investment Research (zacks.com).

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