Oil Prices Are Elevated: 2 High-Yield Stocks to Buy in September

Oil stocks remain in focus as crude prices stay elevated, with West Texas Intermediate (WTI) recently pushing back above $90 a barrel amid renewed geopolitical tensions and supply concerns surrounding the Strait of Hormuz.

Along with the potential upside from firm energy prices, income-generating oil stocks can be especially appealing for investors looking to collect dividends while maintaining sector exposure.

With that in mind, InPlay Oil CP IPOOF) and Western Midstream Partners WES) stand out entering September, as both stocks currently sport a Zacks Rank #1 (Strong Buy) and offer dividend yields above 5%.

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INPLAY OIL CP – IPOOF

Stock Price: $13

Based in Alberta, Canada, InPlay is a smaller exploration and production company (Upstream) primarily focused on light oil.

This gives InPlay more direct upside exposure to higher crude prices than many midstream energy companies that specialize in transporting, storing, and processing crude oil, natural gas, and related products between production sites and refineries or end markets.

Operational momentum has also been impressive. InPlay's Q2 production averaged 18,663 barrels of oil equivalent per day (boe/d), with light oil production climbing 6% sequentially to 9,382 barrels per day. Adjusted funds flow (AFF) jumped 48% from Q1 to a record $44.7 million, while free adjusted funds flow (FAFF) reached $28.4 million.

More importantly, InPlay recently closed a highly accretive $54.25 million acquisition of assets that added roughly 1,400 boe/d of production, 85% of which consists of light oil and natural gas liquids (NGLs). The acquired properties lift total corporate production to approximately 20,100 boe/d and add 50 identified drilling locations. Management expects the transaction to be 18% accretive to annualized adjusted funds flow and free adjusted funds flow per share.

Including the acquisition, InPlay is targeting 2026 AFF of $161-$169 million and FAFF of $79-$89 million, compared with $114.4 million and $62.4 million, respectively, in 2025.

Income investors get another bonus, as InPlay’s dividend translates to roughly $0.06 monthly, or $0.77 per share annually. With shares trading at $13, that equates to a yield of 5.79%.

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Notably, earnings estimates have also moved sharply higher in the last 30 days, helping IPOOF earn its Zacks Rank #1 (Strong Buy). Fiscal 2026 EPS is now expected at $0.21 compared to an adjusted loss of $0.08 last year.

Plus, FY27 EPS is projected to surge to $0.81, making InPlay’s stock an appealing growth story with IPOOF shares trading at a 52-week high and up more than 45% year to date.  

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Western Midstream Partners – WES

Stock Price: $48

Western Midstream offers investors a somewhat different way to capitalize on strength in the energy market. Rather than directly producing oil and gas, WES owns midstream infrastructure that gathers, processes, and transports natural gas, crude oil, and NGLs while also handling produced water.

This business model provides more stable fee-supported cash flows, although elevated commodity prices and increased drilling activity can still boost throughput and certain processing economics.

Furthermore, the company posted an excellent Q2, with revenue surging 30% year over year to $1.22 billion and topping estimates of $1.13 billion. Meanwhile, Q2 EPS increased 14% to $0.99 and beat expectations of $0.90 by 10%.

Adjusted EBITDA reached a quarterly record of $736.5 million, rising 19% YoY, while distributable cash flow totaled $537.2 million.

Strong throughput and a recently completed acquisition of Brazos Delaware prompted management to raise its FY26 outlook. Western Midstream now expects adjusted EBITDA of $2.75-$2.95 billion, distributable cash flow of $2.05-$2.25 billion, and free cash flow of $1.1-$1.3 billion.

WES is also a compelling income play. Its latest quarterly distribution is $0.93 per share, or $3.72 annualized, equating to a yield of 7.59%. As a Master Limited Partnership (MLP), Western Midstream is structured to return a significant portion of its available cash to unitholders, helping explain its elevated 117% payout ratio.

Adding to the bullish picture, the Zacks Consensus calls for EPS and annual sales to rise over 20% this year, with high single-digit top-and bottom-line growth in the forecast for FY27.

Trading near a 52-week high, WES is up more than 20% YTD, and positive earnings estimate revisions following its strong Q2 report have helped Western Midstream earn a Zacks Rank #1 (Strong Buy) as well.

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Bottom Line

With crude prices remaining elevated, InPlay Oil CP and Western Midstream offer investors two distinctly attractive ways to gain energy exposure in September.

InPlay provides greater direct leverage to higher oil prices, rapidly growing light-oil production, and an appealing monthly dividend yielding nearly 6%. Western Midstream offers a more stable midstream business model, record cash flow, raised guidance, and a hefty distribution yield near 8%.

Most importantly, IPOOF and WES currently sport a Zacks Rank #1 (Strong Buy), reflecting favorable earnings estimate revision trends that could support further upside as investors seek both energy exposure and attractive income.

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

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