Why do oil companies’ stock prices increase when the price of crude increases?

Oil extraction is very capitally intensive, and it requires a lot of energy in the form of electricity and powering factories. It also requires to transport the oil to different locations. When the price of oil and gas go up, then the price to extract oil is more.

Also, because the input costs are more, the output costs would also go up. Oil and gas are probably an inelastic commodity (i.e. the consumers and businesses will still need oil and gas no matter what the price levels are), so the oil and gas companies can pass these costs off to the consumers. However, the purchasers of oil and gas will be more thrifty to save money, since the costs are up.

So basically before, the oil and gas companies produced 100x for $100, let's say, but now, they produce slightly less oil and gas – let's say 90x, but the cost now is $120. Even though the revenues are $10,000 for the pre-price shock scenario, the post-price shock scenario is now $10,800, the profit margins will be different and so will the net profits. I'm willing to bet that the latter case scenario has lower total profits and lower net profit margins. But for some reason, the share prices go UP. Why is this?