The oil and gas industry comprises upstream companies that explore and produce energy, midstream pipeline companies that transport and store energy, and downstream companies that refine oil and gas into finished products. Additionally, there are companies that provide oilfield drilling equipment and services. Some also manufacture and maintain equipment used in production. Among the industry’s biggest companies are Netherlands-based Royal Dutch Shell PLC, U.K.-based BP PLC, and Exxon Mobil Corp.
Russia’s invasion of Ukraine in late February has disrupted oil supplies and driven prices oil prices sharply higher. In an attempt to bring down gasoline prices, On March 31, President Biden ordered the largest release ever from the U.S. emergency oil reserve. The U.S. will release 1 million barrels per day (B/D) of crude oil starting in May for the following six months from the Strategic Petroleum Reserve. Tapping the reserve is expected to provide only modest, short-term relief from rising oil prices and a shortfall in oil supply.
The oil and gas industry is best represented by the Energy Select Sector SPDR ETF (XLE). The XLE ETF produced a total return of 60.2% over the past year, outperforming the Russell 1000’s 12.3% total return by a wide margin. These market performance figures and all statistics in the tables below are as of April 1, 2022.
Here are the top three oil and gas stocks with the best value, the fastest growth, and the most momentum, respectively.
These are the oil and gas stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. A low P/E ratio shows you’re paying less for each dollar of profit generated. Profits can be returned to shareholders in the form of dividends and share buybacks,
|Best Value Oil and Gas Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Surge Energy Inc. (ZPTAF)||7.30||0.6||1.2|
|Frontera Energy Corp. (FEC.TO)||CA$14.35||1.4||1.8|
|Baytex Energy Corp. (BTEGF)||4.42||2.5||1.9|
- Surge Energy Inc.: Sun Energy engages in the exploration, development, and production of oil and gas properties in Western Canada, primarily in Alberta and Manitoba. The company is based in Canada. In fiscal 2021, Surge Energy closed a $130 million, five-year term debt financing to replace a portion of six-month revolving bank credit with more stable long-term debt capital. The financing will significantly reduce Surge Energy’s reliance on more volatile, short-term debt. Surge Energy Inc. also trades in Canada under the ticker (SGY.TO).
- Frontera Energy Corp.: Frontera Energy is a Canada-based company involved primarily in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America. Its asset portfolio includes interests in 34 exploration and production blocks in Colombia, Ecuador, and Guyana.
- Baytex Energy Corp.: Baytex Energy is a Canadian oil and gas exploration and production company. It’s engaged in the acquisition, development, and production of crude oil and natural gas. Its key oil resource plays are the Eagle Ford in Texas and the Western Canadian Sedimentary Basin. On April 1, Baytex announced that it had received a two-year extension of its revolving credit facilities to April 2026. Its credit was raised to $850 million as part of the extension. Baytex Energy Corp. also trades in Canada under the ticker (BTE.TO).
These are the top oil and gas stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest-Growing Oil and Gas Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Range Resources Corp. (RRC)||31.55||8.3||2,210||144.9|
|EQT Corp. (EQT)||36.03||13.6||1,940||235.7|
|Advantage Energy Limited (AAV.TO)||CA$8.95||CA$1.7||1,290||117.6|
- Range Resources Corp.: Range Resources is engaged in the exploration, development, and acquisition of natural gas and natural gas liquids. Its operations are mainly focused in the Southwest, Appalachian Basin, and Gulf Coast regions. On Feb. 22, the company announced that it will reinstate its regular cash dividend at an anticipated rate of $0.32 per share or $0.08 per quarter. The payments will begin in the second half of 2022.
- EQT Corp.: ETQ is an independent natural gas production company with operations in the Marcellus and Utica shales of the Appalachian basin. It’s one of the nation’s largest gas producers based on average daily sales volume. Net sales volume topped 1,858 billion cubic feet equivalent, primarily attributed to the volume increases from acquired assets.
- Advantage Energy Ltd.: Advantage Energy is a Canada-based company engaged in the development and production of natural gas and liquids. On Feb. 24, Advantage Energy Ltd. announced results for Q4 and full-year 2021 ended Dec. 31, 2021. Net income rose more than 14-fold in Q4 compared to a year earlier, and the company posted net income for the full year compared to a loss in 2021. The results were driven in part by record annual production of barrels of oil equivalent per day, up 10% from the prior year.
These are the oil and gas stocks that had the highest total return over the past 12 months. Companies with total returns over 2,500% were excluded as outliers.
|Oil and Gas Stocks With the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Vertex Energy Inc. (VTNR)||9.91||0.6||539.4|
|Obsidian Energy Ltd. (OBE)||8.87||0.7||477.5|
|BP Prudhoe Bay Royalty Trust (BPT)||16.05||0.3||376.6|
|Russell 1000 Index||N/A||N/A||12.3|
|Energy Select Sector SPDR ETF (XLE)||N/A||N/A||60.2|
- Vertex Energy Inc.: Vertex Energy is focused on the production and distribution of conventional and alternative fuels. It’s mainly a refiner involved in recycling used oil, motor oils, and other petroleum by-products. On April 1, Vertex completed the acquisition of a 91,000 barrel-per-day Mobile, Alabama refinery and related logistics assets from U.S. subsidiaries of Royal Dutch Shell Plc. Vertex also acquired approximately $165 million worth of hydrocarbon inventory from the transaction.
- Obsidian Energy Ltd.: Obsidian Energy is a Canadian exploration and production company. It engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin. (OBE.TO).
- BP Prudhoe Bay Royalty Trust: BPT holds royalty interests in oil and natural gas properties in the U.S. It receives a per barrel royalty on the production of oil from British Petroleum’s working interests in the Prudhoe Bay Field on the North Slope of Alaska.
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