Top Oil and Gas Penny Stocks for Q2 2022

ATH.TO, TAL.V, and PQEFF are top for value, growth, and momentum, respectively

The oil and gas penny stock universe is composed of small companies involved in the exploration, extraction, refining, and transportation of oil and gas products. These stocks typically trade below $5 per share. The oil and gas industry also includes companies that provide drilling and well maintenance services. Some examples of these penny stocks include Kosmos Energy Ltd., Abraxas Petroleum Corp., and Falcon Minerals Corp.

Oil and gas penny stocks are generally represented by an exchange-traded fund—the Invesco S&P SmallCap Energy ETF (PSCE). However, the fund also includes many microcap and small-cap stocks that are not considered penny stocks. PSCE has dramatically outperformed the broader market with a total return of 55.4% over the past 12 months, significantly higher than the 12.3% total return of the Russell 1000 Index. These market performance numbers above and all statistics in the tables below are as of April 1, 2022.

Russia's invasion of Ukraine in late February has disrupted oil supplies and driven 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.

Here are the top three oil and gas penny stocks with the best value, the fastest growth, and the most momentum.

Best Value Oil and Gas Penny Stocks

These are the oil and gas penny stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

Best Value Oil and Gas Penny Stocks
  Price ($) Market Capitalization (Market Cap) ($B) 12-Month Trailing P/E Ratio
Athabasca Oil Corp. (ATH.TO) CA$2.03 CA$1.1 2.4
Crew Energy Inc. (CR.TO) CA$4.81 CA$0.7 3.8
Africa Oil Corp. (AOI.TO) CA$2.26 CA$1.1 4.6

Source: YCharts

  • Athabasca Oil Corp.: Athabasca Oil is a Canada-based energy company focused on the development of thermal and light oil assets. The company operates within the western Canadian province of Alberta.
  • Crew Energy Inc.: Crew Energy is a Canada-based natural gas exploration and production (E&P) company. Its operations are primarily focused in the northeast region of the Canadian province of British Columbia. The company announced in early March financial results for its 2021 fiscal year (FY), which ended Dec. 31, 2021. Crew Energy’s petroleum and natural gas sales rose 141.3% compared to the previous year. The company posted annual net income of CA$205.3 million ($164.4 million), a significant improvement from the CA$203.2 million net loss in FY 2020.
  • Africa Oil Corp.: Africa Oil is a Canada-based oil and gas E&P company with diversified operations in Africa. It has producing and development assets in deep-water offshore Nigeria as well as development assets in Kenya. It also has exploration assets in a number of other African countries. The company announced in late February that it will begin a regular shareholder dividend policy with an initial 2022 aggregate annual distribution of $0.05 per share. The dividend will be paid semi-annually. The first payment was scheduled to be paid on March 31, 2022, to shareholders of record on March 17, 2022.

Fastest Growing Oil and Gas Penny Stocks

These are the top oil and gas penny 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 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 figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.

Fastest Growing Oil and Gas Penny Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
PetroTal Corp. (TAL.V) CA$0.64 CA$0.5 378.3 510.8
Gear Energy Ltd. (GXE.TO) CA$1.64 CA$0.4 66.7 103.4
Crew Energy Inc. (CR.TO) CA$4.81 CA$0.7 27.3 141.5

Source: YCharts

  • PetroTal Corp.: PetroTal is a Canada-based oil and gas development and production company. It is focused on the development of oil and gas assets in Peru. The company announced in early March that it has reduced production at its Bretana oilfield due to social protests blocking the company’s loading dock. A small group from the Asociación Indígena de Desarrollo y Conservación de Bajo Puinahua (AIDECOBAP) began gathering outside the company’s Bretana oilfield on Feb. 28, 2022, blocking the loading dock. The company subsequently decided to reduce production levels to ensure field safety amid negotiations. AIDECOBAP is pushing for the government to fulfill a number of demands, including establishing an indigenous trust that would allow the group to reduce the basic needs gap in local communities.
  • Gear Energy Ltd.: Gear Energy is a Canada-based oil and natural gas E&P company. It is primarily focused on oil. The company’s oil and gas properties are located in the western Canadian provinces of Alberta, British Columbia, and Saskatchewan. 
  • Crew Energy Inc.: See above for company description.

Oil and Gas Penny Stocks with the Most Momentum

These are the oil and gas penny stocks that had the highest total return over the last 12 months.

Oil and Gas Penny Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Petroteq Energy Inc. (PQEFF) 0.36 0.2 583.0
Crew Energy Inc. (CR.TO) CA$4.81 CA$0.7 329.5
Athabasca Oil Corp. (ATH.TO) CA$2.03 CA$1.1 275.9
Russell 1000 N/A N/A 12.3
Invesco S&P SmallCap Energy ETF (PSCE) N/A N/A 55.4

Source: YCharts

  • Petroteq Energy Inc.: Petroteq Energy is a Canada-based oil production company. The company has developed proprietary technology that enables it to produce oil without water, waste tailings ponds, and emissions. On March 29, Petroteq Energy announced that former Chairman and Chief Executive Officer (CEO) Alex Blyumkin is supporting an unsolicited takeover bid from a subsidiary of Viston United Swiss AG. The bid was first made in October 2021. Blyumkin, founder of Petroteq and a significant owner of Petroteq stock, said that he has tendered his shares in response to the offer. Since the original takeover bid, Petroteq’s board of directors has recommended that shareholders accept the takeover bid offer. The offer currently remains open until 5:00 p.m. EDT on April 14, 2022.
  • Crew Energy Inc.: See above for company description.
  • Athabasca Oil Corp.: See above for company description.

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  1. YCharts. “Financial Data.”

  2. Reuters. "Biden Spurs Record Emergency Oil Release In 'Moment of Peril' For World."

  3. New York Times. "Biden will tap oil reserve, hoping to push gasoline prices down."

  4. Crew Energy Inc. "Crew Energy Inc. Announces Fourth Quarter and Full Year 2021 Results Highlighted by Substantial Production and Adjusted Funds Flow Growth."

  5. XE.com Inc. "1 CAD to USD - Convert Canadian Dollars to US Dollars."

  6. Africa Oil Corp. "AFRICA OIL ANNOUNCES RECORD FINANCIAL RESULTS, SHAREHOLDER DIVIDEND POLICY AND 2022 MANAGEMENT GUIDANCE."

  7. PetroTal Corp. "PetroTal Advises of Reduced Production Level Due to Social Unrest."

  8. Petroteq Energy Inc. "Petroteq Responds to Unsolicited Takeover Bid by Viston United Swiss AG."

  9. Petroteq Energy Inc. "Petroteq’s Board of Directors Unanimously Recommends Acceptance of Viston Offer."

  10. Petroteq Energy Inc. "Petroteq Announces That Its Founder, Former Chairman and CEO, Mr. Alex Blyumkin Supports the Takeover Bid and Has Tendered Shares To Takeover-Bid From Viston Swiss United AG."

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