The oil and gas penny stock universe is comprised of small companies involved in the exploration, extraction, refining, and transportation of oil and gas products. These stocks typically trade below $5 per share. The oil and gas industry also includes companies that provide drilling and well-maintenance services. Some examples of these penny stocks include Callon Petroleum Co. (CPE), Nabors Industries Ltd. (NBR), and Range Resources Corp. (RRC). Oil and gas penny stocks, as represented by the Invesco S&P SmallCap Energy ETF (PSCE), have dramatically underperformed the broader market, falling 30.1% compared to the S&P 500's gain of 27.3% over the past 12 months.
Here are the top 3 oil and gas penny stocks with the best value, the fastest earnings growth, and the most momentum. All figures in this story are as of January 13, 2020.
Best Value Oil and Gas Penny Stocks
These are the oil and gas penny stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Best Value Oil and Gas Penny Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Gulfport Energy Corp. (GPOR)||2.15||0.3||1.0|
|Southwestern Energy Co. (SWN)||2.05||1.1||1.1|
|Chesapeake Energy Corp. (CHK)||0.68||1.1||1.9|
- Gulfport Energy Corp.: Gulfport Energy is an oil and natural gas exploration and production company. Its principal producing properties are located along the Louisiana Gulf Coast. Gulfport Energy announced last month that it recently entered into definitive agreements to sell certain non-core assets, including interests in the Utica Shale. The divestitures are expected to be worth in excess of $100 million.
- Southwestern Energy Co.: Southwestern Energy is an energy company that engages in natural gas and oil exploration, development and production.
- Chesapeake Energy Corp.: Chesapeake Energy is an independent exploration and production company that engages in the acquisition, exploration, and development of oil and natural gas properties.
Fastest Growing Oil and Gas Penny Stocks
These are the oil and gas penny stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Oil and Gas Penny Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|QEP Resources Inc. (QEP)||3.95||0.9||1,033.3|
|PetroTal Corp. (TAL.V)||0.40||0.3||370.2|
|Northern Oil & Gas Inc. (NOG)||2.00||0.8||300.0|
- QEP Resources Inc.: QEP Resources is an independent crude oil and natural gas exploration and production company.
- PetroTal Corp.: PetroTal, formerly Sterling Resources Ltd., is a Canada-based oil and gas company focused on the exploration, appraisal, development, and production of oil and gas assets. It should be noted to investors that the company's sharp EPS increase in Q3 2019 was off of a very small base and stemmed from multiple factors. The company reported EPS of $0.00 for both Q3 2019 and Q3 2018, which would imply zero EPS growth. However, those reported figures are the result of rounding the numbers, which obscured the fact that YOY EPS growth actually was 370.2%. That huge percent gain is based on the net income figures for each quarter divided by the weighted average number of shares outstanding and rounded to five decimal places.
- Northern Oil & Gas Inc.: Northern Oil & Gas is an oil and gas exploration and production company engaged in the acquisition, exploration, development, and production of crude oil and natural gas properties. The company announced mid-December that Chief Executive Officer (CEO) Brandon Elliott would be stepping down effective January 1, 2020. On that date, then President and Chief Financial Officer (CFO) Nicholas O'Grady took over from Elliot as the new CEO.
Oil and Gas Penny Stocks with the Most Momentum
These are the oil and gas penny stocks that had the highest price change the last 12 months.
|Oil and Gas Penny Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Price Change (%)|
|Jadestone Energy Inc. (JSE.V)||1.10||0.5||116.7|
|PetroTal Corp. (TAL.V)||0.41||0.3||85.7|
|Tsakos Energy Navigation Ltd. (TNP)||4.25||0.4||38.0|
|Invesco S&P SmallCap Energy ETF (PSCE)||N/A||N/A||-30.1|
- Jadestone Energy Inc.: Jadestone Energy, formerly Mitra Energy Inc., is a Singapore-based oil and gas company that engages in exploration, appraisal, and development of oil and gas properties. The company announced last Thursday that it will be awarded monetary damages, plus a portion of legal costs and expenses, stemming from an arbitration action between its wholly owned subsidiary, Mitra Energy Ltd. and the French oil giant Total.
- PetroTal Corp.: See above for company description.
- Tsakos Energy Navigation Ltd.: Tsakos Energy Navigation is a Greece-based provider of seaborne crude oil and petroleum product transportation services. The company operates crude tankers, product tankers, and liquefied natural gas carriers.
Yahoo! Finance. "Invesco S&P SmallCap Energy ETF (PSCE)," Accessed Jan. 13, 2020.
Yahoo! Finance. "S&P 500 (^GSPC) Price Chart," Accessed Jan. 13, 2020.
Gulfport Energy Corp. "Gulfport Energy Corporation Announces Divestiture of Non-Core Assets for a Total Value in Excess of $100 Million and Provides an Update on Accretive Debt Repurchases," Accessed Jan. 13, 2020.
PetroTal Corp. "CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS for the three and nine months ended September 30, 2019 and 2018," Page 5. Accessed Jan. 13, 2020.
Northern Oil & Gas Inc. "Northern Oil and Gas, Inc. Announces Management Transition and Promotions," Accessed Jan. 13, 2020.
Jadestone Energy Inc. "Jadestone Energy Announces Award of Damages in Respect of Philippines Arbitration," Accessed Jan. 13, 2020.