The oil & gas industry is comprised of companies involved in exploration, extraction, refining, and transportation of oil and gas products. The industry also includes companies that provide drilling and well-maintenance services. Some of the biggest names include Netherlands-based Royal Dutch Shell Plc. (RDS.A), Exxon Mobil Corp. (XOM), and French-based Total S.A. (TOT). Oil & gas stocks, as represented by the Vanguard Energy ETF (VDE), have dramatically underperformed the broader market, falling 3.5% compared to the S&P 500's gain of 26.4% over the past 12 months.
Here are the top 3 oil & gas stocks with the best value, the fastest earnings growth, and the most momentum. All figures in this story are as of January 12, 2020.
Best Value Oil & Gas Stocks
These are the oil & gas 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 & Gas Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Gulfport Energy Corp. (GPOR)||2.33||0.4||1.0|
|Southwestern Energy Co. (SWN)||2.12||1.1||1.1|
|California Resources Corp. (CRC)||8.38||0.4||1.1|
- 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 $100 million.
- Southwestern Energy Co.: Southwestern Energy is an energy company that engages in natural gas and oil exploration, development and production.
- California Resources Corp.: California Resources is an independent oil and natural gas exploration and production company. It also markets crude oil, natural gas, and natural gas liquids. California Resources posted earnings per share (EPS) growth for Q3 2019 of 43.2% compared to the same quarter of 2018. However, revenue declined by 17.8%.
Fastest Growing Oil & Gas Stocks
These are the oil & gas stocks with the highest year-over-year (YOY) EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money than it can reinvest or return to shareholders.
|Fastest Growing Oil & Gas Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Earthstone Energy Inc. (ESTE)||6.05||0.2||4,000|
|Helmerich & Payne Inc. (HP)||46.52||5.0||1,750|
|Gibson Energy Inc. (GEI.TO)||20.55||3.0||1,500|
- Earthstone Energy Inc.: Earthstone Energy is an independent energy company engaged in the development and operation of oil and gas properties. The company's primary assets are located in the Midland Basin of West Texas and the Eagle Ford Trend of south Texas.
- Helmerich & Payne Inc.: Helmerich & Payne provides contract drilling for oil and gas companies. It operates both land rigs and platform rigs.
- Gibson Energy Inc.: Gibson Energy is a Canada-based integrated service provider to the oil and gas industry with operations throughout North America. The company operates facilities, including injection stations, terminals, pipelines, tank storage and a fleet of truck transportation units. Gibson Energy announced early last month an agreement with U.S. Development Group LLC to jointly construct and operate a diluent recovery unit (DRU) in Alberta, Canada.
Oil & Gas Stocks with the Most Momentum
These are the oil & gas stocks that had the highest price change in the last 12 months.
|Oil & Gas Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Price Change (%)|
|Teekay Tankers Ltd. (TNK)||23.66||0.8||187.1|
|Dorian LPG Ltd. (LPG)||15.32||0.8||140.4|
|Jadestone Energy Inc. (JSE.V)||1.13||0.5||122.7|
|Vanguard Energy ETF (VDE)||N/A||N/A||-3.5|
- Teekay Tankers Ltd.: Teekay Tankers is a Canada-based oil company that provides oil transportation services through a fleet of mid-size tankers.
- Dorian LPG Ltd.: Dorian LPG is a holding company that, through its subsidiaries, engages in the transportation of liquefied petroleum gas.
- 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.
Yahoo! Finance. "Vanguard Energy Index Fund ETF Shares (VDE) Price Chart," Accessed Jan. 12, 2020.
Yahoo! Finance. "S&P 500 (^GSPC) Price Chart," Accessed Jan. 12, 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.
California Resources Corp. "Form 10-Q for the quarterly period ended September 30, 2019," Page 3. Accessed Jan. 13, 2020.
Gibson Energy Inc. "Gibson Energy and USD Announce Joint Venture to Construct DRU at Hardisty Utilizing Innovative DRUbit™ Technology and Agreement with ConocoPhillips for 50,000 bbl/d of Capacity," Accessed Jan. 13, 2020.
Jadestone Energy Inc. "Jadestone Energy Announces Award of Damages in Respect of Philippines Arbitration," Accessed Jan. 13, 2020.