The oil & gas industry is comprised of companies involved in the exploration, extraction, refining, and transportation of oil and gas products. The industry also includes oil & gas 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 France-based Total S.A. (TOT).
Oil & gas stocks, as represented by the Energy Select Sector SPDR ETF (XLE), have drastically underperformed the broader market over the past 12 months, posting a total return of -41.5% compared to the Russell 1000's total return of 15.2% as of September 14, 2020.
Here are the top 3 oil & gas stocks with the best value, the fastest earnings growth, and the most momentum. All figures below are as of September 15, 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 ($)||Market Cap ($M)||12-Month Trailing P/E Ratio|
|Teekay Tankers Ltd. (TNK)||13.23||445.9||1.8|
|TORM PLC (TRMD)||7.15||531.2||2.0|
|Talos Energy Inc. (TALO)||5.65||412.6||3.0|
- Teekay Tankers Ltd.: Teekay Tankers is a Canada-based oil company that provides oil transportation services through a fleet of mid-size tankers. They are employed in spot tanker market trading and through short-term or medium-term fixed-rate contracts.
- TORM PLC: TORM is a Danish petroleum transport company. The company transports clean petroleum products including jet fuel, gasoline and diesel. It owns and operates a fleet of tankers. TORM reported in August that fiscal H1 2020 represented the strongest half-year performance since 2008, including a profit before tax of $128 million.
- Talos Energy Inc.: Talos is a producer of oil and natural gas products. Focused on the U.S. Gulf Coast, Talos is involved in acquisition, exploration, and production of oil and natural gas resources. On September 9, the company released a memorandum stating that it will not be subject to the recent Presidential Order extending a moratorium on the development of oil and gas resources in the Eastern Gulf of Mexico and also imposing new restrictions in areas off the Atlantic Coast.
Fastest Growing Oil & Gas Stocks
These are the oil & gas stocks with the highest year-over-year (YOY) EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money than it can reinvest or return to shareholders.
|Fastest Growing Oil & Gas Stocks|
|Price ($)||Market Cap ($M)||EPS Growth (%)|
|TORM PLC (TRMD)||7.15||531.2||1,270|
|Canacol Energy Ltd. (CNE.TO)||CA$3.51||CA$635.3||935.9|
|Hoegh LNG Partners LP (HMLP)||11.29||375.8||571.4|
- TORM PLC: See company description above.
- Canacol Energy Ltd.: Canacol Energy is a Canadian firm involved in the exploration and production of oil and gas resources in South America. The company focuses primarily on sites in Columbia and Ecuador. In its August 13 report on fiscal H1 2020 financials, Canacol reported that its realized contracted natural gas and liquid natural gas sales increased by 46% YOY.
- Hoegh LNG Partners LP: Hoegh LNG Partners is a Norwegian energy company that offers floating liquefied natural gas (LNG) services. Its primary business includes the ownership and operation of floating storage and regasification units as well as liquid natural gas carriers and related equipment.
Oil & Gas Stocks with the Most Momentum
These are the oil & gas stocks that had the highest total return in the last 12 months.
|Oil & Gas Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Whiting Petroleum Corp. (WLL)||20.86||1.9||176.7|
|Renewable Energy Group Inc. (REGI)||43.40||1.7||173.1|
|Africa Energy Corp. (AFE.V)||CA$0.48||CA$0.4||81.1|
|Energy Select Sector SPDR ETF (XLE)||N/A||N/A||-41.5|
- Whiting Petroleum Corp.: Whiting Petroleum is an oil and gas exploration company. The firm acquires, explores, and produces a variety of petroleum products. On September 1, the company announced that it had completed its financial restructuring and had emerged from Chapter 11 protection. As part of the restructuring, Whiting reduced debt by approximately $3 billion and its new capital structure includes a new $750 million reserve based revolving credit facility maturing in April 2024. It began trading on the New York Stock Exchange under the "WLL" ticker on September 2.
- Renewable Energy Group Inc.: Renewable Energy Group caters to business clients across the U.S., and is involved in the development, distribution, sale, and logistics of biodiesel and other renewable products.
- Africa Energy Corp.: Canadian energy company Africa Energy explores for oil and gas offshore the southern coast of Africa, focused on fields near Namibia and South Africa. The company is a part of the Lundin Group, a group of natural resource companies. On August 28, Africa Energy announced it had begun the process of drilling a well, called spudding, in a second exploration well off South Africa, a key development in the company's exploration in the region.
YCharts. "YCharts." Accessed Sept. 15, 2020.
TORM PLC. "TORM plc Second Quarter and Half-Year Report 2020." Accessed Sept. 15, 2020.
Talos Energy, Inc. "Talos Energy Not Impacted By Expanded Offshore Moratorium." Accessed Sept. 15, 2020.
Canacol Energy Ltd. "Canacol Energy Ltd. Reports a 26% Increase in Realized Contractual Gas Sales, a Net Income of $17.7 million and a 9% Increase in EBITDAX in Q2 2020," Page 1. Accessed Sept. 15, 2020.
Whiting Petroleum Corp. "Whiting Petroleum Completes Reorganization." Accessed Sept. 15, 2020.
Africa Energy Corp. "Africa Energy Spuds Luiperd-1X Well Offshore South Africa." Accessed Sept. 15, 2020.