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 SE (TOT).
Oil & gas stocks, as represented by the Energy Select Sector SPDR ETF (XLE), have drastically underperformed the broader market over the past year. XLE has posted a total return of -27.3%, well below the Russell 1000's total return of 21.8%, as of December 7, 2020. All statistics in the tables below are as of December 8.
Here are the top 3 oil and gas stocks with the best value, the fastest growth, and the most momentum.
Best Value Oil and Gas Stocks
These are the oil and 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 and Gas Stocks|
|Price ($)||Market Cap ($M)||12-Month Trailing P/E Ratio|
|Teekay Tankers Ltd. (TNK)||12.06||406.4||1.8|
|TORM PLC (TRMD)||7.15||531.7||1.9|
|Euronav NV (EURN)||8.15||1,662||2.5|
- Teekay Tankers Ltd.: Teekay Tankers is a Canada-based provider of oil transportation services through its fleet of mid-size tankers. The company typically employs its vessels through a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading. Teekay Tankers reported a net loss of $44.4 million as revenue fell 9.2% in Q3 2020, which ended September 30, 2020. The company said that global oil demand remained below pre-pandemic levels, and that refined product inventories were well above long-term averages.
- TORM PLC: TORM is a Denmark-based petroleum transport company. The company transports clean petroleum products including jet fuel, gasoline, and diesel. It owns and operates a fleet of tankers.
- Euronav NV: Euronav is a Belgium-based provider of crude oil transportation and storage. The company also offers crew, ship, and fleet management services.
Fastest Growing Oil and Gas Stocks
These are the oil and gas stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Oil and Gas Stocks|
|Price ($)||Market Cap ($M)||EPS Growth (%)|
|Flex LNG Ltd. (FLNG)||7.88||425.9||600.0|
|Transportadora de Gas del Sur SA (TGS)||5.85||884.1||391.8|
|Valvoline Inc. (VVV)||23.02||4,265||371.4|
- Flex LNG Ltd.: Flex LNG is a Bermuda-based owner and operator of liquefied natural gas (LNG) carriers. Its fleet is used to transport LNG. The company posted net income growth of 716.7% on revenue growth of 11.2% in Q3 2020, which ended September 30, 2020. Lower administrative expenses as well as gains on derivatives and foreign exchange compared to the year-ago quarter helped to boost net income.
- Transportadora de Gas del Sur SA: Transportadora de Gas del Sur is an Argentina-based natural gas producer that transports and processes natural gas. The company's system of pipelines connects major gas fields in Southern and Western Argentina with gas distributors in those areas and in the greater Buenos Aires area.
- Valvoline Inc.: Valvoline is a manufacturer and distributor of automotive lubricants and chemicals. The company produces motor oil, antifreeze, brake fluid, grease products, and more. Valvoline recently announced plans to acquire 27 oil change service centers across seven states from Car Wash Partners Inc. Financial terms were not disclosed and the deal is expected to close at the end of 2020.
Oil and Gas Stocks with the Most Momentum
These are the oil and gas stocks that had the highest total return over the last 12 months.
|Oil and Gas Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Touchstone Exploration Inc. (TXP.TO)||CA$2.15||CA$448.7||760.0|
|Whiting Petroleum Corp. (WLL)||24.92||948.2||380.2|
|Headwater Exploration Inc. (HWX.TO)||CA$2.07||CA$403.7||213.6|
|Energy Select Sector SPDR ETF (XLE)||N/A||N/A||-27.3|
- Touchstone Exploration Inc.: Touchstone Exploration is a Canada-based upstream oil and gas company. It explores and develops oil and natural gas deposits.
- Whiting Petroleum Corp.: Whiting Petroleum is an oil and gas exploration company. The firm acquires, explores, and produces a variety of petroleum products. In mid-September, the company announced that it had undergone significant restructuring. Whiting Petroleum said that it had reduced its total workforce by 16%, 90% of which were corporate positions. The company estimates that this should generate approximately $20 million in annual cost savings. It also made some changes to compensation practices, such as salary reductions.
- Headwater Exploration Inc.: Headwater Exploration is a Canada-based energy producer that explores and develops oil and natural gas assets.
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YCharts. "Financial Data." Accessed Dec. 8, 2020.
Teekay Tankers Ltd. "TEEKAY TANKERS LTD. REPORTS THIRD QUARTER 2020 RESULTS." Accessed Dec. 8, 2020.
Flex LNG Ltd. "Interim Financial Information Flex LNG Ltd. Third Quarter 2020," Page 13. Accessed Dec. 8, 2020.
Valvoline Inc. "Valvoline to Expand U.S. Quick-Lube Network with Acquisition of 27 Service Centers." Accessed Dec. 8, 2020.
Whiting Petroleum Corp. "Changes Expected to Generate Approximately $20 Million in Annual Cost Savings." Accessed Dec. 8, 2020.