Top Oil and Gas Stocks for Q2 2022

ZPTAF, RRC, and VTNR are the top value, growth, and momentum plays, respectively

The oil and gas industry comprises upstream companies that explore and produce the energy sources, midstream pipeline companies that transport and store oil and gas, and downstream companies that refine the energy sources into finished products. Additionally, there are companies that provide oil field drilling equipment and services. Some also manufacture and maintain equipment used in production. Among the industry’s biggest companies are Netherlands-based Royal Dutch Shell PLC, U.K.-based BP PLC, and Exxon Mobil Corp.

Russia’s invasion of Ukraine in late February 2022 has disrupted oil supplies and driven prices sharply higher. In an attempt to bring down gasoline prices, on March 31, 2022, President Biden ordered the largest release ever from the U.S. emergency oil reserve. The United States will release 1 million barrels per day of crude oil starting in May 2022 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.

The oil and gas industry is best represented by the Energy Select Sector SPDR ETF (XLE). The exchange-traded fund produced a total return of 60.2% over the past year, outperforming the Russell 1000’s 12.3% total return by a wide margin. These market performance figures and all statistics in the tables below are as of April 1, 2022.

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

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. A low P/E ratio shows that you’re paying less for each dollar of profit generated. Profits can be returned to shareholders in the form of dividends and share buybacks.

Best Value Oil and Gas Stocks
  Price ($) Market Capitalization (Market Cap) ($B) 12-Month Trailing P/E Ratio
Surge Energy Inc. (ZPTAF) 7.30 0.6 1.2
Frontera Energy Corp. (FEC.TO) CA$14.35 1.4 1.8
Baytex Energy Corp. (BTEGF) 4.42 2.5 1.9

Source: YCharts

  • Surge Energy Inc.: Sun Energy engages in the exploration, development, and production of oil and gas properties in Western Canada, primarily in Alberta and Manitoba. The company is based in Canada. In fiscal 2021, Surge Energy closed a $130 million, five-year term debt financing to replace a portion of six-month revolving bank credit with more stable long-term debt capital. The financing will significantly reduce Surge Energy’s reliance on more volatile, short-term debt. Surge Energy also trades in Canada under the ticker SGY.TO.
  • Frontera Energy Corp.: Frontera Energy is a Canada-based company involved primarily in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America. Its asset portfolio includes interests in 34 exploration and production blocks in Colombia, Ecuador, and Guyana.
  • Baytex Energy Corp.: Baytex Energy is a Canadian oil and gas exploration and production company. It’s engaged in the acquisition, development, and production of crude oil and natural gas. Its key oil resource plays are the Eagle Ford in Texas and the Western Canadian Sedimentary Basin. On April 1, 2022, Baytex announced that it had received a two-year extension of its revolving credit facilities to April 2026. Its credit was raised to $850 million as part of the extension. Baytex Energy also trades in Canada under the ticker BTE.TO.

Fastest-Growing Oil and Gas Stocks

These are the top oil and gas 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 their 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 Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Range Resources Corp. (RRC) 31.55 8.3 2,210 144.9
EQT Corp. (EQT) 36.03 13.6 1,940 235.7
Advantage Energy Ltd. (AAV.TO) CA$8.95 CA$1.7 1,290 117.6

Source: YCharts

  • Range Resources Corp.: Range Resources is engaged in the exploration, development, and acquisition of natural gas and natural gas liquids. Its operations are mainly focused in the Southwest, Appalachian Basin, and Gulf Coast regions. On Feb. 22, 2022, the company announced that it will reinstate its regular cash dividend at an anticipated rate of $0.32 per share or $0.08 per quarter. The payments will begin in the second half of 2022.
  • EQT Corp.: EQT is an independent natural gas production company with operations in the Marcellus and Utica shales of the Appalachian basin. It’s one of the nation’s largest gas producers based on average daily sales volume. Its 2021 net sales volume topped 1,858 billion cubic feet equivalent, primarily attributed to the volume increases from acquired assets.
  • Advantage Energy Ltd.: Advantage Energy is a Canada-based company engaged in the development and production of natural gas and liquids. On Feb. 24, 2022, Advantage Energy announced results for the 2021 fourth quarter (Q4) and full year, both ended Dec. 31, 2021. Net income rose more than 14-fold in Q4 compared to a year earlier, and the company posted net income for the full year compared to a loss in 2021. The results were driven in part by record annual production of barrels of oil equivalent per day, up 10% from the prior year.

Oil and Gas Stocks with the Most Momentum

These are the oil and gas stocks that had the highest total return over the past 12 months. Companies with total returns over 2,500% were excluded as outliers.

Oil and Gas Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Vertex Energy Inc. (VTNR) 9.91 0.6 539.4
Obsidian Energy Ltd. (OBE) 8.87 0.7 477.5
BP Prudhoe Bay Royalty Trust (BPT) 16.05 0.3 376.6
Russell 1000 Index N/A N/A 12.3
Energy Select Sector SPDR ETF (XLE) N/A N/A 60.2

Source: YCharts

  • Vertex Energy Inc.: Vertex Energy is focused on the production and distribution of conventional and alternative fuels. It’s mainly a refiner involved in recycling used oil, motor oils, and other petroleum by-products. On April 1, 2022, Vertex completed the acquisition of a 91,000 barrels-per-day refinery in Mobile, Ala., and related logistics assets from U.S. subsidiaries of Royal Dutch Shell Plc. Vertex also acquired approximately $165 million worth of hydrocarbon inventory from the transaction.
  • Obsidian Energy Ltd.: Obsidian Energy is a Canadian exploration and production company. It engages in exploring and developing, and it holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin. Obsidian Energy also trades in Canada under the ticker OBE.TO.
  • BP Prudhoe Bay Royalty Trust: BP Prudhoe Bay Royalty Trust holds royalty interests in oil and natural gas properties in the U.S. It receives a per-barrel royalty on the production of oil from British Petroleum’s working interests in the Prudhoe Bay Field on the North Slope of Alaska.

The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any investment strategy. Though we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

Article Sources

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  1. Reuters. “Biden Spurs Record Emergency Oil Release in ‘Moment of Peril’ for World.”

  2. The New York Times. “Biden Will Tap Oil Reserve, Hoping to Push Gasoline Prices Down.

  3. YCharts. “Financial Data.”

  4. Surge Energy, News Releases. “Surge Energy Inc. Announces 2021 Fourth Quarter and Year-End Financial and Operating Results, and 2021 Year-End Reserves.”

  5. Frontera Energy. “About Frontera Energy.”

  6. Baytex Energy. “Baytex Announces Extension and Amendments to Bank Credit Facilities.”

  7. Range Resources, Investors. “Range Announces Fourth Quarter 2021 Results, 2022 Guidance, Reinstatement of Dividend and Authorization of $500 Million Share Repurchase Program.”

  8. EQT, via U.S. Securities and Exchange Commission. “Form 10-K for the Fiscal Year Ended December 31, 2021,” Pages 8–9 and 50.

  9. Advantage Energy. “Advantage Announces Record 2021 Year-End Results, Reserves, Operational Update.”

  10. Vertex Energy. “Vertex Energy Completes Acquisition of Mobile Refinery.”

  11. Obsidian Energy. “Obsidian Energy Announces Fourth Quarter and Full Year 2021 Results.”

  12. BP Prudhoe Bay Royalty Trust. “Home Page.”

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