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 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 Vanguard Energy ETF (VDE), have drastically underperformed the broader market over the past 12 months, posting a total return of -22.8% compared to the S&P 500's total return of 14.0% as of June 9, 2020. 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 June 9, 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|
|Denbury Resources Inc. (DNR)||0.75||0.4||1.2|
|Northern Oil & Gas Inc. (NOG)||1.26||0.5||1.5|
|QEP Resources Inc. (QEP)||2.50||0.6||1.5|
- Denbury Resources Inc.: Petroleum company Denbury Resources develops, operates, and explores oil and gas properties. The company caters to customers in the Gulf Coast region. In Q1 FY 2020, Denbury reported net income of $74 million, a turnaround from quarterly losses of $26 million in Q1 FY 2019.
- Northern Oil & Gas Inc.: Northern Oil & Gas is a company involved in the exploration and production of petroleum products, concentrated in the Rocky Mountain region.
- QEP Resources Inc.: QEP Resources explores and develops oil and natural gas. In response to the deterioration of market conditions in the midst of the COVID-19 pandemic, QEP announced in April plans to dramatically reduce its operations in the Permian and Williston Basins for most or all of 2020.
Fastest Growing Oil & Gas Stocks
These are the oil & gas stocks with the highest year-over-year (YOY) EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money than it can reinvest or return to shareholders.
|Fastest Growing Oil & Gas Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|CrossAmerica Partners LP (CAPL)||16.22||0.6||87,120|
|Range Resources Corp. (RRC)||8.03||2.1||5,700|
|Black Stone Minerals LP (BSM)||8.00||1.7||1,600|
- CrossAmerica Partners LP: CrossAmerica is a wholesaler of motor fuels. Besides selling gasoline and diesel fuel, the company leases real estate to retailers of motor fuels as well. In Q1 FY 2020, CrossAmerica reported operating income of $77.4 million, up significantly from $7.6 million in the same period one year prior.
- Range Resources Corp: Range Resources explores, develops, and acquires gas and oil properties, with operations primarily in the Gulf Coast as well as Appalachia and the Southwestern portion of the U.S.
- Black Stone Minerals LP: Oil, natural gas, and mineral company Black Stone owns mineral and royalty assets in Texas. In early June, the company announced plans to sell some of its properties in the Permian Basin for gross proceeds of approximately $155 million. The money will be used to strengthen Black Stone's balance sheet.
Oil & Gas Stocks with the Most Momentum
These are the oil & gas stocks that had the highest total return in the last 12 months.
|Oil & Gas Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Renewable Energy Group Inc. (REGI)||32.41||1.3||125.9|
|Teekay Tankers Ltd. (TNK)||18.10||0.6||107.6|
|Contango Oil & Gas Co. (MCF)||3.74||0.5||89.9|
|Vanguard Energy ETF (VDE)||N/A||N/A||-22.8|
- 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. In Q1 FY 2020, the company sold 139.8 million gallons of fuel, down from 162.5 million in Q1 FY 2019.
- Teekay Tankers Ltd.: Teekay Tankers is a Canada-based oil company that provides oil transportation services through a fleet of mid-size tankers. It was formed by the Teekay Corporation in 2007.
- Contango Oil & Gas Co.: With a focus on crude oil and natural gas, Contango explores, develops, produces, and also acquires properties. In 2019, Contango saw total revenue of $76.5 million, down slightly from $77.1 million in 2018.
YCharts. "Financial Data," Accessed June 9, 2020.
Denbury Resources, Inc. "Denbury Resources Reports First Quarter 2020 Results," Accessed June 9, 2020.
QEP Resources, Inc. "QEP Resources Reports First Quarter 2020 Financial and Operating Results and Provides Update to 2020 Plan in Response to Current Market Conditions," Accessed June 9, 2020.
CrossAmerica Partners LP. "CrossAmerica Partners LP Reports First Quarter 2020 Results," Accessed June 9, 2020.
Black Stone Minerals LP. "Black Stone Minerals, L.P. Announces Asset Sales Totaling $155 million, Further Strengthening Balance Sheet and Liquidity Position," Accessed June 9, 2020.
Renewable Energy Group, Inc. "Renewable Energy Group Reports First Quarter 2020 Financial Results," Accessed June 9, 2020.
Contango Oil & Gas Co. "Contango Announces Fourth Quarter and Full Year 2019 Financial Results," Accessed June 9, 2020.