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).
Currently, a price war between Saudi Arabia and Russia has caused the price of oil to plummet, a move exacerbated by the COVID-19 crisis. Because of this the entire sector is severely depressed, so be careful when investing in this volatile market. Oil & gas stocks, as represented by the Vanguard Energy ETF (VDE), have drastically underperformed the broader market over the past 12 months, posting a negative total return of 53.7% compared to the S&P 500's negative return of 6.2% as of March 13, 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 March 13, 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||Currency Code|
|Ovintiv Inv. (OVV.TO)||3.55||0.9||0.4||CAD|
|Southwestern Energy Co. (SWN)||1.48||0.8||0.9||USD|
|Murphy Oil Corp. (MUR)||6.42||1.0||0.9||USD|
- Ovintiv Inc.: Canada-based Ovintiv is an energy company focusing on oil, natural gas, and related products. In response to tumult in the global oil market, Ovintiv announced on March 12 that it would reduce Q2 capital investments by $300 million.
- Southwestern Energy Co.: Southwestern Energy engages in natural gas and oil exploration, development and production.
- Murphy Oil Corp.: Murphy Oil is a global gas and oil exploration and production company with operations primarily in the U.S. and U.K. The company recently reduced by 35% to approximately $950 million its plans for 2020 capital spending.
Fastest Growing Oil & Gas Stocks
These are the oil & gas stocks with the highest year-over-year (YOY) EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money than it can reinvest or return to shareholders.
|Fastest Growing Oil & Gas Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Teekay LNG Partners LP (TGP)||9.11||0.7||40,340|
|Euronav NV (EURN)||9.55||2.1||2,370|
|Cheniere Energy Inc. (LNG)||35.36||9.0||1,180|
- Teekay LNG Partners LP: Teekay LNG Partners owns and operates a fleet of liquified natural gas (LNG) carriers used for marine transport of oil and gas products. For FY 2019, Teekay LNG Partners reported YOY gains of 136% for net income per common unit.
- Euronav NV: Euronav is a shipping company that operates tankers for transporting crude oil. The company is based in Belgium.
- Cheniere Energy Inc.: Cheniere operates LNG terminals and pipelines in Louisiana and Texas. In FY 2019, Cheniere reported revenue of $9.7 billion, up roughly 22% YOY.
Oil & Gas Stocks with the Most Momentum
These are the oil & gas stocks that had the highest total return in the last 12 months.
|Oil & Gas Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Teekay Tankers Ltd. (TNK)||16.52||0.6||104.5|
|DHT Holdings Inc. (DHT)||6.51||1.0||58.0|
|Frontline Ltd. (FRO)||8.97||1.8||46.0|
|Vanguard Energy ETF (VDE)||N/A||N/A||-53.7|
- Teekay Tankers Ltd.: Teekay Tankers is a Canada-based oil company that provides oil transportation services through a fleet of mid-size tankers.
- DHT Holdings Inc.: Crude oil tanker company DHL Holdings provides transportation services to a variety of other companies across the oil and gas industry. In Q4 2019, DHT reported $191.8 million in shipping revenue, up 83.2% YOY.
- Frontline Ltd.: Frontline operates a fleet of large crude tankers that transport crude oil and related products. In the most recent quarter, Frontline reported net income of $108.8 million, its highest quarterly net income in more than 11 years.
Wall Street Journal. "Inside Saudi Arabia’s Decision to Launch an Oil-Price War," Accessed March 20, 2020.
YCharts. "Financial Data," Accessed Mar. 15, 2020.
Ovintiv, Inv. "Ovintiv Takes Immediate and Significant Action; Reduces Second Quarter 2020 Capital Investments by $300 Million; Full-Year Cash Costs to Drop by $100 Million," Accessed March 15, 2020.
Murphy Oil Corp. "Murphy Oil Corporation Announces 35 Percent Capital Expenditure Reduction For 2020," Accessed March 15, 2020.
Teekay LNG Partners LP. "Teekay LNG Partners Reports Fourth Quarter 2019 and Annual 2019 Results," Accessed March 15, 2020.
Cheniere Energy, Inc. "Cheniere Reports Record Fourth Quarter and Full Year 2019 Results and Reconfirms Full Year 2020 Guidance," Accessed March 15, 2020.
DHT Holdings, Inc. "DHT Holdings, Inc. Fourth Quarter 2019 Results," Accessed March 15, 2020.
Frontline Ltd. "FRO – Fourth Quarter and Full Year 2019 Results," Accessed March 15, 2020.