The oil and gas industry comprises upstream companies that explore and produce energy, midstream pipeline companies that transport and store energy, and downstream companies that refine oil and gas for finished products. In addition, there are companies that provide oilfield drilling equipment and services. Some also manufacture and maintain equipment used in production. The largest companies in the industry are Royal Dutch Shell PLC (RDS.A), based in the Netherlands, BP PLC (BP), based in the United Kingdom, and Exxon Mobil Corp. (XOM).
Oil demand and prices collapsed in the spring of 2020 when COVID-19 prompted governments to shut down trade and demand that millions of people stay home. However, crude oil prices have rebounded after governments gradually allowed businesses to reopen and new vaccines opened the door to an economic recovery.
The oil and gas industry is best represented by the Energy Select Sector SPDR ETF (XLE). While the energy sector is made up of non-oil and gas companies, its dominant components come from the oil and gas industry. Therefore, the performance of the energy sector is a good benchmark for the oil and gas sector as a whole. The XLE ETF posted a 54.2% total return over the past year, outperforming the 37.1% total return of the Russell 1000. These market performance figures and all statistics in the tables below are as of September 10, 2021.
Here are the top 3 oil and gas stocks with the best value, the fastest growth, and the most momentum.
These are the oil and gas stocks with the lowest price-to-earnings (P / E) in the last 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P / E ratio shows that you are paying less for every dollar of profit generated.
|Best value oil and gas stocks|
|Price ($)||Market Cap ($ B)||Final 12-month P / E ratio|
|California Resource Corporation (CRC)||39.33||3.2||0.9|
|Baytex Energy Corp. (BTE.TO)||CA $ 2.36||CA $ 1.3||1.1|
|Surgutneftegas PJSC (SGTPY)||5.20||18.6||1.2|
- California Resources Corp .: California Resources is an independent oil and natural gas exploration and production (E&P) company with operations located in California.
- Baytex Energy Corp .: Baytex Energy is a Canadian-based oil and gas company. It focuses on the acquisition, development and production of crude oil and natural gas in both Canada and the US.
- Surgutneftegas PJSC: Surgutneftegas is a Russia-based oil and gas company engaged in exploration, drilling and production, oil refining and gas processing. Its exploration and production operations are located in three of Russia’s oil and gas provinces.
Here are the top oil and gas stocks ranked by a growth model that rates companies based on a 50/50 weighting of their most recent quarterly year-on-year percentage revenue growth and their year-over-year earnings per share (EPS) growth. most recent quarterly. Both sales and profits are critical factors for the success of a business. Therefore, ranking companies by a single growth metric makes a ranking susceptible to accounting anomalies from that quarter (such as changes in tax law or restructuring costs) that can make one or the other figure unrepresentative. of the business in general. Companies with quarterly EPS or revenue growth greater than 2,500% were excluded as outliers.
|Fastest growing oil and gas stocks|
|Price ($)||Market Cap ($ B)||EPS growth (%)||Revenue growth (%)|
|Northern Oil & Gas Inc. (NOG)||17.27||1.1||N / A (see company description)||992.2|
|Spartan Delta Corp. (SDE.TO)||CA $ 4.45||CA $ 0.7||-85.2||716.5|
|Continental Resources Inc. (CLR)||38.59||14.2||N / A (see company description)||603.1|
- Northern Oil & Gas Inc .: Northern Oil & Gas is an independent energy company engaged in the acquisition, exploration, development and production of oil and natural gas properties. Its operations are located in different regions of the United States. The company announced in early August that it was increasing its quarterly common stock dividend by 50% compared to the previous quarter. The dividend will be paid on October 29, 2021 to shareholders of record at the close of business on September 30, 2021. Northern Oil & Gas reported negative EPS in the most recent quarter, so an EPS growth rate could not be calculated for the table above.
- Spartan Delta Corp .: Spartan Delta is a Canadian-based oil and gas company engaged in the exploration, development and production of oil and natural gas properties in Western Canada. The company announced in late August that it had completed its previously announced acquisition of Velvet Energy Ltd., a privately owned light oil producer, for CA $ 751.5 million ($ 593.7 million).
- Continental Resources Inc .: Continental Resources is a crude oil and natural gas company. It focuses on the exploration and production of oil and natural gas properties in various regions of the U.S. The company announced in late July that it would pay a $ 0.15 quarterly dividend on August 20, 2021, representing an increase 36.4% of the dividend paid in the second quarter of 2021. Continental Resources reported negative EPS in the prior year quarter compared to positive EPS in the most recent quarter, so an EPS growth rate could not be calculated for the table above.
These are the oil and gas stocks that had the highest total returns over the past 12 months. Companies with total returns greater than 2,500% were excluded as outliers.
|Oil and gas stocks with greater momentum|
|Price ($)||Market Cap ($ B)||Total return at 12 months (%)|
|Vertex Energy Inc. (VTNR)||6.76||0.4||1,230|
|SM Energy Co. (SM)||19.83||2.4||997.1|
|Centennial Resource Development Inc. (CDEV)||5.24||1.5||915.7|
|Russell 1000 Index||N / A||N / A||37.1|
|Energy Select Sector SPDR ETF (XLE)||N / A||N / A||54.2|
- Vertex Energy Inc .: Vertex Energy is a specialized refiner of alternative raw materials and marketer of high purity petroleum products. The company supplies base oils to the lubricant manufacturing industry in North America. Vertex Energy announced in late June that it agreed to sell its portfolio of used motor oil collection and recycling assets to Safety-Kleen Systems Inc., a subsidiary of Clean Harbors Inc. (CLH), for $ 140 million. The transaction is expected to close during the third quarter of 2021.
- SM Energy Co.: SM Energy is an independent energy company dedicated to the exploration, development and production of crude oil and natural gas. Its operations are located in various regions of the US.
- Centennial Resource Development Inc .: Centennial Resource Development is an independent oil and natural gas company. It focuses on the development of oil and natural gas reserves in the Permian Basin.
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