Top Oil and Gas Penny Stocks for Q4 2021

1 week ago 6

BTE.TO, SDE.TO, and CJ.TO are top for value, growth, and momentum, respectively

Updated September 15, 2021

The oil and gas penny stock universe is comprised of small companies involved in the exploration, extraction, refining, and transportation of oil and gas products. These stocks typically trade below $5 per share. The oil and gas industry also includes companies that provide drilling and well-maintenance services. Some examples of these penny stocks include Kosmos Energy Ltd. (KOS), Abraxas Petroleum Corp. (AXAS), and Falcon Minerals Corp. (FLMN).

Oil and gas penny stocks are generally represented by the Invesco S&P SmallCap Energy ETF (PSCE), though the fund includes many micro- and small-cap stocks that are not considered penny stocks. PSCE has dramatically outperformed the broader market with a total return of 113.5% over the past 12 months, more than triple the 34.3% total return of the iShares Russell 1000 ETF (IWB). These market performance numbers and all statistics in the tables below are as of Sept. 14, 2021.

Here are the top 3 oil and gas penny stocks with the best value, the fastest growth, and the most momentum.

Best Value Oil and Gas Penny Stocks

These are the oil and gas penny 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 Penny Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Baytex Energy Corp. (BTE.TO) CA$2.57 CA$1.5 1.2
Cresent Point Energy Corp. (CPG.TO) CA$4.92 CA$2.9 1.4
NuVista Energy Ltd. (NVA.TO) CA$4.12 CA$0.9 1.4

Source: YCharts

Baytex Energy Corp.: Baytex Energy is a Canada-based oil and gas company. It is focused on the acquisition, development, and production of crude oil and natural gas in both Canada and the U.S. Crescent Point Energy Corp.: Crescent Point Energy is a Canada-based oil and gas exploration, development, and production company. Its assets consist of light and medium oil and natural gas reserves throughout western Canada and the U.S. The company recently announced that it will increase its quarterly dividend in the fourth quarter to CA$0.03 ($0.02) per share from CA$0.0025 per share in the third quarter. NuVista Energy Ltd.: NuVista Energy is a Canada-based exploration and production (E&P) company. The company explores and develops oil and natural gas properties.

Fastest Growing Oil and Gas Penny Stocks

These are the top oil and gas penny stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly 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 or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.

Fastest Growing Oil and Gas Penny Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Spartan Delta Corp. (SDE.TO) CA$4.68 CA$0.7 -85.2 716.5
Contango Oil & Gas Co. (MCF) 3.84 0.8 N/A (see company description) 368.8
Tamarack Valley Energy Ltd. (TVE.TO) CA$2.71 CA$1.1 N/A (see company description) 359.3

Source: YCharts

Spartan Delta Corp.: Spartan Delta is a Canada-based oil and gas company engaged in the exploration, development, and production of petroleum and natural gas properties in western Canada. The company announced at the end of August that it has completed its previously announced acquisition of Velvet Energy Ltd., a privately held light-oil producer, for CA$751.5 million ($592.1 million). Contango Oil & Gas Co.: Contango Oil & Gas is an oil and gas E&P company. It explores and develops oil and natural gas properties, including offshore properties. The company recently announced that it has completed its acquisition of gas assets in the Wind River Basin of Wyoming from ConocoPhillips (COP) for $67 million. Because the company posted a net loss for the most recent quarter, an EPS growth rate could not be calculated for the table above. Tamarack Valley Energy Ltd.: Tamarack Valley Energy is a Canada-based oil and natural gas company. The company owns light oil and natural gas properties in western Canada. Because the company's EPS went from negative in the year-ago quarter to positive in the most recent quarter, an EPS growth rate could not be calculated for the above table.

Oil and Gas Penny Stocks with the Most Momentum

These are the oil and gas penny stocks that had the highest total return over the last 12 months.

Oil and Gas Penny Stocks with the Most Momentum
  Price ($) Market Cap ($M) 12-Month Trailing Total Return (%)
Cardinal Energy Ltd. (CJ.TO) CA$3.61 CA$542.6 644.3
NuVista Energy Ltd. (NVA.TO) CA$4.12 CA$932.2 488.6
TETRA Technologies Inc. (TTI) 3.18 402.6 481.9
iShares Russell 1000 ETF (IWB) N/A N/A 34.3
Invesco S&P SmallCap Energy ETF (PSCE) N/A N/A 113.5

Source: YCharts

Cardinal Energy Ltd.: Cardinal Energy is a Canada-based E&P company that produces crude oil, natural gas, and natural gas liquids (NGLs). The company announced in mid-July that it has completed its acquisition of Venturion Oil Ltd. The agreement to acquire Venturion was first announced in early June at a total purchase price of CA$47.5 million ($37.4 million). NuVista Energy Ltd.: See above for company description. TETRA Technologies Inc.: TETRA Technologies is an oil and gas services company. It provides completion fluids and associated products and services, water management, production well testing, offshore rig cooling, filtration services, and more.

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 to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on 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.

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