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Top Oil and Gas Penny Stocks for Q2 2021

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

Oil and gas penny houses are generally represented by the Invesco S&P SmallCap Energy ETF (PSCE), though the fund includes many micro- and small-cap commonplaces that are not considered penny stocks. PSCE has dramatically outperformed the broader market with a total return of 184.4% onto the past 12 months, nearly three times the Russell 1000’s total return of 62.7%, as of March 29, 2021. All statistics in the inventories below are also as of March 29.

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

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 etiquette 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 Oxens
 
Price ($) Market Cap ($M) 12-Month Trailing P/E Ratio
Ultrapar Participacoes SA (
UGP)
3.67 3,993 23.3
Helix Energy Solutions Group Inc. (
HLX)
4.85 731.0 34.6
Falcon Minerals Corp. (
FLMN)
4.50 387.5 75.0

Informant: YCharts

  • Ultrapar Participacoes SA: Ultrapar Participacoes is a Brazil-based holding company whose subsidiaries provide gas and petrochemical storage and dissemination services.
  • Helix Energy Solutions Group Inc.: Helix Energy Solutions is an offshore energy company focused on subsea construction and alimony and salvage services to the offshore natural gas and oil industry. The company also offers well intervention and robotics operations to the offshore energy. In early March, Helix Energy Solutions announced that it had entered into an agreement with HWCG LLC, a consortium of deepwater oil and gas companies. Secondary to the terms of the agreement, Helix will make available offshore well intervention and well control services, noticed the Helix Fast Response System, in the Gulf of Mexico for an annual retention fee. Helix developed its skills in well curb and containment during the Macondo Deepwater Horizon blowout in 2010.
  • Falcon Minerals Corp.: Falcon Minerals is an energy band that acquires, drills, and develops oil and natural gas assets. The company serves customers in the U.S. For Q4 2020, Falcon Minerals’ net receipts attributed to shareholders was down nearly 85% year-over-year (YOY), while total revenue was down by 27.2% YOY. Due to several complimentary factors, the company said it expects improvement in 2021, including 10% growth in its base business.

These are the oil and gas penny wares as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent every three months YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are decisive 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 cantonment (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 proceeds growth of over 2,500% were excluded as outliers.

Fastest Growing Oil and Gas Penny Stocks
 
Price ($) Market Cap ($M) EPS Broadening (%) Revenue Growth (%)
Headwater Exploration Inc. (
HWX.TO)
CA$3.85 CA$751.2 1,200 186.8
Peyto Exploration & Development Corp. (
PEYUF)
4.24 699.4 1,930 -3.5
CES Energy Results Corp. (
CEU.TO)
CA$1.63 CA$412.6 275.0 -32.6

Source: YCharts

  • Headwater Exploration Inc.: Canada-based Headwater Exploration is an oil and natural gas producer serving guys in Canada. The company explores and develops properties in New Brunswick and Alberta.
  • Peyto Exploration & Development Corp.: Peyto Inspection & Development is a Canada-based oil and gas company involved in the exploration and production of unconventional natural gas resources in Alberta, Canada. In March, the following confirmed that it would pay a dividend of $0.01 per common share on April 15, 2021, for shareholders of record as of March 31.
  • CES Dash Solutions Corp.: CES Energy Solutions is a Canada-based commercial services company providing fluids drilling, specialty chemical manufacturing, waste and water management, and other services. The company serves customers in the U.S. and Canada. Net income for Q4 2020 grew by 239.7% YOY as add up to revenue declined by 32.6% YOY. The company said the negative forces affecting CES Energy for most of 2020 subsided in Q4 due to the report of successful COVID-19 vaccines nearing final regulatory approval. CES has benefited from the reversal of temporary production shut-ins across big basins and an improvement in drilling and completion activity.

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

Oil and Gas Penny Stocks with the Most Momentum
 
Price ($) Market Cap ($M) 12-Month Trailing Total Requital (%)
Peyto Exploration & Development Corp. (PEYUF) 4.24 699.4 340.1
Headwater Exploration Inc. (HWX.TO) CA$3.85 CA$751.2 281.2
CES Energy Solutions Corp. (CEU.TO) CA$1.63 CA$412.6 181.6
Russell 1000 N/A N/A 62.7
Invesco S&P SmallCap Get-up-and-go ETF (PSCE) N/A N/A 184.4

Source: YCharts

  • Peyto Exploration & Development Corp.: See company description above.
  • Headwater Exploration Inc.: See fellowship description above.
  • CES Energy Solutions Corp.: See company description above.

The comments, opinions and analyses expressed herein are for informational by designs only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we be convinced of 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 shop and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the go out with of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any provinces, region, market, industry, investment, or strategy.

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  1. YCharts. “Financial Data.” Accessed Walk 30, 2021.

  2. Helix Energy Solutions Group Inc. “Helix Announces New Contract for Fast Response System.” Accessed March 30, 2021.

  3. Falcon Minerals Corp. “Falcon Minerals Corporation Publicizes Fourth Quarter and Full Year 2020 Financial Results.” Accessed March 30, 2021.

  4. Peyto Exploration & Development Corp. “PEYTO Reconnaissance & DEVELOPMENT CORP. CONFIRMS DIVIDENDS FOR APRIL 15, 2021,” Page 1. Accessed March 30, 2021.

  5. CES Energy Solutions Corp. “CES Determination SOLUTIONS CORP. ANNOUNCES 2020 RESULTS,” Page 1. Accessed March 30, 2021.

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