150-250% return in 3 months! Should you buy these 2 penny energy stocks?

Highlights

  • Hurricane Energy recorded production of 148 Mbbls of oil from the Lancaster field in July 2021.
  • Great Eastern Energy’s gas production, including choked production, rose to 15.88 mmscfd in June 2021.

The energy sector is crucial to the economy as it provides the power and fuel required for the normal functioning of travel and trade. However, economic slowdown, such as during the COVID-19 pandemic, can have a direct impact on energy prices and demand, thereby significantly affecting the prices of energy stocks.

On the other hand, recovery of the economic scenario buoyed by the rising vaccination rates to contain the spread of new infection boosts demand and usually drives up prices. Investors should include stocks of companies that can sustain a downturn.

Two energy stocks with 150-250% return in 3 months - HUR & GEEC

(Data source: Company and Refinitiv)

Here we take a look at two energy stocks with a 3-month total return of 150%-250%.

Hurricane Energy Plc (LON: HUR)

Hurricane Energy is an oil & gas exploration and production firm. Recently, the company confirmed the repurchase of US$77.9 million convertible debt at a discount to par. The shares of the company closed at GBX 3.09 on Thursday 16 September 2021.

The shares of Hurricane Energy returned 146.8% to shareholders in the last 3 months, and the market cap of the company stood at £61.45 million.

In July 2021, Hurricane Energy announced the resumption of production operations at its Lancaster field post the annual maintenance shutdown earlier in the month. It recorded production of 148 Mbbls of oil from Lancaster field in July 2021.

Hurricane Energy’s net free cash stood at $122 million as of 31 July 2021 compared to $134 million as of 30 June 2021.

Great Eastern Energy Corp Ltd (LON: GEEC)

Great Eastern Energy Corp Limited is a fully integrated coal-bed methane production firm focused on exploration and production activities in the Indian states of Tamil Nadu and West Bengal. The shares of the company closed at GBX 43.50 on Thursday 16 September 2021.

The shares of Great Eastern Energy Corp returned 262.5% to shareholders in last 3 months, and the market cap of the company stood at £51.81 million.

For the financial year ended 31 March 2021, Great Eastern Energy recorded revenues of $26.30 million compared to $36.25 million in FY 2020. Its EBITDA stood at $13.65 million in FY 2021 compared to $20.95 million in FY 2020.

Great Eastern Energy’s gas production, including choked production, rose from a full-year average of 15.20 mmscfd to 15.88 mmscfd in June 2021.

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