7 oil and gas stocks to explore in times of demand upsurge

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 7 oil and gas stocks to explore in times of demand upsurge
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Highlights

  • Altus Midstream (NASDAQ: ALTM) has a P/E ratio of 15.44 and a dividend yield of 9.06%. It gave a 35.31% return YTD.           
  • Weatherford International (NASDAQ: WFRD) stock rose 143.33% YTD.
  • Devon Energy Corporation’s (NYSE: DVN) P/E ratio is 140.22. The stock gained 62.80% YTD.

The rising cases of delta virus infections have cast a shadow on the energy sector of late. The energy companies were seeing a fast comeback from the 2020 recession before the delta threat emerged. Although it is yet to be seen how that situation pans out, the energy sector has other challenges to tackle, from emission targets to reduced demand for fossil fuels in the future.


The recent verdict by a Federal court in the Conoco Phillips case is a reminder of the difficult days ahead for the industry amid growing climate concerns. The court stayed a government order allowing the firm to develop an oil field in Alaska, an eco-sensitive area home to polar bears.

However, the sector is gearing up to the emission challenge. Some companies are already exploring ideas to start producing renewable energy from some of their existing facilities.

Here we explore seven oil and gas stocks that gave positive year-to-date returns.

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Altus Midstream Company (NASDAQ: ALTM) is a mid-stream corporation. Its market capitalization is US$1.05 billion, and its P/E ratio is 15.44. The dividend yield of the company is 9.06%, and annualized dividend is US$6.00.

Altus’s revenue for the June quarter, 2021, was US$35.6 million compared to US$31.6 million in the June quarter of 2020. The net income before income tax in the quarter was US$73.84 million compared to US$16.03 million in the same period the previous year. The earnings per share diluted for the quarter was US$1.31.

The stock closed at US$64.15 on Aug 18. Its YTD return is 35.31%.

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Source - pixabay

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Weatherford International plc (NASDAQ: WFRD) provides oil field services. The market capitalization of the company is US$1.02 billion.

The revenue for the second quarter ended June 2021 was US$903 million compared to US$821 million in the previous year’s Q2. The net loss was US$73 million or US$1.11 per share diluted compared to a net loss of US$581 million or US$8.30 per share diluted in the year-ago quarter. 

WFRD stock closed at US$14.54 on Aug 18, 2021. The stock rose 143.33% YTD.

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Adams Resources & Energy, Inc. (AMEX: AE) explores and markets oil and gas. It has a market capitalization of US$125.8 million and a P/E ratio of 7.67. The dividend yield is 3.24%, with an annualized dividend of US$0.96.

The revenue for the June quarter of 2021 was US$486.74 million compared to US$152.29 million in the same quarter of 2020. The net income was US$4.7 million or US$1.10 per share diluted compared to US$3.5 million or US$0.82 per share diluted in the previous year’s June quarter.

The stock closed at US$29.8 on Aug 18, and it gave around 20.79% return YTD.

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BP Midstream Partners LP (NYSE: BPMP) develops, operates, and owns pipelines and midstream assets.

The market capitalization of the company is US$1.35 million and has a P/E ratio of 8.33. Its current dividend yield is 10.75%, and its annualized dividend is US$1.39.

The revenue for the June quarter was US$29.3 million compared to US$31.5 million in the year-ago period. The net income was US$45.9 million or US$0.37 per share diluted compared to US$45.4 million or US$0.38 per share diluted in the June quarter of 2020.

BPMP stock price rose 21.79% YTD. It closed at US$12.98 on Aug 18, 2021.

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Hess Corporation (NYSE: HES) is engaged in oil and gas production. It has a market capitalization of US$19.6 billion. Its dividend yield is 1.51%, and its annualized dividend is US$1.0.

For the June quarter of 2021, the company booked revenue of US$1.6 billion compared to US$842 million in the year-ago period. The net loss was US$73 million or US$0.24 per share diluted compared to the net loss of US$320 million or US$1.05 per share diluted in the same quarter of 2020. 

The stock grew 20.46% YTD, and it closed at US$64.74 on Aug 18, 2021.

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Source – pixabay

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Shell Midstream Partners, L.P. (NYSE: SHLX) runs pipelines and midstream assets. The company has a market capitalization of US$4.6 billion and a P/E ratio of 8.87. The dividend yield of the company is 9.91%, and annualized dividend is US$1.20.

The revenue for the June quarter of 2021 was US$148 million compared to US$120 million in Q2 the previous year. The net income was US$166 million or US$0.36 per share diluted compared to US$144 million or US$0.32 per share diluted in the June quarter of 2020.

The stock closed at US$11.78 on Aug 18, 2021. The YTD return on Shell stock is 15.97%.

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Devon Energy Corporation (NYSE: DVN) explores oil and gas, and it has a market capitalization of US$17.09 billion and a P/E ratio of 140.22. The dividend yield is 1.64%, and annualized dividend is US$0.44.

The revenue for the quarter ended June 30, 2021, was US$2.4 billion compared to US$394 million in the corresponding quarter the previous year. The net income was US$256 million or US$0.38 per share diluted compared to the net loss of US$670 million or US$1.78 per share diluted in the comparable quarter of 2020.

The stock grew 62.80% YTD and closed at US$26.14 on Aug 18, 2021.

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Bottomline

Energy stocks have been retreating due to global uncertainties of late. However, the vaccinations and the economic recovery are raising the hope of a speedy revival of the sector. The NYSE Energy Index gave around 17% return YTD, almost at par with S&P 500 index’s gains during the period.

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