5 best US oil & gas stocks that returned over 100% in 2021

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5 best US oil & gas stocks that returned over 100% in 2021

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 5 best US oil & gas stocks that returned over 100% in 2021
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Highlights

  • Devon Energy Corporation (NYSE: DVN) has been paying a dividend for the last 29 years, and the payout increased 71% in Q3, 2021.
  • Diamondback Energy, Inc. (NASDAQ: FANG) has a dividend yield of 1.93% with an annualized dividend of US$2.00.
  • Marathon Oil Corporation (NYSE: MRO) had a 28% return YTD and its dividend yield is 1.58%.

Oil prices started surging with the rising demand. The Federal Reserve’s upbeat outlook towards economic recovery boosted consumers' sentiments, and the investors are looking forward to ending this year on a high note.

The US Energy Information Administration (EIA) said on Wednesday, December 15, that the products supplied by refineries surged to 23.3 million barrels per day (bpd) in the latest week. Refineries supply is considered a proxy for demand.

The EIA also reported that the US crude oil stockpiles had fallen 4.6 million barrels. Data shows that the crude oil exports from Saudi Arabia increased in October consecutive for sixth months.

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Here we discuss five stocks that surged more than 110% this year.

Devon Energy Corporation (NYSE: DVN) 

West Sheridan Avenue, Oklahoma-based Devon Energy is an independent exploration and production company. Its asset base is spread across North America. Its total production in the third quarter, 2021, averaged 608,000 oil equivalent barrels per day that were 5% more than the expectations. 

For the nine months ended September 2021, the company posted revenue of US$7.93 billion compared to US$3.54 billion in the same period in 2020. The net income rose to US$1.3 billion or US$1.95 per diluted share against a net loss of US$2.58 billion or US$6.85 per diluted share for the nine months in 2020. 

The company has been paying a dividend for the last 29 years, and the payout increased 71% to US$0.84 in Q3, 2021 compared to the previous quarter. 

Devon’s current market capitalization is US$27.3 billion. Its P/E ratio is 24.17, and forward P/E for one year is 11.84. The company pays a dividend, and the current yield is 1.1%, with an annualized rate of US$0.44.

Its stock traded in the range of US$45.56 to US$14.34 in the last 52 weeks. It closed at US$40.36 with a 0.95% gain on December 16, 2021.

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  (Best 5 Oil and Gas stocks in the US with generating over 110% return)

Diamondback Energy, Inc. (NASDAQ: FANG) 

The Midland, Texas-based energy company is an independent oil and gas producer in the US. In the third quarter of 2021, its average production came in at 404.3 MBOE/d. Diamondback operates in the Permian Basin. 

Its revenue was US$4.78 billion for nine months ended September 30, 2021, compared to US$2.04 billion in the comparable period a year ago. The company earned a net income of US$1.18 billion or US$6.68 per share diluted against a net loss of US$3.78 billion or US$23.91 per share diluted in the nine months period in 2020. 

The cash and cash equivalents of the company were US$457 million and US$92 million as of September 30, 2021, and 2020, respectively.

Diamondback Energy has a market capitalization of US$19.08 billion. Its P/E ratio is 54.84, and forward P/E for one year is 9.39. It has a dividend yield of 1.93% with an annualized dividend of US$2.00.

The FANG stock traded in the range of US$117.71 to US$42.00 in the last 52 weeks. It closed at US$105.30, up by 1.49% on December 16, 2021.

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Continental Resources, Inc. (NYSE: CLR) 

Continental Resources is an oil and gas producer in the US, formed in 1967. The company’s headquarters is based in Oklahoma and operates in Texas, Oklahoma, and North Dakota.

Crude oil contributed 49% of total production while it accounted for around 69% of crude oil and natural gas revenues for the nine months ended September 30, 2021. For the same period in 2021 and 2020, the company posted revenue of US$3.79 billion and US$1.75 billion, respectively. Its net income was US$US$918 million or US$2.52 per diluted share against a net loss of US$504 million or US$1.39 per share diluted in the corresponding nine months in 2020.  

Its current market capitalization is US$15.8 billion, and its P/E ratio is 19.15. The forward P/E for one year is 9.60. Its dividend yield is 1.84%, and annualized dividend is US$0.80.

Its stock price moved between US$55.48 and US$15.71 in the last 52 weeks. It closed at US$43.28 on December 16, 2021, with a 0.32% decline.

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Marathon Oil Corporation (NYSE: MRO) 

Houston, Texas-based Marathon is an independent exploration and production company in the US.

It earned revenue of US$3.67 billion for the nine months ended September 30, 2021, compared to US$2.26 billion in the previous year’s same period. Its booked net income of US$297 million against a net loss of US$1.11 billion for the nine months in 2020. The EPS diluted was US$0.38 in 2021 for the nine months, while it was a loss per share diluted of US$1.41 for the corresponding period in the previous year. 

Marathon’s current market capitalization is US$11.96 billion. Its forward P/E for one year is 11.82, dividend yield is 1.58%, and annualized dividend is US$0.24.

Its stock traded in the range of US$17.59 to US$6.27 in the last 52 weeks and closed at US$15.36 at a 1.39% gain on December 16, 2021.

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 Best 5 oil and gas stocks in the US generating over 100% returns

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Ovintiv Inc. (DE) (NYSE: OVV) 

The company is based in Calgary, Alberta. It is an exploration and production company and has a multi-basin, high-quality portfolio. 

The company posted revenue of US$5.39 billion and US$4.56 billion for the nine months ended September 30, 2021, and 2020, respectively. The net income came in at US$32 million or US$0.12 per share diluted compared to the net loss of US$5,483 million or US$(21.10) per share diluted for the nine months in 2020. 

OVV has a market capitalization of US$8.38 billion and a forward P/E for one year of 5.73. Its dividend yield is 1.75%, with an annualized dividend of US$0.56.

Its stock traded in the range of US$40.65 to US$13.74 in the last 52 weeks and closed at US$32.09 on December 16, 2021, with a 0.22% increase.

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Bottom line

COVID-19 cases are on the rise in Europe, and organizations are continuing work-from-home for their employees. As a result, the demand may not rise soon globally. Besides the coronavirus, a possible supply surplus in the coming year may reduce the gains for oil and gas companies, reported the International Energy Agency this week in their monthly report. 

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