Five oil and gas stocks to watch as OPEC plans production boost

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Five oil and gas stocks to watch as OPEC plans production boost

 Five oil and gas stocks to watch as OPEC plans production boost
Image source: pan demin,Shutterstock

Highlights

  • EOG Resources, Inc. (NYSE: EOG) reported revenue of US$4 billion in Q2, 2021.
  • Valero Energy Corporation (Valero) (NYSE VLO) reported a gross profit of US$709 million in Q2, 2021.
  • PDC Energy, Inc. (Nasdaq: PDCE) incurred losses of US$87 million in Q2, 2021.

Oil and gas stocks are companies engaged in oil and gas exploration, production of finished products from the resources, and storage and transportation. The Dow Jones US Oil & Gas Total Stock Market Index (DWCOGS) was up 3.23 percent to 3880.48 at 12.07 pm ET on Sep 2, close on the heels of OPEC’s decision to go ahead with a planned production increase. The index, which comprises top oil and gas firms, rose 25.68 percent YTD.

Here, we explore five oil and gas stocks that may benefit from the developments in the global energy market.

EOG Resources, Inc. (NYSE: EOG)

The US-based company explores, develops, and sells natural gas liquids (NGLs), and crude oil. The company had total revenue of US$4 billion in Q2, 2021, compared to US$1 billion in Q2, 2020. The gross profit in the period was US$2.4 billion compared to US$145.1 million in Q2, 2020. The net income for Q2, 2021, was US$907 million against losses of US$909.4 million in Q2, 2020.

The stocks traded at US$69.1596 at 11.11 am ET on Sep 2, up 4.16 percent from the previous closing price. The stock went up by 40.34 percent YTD.

The market capitalization of the company is US$40.2 billion. The P/E ratio is 21.43 and the forward P/E one year is 8.97. The EPS is US$3.22, and the annual dividend is US$1.65. The highest and lowest stock prices of EOG for the past 52 weeks were US$87.99 and US$31.22, respectively.

Also read: Trumping the odds: Will these six large-cap oil and gas stocks shine?

Valero Energy Corporation (Valero) (NYSE VLO)

The US-based company manufactures and transports petrochemical products. The company’s refineries are in the US, Canada, and the UK.

The company reported revenue of US$27.7 billion in Q2, 2021, compared to US$10.3 billion in Q2, 2020. The gross profit in Q2, 2021 was US$709 million against a gross loss of US$415 million in Q2, 2020. The net income was US$162 million in Q2, 2021, compared to US$1.2 million in Q2, 2020.

The stock traded at US$65.50 at 11.23 am ET on September 2, up 2.42 percent from the previous close. The stock surged by 15.59 percent YTD.

The company has a market capitalization of US$26.8 billion, and a forward P/E one year of 319.75. The EPS is US$-3.36, and the annual dividend is US$3.92. The stock’s 52 week highest and lowest stock prices were US$84.95 and US$35.44, respectively.


 

Source: Pixabay.

PDC Energy, Inc.(Nasdaq: PDCE)

The company is engaged in the production, acquisition, and exploration of natural gas liquids (NGLs), crude oil, and natural gas. Its stock traded at US$44.17 at 11.39 am ET on September 2, up by 4.94 percent over the September 1 closing price. The stocks rose by 115.83 percent YTD.

The company reported revenue of US$228.9 million in Q2, 2021, and US$54.4 million in Q2, 2020. The gross profit for the period was US$159.9 million, and US$10.8 million in Q2, 2020. The company incurred losses of US$87 million in Q2, 2021, compared to US$221.8 million in Q2, 2020.

Its market cap is US$4.3 billion. The forward P/E one year is 6.96. The EPS is US$-1.35, and the annual dividend is US$0.48. The 52-week highest and lowest stock prices were US$49.92 and US$10.60, respectively.

Source: Pixabay.

Oasis Petroleum Inc. (Nasdaq: OAS)

The company is engaged in the acquisition and development of crude oil and natural gas properties in the US. The stock traded at US$89.07 at 11.46 am ET on September 2, up 3.29 percent from the previous close. The stock gained 151.39 percent YTD.

The company had revenue of US$393.1 million in Q2, 2021, and US$166.4 million in Q2, 2020. The gross profit in Q2, 2021 was US$233.5 million compared to US$87.9 million in Q2, 2020. The net income in Q2, 2021 was US$73.4 million against losses of US$92.9 million in Q2, 2020.

The market capitalization of the company is US$1.7 billion. The forward P/E one year is 6.05 and the annual dividend is US$1.50. The highest and lowest stock prices of OAS in the last 52 weeks were US$107.65 and US$20, respectively.

Also read: Six pipeline stocks to explore as energy demand soars

Altus Midstream Co (Nasdaq: ALTM)

The midstream company has gas collection, processing, and transportation assets in areas like Alpine High. Its stock traded at US$64.86 at 11.58 am ET on September 2, up by 0.78 percent from the previous close. The stock rose by 36.66 percent YTD.

The total revenue of the company in Q2, 2021, was US$35.59 million compared to US$31.62 million in Q2, 2020. The gross profit in the period was US$24.90 million against US$22.11 million in Q2, 2020. The company reported a net income of US$11.66 million in Q2, 2021, compared to losses of US$0.95 million in Q2, 2020.

Its market capitalization is US$1 billion. The P/E ratio is 15.56 and the forward P/E one year is 11.21. The EPS is US$4.17, and the annual dividend is US$6. The highest and lowest stock prices of ALTM in the last 52 weeks were US$72.35 and US$9.44.

Bottomline

The oil and gas companies suffered losses during the pandemic after the economy slowed down. However, the energy companies are recovering with the resumption of economic activities.

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