Small Oil Company Stocks | Oil Company Investments

 

 

 

 

 

Small Oil Company Stocks Are Good Investments But the Small Oil Stocks Are Volatile

Small oil company stocks were volatile during the recent recession. ; Although most of the small oil & gas stocks have higher P/E ratios than the large (major) oil & gas company stocks,  many of the small companies have more potential as the world's energy crisis deepens.  Of course, the small oil company stocks, by their very nature, are more speculative than the large oil stocks.

A selected few of the small oil & gas companies are discussed below.  Please note that the individual oil company stocks discussed are not necessarily recommended for purchase.  Instead, the small companies  are intended to present a cross-section of small oil and gas stocks:

 

 

 

 

 

 

SMALL OIL COMPANY STOCKS

 

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Ultra Petroleum Corporation  (UPL).

UPL has large reserves of oil & especially natural gas and is a little larger  than most oil exploration companies in the "small oil company stock" category with a market cap of about $1.2 billion.  The company has been very aggressive and has many followers.  However, some critics say the company's stock is now fully priced.  UPL's stock price is essentiallyunchanged for the past year although it went through very volatile periods during the year.

UPL is headquartered in Houston but is very active in the Green River Basin of Wyoming.  The company is also getting very active in the Marcellous shale natural gas play in the eastern US 

Market cap is $1.2 billion, revenues are $629 million, and the company operated at a loss of $3.1 billion over the past year. The company stock was essentially unchanged over the past year.

 

  Investors should be alerted that UPL is essentially a natural gas company and that massive new discoveries of natural gas around the world are being developed and could have a depressing effect on natural gas prices. Natural gas companies may have a few years to wait before they can really hope to be rewarded.

 

 

Vaalco Energy Inc.  (EGY). 

A few years ago, Vaalco was one of the fastest growing small oil companies.  Growth has slowed somewhat. Somewhat surprising, the analysts only give  the stock an average rating although, very recently. many analysts have been upgrading the stock. One opinion expressed is that many of the large investors who were underwater in the stock have jumped overboard and this leaves only the most loyal stock holders. Consequently, the stock may be due a breakout.

EGY has some good looking properties in offshore Africa which are beginning to pay off for EGY.

The firm is headquartered in Houston.  The stock has a market cap of $72 million.  Revenue is only $62 million per year so EGY is truly a "small"  oil company.  The company operated at a loss of $125 million during the past year.   Vaalco stock was down about 7% during the past year.

 

  Vaalco has no debt and a large cash position. Conservative investors may like the debt and cash positions of this small oil company stock.

 

 

 

 

 

 

 

 

 

 

 

 

 

SM ENERGY COMPANY

 

 

Market cap is $3.4 billion, revenues are $1.2 billion, and the company operated at a loss of $897 million over the past year.  The company stock was up 18% over the past year.

 

 

 

 

 

 

 

 

 

WHITING PETROLEUM CORP. (WLL)

 

 

Market cap is $2.8 billion, revenues are $1.2 billion, and the company operated at a loss of $1.3 billion over the past year.  The company stock was up 62% over the past year.  

 

 

 

CLEAN ENERGY FUELS CORP CORP. (CLNE)

 

Market cap is $348 million, revenues are $420 million, and the company operated at a loss of $58 million over the past year.  The company stock was up 3% over the past year.  

 

 

FIRST SOLAR. (FSLR)

Market cap is $3.2 billion, revenues are $3.4 billion, and the company operated at a income of $502 million over the past year.  The company stock was down 55% over the past year.  

 

 

 

 

 

 

 

 

 

 

 

 

 

Bakken Formation - Small Company Stocks

Nothing is hotter in the oil business right now than the Bakken Shale Formation of North Dakota, Montana, Manitoba, and Saskatchewan where high oil prices are allowing a giantoil field to be developed.  A few large oil companies and many smaller oil companies are flocking into the Bakken Formation area.  Unfortunately, I can find only a limited amount of reliable information on the companies and their involvement in the Bakken Formation so you will have to do your own research.  Some of the smaller firms are Paramount Resources, Primary Petroleum, Whiting Petroleum Corp., Brigham Exploration Company, Continental Resources, Enerplus, Crescent Point Energy Trust, and Pennant Petroleum.  This is only a partial list.  There are other small-cap oil companies rushing in!

It should be noted that Continental Resources and Enerplus are not that small with each having a market cap of about $7 billion.

Happy hunting with the Bakken!  Fortunes will be made there, and fortunes lost there!

Conclusion for Small Oil Company Stocks: 

 

Small oil company stocks may represent a good energy investment as oil prices have continued to recover.  The trend of recovering oil prices will probably continue.  The oil stock investor should be aware that the small oil company stocks are inherently more volatile that the larger oil company stocks..

 

 

 

 

 

 

 

 

 

 

 

 

Two Good Oil Stock Websites:

 

 

1. Oil Company Stocks

 

 

2.  Oilfield Services Company Stocks 

 

3.  Oil 101

 

 

 

 

 

Updated:   05/06/14

 

 

 

 

Disclaimer

This web site, titled Small Oil Company Stocks | and the information included herein, is intended to provide information only and should not be construed as investment advice.  The information provided is meant to broaden your knowledge and enable you to make better investment decisions within your portfolio.

 

 

 

I am not registered as an Investment Advisor nor am I a certified financial advisor. Sometimes I give an opinion on the quality of an investment.  This information is based solely on my own  investment goals and investment needs and might not reflect your goals and needs and might not be an appropriate investment for your portfolio.

 

Please consult with your financial manager/consultant/accountant before actually purchasing any of the investments discussed herein.

 

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