Best Oil and Gas Penny Stocks for Q3 2020

Best Oil and Gas Penny Stocks for Q3 2020

The oil and gas penny stock universe is composed of small businesses engaged in the discovery, mining, processing and distribution of oil and gas materials. Usually, these stocks trade around $5 per dollar. The oil and gas field also comprises firms that offer exploration and well-maintenance facilities. Examples of such stocks include Oasis Petroleum Inc. (OAS), Abraxas Petroleum Corp. (AXAS) and SM Energy Co. (SM). Oil and gas penny stocks are represented by the Invesco S&P SmallCap Energy ETF (PSCE), although the investment contains many small cap stocks that are not considered to be penny stocks. The PSCE has significantly performed poorly the broader sector with a total return of-54.3 per cent relative to the S&P 500 with a total return of 5.8 per cent in the last 12 months.1 Such market performance estimates and the data in the tables below are as of 12 June. Below are the top three penny stocks in oil and gas with the highest pricing, the quickest sales development and the strongest traction.

Best Price Oil and Gas Penny Stocks

These are the oil and gas penny stocks with the lowest 12-month trailing price-to-earning (P / E) ratio. Since earnings may be distributed to owners in the form of dividends and buybacks, a low P / E ratio indicates that you pay less for each dollar of income produced.

Best Value Oil and Gas Penny Stocks
	Price ($)	Market Cap ($M)	12-Month Trailing P/E Ratio
QEP Resources Inc. (QEP)	1.56	377.8	1.0
Northern Oil & Gas Inc. (NOG)	1.06	430.1	1.3
Callon Petroleum Co. (CPE)	1.42	563.7	1.6

  *QEP Resources Inc.: QEP Resources is an independent oil and natural gas research and mining firm. The company's net sales for Q1 2020 was $367.4 million, a substantial increase from the $116.7 million loss recorded during the same three-month stretch a year earlier. The business acknowledged that the pandemic of COVID-19 created major problems for the industry. *Northern Oil & Gas Inc.: Northern Oil & Gas is an oil and gas discovery and manufacturing business involved in the purchase, discovery, growth and processing of crude oil and natural gas reserves. The corporation has recently confirmed that it has entered into a final deal to purchase approximately 320 acres of Williston Basin core assets owned by WPX Energy Inc. (WPX). The deal is scheduled to be completed on 1 July 2020. *Callon Petroleum Co.: Callon Petroleum is engaged in the discovery, growth and purchase of oil and natural gas resources and the manufacture of related goods. In Q1 2020 at the end of March 31, Callon 's earnings rose to a net gain of $216.6 million from a loss of $19.5 million in Q1 2019.

Fastest Growing Oil and Gas Penny Stocks

Below are the oil and gas penny stocks with the fastest year-over-year (YOY) earnings per share ( EPS) increases over the last year. Rising results demonstrate that the company's profit is increasing and produces more revenue than can be reinvested or distributed to shareholders. Plunging oil prices in the first quarter also culminated in significant decreases in profits or losses for multiple oil and gas firms. As a consequence, the top firm in the development group, Comstock Resources Inc., was the only business to record a significant rise in earnings. The other two firms in the top three reported significant changes in profits, although it was not feasible to quantify the percent difference as their net profit changed from negative to positive.

Fastest Growing Oil and Gas Penny Stocks
	Price ($)	Market Cap ($M)	EPS Growth (%)
Comstock Resources Inc. (CRK)	4.88	1.1	15.4
Callon Petroleum Co. (CPE)	1.42	563.7	Moved from negative to positive
QEP Resources Inc. (QEP)	1.56	377.8	Moved from negative to positive

  *Comstock Resources Inc.: Comstock Resources is engaged in the purchase, growth, exploration and production of oil and natural gas properties. The firm reported an EPS rise of 15.4 per cent on sales growth of 78.0 per cent for Q1 2020, which ended on 31 March 2020. Company CEO M. Jay Allison said the company's natural gas facilities in East Texas and North Louisiana had not been affected by the COVID-19 pandemic. He said that Comstock would gain in the future when low oil rates contribute to a decrease in oil field production, contributing to substantial decreases in natural gas output in 2020 and 2021. *Callon Petroleum Co.: See the description of company above. *QEP Resources Inc.: See the description of company above.

Oil and Gas Penny Stocks with the Most Momentum

These are the oil and gas penny stocks that have earned the best net gain over the last 12 months. Just two firms had significant net returns owing to a drastic decline in oil prices in the bulk of stocks. Although the third stock on our list had a negative return, it decreased less than the other firms.          

Oil and Gas Penny Stocks with the Most Momentum
	Price ($)	Market Cap ($M)	12-Month Trailing Total Return (%)
Contango Oil & Gas Co. (MCF)	3.27	422.0	91.2
Advantage Oil & Gas Ltd. (AAV.TO)	CA$1.82	CA$340.2	9.0
Southwestern Energy Co. (SWN)	3.28	1,777	-1.8
S&P 500	N/A	N/A	5.8
Invesco S&P SmallCap Energy ETF (PSCE)	N/A	N/A	-54.3

  *Contango Oil & Gas Co.: Contango Oil & Gas is engaged in the purchase, discovery, growth and processing of crude oil and natural gas reserves. *Advantage Oil & Gas Ltd.: Advantage is a Canadian manufacturer of oil and gas, with an emphasis on natural gas. *Southwestern Energy Co.: Southwestern Energy is an energy corporation involved in the discovery, growth and manufacture of natural gas and oil. The firm reported a net loss of $1.5 billion and a 40.2 per cent decline in operating sales for Q1 2020, which concluded on 31 March 2020. The business pointed to the COVID-19 outbreak as one adverse element.