Best Stocks of Oil & Gas for Q3 2020

Best Stocks of Oil & Gas for Q3 2020

The oil & gas sector is composed of firms engaged in the discovery, mining, manufacturing and distribution of oil and gas materials. The sector frequently comprises businesses offering drilling and well-maintenance facilities. Three of the largest companies are the Netherlands-based Royal Dutch Shell Plc (RDS.A), Exxon Mobil Corp (XOM) and France-based Total SA (TOT). Oil & gas stocks, measured by the Vanguard Energy ETF (VDE), have significantly performed poorly the broader market during the last 12 months, with a total return of-22.8 per cent relative to the S&P 500 with a total return of 14.0 per cent as of 9 June 2020. Below are the top three oil & gas companies with the highest valuation, quickest profit growth and maximum traction. Both the estimates in this article are as of June 9th, 2020.

Finest value Oil and Gas Stocks

Below are the oil and gas companies with the lowest 12-month average price-to - earnings (P / E) ratio. Because earnings may be distributed to owners in the form of dividends and buybacks, the low P / E ratio indicates that you pay less than each dollar of income produced.  

Finest Value Oil & Gas Stocks
	Price ($)	Market Cap ($B)	12-Month Trailing P/E Ratio
Denbury Resources Inc. (DNR)	0.75	0.4	1.2
Northern Oil & Gas Inc. (NOG)	1.26	0.5	1.5
QEP Resources Inc. (QEP)	2.50	0.6	1.5

  Source: YCharts *Denbury Resources Inc.: The energy firm Denbury Resources produces, manages and discovers oil and gas assets. The business caters to clients throughout the Gulf Coast area. In Q1 FY 2020, Denbury announced a net profit of $74 million, a reversal of $26 million in quarterly losses in Q1 FY 2019. *Northern Oil & Gas Inc.: Northern Oil & Gas is a corporation engaged in the discovery and manufacture of petroleum goods, concentrating in the Rocky Mountain area. *QEP Resources Inc.: QEP Resources is discovering and producing oil and natural gas. In reaction to the worsening of market conditions in the aftermath of the COVID-19 pandemic, QEP revealed proposals in April to drastically decrease its activities in the Permian and Williston basins for the most or all of 2020.

The highest rising oil & gas stocks

Below are the oil and gas companies with the fastest year-over-year (YOY) EPS development in the most recent period. Rising profits demonstrate that a company's market is increasing and produces more revenue that it will spend or distribute to shareholders.      

The Highest Rising Oil & Gas Stocks
	Price ($)	Market Cap ($B)	EPS Growth (%)
CrossAmerica Partners LP (CAPL)	16.22	0.6	87,120
Range Resources Corp. (RRC)	8.03	2.1	5,700
Black Stone Minerals LP (BSM)	8.00	1.7	1,600

Source: YCharts *CrossAmerica Partners LP: CrossAmerica is a supplier of motor fuels. In addition to supplying gasoline and diesel fuel, the business frequently rents real estate to motor fuel dealers. CrossAmerica posted net profits of $77.4 million in Q1 FY 2020, up dramatically from $7.6 million in the same quarter one year ago. *Range Resources Corp: Range Resources finds, produces and obtains gas and oil resources, with activities mainly in the Gulf Coast, Appalachia and the southwestern region of the U.S. Black Stone Minerals LP: Oil, natural gas and mining firm Black Stone holds mineral and interest properties in Texas. At the beginning of June, the firm reported intentions to sell some of its assets in the Permian Basin for gross sales of about $155 million. The money will be used to enhance Black Stone's financial statement.

Oil & Gas Stocks With The Best Momentum

Below are the oil and gas companies that have earned the best average gain over the last 12 months.

Oil & Gas Stocks With The Best Momentum
	Price ($)	Market Cap ($B)	12-Month Trailing Total Return (%)
Renewable Energy Group Inc. (REGI)	32.41	1.3	125.9
Teekay Tankers Ltd. (TNK)	18.10	0.6	107.6
Contango Oil & Gas Co. (MCF)	3.74	0.5	89.9
S&P 500	N/A	N/A	14.0
Vanguard Energy ETF (VDE)	N/A	N/A	-22.8

Source: YCharts *Renewable Energy Group Inc.: Renewable Energy Group caters to business customers around the U.S. and is engaged in the production, delivery, selling and logistics of biodiesel and other renewable goods. In Q1 FY 2020, the firm delivered 139.8 million gallons of petrol, down from 162.5 million gallons in Q1 FY 2019. *Teekay Tankers Ltd.: Teekay Tankers is a Canadian-based shipping corporation that offers shipping transport facilities through a fleet of medium-sized tankers. It was founded in 2007 by the Teekay Corporation. *Contango Oil & Gas Co.: With a priority on crude oil and natural gas, Contango discovers, creates, generates and even acquires assets. Contango had a gross sales of $76.5 million in 2019, just down from $77.1 million in 2018.