Energy stocks have soared over the past few weeks despite the overall market correcting. This is evident from the Energy Select Sector SPDR Fund’s (XLE) 13.2% gains over the past month compared to the SPDR S&P 500 Trust ETF’s (SPY) 4.4% loss.
U.S. natural gas futures climbed to their seven-year high in September. In addition, oil prices soared this month, with U.S. crude hitting its highest since 2014 and Brent futures rising to three-year highs. One of the key reasons behind this increase is the controlled output increase by OPEC+. Also, with winter approaching, oil and natural gas prices could continue to rise in the upcoming months.
Given this backdrop, it could be wise to add energy stocks Comstock Resources, Inc. (CRK), Laredo Petroleum, Inc. (LPI), and Camber Energy, Inc. (CEI) to your watch list because they soared significantly last month.
Comstock Resources, Inc. (CRK)
Independent energy company CRK engages in the acquisition, exploration, development, and production of oil and natural gas. The company has 5.6 trillion cubic feet of natural gas equivalent and 17 million barrels of oil equivalent of proved reserves.
For the fiscal second quarter ended June 30, 2021, CRK’s total oil and gas sales increased 91.4% year-over-year to $343.69 million. In addition, the company’s operating income increased 3,645.7% year-over-year to $146.5 million. Its non-GAAP EPS came in at $0.22, up 2,100% year-over-year. Also, its total current assets came in at $224.88 million for the period ended June 30, 2021, compared to $199.81 million for the period ended December 31, 2020.
CRK’s revenue is expected to be $1.39 billion in fiscal 2021, representing a 62.3% year-over-year rise. The company’s EPS is expected to increase 421.7% year-over-year to $1.20 in the current year. In addition, it surpassed Street EPS estimates in three of its trailing four quarters. The stock has soared 64.7% over the past three months and 45.1% in September to close yesterday’s trading session at $10.90.
Laredo Petroleum, Inc. (LPI)
Energy company LPI engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas. It has around 133,199 net acres in the Permian Basin and has total proved reserves of 24,642 thousand barrels of oil equivalent.
On August 4, 2021, LPI’s President and CEO, Jason Pigott, said, “The combined Sabalo purchase and sale of legacy proved developed reserves increased our oil cut and added additional oil-weighted inventory. We continued to optimize our development in Howard County by increasing operational efficiency and completing our first wider-spaced development package.”
LPI’s total revenues increased 166.2% year-over-year to $294.37 million for the fiscal second quarter ended June 30, 2021. The company’s operating income came in at $108.35 million, compared to a loss of $434.05 million in the year-ago period. Also, its total current assets came in at $302.82 million for the period ended June 30, 2021, compared to $136.59 million for the period ended December 31, 2020.
Analysts expect LPI’s revenue to be $1.26 billion in fiscal 2022, representing a 17.6% year-over-year rise. In addition, the company’s EPS is expected to increase 108.9% year-over-year to $23.06 in the next year. Also, it surpassed the consensus EPS estimates in three of its trailing four quarters. Over the past six months, the stock has gained 162.3% to close yesterday’s trading session at $86.64. Also, it has gained 48.9% in September.
Camber Energy, Inc. (CEI)
CEI is an independent oil and natural gas company which engages in the acquisition, development, and sale of crude oil, natural gas, and natural gas liquids (NGL). The company’s total estimated proved reserves were 133,442 million barrels of oil equivalent.
On August 9, 2021, CEI acquired the majority interest in Simson-Maxwell Ltd. James Doris, the President and CEO of CEI, said, “We are very excited to be working with Remora and the entire Simson-Maxwell team, and look forward to further strengthening an already-established platform and recognizable brand to position the company for additional expansion throughout North America through the remainder of this year and beyond.”
The stock has soared 127.2% over the past three months and 220.1% in September to close yesterday’s trading session at $1.53.
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CRK shares were trading at $10.67 per share on Wednesday afternoon, down $0.23 (-2.11%). Year-to-date, CRK has gained 144.16%, versus a 17.17% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...
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