With these articles, I'll highlight the companies in each sector whose price rose more than others in the same industry since the beginning of the year.
These are the highest performing stocks in the oil and gas industry.
Torchlight Energy Resources Inc (TRCH)
It is engaged in the acquisition, exploration, exploitation and/or development of oil and natural gas properties in the United States. In addition to TEI, it also operates its business through Torchlight Energy Operating, LLC, a Texas limited liability company and wholly-owned subsidiary.
TRCH is trading with a very cheap forward P/E multiple of 0.15 that is ranked higher than
100% of the 214 companies in the Global Oil & Gas E&P industry, which has an average forward P/E ratio of 27.10.
The company has negative returns (ROE -59%, ROA -32%) with a profitability and growth rated 4/10. Despite the negative returns, EBITDA grew by 45% and EPS by 93% over the last three yearse.
The stock is now trading at $2.36 and since the beginning of the year, the price rose by 205%.
Sinopec Shanghai Petrochemical Co Ltd (SHI)
The company is engaged in processing crude oil into synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products. The group operates in five segments: synthetic fibers, resins and plastics, intermediate petrochemicals, petroleum products and trading of petroleum products.
SHI is trading with a P/B multiple of 5.73 that is ranked lower than 93% of the 137 companies in the Global Oil & Gas Refining & Marketing industry which has an average P/E ratio of 1.49. The stock is now trading at $2.36 and since the beginning of the year, the price rose by 76%.
Over the last 5 years revenue grew by 13.70% and EBITDA dropped by 18.30%. During the last 12 months all these ratios are dropping (revenue by 35%, EBITDA by 124%, EPS by 130%).
The company has null returns (ROE -3.33%, ROA -1.76%) with profitability and growth rated 5/10.
The only guru holding shares of SHI is Jim Simons (Trades, Portfolio), who holds 0.02% of outstanding shares.
McDermott International Inc (MDR)
The company is an engineering, procurement, construction and installation ("EPCI") company focused on designing and executing complex offshore oil and gas projects worldwide.
MDR is trading with a forward P/E of 27.25 and this ratio is ranked lower than
80% of the 134 companies in the Global Oil & Gas Equipment & Services industry which has an average forward P/E ratio of 15.65.
The stock is now trading at about $5 and since the beginning of the year, the price rose by 71%.
The company has almost null returns (ROE -2.77%, ROA -1.19% and ROC +3.49%) and a profitability and growth rated 4/10.
HOTCHKIS & WILEY is the guru holding the largest stake of outstanding shares of the company at 3.50%. The second guru is Jim Simons (Trades, Portfolio) who holds 0.45% of outstanding shares, and Richard Snow (Trades, Portfolio) with 0.05%.
MagneGas Corp (MNGA)
The company creates and produces hydrogen based alternative fuel through the gasification of carbon-rich liquids. It produces and distributes gas bottled in cylinders to the metalworking market as an alternative to acetylene.
MNGA is trading with a P/B multiple of 2.85 that is ranked lower than 86% of the 64 companies in the Global Oil & Gas Integrated industry, which has a median P/B ratio of 1.18.
The stock is now trading at about $1.13 and since the beginning of the year, the price rose by 68%.
The company has a profitability and growth rated 3/10 with very negative returns (ROE -53%, ROA -50% and ROC -104%). Financially it has enough cash to cover its debts (cash to debt ratio is 7.96).
Erin Energy Corp (ERN)
The company is engaged in the exploration, development, and production of oil and gas outside the United States, directly and through joint ventures. It operates in the upstream segment of the oil and gas industry in exploration and producing activities.
ERN is trading with a P/B multiple of 2.66 that is ranked lower than 87% of the 535 companies in the Global Oil & Gas E&P industry that has a median P/B ratio of 0.97.
The stock is now trading at about $3.69 and since the beginning of the year, the price rose by 64%.
The company has negative returns (ROE -34%, ROA -19% and ROC -20%) and over the last 3 years, revenue dropped by 22% while EBITDA and EPS grew respectively by 47% and 12%.
Conclusions:
The sector has not performed well over the past year, but some companies had the strength to do a positive performance for their investors, even if they don't have good profitability.
| ticker | YTD performance | Profitability & growth | Â |
| TRCH | +205% | 4/10 | 0.15 (forward P/E) |
| SHI | +76% | 5/10 | 5.73 (P/B) |
| MDR | +71% | 4/10 | 15.65 |
| MNGA | +68% | 3/10 | 2.85 (P/B) |
| ERN | +64% | 3/10 | 2.66 (P/B) |
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