Obsidian Energy (AMEX:OBE) Stock, Quote.Headers.trade-ideas

Obsidian Energy

Obsidian Energy Ltd is an intermediate-sized oil and gas producer with strategic assets in Alberta. It operates in a single reporting segment that is exploration, development, and holding an interest in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin. The company generates the majority of the revenue from the Crude oil sale.

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First Trust ISE-Revere Natural Gas Index Fund

TELL

Natural gas prices hit 5-month high due to increased cooling demand, with storage levels expected to decrease by end of month. Energy stocks rise.

US Natural Gas Prices Rise To 5-Month Highs On Hot Weather Forecasts: Energy Stocks On The Move Monday

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CTRA

NVDA

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Jim Cramer comments on Obsidian Energy, GE Vernova, Energy Transfer, Leonardo DRS, Super Micro Computer, SoundHound and Zim Integrated.

Jim Cramer: Energy Transfer Has &#39;Done A Very Good Job,&#39; Recommends Selling This Tech Stock

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U.S. stocks turned lower midway through trading, with the Dow Jones dropping around 150 points on Thursday.

The Dow traded down 0.47% to 32,889.30 while the NASDAQ fell 0.47% to 11,452.63. The S&amp;P 500 also fell, dropping, 0.32% to 3,978.24.

US Stocks Turn Lower; Dow Drops 150 Points

Obsidian Energy Ltd

OBERON URANIUM CORP by OBERON URANIUM CORP.

Oberon Uranium Corp

WIIM

ADNT

CVNA

ORLY

TSLA

Shares of auto-related stocks are trading higher following the Fed's policy decision to cut rates by 50 basis points, which could stimulate spending and enhance credit affordability.

B of A Securities analyst Rafe Jadrosich maintains PulteGroup (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>) with a Buy and raises the price target from $138 to $160.

Price Target

Analyst Ratings

B of A Securities Maintains Buy on PulteGroup, Raises Price Target to $160

B of A Securities analyst Rafe Jadrosich maintains Lennar (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) with a Neutral and raises the price target from $171 to $190.

B of A Securities Maintains Neutral on Lennar, Raises Price Target to $190

<a href="https://www.cnbc.com/2024/09/19/teslas-chinese-rival-nio-cuts-price-for-new-onvo-branded-car.html">https://www.cnbc.com/2024/09/19/teslas-chinese-rival-nio-cuts-price-for-new-onvo-branded-car.html</a>
&nbsp;

Reported Earlier, "Onvo, The Lower-Priced Brand Launched By Premium Electric Car Company Nio, Announced Its First Car, The L60 SUV, Would Start As Low As 149,900 Chinese Yuan ($21,210) When Buying Battery Services" - CNBC

Jones Trading analyst Debanjana Chatterjee initiates coverage on Pharvaris (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PHVS#NASDAQ">PHVS</a>) with a Buy rating and announces Price Target of $46.

Initiation

PHVS

Jones Trading Initiates Coverage On Pharvaris with Buy Rating, Announces Price Target of $46

WestPark Capital analyst Paul Rodriguez reiterates CrowdStrike Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) with a Hold.

Reiteration

CRWD

WestPark Capital Reiterates Hold on CrowdStrike Holdings

B of A Securities analyst Rafe Jadrosich maintains KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) with a Neutral and raises the price target from $75 to $90.

B of A Securities Maintains Neutral on KB Home, Raises Price Target to $90

<a href="https://x.com/BittGDCG/status/1836817442049257727" title="https://x.com/BittGDCG/status/1836817442049257727">https://x.com/BittGDCG/status/1836817442049257727</a>

PENN

WYNN

Shares Of PENN Entertainment Seeing Volume; Gaming Analyst, Steve Bittenbender, Post On X, "The New York State Gaming Commission is scheduled to consider PENN Sports Interactive's application  to purchase Wynn Bet's NY sports betting rights at its meeting Monday afternoon  If approved, it would open the door for ESPN BET to launch in the Empire State."

B of A Securities analyst Rafe Jadrosich maintains D.R. Horton (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) with a Buy and raises the price target from $196 to $215.

B of A Securities Maintains Buy on D.R. Horton, Raises Price Target to $215

B of A Securities analyst Rafe Jadrosich maintains Dream Finders Homes (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFH#NYSE">DFH</a>) with a Neutral and raises the price target from $35 to $38.

B of A Securities Maintains Neutral on Dream Finders Homes, Raises Price Target to $38

T-Mobile US Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>) shares were climbing on Thursday, after the company <a href="https://www.benzinga.com/markets/equities/24/09/40939403/t-mobile-surpasses-2021-capital-markets-day-goals-sets-new-ambitions-boosts-dividend-more">unveiled a three-year AI-focused plan</a>.
Here are some key takeaways from the company's Capital Markets Day in San Francisco.
<h1 class="wp-block-heading">Scotiabank On T-Mobile US</h1>
Analyst Maher Yaghi reiterated a Sector Outperform rating while raising the price target from $197.00 to $215.50.
T-Mobile detailed its growth plans for the next three years, the financial output of which "looks impressive with continuation of leading wireless subscriber loading, service revenue growth and FCF growth compared to US peers," Yaghi said in a note. 
The plan is focused on improving customer experience, unlike many telecom companies that have made cost-cutting their main focus, he added.
"We believe the expected 5% CAGR service revenue growth up to 2027 and the 8% Adj. FCF growth metrics, which do not include any of the pending acquisitions already announced, should support further stock upside," the analyst wrote. This should generate "sizable capital returns to shareholders," while still leaving the company with around $20 billion in cash "to further de-lever the balance sheet or undertake additional M&amp;A," he further stated.
<h1 class="wp-block-heading">Oppenheimer On T-Mobile US</h1>
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59282ae6290fa7000185325b/timothy-horan">Analyst Timothy Horan</a> maintained an Outperform rating while lifting the price target to $215.
"The company has transformed to the leading wireless carrier in spectrum depth, network performance, growth, and FCF margins, and is taking the lead in GenAI on both networks and CX," Horan wrote in a note. The company aims to "reduce inbound calls by 75% and resolve 100% of upgrades and 50%-plus of activations digitally," he added. &nbsp;
T-Mobile plans to use OpenAI for its upcoming IntentCX platform to increase customer engagement, the analyst stated. The company has also partnered with NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) to "accelerate the development of AI-RAN," he further wrote.
Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.
<h1 class="wp-block-heading">KeyBanc Capital Markets On T-Mobile US</h1>
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59f8cd40efacff000111b43b/brandon-nispel">Analyst </a><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59f8cd40efacff000111b43b/brandon-nispel">Brandon Nispel</a> reaffirmed an Overweight rating and price target of $230.
T-Mobile&#8217;s 2027 guidance has "a number of upside levers from the contribution of Metronet, Lumos and US Cellular, plus the execution of &#8216;Hero Projects&#8217; and growth in underpenetrated Small Markets and Rural, Business and now First Responders," Nispel said.
T-Mobile has set targets that would make it "a larger Home Broadband provider by customer count" than both AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) and Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), which highlights that the company is "not at a strategic disadvantage despite lower Fiber home passed targets," the analyst stated.
<h1 class="wp-block-heading">Goldman Sachs On T-Mobile US</h1>
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5805f8a2846faa000106ab15/james-schneider">Analyst James Schneider</a> maintained a Buy rating and price target of $205.
T-Mobile has "ambitious targets" for broadband growth" and announced both revenue and cost initiatives around AI, Schneider said. Management is guiding to 2027 Service Revenue of $75-$76 billion and adjusted EBITDA of $38-$39 billion, ahead of consensus of $74.2 billion and $37.9 billion, respectively, he added.
While the company's financial guidance was "broadly in line with elevated expectations heading into the event," it was modestly disappointing for capital returns, the analyst stated. "We came away from the event with increased confidence in the sustainability of T-Mobile's growth trajectory, particularly with respect to its broadband initiatives," he further wrote.
<h1 class="wp-block-heading">RBC Capital Markets On T-Mobile US</h1>
<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5846ee55ee7bf6000154d12b/jonathan-atkin">Analyst Jonathan Atkin</a> reiterated an Outperform rating and price target of $200.
The company announced a new shareholder return program through 2027 worth $80 billion, Atkin said. It will use $10 billion to "fund all announced transaction, including USM, Lumos, Metronet, and spectrum payments," he stated.
T-Mobile has allocated $50 billion for share buybacks and dividends, "with dividend per share growth in the double digits," the analyst stated. He added, however, that $20 billion has been set aside as "a buffer for acquisitions and deleveraging apart from buybacks."
TMUS Price Action: Shares of T-Mobile US had risen by 1.80% to $200.22 at the time of publication on Thursday.
Read More:   • <a href="https://www.benzinga.com/markets/equities/24/09/40932937/apple-iphone-16-selling-at-a-greater-rate-than-last-year-says-t-mobile-ceo-amid-reports-of-lower">Apple iPhone 16 Selling At A &#8216;Greater Rate Than Last Year,&#8217; Says T-Mobile CEO Amid Reports Of Lower Demand: &#8216;People Are Buying Pros, They&#8217;re Buying Maxs…They&#8217;re Buying Up The Food Chain&#8217;</a>
Photo: Viewimage on Shutterstock

TMUS

T-Mobile Announces 3-Year AI Plan Analyst Says Could Mean 'Sizable Capital Returns To Shareholders'

CHWY

ETSY

KIRK

PLCE

SFIX

Shares of companies in the retail industry are trading higher following the Fed's policy decision to cut rates, which could support consumer spending. Additional, the industry may be moving on continued strength following strong August retail sales data.

<a href="https://www.youtube.com/watch?v=uxd8kAq8Uxw" title="https://www.youtube.com/watch?v=uxd8kAq8Uxw">https://www.youtube.com/watch?v=uxd8kAq8Uxw</a>

Politics

General

LIVE: Biden delivers remarks at the Economic Club of Washington, D.C.

B of A Securities analyst Ronald Epstein maintains Heico (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HEI#NYSE">HEI</a>) with a Buy and raises the price target from $250 to $285.

B of A Securities Maintains Buy on Heico, Raises Price Target to $285

Jefferies analyst Brian Tanquilut maintains RadNet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RDNT#NASDAQ">RDNT</a>) with a Buy and raises the price target from $75 to $80.

RDNT

Jefferies Maintains Buy on RadNet, Raises Price Target to $80

Northland Capital Markets analyst Greg Gibas maintains Trupanion (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRUP#NASDAQ">TRUP</a>) with a Market Perform and raises the price target from $35 to $45.

TRUP

Northland Capital Markets Maintains Market Perform on Trupanion, Raises Price Target to $45

CleanSpark, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLSK#NASDAQ">CLSK</a>) shares are trading higher Thursday amid strength in Bitcoin as investors digest the first interest rate cut from the <a href="https://www.benzinga.com/news/earnings/24/09/40934972/wall-street-primed-for-relief-rally-as-traders-eye-jobless-claims-fedex-earnings-after-feds-50-basi">Federal Reserve in four years.</a>
The Details: CleanSpark shares are climbing amid a broad market rally as investors digest the Fed's interest rate cut which marked the first in more than four years. Lower interest rates increase the attractiveness of risk assets like stocks and cryptocurrencies.&nbsp;
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is trading above the $63,000 level Thursday and saw <a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40926729/bitcoin-spikes-above-61-000-as-fed-implements-50-bps-rate-cut">increased trading</a> following the Federal Reserve&#8217;s surprise decision, which exceeded the anticipated 25 basis point cut.&nbsp;
Read Next: <a href="https://www.benzinga.com/fintech/24/09/40928342/what-happened-with-sofi-stock-today">What Happened With SoFi Stock Today?</a>
"These markets should benefit from the formalization of the Fed&#8217;s dovish shift. Our long-term investment thesis for Bitcoin remains intact, and regardless of the near-term direction of monetary policy, BTC is well-positioned for growth as institutional adoption continues to gain momentum," Hashdex&#8217;s CIO Samir Kerbage wrote in a note sent to Benzinga.
<h3 class="wp-block-heading">CLSK Stock Prediction 2024:</h3>
Cleanspark&#8217;s revenue growth in FY23 was 20.22%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company&#8217;s future prospects.
Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.2%, growing 1.7% from last year. The unemployment rate was most recently reported as 4.2%.
An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Cleanspark stock. For real time economic data and breaking market updates, <a href="https://pro.benzinga.com/">check out Benzinga Pro. Try it for free.</a>
How does this stack up against Cleanspark's peers?
Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Cleanspark operates in the Information Technology sector. The stock has experienced average annual growth of -6.81% compared to the -16.0% average of its peer companies. This is below the broader sector movement of Cleanspark.
CLSK Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, CleanSpark shares are up 7.27% at $9.48 at the time of publication Thursday. 
Read Also:
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<li><a href="https://www.benzinga.com/news/24/09/40923038/whats-going-on-with-carnival-stock">What&#8217;s Going On With Carnival Stock?</a></li>
</ul>
Image: Roy Buri from Pixabay

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Movers

$BTC

CLSK

What's Going On With Bitcoin-Miner CleanSpark's Stock?

Northland Capital Markets analyst Mike Grondahl initiates coverage on HIVE Digital Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HIVE#NASDAQ">HIVE</a>) with a Outperform rating and announces Price Target of $5.5.

HIVE

Northland Capital Markets Initiates Coverage On HIVE Digital Technologies with Outperform Rating, Announces Price Target of $5.5

Grant Cardone is fired up about inflation and he's not holding back. In a recent post on X (formerly Twitter), the entrepreneur laid it out in blunt terms: "Print &amp; distribute money to stupid people who then spend it on stupid stuff they otherwise could not afford." According to him, this is exactly what's happening in the current economic climate.&nbsp;
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Cardone's frustration is clear. He believes the government is setting people up for failure by printing more money and not teaching financial literacy. "Until our gov't educates our citizens on financial literacy &amp; quits bailing them out, there will be slaves forever," he wrote. It's a harsh critique, but Cardone isn't known for mincing words.
He's also not shy about calling out the current administration. In a breakdown of inflation by administration, Cardone<a href="https://www.benzinga.com/real-estate/24/09/40818098/grant-cardones-inflation-breakdown-40-energy-cost-hike-marks-biden-harris-economic-impact"> highlighted a 40.2% increase in energy costs under President Joe Biden,</a> compared to a negative 0.7% during Donald Trump's term. To Cardone, this spike in energy prices is just one example of how the Biden-Harris policies are hurting the middle class. "You want more of this insanity?" he asked his followers in a previous post. "Harris will destroy the middle class."
Trending: Can you guess how many retire with a $5,000,000 nest egg? &#8211;<a href="https://www.benzinga.com/money/retire-5mil-nest-egg"> How does it compare to the average?</a>
Cardone's post didn't just throw numbers out there without context. He pointed to the Biden administration's focus on transitioning to renewable energy and stricter fossil fuel regulations as key drivers behind the rising energy costs. While he's all for innovation, Cardone argues that the policies are creating unnecessary financial burdens for everyday Americans.
But not everyone agrees with Cardone's take. Some of his followers questioned the accuracy of the data he posted. One user, "Biden's Debt Monster," pointed out that the numbers need more context, especially considering Trump's term ended during the pandemic. Another follower, Grant Goode, went even further, calling Cardone's post "deceptive" and arguing that Trump's massive spending contributed to the current economic situation.
Trending: During market downturns, investors are learning that unlike equities, these<a href="https://www.benzinga.com/money/connect-invest-real-estate-notes"> high-yield real estate notes that pay 7.5% &#8211; 9% are protected by resilient assets, buffering against losses.</a>
Cardone's response? Silence on the critique but continuing his push for financial education. To him, the real issue is deeper than just numbers. It's about how <a href="https://www.benzinga.com/personal-finance/24/08/40554281/the-razzle-dazzle-is-a-sham-grant-cardone-says-he-grew-up-in-the-democratic-party-but-now-sees-t">people are being set up to fail financially</a>. He's adamant that until Americans learn how to manage their money better – and stop relying on government handouts – things won't improve.
Cardone's blunt message is clear: Inflation isn't just a political issue; it's a personal one. And if people don't get smart about their money, they'll keep falling into the same traps.
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<li><a href="https://www.benzinga.com/money/charlie-munger-100k">Charlie Munger said if you want to be rich, &#8220;find a way to get your hands on $100,000&#8221; — here&#8217;s what he means.</a></li>
</ul>

Personal Finance

Grant Cardone Slams Inflation: 'Print & Distribute Money To Stupid People Who Spend It On Stupid Stuff'

Goldman Sachs analyst Duffy Fischer maintains Tronox Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TROX#NYSE">TROX</a>) with a Buy and lowers the price target from $18 to $16.

TROX

Goldman Sachs Maintains Buy on Tronox Holdings, Lowers Price Target to $16

With the growing oil demand, pressured supply, and geopolitical instability, the oil industry is well-poised to experience robust expansion. Therefore, it could be wise to invest in top oil & gas stocks APA Corporation (APA), Obsidian Energy (OBE), and VAALCO Energy (EGY), which are trading at a discount. Read on... The oil and gas industry is experiencing strong growth amid elevated prices and strong demand. Given the industry's bright prospects, investors could consider buying fundamentally sound oil and gas stocks APA Corporation (<a href="https://stocknews.com/stock/APA/">APA</a>), Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>), and VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>), which are currently trading at a discount.
Global oil demand increased by 870 kb/d in the second quarter of 2024, and the demand is projected to rise by less than 1 mb/d in both 2024 and 2025. Also, <a href="https://www.iea.org/reports/oil-market-report-august-2024">world supply rose 230 kb/d</a> to 103.4 mb/d in July as the substantial OPEC+ increase offset losses from non-OPEC+. The <a href="https://www.eia.gov/outlooks/steo/report/global_oil.php">Brent crude oil spot price totaled $85 per barrel in July</a>, up $3/b from the average in June.
Also, with solid dealmaking activities observed in the oil and gas industry in 2023, the industry's prospects are robust. <a href="https://www.reuters.com/markets/commodities/us-oil-gas-ma-activity-jumped-57-last-year-amid-industry-consolidation-2024-08-20/">M&amp;A activities increased by 57%</a> last year, with energy companies increasing their development spending, driven by higher cash flows from profits in prior years.
Moreover, the oil and gas market is expected to grow to $9.35 trillion by 2028, exhibiting growth at a <a href="https://www.researchandmarkets.com/report/oil-gas-exploration-production#:~:text=The%20oil%20and%20gas%20market,(CAGR)%20of%206.1%25.">CAGR of 5.2%</a>, driven by rapid expansion in resource exploration, supportive government initiatives, adoption of digital technologies, and investments in oil drilling activities.
Considering the favorable market trends, let's delve into the fundamentals of the top <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> stocks, beginning with the third choice.
Stock #3: APA Corporation (<a href="https://stocknews.com/stock/APA/">APA</a>)
APA explores, develops, and produces natural gas, crude oil, and natural gas liquids. The company has oil and gas operations internationally. It has exploration and appraisal activities in Suriname, and it holds interests in projects located in Uruguay and internationally.
In terms of forward non-GAAP P/E, APA is trading at 6.44x, 45.1% lower than the industry average of 11.72x. Likewise, the stock's forward EV/Sales multiple of 1.94 is 3.7% lower than the industry average of 2.01. Also, its forward Price/Sales of 1.12x is 20.1% lower than the industry average of 1.40x.
On May 22, APA's board of directors declared a regular cash dividend of $0.25 per share on the company's common shares. The dividend on common shares was paid on August 22, 2024, to stockholders of record on July 22, 2024.
APA pays an annual dividend of $1, which translates to a yield of 3.52% at the current share price. Its four-year average dividend yield is 1.83%. Moreover, the company's dividend payouts have increased at a CAGR of 115.4% over the past three years.
On April 1, APA acquired Callon Petroleum Company (<a href="https://stocknews.com/stock/CPE/">CPE</a>). The strategic acquisition bodes well with APA as Callon's assets bring scale to its Delaware position and balance its overall Permian asset base.
The acquisition is expected to bring APA's daily reported production to approximately 500,000 barrels of oil equivalent (BOE), approximately two-thirds from the Permian Basin.
APA's total revenues amounted to $2.54 billion in the second quarter that ended June 30, 2024, with a 41.6% year-over-year uptick. The company's adjusted earnings came in at $434 million and $1.17 per share, reflecting increases of 64.4% and 37.6% from the prior year's quarter, respectively. Its adjusted <a href="https://www.investopedia.com/terms/e/ebitdax.asp#:~:text=EBITDAX%20is%20an%20indicator%20of,Amortization%2C%20and%20Exploration%20Expense.%22">EBITDAX</a> of $1.58 billion indicates a growth of 29.5% year-over-year.
As of June 30, 2024, APA's total assets stood at $20.19 billion, compared to $15.24 billion as of December 31, 2023.
Street expects APA's revenue and EPS to increase 30.2% and 7.5% year-over-year to $2.46 billion and $1.24 for the fourth quarter (ending December 2024). APA's stock has declined 5.9% over the past six months to close the last trading session at $28.43.
APA's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Quality and Value. APA is ranked #19 among 78 stocks in the <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> industry.
<a href="https://stocknews.com/stock/APA/">Click here</a> to access additional APA ratings for Sentiment, Momentum, Growth, and Stability.
Stock #2: Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>)
Headquartered in Calgary, Canada, OBE is engaged in the exploration, production, and development of oil and natural gas properties in Western Canada.
OBE's forward Price/Sales of 0.89x is 36.4% lower than the industry average of 1.40x. Further, the stock's forward Price/Cash Flow multiple of 1.76 is considerably lower than the industry average of 5.42. Similarly, its forward EV/EBITDA of 2.31x is 61.5% lower than the industry average of 6x.
On June 27, OBE closed its previously announced acquisition of around 1,700 boe/d of Clearwater production and 148 net sections of land in the Peace River area. The acquisition, along with other smaller acquisitions made in 2024, brings the company's holdings to over 680 net sections of land with Clearwater and Bluesky heavy oil rights.
The strategic acquisition allows OBE further upside and optionality within its Peace River operating area.
In the second quarter that ended June 30, 2024, OBE's total production increased 15.2% year-over-year to 35,773 boe/d. The company's net income was CAD 37.10 million ($27.55 million) and $0.46 per share, up 101.6% and 109.1% from the previous year's quarter. In addition, the company's free cash flow increased 20.9% year-over-year to CAD 52 million ($38.61 million).
Street expects OBE's revenue for the fiscal year (ending December 2024) to increase 13.3% year-over-year to $605.55 million. The company's EPS for the same period is expected to grow 52% year-over-year to $1.44.
OBE's stock has surged 0.7% over the past six months and 7.9% over the past year to close the last trading session at $7.07.
OBE's sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.
The stock has a B grade for Value. Within the same industry, OBE is ranked #9 out of 78 stocks.
In addition to the POWR Ratings I've just highlighted, you can see OBE's ratings for Momentum, Growth, Stability, Quality, and Sentiment <a href="https://stocknews.com/stock/OBE/">here</a>.
Stock #1: VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>)
EGY is an independent energy company that engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. It holds a 58.8% interest in Etame commercial production.
In terms of forward EV/EBIT, EGY is trading at 4.81x, 52.7% lower than the industry average of 10.18x. Similarly, the stock's forward Price/Cash Flow multiple of 2.69 is 50.3% lower than the industry average of 5.42. Also, its forward EV/Sales of 1.42x is 29.4% lower than the industry average of 2.01x.
On May 29, EGY announced the successful drilling campaign results. The company drilled, completed, and brought into production four wells in Canada. All wells were 2.75-mile lateral development wells. It expects strong initial production rates of about 500 barrels of oil per day (BOPD) for three of the four wells, with nearly 350 BOPD production for the fourth well.
On April 30, EGY acquired the Svenska Petroleum Exploration AB, an exploration and production company based in Stockholm, Sweden. Svenska's primary asset is a 27.39% non-operated working interest in the deepwater producing Baobab field in Block CI-40, offshore Cote d'Ivoire in West Africa. The net purchase price was $40.20 million, fully funded by cash on hand.
For the second quarter that ended on June 30, 2024, EGY's revenues increased 6.9% year-over-year to $116.78 million. Its income before income taxes rose 104.2% from the year-ago value to $37.45 million. The company's net income came in at $28.15 million and $0.27 per share, up 316.9% and 350% year-over-year, respectively.
In addition, the company's adjusted EBITDAX of $72.47 million indicates growth of 11% from the prior year's quarter.
Analysts expect EGY's revenue for the third quarter (ending September 2024) to increase 28.8% year-over-year to $149.79 million, and its EPS is expected to grow 242.9% year-over-year to $0.24 in the same quarter. Moreover, the company surpassed the consensus EPS estimates in three of the four trailing quarters.
The stock has soared 46.9% over the past six months and 40.5% over the past year to close the last trading session at $6.42.
EGY's promising outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has a B grade for Sentiment, Quality, and Value. Within the Energy – Oil &amp; Gas industry, EGY is ranked #6 out of 78 stocks.
<a href="https://stocknews.com/stock/EGY/">Click here</a> to access additional ratings of EGY for Growth, Momentum, and Stability.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
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<hr />
APA shares were trading at $28.36 per share on Wednesday afternoon, down $0.07 (-0.25%). Year-to-date, APA has declined -19.06%, versus a 17.75% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/apa-egy-obe-cpe-3-oil-gas-stocks-still-trading-at-a-discount/>3 Oil & Gas Stocks Still Trading at a Discount</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Oil & Gas Stocks Still Trading at a Discount

The growing oil demand, pressured supply, and geopolitical instability are favoring the oil and gas industry. Therefore, it could be wise to invest in top oil & gas stocks APA Corporation (APA), Obsidian Energy (OBE), and VAALCO Energy (EGY), which are trading at a discount. Read on... The oil and gas industry is experiencing strong growth amid elevated prices and strong demand. Given the industry's bright prospects, investors could consider buying fundamentally sound oil and gas stocks APA Corporation (<a href="https://stocknews.com/stock/APA/">APA</a>), Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>), and VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>), which are currently trading at a discount.
Global oil demand increased by 870 kb/d in the second quarter of 2024, and the demand is projected to rise by less than 1 mb/d in both 2024 and 2025. Also, <a href="https://www.iea.org/reports/oil-market-report-august-2024">world supply rose 230 kb/d</a> to 103.4 mb/d in July as the substantial OPEC+ increase offset losses from non-OPEC+. The <a href="https://www.eia.gov/outlooks/steo/report/global_oil.php">Brent crude oil spot price totaled $85 per barrel in July</a>, up $3/b from the average in June.
Also, with solid dealmaking activities observed in the oil and gas industry in 2023, the industry's prospects are robust. <a href="https://www.reuters.com/markets/commodities/us-oil-gas-ma-activity-jumped-57-last-year-amid-industry-consolidation-2024-08-20/">M&amp;A activities increased by 57%</a> last year, with energy companies increasing their development spending, driven by higher cash flows from profits in prior years.
Moreover, the oil and gas market is expected to grow to $9.35 trillion by 2028, exhibiting growth at a <a href="https://www.researchandmarkets.com/report/oil-gas-exploration-production#:~:text=The%20oil%20and%20gas%20market,(CAGR)%20of%206.1%25.">CAGR of 5.2%</a>, driven by rapid expansion in resource exploration, supportive government initiatives, adoption of digital technologies, and investments in oil drilling activities.
Considering the favorable market trends, let's delve into the fundamentals of the top <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> stocks, beginning with the third choice.
Stock #3: APA Corporation (<a href="https://stocknews.com/stock/APA/">APA</a>)
APA explores, develops, and produces natural gas, crude oil, and natural gas liquids. The company has oil and gas operations internationally. It has exploration and appraisal activities in Suriname, and it holds interests in projects located in Uruguay and internationally.
In terms of forward non-GAAP P/E, APA is trading at 6.44x, 45.1% lower than the industry average of 11.72x. Likewise, the stock's forward EV/Sales multiple of 1.94 is 3.7% lower than the industry average of 2.01. Also, its forward Price/Sales of 1.12x is 20.1% lower than the industry average of 1.40x.
On May 22, APA's board of directors declared a regular cash dividend of $0.25 per share on the company's common shares. The dividend on common shares was paid on August 22, 2024, to stockholders of record on July 22, 2024.
APA pays an annual dividend of $1, which translates to a yield of 3.52% at the current share price. Its four-year average dividend yield is 1.83%. Moreover, the company's dividend payouts have increased at a CAGR of 115.4% over the past three years.
On April 1, APA acquired Callon Petroleum Company (<a href="https://stocknews.com/stock/CPE/">CPE</a>). The strategic acquisition bodes well with APA as Callon's assets bring scale to its Delaware position and balance its overall Permian asset base.
The acquisition is expected to bring APA's daily reported production to approximately 500,000 barrels of oil equivalent (BOE), approximately two-thirds from the Permian Basin.
APA's total revenues amounted to $2.54 billion in the second quarter that ended June 30, 2024, with a 41.6% year-over-year uptick. The company's adjusted earnings came in at $434 million and $1.17 per share, reflecting increases of 64.4% and 37.6% from the prior year's quarter, respectively. Its adjusted <a href="https://www.investopedia.com/terms/e/ebitdax.asp#:~:text=EBITDAX%20is%20an%20indicator%20of,Amortization%2C%20and%20Exploration%20Expense.%22">EBITDAX</a> of $1.58 billion indicates a growth of 29.5% year-over-year.
As of June 30, 2024, APA's total assets stood at $20.19 billion, compared to $15.24 billion as of December 31, 2023.
Street expects APA's revenue and EPS to increase 30.2% and 7.5% year-over-year to $2.46 billion and $1.24 for the fourth quarter (ending December 2024). APA's stock has declined 5.9% over the past six months to close the last trading session at $28.43.
APA's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Quality and Value. APA is ranked #19 among 78 stocks in the <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> industry.
<a href="https://stocknews.com/stock/APA/">Click here</a> to access additional APA ratings for Sentiment, Momentum, Growth, and Stability.
Stock #2: Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>)
Headquartered in Calgary, Canada, OBE is engaged in the exploration, production, and development of oil and natural gas properties in Western Canada.
OBE's forward Price/Sales of 0.89x is 36.4% lower than the industry average of 1.40x. Further, the stock's forward Price/Cash Flow multiple of 1.76 is considerably lower than the industry average of 5.42. Similarly, its forward EV/EBITDA of 2.31x is 61.5% lower than the industry average of 6x.
On June 27, OBE closed its previously announced acquisition of around 1,700 boe/d of Clearwater production and 148 net sections of land in the Peace River area. The acquisition, along with other smaller acquisitions made in 2024, brings the company's holdings to over 680 net sections of land with Clearwater and Bluesky heavy oil rights.
The strategic acquisition allows OBE further upside and optionality within its Peace River operating area.
In the second quarter that ended June 30, 2024, OBE's total production increased 15.2% year-over-year to 35,773 boe/d. The company's net income was CAD 37.10 million ($27.55 million) and $0.46 per share, up 101.6% and 109.1% from the previous year's quarter. In addition, the company's free cash flow increased 20.9% year-over-year to CAD 52 million ($38.61 million).
Street expects OBE's revenue for the fiscal year (ending December 2024) to increase 13.3% year-over-year to $605.55 million. The company's EPS for the same period is expected to grow 52% year-over-year to $1.44.
OBE's stock has surged 0.7% over the past six months and 7.9% over the past year to close the last trading session at $7.07.
OBE's sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.
The stock has a B grade for Value. Within the same industry, OBE is ranked #9 out of 78 stocks.
In addition to the POWR Ratings I've just highlighted, you can see OBE's ratings for Momentum, Growth, Stability, Quality, and Sentiment <a href="https://stocknews.com/stock/OBE/">here</a>.
Stock #1: VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>)
EGY is an independent energy company that engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. It holds a 58.8% interest in Etame commercial production.
In terms of forward EV/EBIT, EGY is trading at 4.81x, 52.7% lower than the industry average of 10.18x. Similarly, the stock's forward Price/Cash Flow multiple of 2.69 is 50.3% lower than the industry average of 5.42. Also, its forward EV/Sales of 1.42x is 29.4% lower than the industry average of 2.01x.
On May 29, EGY announced the successful drilling campaign results. The company drilled, completed, and brought into production four wells in Canada. All wells were 2.75-mile lateral development wells. It expects strong initial production rates of about 500 barrels of oil per day (BOPD) for three of the four wells, with nearly 350 BOPD production for the fourth well.
On April 30, EGY acquired the Svenska Petroleum Exploration AB, an exploration and production company based in Stockholm, Sweden. Svenska's primary asset is a 27.39% non-operated working interest in the deepwater producing Baobab field in Block CI-40, offshore Cote d'Ivoire in West Africa. The net purchase price was $40.20 million, fully funded by cash on hand.
For the second quarter that ended on June 30, 2024, EGY's revenues increased 6.9% year-over-year to $116.78 million. Its income before income taxes rose 104.2% from the year-ago value to $37.45 million. The company's net income came in at $28.15 million and $0.27 per share, up 316.9% and 350% year-over-year, respectively.
In addition, the company's adjusted EBITDAX of $72.47 million indicates growth of 11% from the prior year's quarter.
Analysts expect EGY's revenue for the third quarter (ending September 2024) to increase 28.8% year-over-year to $149.79 million, and its EPS is expected to grow 242.9% year-over-year to $0.24 in the same quarter. Moreover, the company surpassed the consensus EPS estimates in three of the four trailing quarters.
The stock has soared 46.9% over the past six months and 40.5% over the past year to close the last trading session at $6.42.
EGY's promising outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has a B grade for Sentiment, Quality, and Value. Within the Energy – Oil &amp; Gas industry, EGY is ranked #6 out of 78 stocks.
<a href="https://stocknews.com/stock/EGY/">Click here</a> to access additional ratings of EGY for Growth, Momentum, and Stability.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
APA shares were trading at $28.36 per share on Wednesday afternoon, down $0.07 (-0.25%). Year-to-date, APA has declined -19.06%, versus a 17.75% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/apa-egy-obe-cpe-3-oil-gas-stocks-still-trading-at-a-discount/>3 Oil & Gas Stocks Still Trading at a Discount</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

The oil and gas industry is set for long-term growth, driven by strong oil demand, geopolitical tensions, OPEC+ production strategies, and technological advancements in exploration and production. Hence, investors seeking both value and growth could consider fundamentally strong oil and gas stocks: Obsidian Energy (OBE), Energy Transfer (ET), and PrimeEnergy Resources (PNRG). Keep reading… The oil and gas industry is poised for promising growth, fueled by ongoing conflicts in the Middle East and Ukraine, alongside the OPEC+ alliance's strategic control over production levels. This growth is further bolstered by advancements in exploration, production, and development of oil, natural gas, and energy-related services.
Amid this backdrop, it could be wise to consider buying fundamentally strong oil and gas stocks, such as Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>), Energy Transfer LP (<a href="https://stocknews.com/stock/ET/">ET</a>), and PrimeEnergy Resources Corporation (<a href="https://stocknews.com/stock/PNRG/">PNRG</a>), which offer both value and growth.
Despite lower demand from China, rising inventories, and OPEC+ plans to ease output cuts, oil prices could surge if the Israel-Hamas conflict escalates, leading to supply disruptions. Meanwhile, global natural gas demand surged in early 2024, particularly in Asia, with China and India experiencing <a href="https://www.iea.org/reports/gas-market-report-q3-2024">double-digit growth</a>.
Statista forecasts that by 2045, primary energy consumption will reach approximately <a href="https://www.statista.com/statistics/282801/primary-energy-demand-by-source-world/">359 million barrels</a> of oil equivalent per day. Oil and gas will continue to dominate, contributing 100 and 85 million barrels of oil equivalent per day, respectively. High oil prices, strong demand, and the industry's solid financial position make the oil and gas industry an attractive investment.
Considering these conducive trends, let's discuss the fundamentals of the three featured <a href="https://stocknews.com/category/energy-oil-gas/">Energy - Oil &amp; Gas</a> stocks, starting with number three.
Stock #3: Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>)
Headquartered in Calgary, Canada, OBE engages in the exploration, production, and development of oil and natural gas properties in Western Canada.
On June 26, 2024, OBE announced the completion of its $80.5 million acquisition of Clearwater production and land in Peace River, enhancing its regional holdings. The acquisition includes approximately 1,700 boe/d of production and 148 net sections of land, funded by a bank facility and a term loan.
On June 11, 2024, OBE announced a new agreement with the Woodland Cree First Nation and resumed production at its Harmon Valley South field. The agreement, effective through 2025, follows the field's shutdown in May 2024 due to a conflict with the WCFN.
In terms of forward non-GAAP P/E, OBE's 4.76x is 59.7% lower than the 11.83x industry average. Its 1.33x forward <a href="https://www.investopedia.com/terms/e/enterprisevaluesales.asp">EV/Sales</a> is 34.4% lower than the 2.03x industry average. Similarly, its 2.26x forward EV/EBITDA is 62.2% lower than the 5.99x industry average.
OBE's EBITDA grew at a CAGR of 38.2% over the past three years. Its EBIT grew at a CAGR of 47.1% over the past three years. Moreover, its revenue grew at a CAGR of 26.1% over the past three years.
In the second quarter that ended June 30, 2024, OBE's net income stood at CAD37.10 million ($27.49 million) and CAD0.46 per share, up 101.6% and 109.1% over the prior-year quarter. Likewise, the company's free cash flow increased 20.9% year-over-year to CAD52 million ($38.53 million).
For fiscal 2024, OBE's EPS and revenue are expected to increase 52% and 13.3% year-over-year to $1.44 and $605.55 million, respectively. OBE's stock has gained 1.3% year-to-date to close the last trading session at $6.87.
OBE's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this positive outlook. It has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Within the <a href="https://stocknews.com/category/energy-oil-gas/">Energy - Oil &amp; Gas</a> industry, it is ranked #5 out of 79 stocks. It has a B grade for Value and Sentiment. To see the other ratings of OBE for Growth, Momentum, Stability, and Quality, <a href="https://stocknews.com/stock/OBE/">click here</a>.
Stock #2: Energy Transfer LP (<a href="https://stocknews.com/stock/ET/">ET</a>)
ET provides energy-related services. It owns and operates approximately 11,600 miles of natural gas transportation pipeline, three natural gas storage facilities, and two natural gas storage facilities in Texas and Oklahoma. Additionally, it manages 19,945 miles of interstate natural gas pipeline.
On July 16, 2024, ET and Sunoco announced a joint venture to combine their Permian Basin crude oil and water gathering assets, with ET holding a 67.5% interest and serving as the operator. The venture will manage over 5,000 miles of pipelines and 11 million barrels of storage capacity.
On July 15, 2024, ET announced the completion of its $2.28 billion acquisition of WTG Midstream, expanding its Permian Basin pipeline network with 6,000 miles of gas-gathering pipelines and eight processing plants. This acquisition is expected to boost distributable cash flow per unit starting in 2025.
In terms of forward Price/Sales, ET's 0.62x is 56.3% lower than the 1.42x industry average. Likewise, its 0.78x forward non-GAAP PEG is 47.6% lower than the 1.49x industry average. Also, its 1.61x forward Price/Book is 1.5% lower than the 1.63x industry average.
ET's revenue grew at a CAGR of 17.1% over the past three years. Its EBITDA grew at a CAGR of 3.3% over the past three years. Moreover, its net income grew at a CAGR of 5.8% over the past three years.
ET's revenues for the second quarter that ended June 30, 2024, rose 13.2% year-over-year to $20.73 billion. Its operating income grew 25% from the year-ago value to $2.30 billion.  For the same quarter, ET's net income came in at $1.99 billion, up 61.8% from the prior year's quarter. In addition, the company's net income per common unit increased 40% year-over-year to $0.35.
Street expects ET's EPS for the quarter ending September 30, 2024, to increase 120.3% year-over-year to $0.33, and its revenue for the same quarter is expected to increase 13.2% year-over-year to $23.47 billion. Over the past year, the stock has gained 18.8% to close the last trading session at $16.10.
ET's POWR Ratings reflect its solid fundamentals. It has an overall rating of B, equating to a Buy in our proprietary rating system.
It is ranked #4 in the same industry. It has an A grade for Growth and a B for Value, Momentum, and Stability. <a href="https://stocknews.com/stock/ET/">Click here</a> to see the other ratings of ET for Sentiment and Quality.
Stock #1: PrimeEnergy Resources Corporation (<a href="https://stocknews.com/stock/PNRG/">PNRG</a>)
PNRG and its subsidiaries engage in the acquisition, development, and production of oil and natural gas properties. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties, operates approximately 534 active wells, and holds non-operating interests and royalties in 952 additional wells.
In terms of trailing-12-month EV/Sales, PNRG's 1.30x is 39.9% lower than the 2.16x industry average. Its 2.29x trailing-12-month EV/EBITDA is 64.4% lower than the 6.44x industry average. Likewise, its 4.16x forward EV/EBIT is 62.2% lower than the 10.99x industry average.
PNRG's revenue grew at a CAGR of 45.7% over the past three years. Its total assets grew at a CAGR of 19% over the past three years. Moreover, its EBITDA grew at a CAGR of 89% over the past three years.
During the second quarter that ended June 30, 2024, PNRG's revenues increased 81.5% year-over-year to $64.83 million. The company's net income and EPS came in at $19.73 million and $7.77, indicating growth of 95.6% and 103.4% from the year-ago values, respectively.
Over the past year, the stock has gained 37.1% to close the last trading session at $133.02.
PNRG's POWR Ratings reflect its bright prospects. It has an overall rating of B, translating to a Buy in our proprietary rating system.
It has a B grade for Growth, Sentiment, and Quality. Within the Energy - Oil &amp; Gas industry, it is ranked #2 out of 79 stocks. To access PNRG's additional grades for Value, Momentum, and Stability, <a href="https://stocknews.com/stock/PNRG/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
ET shares were trading at $16.10 per share on Tuesday afternoon, down $0.00 (0.00%). Year-to-date, ET has gained 24.11%, versus a 17.10% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/et-obe-pnrg-3-oil-gas-stocks-offering-both-value-and-growth/>3 Oil & Gas Stocks Offering Both Value and Growth</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Oil & Gas Stocks Offering Both Value and Growth

BofA latest to cut oil price view on weak demand, limiting OPEC's ability to boost output

Obsidian Energy: Heavy Oil Production May Reach 12,000 Barrels Per Day By Late 2024

Obsidian Energy (TSE:OBE) has released an update. Obsidian Energy has reported robust results from their Peace River operations, leading to an incr...

Obsidian Energy Surges with Peace River Success

Obsidian Energy (OBE – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Jeremy Mccrea from BM...

Obsidian Energy: A Buy Rating on Robust Growth and Strategic Transformation

With the Federal Reserve expected to lower interest rates and a cautiously optimistic outlook for global oil demand, it could be wise to consider investing in quality small-cap energy stocks VAALCO Energy (EGY), Obsidian Energy (OBE), Adams Resources & Energy (AE), each with upside potential exceeding 60%. Read more… The energy market has faced volatility recently, driven by concerns over global economic growth and fluctuating oil prices. However, with the potential for interest rate cuts by the Federal Reserve, now might be an opportune time to consider investing in small-cap energy stocks like VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>), Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>), Adams Resources &amp; Energy, Inc. (<a href="https://stocknews.com/stock/AE/">AE</a>), with big upside potential.
Oil prices have been under pressure due to higher supply from OPEC+ and fears of slowing demand, particularly from China. However, short-term market dynamics are creating opportunities for investors in the energy space. For example, <a href="https://www.reuters.com/markets/commodities/oil-prices-inch-up-fed-rate-cut-outlook-2024-09-16/">oil prices rose over 1%</a> recently, driven by supply disruptions caused by Hurricane Francine in the U.S. Gulf of Mexico.
Brent crude futures rose to $72.53 per barrel, while U.S. crude reached $69.77 per barrel. While short-term gains reflect the impact of the hurricane, the broader market remains focused on the upcoming Federal Reserve rate decision, which will likely set the tone for economic activity in the months ahead.
Lower interest rates have historically boosted economic activity and, in turn, increased demand for oil. While a 50-bps rate cut could signal economic weakness, it could also catalyze growth in small-cap energy stocks, which tend to outperform in low-rate environments. Moreover, the U.S. Energy Information Administration (EIA) projects global oil demand will hit a new record of <a href="https://www.reuters.com/business/energy/us-eia-lifts-oil-demand-forecast-says-prices-will-recover-above-80bbl-2024-09-10/">103.1 million barrels per day</a> in 2024.
With that in mind, let's analyze the fundamental aspects of the featured <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> stocks, starting with the third choice.
Stock #3: Adams Resources &amp; Energy, Inc. (<a href="https://stocknews.com/stock/AE/">AE</a>)
With a market cap of $61.93 million, AE is engaged in marketing, transporting, terminalling, and storing various crude oil and natural gas basins in the United States. It operates through four segments: Crude Oil Marketing; Transportation; Pipeline and Storage; and Logistics and Repurposing.
On August 7, the company's Board of Directors declared a dividend of $0.24 per common share for the second quarter, payable to its shareholders on September 27, 2024. AE pays an annual dividend of $0.96, which translates to a yield of 3.98% at the current share price. Moreover, its four-year average dividend yield is 3.20%.
In terms of trailing-12-month, AE's asset turnover ratio of 8.03x is considerably higher than the industry average of 0.49x.
AE's total revenues increased 15% year-over-year to $718.49 million for the second quarter that ended June 30, 2024. Its <a href="https://www.investopedia.com/terms/a/adjusted-ebitda.asp">adjusted EBITDA</a> stood at $4.20 million, while its cash inflow from operating activities amounted to $8.32 million compared to an outflow of $27.32 million in the prior-year quarter. At the end of the period, the company's cash and cash equivalents, including restricted cash, improved by 179.5% from its year-ago value to $49.64 million.
Street expects AE's EPS and revenue for the fourth quarter (ending December 2024) to be $0.03 and $707.60 million, respectively. The company has topped the consensus revenue estimate in each of the trailing four quarters, which is promising.
Moreover, over the past three years, its revenue and levered FCF have grown at impressive CAGRs of 28.9% and 25.8%, respectively.
Over the past month, the stock has gained 7.2%, closing the last trading session at $24.12. Its 12-month price target of $38.75 reflects a <a href="https://www.tipranks.com/stocks/ae/forecast">60.7% potential upside</a>.
AE's strong fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. It has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It also has a B grade for Value. Among the 80 stocks in the <a href="https://stocknews.com/category/energy-oil-gas/">Energy - Oil &amp; Gas</a> industry, it is ranked #12. <a href="https://stocknews.com/stock/AE/">Click here</a> to see the other AE ratings for Growth, Momentum, Stability, Sentiment, and Quality.
Stock #2: Obsidian Energy Ltd. (<a href="https://stocknews.com/stock/OBE/">OBE</a>)
OBE is a Canada-based exploration and production company focused on developing oil and natural gas properties in Western Canada's Sedimentary Basin. The company operates a portfolio of assets, producing approximately 35,700 barrels of oil equivalent (boe) per day. Its operations include the exploration, development, and management of oil and natural gas interests and related production infrastructure. It has a market cap of $441.68 million.
On June 26, the company completed its acquisition of 1,700 boe/d of Clearwater oil production and 148 net sections of land in the Peace River area for approximately $80.5 million. The deal, effective May 1, 2024, expands the company's holdings and adds 200 potential drilling locations.
OBE's CEO, Stephen Loukas, stated that the acquisition aligns with their 2024-2026 growth plan and enhances development opportunities, especially in their successful Clearwater Dawson area.
OBE's trailing-12-month EBITDA margin of 61.11% is 72.9% higher than the 35.34% industry average. Similarly, its 63.60% trailing-12-month gross profit margin is 41.5% above the 44.94% industry average.
For the fiscal second quarter that ended June 30, 2024, OBE reported a 25.5% year-over-year increase in production revenues of $208.40 million. Its funds flow from operations grew by 31.8% from the prior year's quarter to $115.20 million, while its FFO per share stood at $1.44, up 39.8% year-over-year.
The company's net income amounted to $37.10 million and $0.46 per share, reflecting an improvement of 101.6% and 109.1% from the year-ago quarter, respectively. Moreover, its cash flow from operating activities increased by 16.1% year-over-year to $77.90 million.
The consensus EPS estimate of $1.44 for the current year (ending December 2024) indicates a 51.9% improvement year-over-year. The consensus revenue estimate of $625.21 million for the same period reflects a 16.9% increase from the prior year.
Over the past three years, its revenue and EBITDA have grown at respective CAGRs of 26.1% and 38.2%. Likewise, its tang book value has increased at a 35.8% CAGR over the same time frame.
The stock has lost 13.9% over the past month to close the last trading session at $5.80. However, its 12-month price target of $11.77 indicates a <a href="https://www.tipranks.com/stocks/obe/forecast">102.9% potential upside</a>.
OBE's POWR Ratings reflect this promising outlook. The stock has an overall B rating, translating to Buy in our proprietary rating system.
It has a B grade for Value and Sentiment. Within the same industry, it is ranked #6. To see additional POWR Ratings for OBE for Growth, Momentum, Stability, and Quality, <a href="https://stocknews.com/stock/OBE/">click here</a>.
Stock #1: VAALCO Energy, Inc. (<a href="https://stocknews.com/stock/EGY/">EGY</a>)
With a $579.92 million market cap, EGY acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada.
On August 6, demonstrating its commitment to returning value to shareholders, the company declared a quarterly dividend of $0.0625 per share ($0.25 annualized), which is payable on September 20, 2024, to stockholders of record at the close of business on August 23, 2024. EGY's annual dividend translates to a yield of 4.47% at the current share price, while its four-year average dividend yield is 2.16%.
In April, the company completed the all-cash acquisition of Svenska Petroleum Exploration AB for $40.2 million, enhancing its production capacity in the Baobab field, now producing over 5,000 barrels of oil equivalent per day (99% oil).
This acquisition strategically expands EGY's presence in West Africa, particularly in Cote d'Ivoire, an investment-friendly country with significant upside potential. Further, the move bolsters EGY's growth prospects and regional operational footprint.
The stock's trailing-12-month gross profit and EBITDA margins of 64.19% and 58.43% are 42.8% and 65.3% higher than the industry averages of 44.94% and 35.34%, respectively. Likewise, its 32.31% trailing-12-month levered FCF margin compares favorably to the 6.50% industry average.
During the second quarter (ended June 30, 2024), EGY's revenue increased 6.9% year-over-year to $116.78 million. Its adjusted net income amounted to $22.58 million and $0.22 per share, reflecting a year-over-year improvement of 70.2% and 83.3%, respectively. In addition, its adjusted EBITDAX stood at $72.47 million, up 10.9% year-over-year.
Analysts expect EGY's revenue to increase 28.8% year-over-year to $149.79 million for the current quarter (ending September 2024), while its EPS is expected to grow considerably from the prior year to $0.18 in the same period. Also, the company has surpassed the consensus EPS estimates in three of the trailing four quarters, which is impressive.
Moreover, the stock's revenue and net income have grown at impressive CAGRs of 60.1% and 63.2% over the past three years, respectively. Similarly, its EPS has grown at a 33.8% CAGR over the same period.
EGY's shares have gained 31.2% over the past year and 24.5% year-to-date to close the last trading session at $5.59. Its 12-month price target of $9.40 reflects a <a href="https://www.tipranks.com/stocks/egy/forecast">68.2% potential upside</a>.
It's no surprise that EGY has an overall rating of B, which equates to Buy in our proprietary rating system. It has a B grade for Value, Sentiment, and Quality. Out of 80 stocks in the same industry, it is ranked #5.
In addition to the POWR Ratings we've stated above, we also have EGY's ratings for Growth, Momentum, and Stability. Get all EGY ratings <a href="https://stocknews.com/stock/EGY/">here</a>.
What To Do Next?
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<hr />
EGY shares were trading at $5.71 per share on Monday afternoon, up $0.12 (+2.15%). Year-to-date, EGY has gained 31.72%, versus a 19.11% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Shweta Kumari</h2> <img src='https:/wp-content/uploads/2022/03/Shweta-Kumari_Image-2.jpg' style="float:left; padding:5px;width:125px;">Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.<a href="https://stocknews.com/authors/?author=shweta-kumari">More...</a>The post <a href=https://stocknews.com/news/egy-ae-obe-3-small-cap-energy-stocks-with-big-upside-potential/>3 Small-Cap Energy Stocks With Big Upside Potential</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Small-Cap Energy Stocks With Big Upside Potential

RBC Capital analyst Gregory Pardy maintained a Buy rating on Obsidian Energy (OBE – Research Report) today and set a price target of C$13.00. The c...

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