A new crisis in Iraq could mean continued high oil prices. Will these independent oil and gas stocks benefit?
The Ukrainian crisis appears ready to go from simmer to boil, and President Obama already has a new foreign crisis on his hands, this time in Iraq.
Insurgents have already seized the country's second most populous city and are working their way south. Analysts are shocked at the pace with which they've been able to move, enabled by a shared border with Syria and the reduced presence of American troops.
That's not good for oil prices, which by some accounts should be below $100 a barrel as the world's supplies have grown.
Increasingly common geopolitical crises, particularly among oil-producing nations, drives up oil prices. Many of the oil industry's watchdogs now expect about 3 million barrels a day to be taken off the market by one problem or another.
The most obvious beneficiaries of high oil prices are independent oil and gas companies, who can charge higher prices for their product and yet probably aren't directly affected by international disputes in Eastern Europe or the Middle East.
We decided to screen small cap oil and gas companies with a market capitalization below $1 billion. One of the best ways to screen smaller companies is by looking for signs of insider buying.
In larger companies, the actions of one department or oil well aren't likely to have much impact. In smaller firms, however, this information is more widely available throughout the company.
We screened for spikes in insider purchasing of at least 1% or more, which means that at least 1% of the stock's float has been purchased by people working at the company. This indicates that employees are optimistic about the future of the company. Could oil and gas stocks continue to be supported by high prices? Use the list below to begin your analysis.
Click on the interactive chart to view data over time.
1. Endeavour International Corporation (END, Earnings, Analysts, Financials): Engages in the acquisition, exploration, development, and production of crude oil and natural gas in the United States and the United Kingdom. Market cap at $82.58M, most recent closing price at $1.59.
Over the last six months, insiders were net buyers of 691,390 shares, which represents about 2.67% of the company's 25.91M share float.
2. Isramco Inc. (ISRL, Earnings, Analysts, Financials): Engages in the acquisition, development, production, and exploration of onshore oil and natural gas properties in the United States. Market cap at $390.86M, most recent closing price at $143.70.
Over the last six months, insiders were net buyers of 31,004 shares, which represents about 3.47% of the company's 892.57K share float.
3. Resolute Energy Corporation (REN, Earnings, Analysts, Financials): Engages in the acquisition, exploration, exploitation, and development of oil and gas properties primarily in onshore properties in the United States. Market cap at $659.98M, most recent closing price at $8.47.
Over the last six months, insiders were net buyers of 781,700 shares, which represents about 1.6% of the company's 48.71M share float.
4. Triangle Petroleum Corporation (TPLM, Earnings, Analysts, Financials): Engages in the acquisition, exploration, and development of unconventional shale oil resources in the Bakken Shale and Three Forks formations in the Williston Basin of North Dakota and Montana. Market cap at $923.42M, most recent closing price at $10.72.
Over the last six months, insiders were net buyers of 9,190,000 shares, which represents about 12.26% of the company's 74.96M share float.
(List compiled by James Dennin. Monthly returns sourced from Zacks Investment Research, all other data sourced from Finviz.)
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
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Dig Deeper: Access Company Snapshots, Charts, Filings
- Endeavour International Corporation(END, Chart, Download SEC Filings)
- Isramco Inc.(ISRL, Chart, Download SEC Filings)
- Resolute Energy Corporation(REN, Chart, Download SEC Filings)
- Triangle Petroleum Corporation(TPLM, Chart, Download SEC Filings)
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