Oil prices fell approximately 2% on Thursday as U.S. talks to resurrect a nuclear deal with Iran entered their final stages and could unlock more crude supplies. However, losses were limited due to the geopolitical tension concerning top energy exporters Russia and the West over Ukraine, and the benchmarks settled above the $90 mark. Brent futures fell 1.9% to $92.97 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 2% to $91.76. “The price could already be in the triple-figure territory if not for the nuclear talks between the U.S. and Iran,” according to Craig Erlam, a market analyst at OANDA.
Brent surpassing $100 per barrel seems almost inevitable now, and analysts believe oil prices could soar as high as $150 per barrel as undersupply meets surging demand. Gasoline prices are also creeping up and are projected to hit $7 per gallon if Russia-Ukraine tensions escalate and demand ticks up even further.
Small-cap stocks Amplify Energy Corp. (AMPY), MV Oil Trust (MVO), and Barnwell Industries, Inc. (BRN) have delivered significant returns and could have more room to run, driven by the industry tailwinds. Thus, we think these low-priced stocks could be solid bets now.
Amplify Energy Corp. (AMPY)
Houston, Tex.-based AMPY acquires, develops, exploits, and produces oil and natural gas properties in the United States. The company holds properties in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. AMPY has a market capitalization of $181.75 million.
AMPY’s total revenues increased 83.9% year-over-year to $97 million in its fiscal third quarter, ended September 30, while oil and natural gas sales increased 84.5% year-over-year to $96.84 million. Also, for the nine months ended September 30, its cash and cash equivalents balance rose 28.3% from its year-ago value to $17.34 million.
Analysts expect AMPY’s revenues to increase 17.1% year-over-year to $65.68 million in the fourth quarter, ended December 31, 2021. In addition, its revenue is expected to be $266.94 million in its fiscal year ended December 31, 2021, indicating an increase of 32.1% year-over-year.
Over the past year, the stock gained 59.3% in price to close yesterday’s trading session at $4.78. AMPY shares have gained 53.7% year-to-date.
It is no surprise that AMPY has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
AMPY has an A grade for Momentum and a B for Growth, Value, and Quality. Among the 82 stocks in the Energy - Oil & Gas industry, AMPY is ranked #27.
To view additional AMPY ratings for Sentiment, and Stability, click here.
MV Oil Trust (MVO)
MVO acquires and holds interests in the oil and natural gas properties of MV Partners, LLC. It owns approximately 800 producing oil and gas wells located in the Mid-Continent region in Kansas and Colorado. It has a market capitalization of $110.75 million. MVO is headquartered in Houston, Tex.
On January 4, MVO announced a $0.41 per unit distribution, which was payable on Jan. 25, 2022, to unitholders of record on Jan. 14, 2022.
For the nine months ended Sept.30, 2021, MVO’s income increased 35% year-over-year to $7.63 million. Its distributable income came in at $7.13 million, indicating an increase of 57% from its year-ago value, while its distributions per trust unit rose 57% year-over-year to $0.62.
MVO shares have gained 131.5% in price over the past year and 9.1% year-to-date to close yesterday’s trading session at $9.63.
MVO has a B grade for Growth and Quality. It is ranked #30 in the Energy - Oil & Gas industry.
Click here to view additional MVO ratings for Momentum, Value, Sentiment, and Stability.
Barnwell Industries, Inc. (BRN)
BRN in Honolulu, Hawaii, acquires, develops, produces, and sells oil and natural gas in Canada. It operates through three segments: Oil and Natural Gas; Land Investment; and Contract Drilling. It has a market capitalization of $23.52 million.
BRN’s revenues for its fiscal first quarter, ended Dec.31, 2021 increased 24.3% year-over-year to $5.45 million. Its net earnings stood at $1.07 million, up 83.7% from the prior-year quarter. And the company’s EPS increased 57.1% year-over-year to $0.11.
The stock has gained 15.8% in price over the past six months to close yesterday’s trading session at $2.49.
BRN’s solid fundamentals are reflected in its POWR Ratings. BRN has an overall B rating, which equates to Buy in our POWR Ratings system.
It has an A grade for Quality and a B grade for Sentiment. BRN is ranked #20 in the Energy - Oil & Gas industry.
In addition to the POWR Ratings grades highlighted, one can see the BRN’s Growth, Value, Stability, and Momentum ratings here.
What To Do Next?
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AMPY shares were trading at $4.74 per share on Friday morning, down $0.04 (-0.84%). Year-to-date, AMPY has gained 52.41%, versus a -8.44% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.
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