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Top Oil and Gas Penny Stocks for Q1 2022

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The oil and gas penny stock universe is comprised of small companies involved in the exploration, extraction, refining, and transportation of oil and gas products. These stocks typically trade below $5 per share. The oil and gas industry also includes companies that provide drilling and well-maintenance services. Some examples of these penny stocks include Kosmos Energy Ltd. (KOS), Abraxas Petroleum Corp. (AXAS), and Falcon Minerals Corp. (FLMN).

Oil and gas penny stocks are generally represented by the Invesco S&P SmallCap Energy ETF (PSCE), though the fund includes many micro- and small-cap stocks that are not considered penny stocks. PSCE has dramatically outperformed the broader market with a total return of 49.1% over the past 12 months, dramatically higher than the 21.9% total return of the Russell 1000 Index. These market performance numbers and all statistics in the tables below are as of Jan. 7, 2022.

Here are the top 3 oil and gas penny stocks with the best value, the fastest growth, and the most momentum.

Best Value Oil and Gas Penny Stocks

These are the oil and gas penny stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Oil and Gas Penny Stocks
 
Price ($)
Market Cap ($B)
12-Month Trailing P/E Ratio
Cardinal Energy Ltd. (CJ.TO)
CA$4.62
CA$0.7
1.8
Baytex Energy Corp. (BTEGF)
3.30
1.9
1.8
Crew Energy Inc. (CR.TO)
CA$3.02
CA$0.5
2.5

Source: YCharts

Cardinal Energy Ltd.: Cardinal Energy is a Canada-based oil and gas company engaged in the acquisition, development, and production of crude oil and natural gas in Canada’s western provinces. On Nov. 4, 2021, Cardinal Energy announced results for Q3 2021 ended Sept. 30, 2021. The company reported a dramatic improvement in earnings during the quarter, posting a large profit compared to a loss in the same quarter a year earlier. Petroleum and natural gas revenue nearly doubled as the company benefited from rising commodity prices.
Baytex Energy Corp.: Baytex Energy is a Canada-based oil and gas company. It is focused on the acquisition, development, and production of crude oil and natural gas in both Canada and the U.S.
Crew Energy Inc.: Crew Energy is a Canada-based natural gas exploration and production (E&P) company. Its operations are primarily focused in the northeast region of the Canadian province of British Columbia.

Fastest Growing Oil and Gas Penny Stocks

These are the top oil and gas penny stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.

Fastest Growing Oil and Gas Penny Stocks
 
Price ($)
Market Cap ($B)
EPS Growth (%)
Revenue Growth (%)
Transportadora de Gas del Sur SA (TGS)
4.41
0.7
465.8
-30.9
Tamarack Valley Energy Ltd. (TNEYF)
3.30
1.3
N/A (see company description)
288.7
Canacol Energy Ltd. (CNE.TO)
CA$3.18
CA$0.6
372.8
20.2

Source: YCharts

Transportadora de Gas del Sur SA: Transportadora de Gas del Sur is an Argentina-based natural gas transportation company. It operates an extensive gas pipeline system in Latin America. The company also produces natural gas liquids (NGLs).
Tamarack Valley Energy Ltd.: Tamarack Valley Energy is a Canada-based oil and natural gas E&P company. The company owns light oil and natural gas properties in western Canada. Tamarack announced in mid-December that it has agreed to acquire Crestwynd Exploration Ltd., a privately-held oil producer, for CA$184.7 million ($146.1 million). The transaction is expected to close on or about Feb. 15, 2022. An EPS growth rate could not be calculated for Tamarack Valley Energyfor the table above since the company’s EPS went from negative in the year-ago quarter to positive in the most recent quarter.
Canacol Energy Ltd.: Canacol Energy is a Canada-based natural gas E&P company. Its operations are focused in Colombia. The company announced in December that it would commence a new share repurchase program through a normal course issuer bid (NCIB), which was approved by the Toronto Stock Exchange (TSX). Canacol was authorized to purchase up to a total of approximately 10.5 million of its common shares between Dec. 24, 2021 and Dec. 23, 2022.

Oil and Gas Penny Stocks with the Most Momentum

These are the oil and gas penny stocks that had the highest total return over the last 12 months.

Oil and Gas Penny Stocks with the Most Momentum
 
Price ($)
Market Cap ($M)
12-Month Trailing Total Return (%)
Athabasca Oil Corp. (ATHOF)
0.97
516.6
497.2
Pipestone Energy Corp. (PIPE.TO)
CA$4.16
CA$798.6
494.3
CGX Energy Inc. (CGXEF)
2.10
702.9
483.8
Russell 1000
N/A
N/A
21.9
Invesco S&P SmallCap Energy ETF (PSCE)
N/A
N/A
49.1

Source: YCharts

Athabasca Oil Corp.: Athabasca Oil is a Canada-based energy company focused on the development of thermal and light oil assets. The company operates within the western Canadian province of Alberta.
Pipestone Energy Corp.: Pipestone Energy is a Canada-based oil and gas E&P company. It is focused on the development of condensate rich assets in the Canadian province of Alberta. The company announced in late November that the TSX has approved the company’s plans to begin a share buyback program under an NCIB. Pipestone Energy was authorized to purchase up to a total of approximately 9.6 million of its common shares between Nov. 25, 2021 and Nov. 24, 2022.
CGX Energy Inc.: CGX Energy is a Canada-based oil and gas E&P company. Its operations are located in Guyana. The company announced in early November that Chief Financial Officer (CFO) Tralisa Maraj was leaving the company, effective immediately. Hill-York Poon was appointed to assume the role of interim CFO until the company finds a permanent CFO.

The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

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