3 Energy Penny Stocks to Watch Right Now
On September 13th, energy penny stocks saw major bullish momentum to start the day. While there is some news that could be causing this, there is also excitement regarding the long-term of the energy industry. If we look at energy wholly, we can break it down into two rather obvious categories.
Energy Penny Stocks, Worth It or Not?
On one hand, we have fossil fuel-based energy penny stocks. These are the more traditional energy stocks that one may see when researching the industry. And while fossil fuel energy companies are heating up today, investors in these stocks are more in it for the short term.
As a result, on the other hand, we have renewable energy penny stocks. This could be uranium stocks, solar stocks, and any energy company that is working on renewable tech. Right now, renewable energy penny stocks are on fire for both their short-term and long-term potential.
And in regard to this, today news dropped showing that the governor of Illinois will sign a bill that could make it a leader in clean energy. The Climate and Equitable Jobs Act which was voted by the Illinois House on an 83 yes to 33 no vote, will effectively shut down all fossil fuel plants in the state but 2045.
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In addition, it will invest more than $580 million per year in clean energy in the state. While this is a major deal for the state of Illinois, it could also present a domino effect for other states to follow suit. If we look broader for a moment, we see that the U.S. Democrats announced the details of the $150 billion plan in the overall infrastructure bill.
What we see here is that there is a major push right now to get the U.S. toward renewable dependence as quickly as possible. And for that reason, investors continue to focus on clean energy penny stocks. So, considering all of this, let’s take a look at three energy penny stocks to watch right now.
3 Energy Penny Stocks to Watch Right Now
- Denison Mines Corp. (NYSE: DNN)
- Transocean Ltd. (NYSE: RIG)
- Tellurian Inc. (NASDAQ: TELL)
Denison Mines Corp. (NYSE: DNN)
Shares of DNN stock managed to climb during the morning trading session alongside several other uranium stocks. With over 10% in gains in the past five days, DNN stock has climbed by over 140% YTD and 239% in the past twelve months. These encouraging figures represent both the strength of the uranium market and Denison Mines’ business model as well.
So, why are uranium stocks surging right now? Well, currently, the price of uranium is as its highest level since 2014. And as a popular player in the industry, Denison Mines has a chance to take advantage of this. If we look at DNN’s Q2 2021 financial results posted last month, we can get a clearer picture of where the company is right now.
“The Company continues to successfully advance on its ambition of developing the high-grade Phoenix deposit, as potentially one of the lowest cost uranium mines in the world, at a time when the uranium market is showing signs of a sustained recovery and the beginnings of a new contracting cycle.”
President and CEO of Denison, David Cates
Denison has a large number of active uranium mines that should help it to keep its placement near the top. And with the market on uranium only continuing to grow, DNN stock could be worth keeping a close eye on. Whether you add it to your penny stocks watchlist or not, however, is up to you.
Transocean Ltd. (NYSE: RIG)
Another big gaining energy penny stock today is Transocean Ltd. By midday, shares of RIG stock had climbed by almost 7%, bringing its one-month gain to over 12% and twelve-month gain to over 260%. These substantial numbers yet again reflect the positivity of the energy industry during that period.
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For some context, Transocean is considered the world’s largest offshore drilling contractor. It offers drilling rigs on a contract basis as well as equipment, services, and staffing. At the end of August, Transocean announced that it had secured a contract worth $252 million for its new-build ultra-deepwater drillship known as the Deepwater Atlas. The contract from BOE Exploration & Production LLC also includes a $30 million mobilization fee.
“We are extremely pleased to have secured the maiden contract for the Deepwater Atlas; the first of our two 8th generation ultra-deepwater drillship that will enter the market in 2022, both of which will be outfitted for 20,000 psi ultra-deepwater well operations. We are very encouraged by the growing list, across multiple customers, of 20,000 psi opportunities in the U.S. Gulf of Mexico.”
The CEO and President of Transocean, Jeremy Thigpen
So, while RIG is not a clean energy penny stock, it does have a lot to offer as far as traditional energy is concerned. And despite an emphasis on clean energy right now, there is still strong demand for oil and gas as people return to work and travel heightens. Considering this, is RIG stock worth adding to your list of penny stocks to watch or not?
Tellurian Inc. (NASDAQ: TELL)
During trading on September 13th, shares of TELL stock shot up by over 12% to just under $3.30 per share. This brings its YTD gain to over 150% and twelve-month gain to over 295%. While Tellurian is technically a pure-play natural gas company, it has been working to get into the renewables market as well. In its second-quarter 2021 results, Tellurian stated that it held more than $111 million in cash.
“Tellurian’s strengthened balance sheet and commercial success, combined with supportive market fundamentals, enable Driftwood’s continued progression. We exercised our long-term lease option with the Port of Lake Charles and have started on owner’s projects for site preparation.”
CEO of Tellurian, Octavio Simoes
Only a few weeks ago, the company also announced that it will not be proceeding with the underwritten $50 million public offering of 8.25% senior notes. However, the company does plan to move forward with another debt offering in the near future.
While it is a more traditional energy stock, its liquid natural gas or LNG is considered to be a more renewable fossil fuel source. And as a result, some investors have decided to lump it into the renewable energy penny stocks category. With the major emphasis on energy right now, TELL stock could be worth considering for your watchlist.
Are Energy Penny Stocks Worth Buying?
Finding the best energy penny stocks to buy can be challenging. But, with the right research and a commitment to understanding how the energy industry is moving, it can be much easier than previously imagined.
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Right now, there is a lot of bullish sentiment with energy stocks, and it doesn’t look like it’s going anywhere anytime soon. So considering that, which energy penny stocks are on your watchlist right now?
