Are These Energy Penny Stocks on Your Watchlist Right Now?
Energy penny stocks are heating up today. While some big gains occur without news, there are a few reasons for the bullish sentiment around energy stocks right now. With the pandemic beginning to slow in many places around the world, demand for oil and gas is once again rising. This is the result of higher rates of travel, people returning to work, and so on.
As a result, Brent crude was up around 94 cents at the end of last week, with U.S. oil approaching $75 at the same time. All of this indicates that there is high demand, and lower than needed supply. And if we use basic economic principles, we see that this is driving the price up. Because of this, there are plenty of penny stocks that are benefitting right now.
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This includes companies like Camber Energy Inc. (NYSE: CEI), which we’ve been covering for months now following its almost 400% gain since the beginning of September. Other big gainers of the day thus far include Transocean Ltd. (NYSE: RIG), pushing up by almost 8%, and NexGen Energy Ltd. (NYSE: NXE) among others. Considering the large bullish sentiment with energy penny stocks right now, let’s take a look at three that could be worth adding to your watchlist right now.
3 Energy Penny Stocks to Watch Right Now
- Borr Drilling Limited (NYSE: BORR)
- Tellurian Inc. (NASDAQ: TELL)
- Gran Tierra Energy Inc. (NYSE: GTE)
Borr Drilling Limited (NYSE: BORR)
Borr Drilling Limited is a penny stock that managed to climb by almost 10% at midday on September 27th. This brings its five-day gain to over 25% which is no small feat. For those unfamiliar, Borr engages in offshore drilling contracting for the oil and gas industry. Borr actively owns, contracts, and operates jack-up rigs for operations in shallow-water areas. The company also provides related equipment and work crews for its rigs. As of December 31st, 2020, the company had 24 jack-up drilling rigs in total.
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On August 30th, Borr Drilling announced its preliminary results for the second quarter of 2021. The company’s operating revenue for this period increased 13% quarter over quarter to $54.8 million. Borr’s adjusted EBITDA went up by $14.4 million quarter over quarter as well. Due to a $21.7 million decrease in income from equity method investments, Borr experienced a net loss of $59.9 million this quarter. Despite this, many investors are enthused with these mostly positive financial results.
“Based on ongoing negotiations expected to be concluded in the coming weeks, we anticipate having 17 rigs operating and generating revenue by year-end. Against a backdrop of elevated oil prices, rig demand reverting to and outpacing pre-pandemic levels, and rig supply naturally reducing, we are well-positioned to benefit from the current environment, and on the way to having all of our 23 delivered rigs working by the end of 2022.”
The CEO of Borr Drilling Limited, Patrick Schorn
Considering this exciting news, does BORR stock deserve a spot on your penny stocks watchlist?
Tellurian Inc. (NASDAQ: TELL)
Tellurian Inc. is another energy penny stock that has been making large bullish strides in the past few weeks. Today, shares of TELL stock shot up by a respectable 7% bringing its five-day and one-month gains to over 24% and 34% respectively. What’s more is that in the past six months and YTD, shares of TELL have climbed by a staggering 78% and 209% respectively. This illustrates a twelve-month gain of over 440% which is not something many other energy penny stocks can boast.
As a pure-play energy company, Tellurian holds a portfolio of natural gas production, liquefied natural gas marketing, and infrastructure assets. Its assets include an estimated 27.6 mtpa LNG export facility and associated pipeline. The company’s goal is to make value for shareholders with its profitability delivering natural gas to its customers.
On August 6th, the company closed its public offering of 35 million shares of common stock at a public offering price of $3 per share. The proceeds from the offering after deductions were $100.7 million. Last month the company announced a public offering of senior notes, however, it did withdraw this shortly after. This follows Nasdaq informing Tellurian that it would not list the bonds because of a procedural interpretation.
The Executive Chairman of the company said, “Clearly the massive retail investment market has been disruptive to the old rules guiding institutional investing, first in equities and now in bonds. Of course, we are disappointed with Nasdaq’s decision and wish it would have advised us earlier in the process.” TELL stock’s volume is much higher than average which is a result of the sizable bullish sentiment on both the company and the energy industry at large. Keeping this in mind, will TELL make your list of penny stocks to watch?
Gran Tierra Energy Inc. (NYSE: GTE)
With around 7% in gains at midday on September 27th, GTE is following suit on the list of penny stocks in the energy sector showing gains today. In the past month, shares of GTE stock have shot up by over 30% and in the past twelve months by over 200%.
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Like the others on this list, Gran Tierra participates in the production of oil and natural gas. Its assets are based in Colombia and Ecuador, where it engages in both the exploration and manufacturing of fossil fuel-based energy. The most recent news from the company came on September 1st when it announced the appointment of Alison Redford to its Board of Directors.
“We are pleased to welcome Alison Redford to Gran Tierra’s Board of Directors. Alison brings a wealth of government, regulatory and international experience and will add valuable perspectives to our Board. We look forward to working with Alison and benefitting from her knowledge and expertise.”
Current Chair of the Board at GTE, Robert Hodgins
In its most recent second-quarter results, GTE posted a 14% increase in total production, with a second half of 2021 free cash flow estimate of around $120 million on the high end. With all of this exciting news in mind, does GTE deserve a spot on your penny stocks watchlist?
Are Energy Penny Stocks Worth Buying?
Finding the best energy penny stocks to buy can be challenging. With so many choices, it all comes down to what the individual company has to offer. But, with the major bullish sentiment in the energy industry right now, there is plenty to look forward to. Considering all of this, do you think that energy penny stocks are worth buying right now?
