As the Russia Ukraine conflict intensifies, the energy market becomes more volatile. This weekend, oil prices surged to some of their highest levels in over a decade, with traders speculating on a Russian oil ban. Crude futures jumped to more than $125 per barrel during the early hours of the Monday morning session, stoking bullish momentum for oil stocks. Whether it was penny stocks or stocks over $100, most companies exposed to the oil and gas industry moved higher yet again.
Oil Penny Stocks To Watch
- Camber Energy (NYSE: CEI)
- Borr Drilling (NYSE: BORR)
- Tellurian Inc. (NYSE: TELL)
- Nine Energy Services Inc. (NYSE: NINE)
- Orbital Energy Group Inc. (NASDAQ: OEG)
Oil Stocks & The Russia Ukraine War
Thanks to the Russia Ukraine war, there’s been no shortage of excitement in oil stocks. Throwing in a full-on ban on Russian oil and natural gas from the U.S. and its allies and more fuel was added to the fire (no pun intended). The U.S. House of Representatives added to the pressures saying that it began “exploring strong legislation” to stop Russian oil imports. While this would further isolate Russia from the global economy, it also pulls a significant line of oil supply out of the world’s energy inventory.
As gas prices start hitting consumers at the pump, energy stocks are red hot. Today we look at some of the cheapest oil penny stocks to watch heading into the second week of March.
Camber Energy (NYSE CEI)
Shares of Camber Energy have been on the list of penny stocks to watch since late last year. Following some excitement surrounding its energy technology platform. Camber has acquired a majority interest in companies that give it IP rights to Electric Transmission and Distribution Open Conductor Detection Systems through its subsidiary, Viking Energy. This technology detects transmission line breaks, distribution line breaks, and failure in coupling. Power then gets cut off to the line before it reaches the ground.
Other than this latest tech play, at its core, Camber specializes in the acquisition and development of crude oil and natural gas assets in North America. The company also has exclusive licensing in Canada to a patented carbon-capture system. Thanks to the rise of attention in oil penny stocks, CEI shares have gained plenty of momentum in the stock market this month. Additionally, with the $1 mental resistance mark hovering in the forefront, some traders are looking to see if this industry-wide bull market can give CEI stock a boost to regain compliant price levels with the NYSE.
Borr Drilling (NYSE: BORR)
Another energy penny stock that has steadily climbed recently is Borr Drilling. Unlike Camber, Borr’s stock has been on the move since late last year. In December, the company reported a new contract and letter of award for jack-up drilling rigs expected to begin during the second half of this year. This helped give BORR stock a boost from under $1 to over $2, with the Russia-Ukraine war showing the most recent increase in the market.
Thanks to rising energy prices, Borr reported solid results for the 4th quarter of 2021. In particular, The company’s revenue jumped while management also issued clear guidance for 2022. CEO Patrick Schorn further expanded on this, saying, “Our current expectation for full-year 2022 based on the same employment assessment is to have revenues in the range of $375-$400 million and Adjusted EBITDA in the range of $ 115-$140 million.”
Last week BORR stock surged to highs of $3.32, marking the highest levels the stock has seen since February of 2020. The important thing to remember with BORR and all penny stocks on this list is that they’ve moved up as speculation on oil stocks has grown bullish. If or when there’s a shift in sentiment, it could be essential to monitor fluctuations in related stocks.
Tellurian Inc. (NYSE: TELL)
Oil isn’t the only thing that traders are looking at regarding energy stocks. Natural gas is another area of interest. Tellurian Inc. falls into this category as it focuses on producing and distributing liquified natural gas. There are plans to begin construction on its Driftwood LNG project in April. Last month, CEO Octavio Simoes explained, “Tellurian is optimally positioned with fully executed market-based LNG SPAs and a permitted project. Bechtel will begin construction of Driftwood LNG in April, and we will seek to conclude the financing process shortly thereafter.”
Last year, Tellurian produced over 14 Bcf of natural gas with interests in 78 producing wells within its 11,060 net acres of existing natural gas assets. With the proposed build of its Driftwood project, it will be interesting to see where Tellurian finishes out 2022 and how the latest surge in energy prices affects the company’s growth plans. For now, the LNG company has raised some eyebrows thanks to a surge of interest in energy stocks this month.
Nine Energy Services Inc. (NYSE: NINE)
Low-priced oilfield services company Nine Energy has retaken flight on Monday. Late last week, shares of NINE stock jumped with some of the highest single-day share volumes in years. Nine Energy became another one of the energy penny stocks to add to the list heading into this week when the dust settled.
It isn’t solely industry hype driving attention, though it has supercharged things in the stock market today. The company is scheduled to report its next round of earnings this week. Nine will disclose its Q4 and full-year earnings with a conference call just after the opening bell on March 8th.
Traders will likely watch for signs of continued strength following its Q3 results. Nine shrunk its adjusted loss with improved revenues compared to the second quarter. Something else to consider is management’s expectations discussed in the last quarterly update. In particular, the company discussed how its Capex spending in North America should increase, and paired with higher commodity prices, it “supports increased activity” heading into 2022.
Orbital Energy Group Inc. (NASDAQ: OEG)
In a more diversified approach to the energy industry, Orbital Energy operates through several business units. Orbital Power Services, Orbital Gas Systems, and Orbital Solar Services are in its portfolio.
While oil stocks may be a popular theme in the stock market today, it isn’t the sole reason for Orbital’s place in the retail trading discussion. While crude prices surge, the company continues pushing the envelope on its solar services division. Late last month, Orbital Solar and its JV partner, Jingoli Power, began construction on a 130 Megawatt solar project. This will ultimately become a solar farm in Alabama for Lightsource bp, which operates solar and storage utility projects on a global scale.
Infrastructure companies have held a place on watch lists considering the longer-term outlook for renewables and green energy. Given Orbital’s diversified model, it has a hand in both near-term (oil & gas) and long-term (renewables) energy initiatives.
Best Penny Stocks To Buy Right Now
Something to remember about penny stocks is they can become heavily sentiment-driven. This goes for both bullish and bearish moves. As discussed earlier, when it comes to energy stocks and oil penny stocks right now, the Russia-Ukraine war has acted as a significant catalyst for bullish sentiment for the energy industry. Given that, it will be essential to follow these developments closely.