Energy stocks have reclaimed center stage in the stock market today, and some penny stocks are following suit. While broader trends saw significant indexes, including the S&P and Dow, float higher, news from Saudi Aramco has shaken investors. As a result, energy penny stocks and larger-cap oil & gas companies are heating up.
Energy Penny Stocks To Watch
- US Well Services Inc. (NASDAQ: USWS)
- Camber Energy (NYSE: CEI)
- Ring Energy (NYSE: REI)
- Dynagas LNG Partners (NYSE: DLNG)
Best Penny Stocks To Buy
If you’re looking for the best penny stocks to buy based on recent events, make sure you’ve got a stomach for volatility. Just as quickly as things have changed for energy stocks, they have also dramatically shifted for broader markets. What happened with Saudi Aramco? During the morning session, reports began hitting the PR wires of an apparent fire at an Aramco facility in Saudi Arabia’s Jeddah. Missle attacks were also mentioned in the initial news breaks.
Markets have already been uneasy after sanctions on Russia put supply constraints on global oil and gas. The focus is on what blowback will result as this latest news appears linked to aggressive actions. Fortunately or unfortunately, in light of these events, oil and gas stocks are some of the first to gain attention from the market. With this in mind, we’ve found a handful of energy penny stocks to watch as the oil & gas industry rallies.
1. US Well Services Inc. (NASDAQ: USWS)
Shares of US Well Services have been treading water over the last few weeks. This came after a massive run-up to highs of nearly $3.50 at the start of March. Rising oil & gas prices have been a primary culprit to a surge in energy stocks, and USWS was part of that trend.
Helping bolster the move higher was a recent patent allowance from the US Patent Office titled ‘High Horsepower Pumping Configuration For An Electric Hydraulic Fracturing System.’ As this is US Well Service’s focus, it adds to the list of growing IP of the company. Next week, the company reports earnings after the market closes on Wednesday. We’ll look to see how US Well Services was able to advance on its 2021 growth path.
In its last update, the company beat Wall Street estimates for both earnings per share and sales during Q3. “During the third quarter of 2021, U.S. Well Services finalized its exit from the conventional pressure pumping market…Although the transition has not come without challenges, we believe U.S. Well Services is incredibly well positioned to capitalize on the growing market demand for electric pressure pumping services,” said Joel Broussard, the Company’s President and CEO, in a Q3 business update. Keep this in mind heading into the week if USWS stock is on your watch list.
2. Camber Energy (NYSE: CEI)
Camber Energy is another one of the popular penny stocks energy traders are following closely. Thanks to a lower price per share and higher volatility, the company has become a top meme stock with the retail market. Camber provides energy and power solutions to commercial and industrial clients. The main region of focus, North America, has become a point of interest recently thanks to new sanctions on the Russian oil supply. Meanwhile, some uncertainty stemming from the recent attacks in Saudi are getting digested by the stock market today.
The question now is, what happens next? Given that this spike in energy stocks was directly tied to breaking news of an attack, more details are likely to follow. As the story develops, we’ll be sure to update. Right now, CEI stock has moved in lockstep with the broader energy sector. Are there any other things to keep in mind with CEI? If you’re subscribing to the latest trend in short squeeze stocks, there might be. Right now, Fintel.IO data shows a short float percentage of 14% on the energy stock. This is likely something traders will weigh depending on how the energy trend unfolds.
3. Ring Energy (NYSE: REI)
Another one of the energy penny stocks bouncing after this news is Ring Energy. We discussed the company earlier this week after identifying some interesting options activity in the stock. At the time of the article, the REI April 14 $4 calls and the May 20, 2022 $4 were in focus. Both have considerable levels of Open Interest right now.
The oil and gas exploration company has become a more significant focus following the latest jump in energy stocks. Ring recently reported earnings, which has helped add some bullish momentum to the March uptrend. The company saw its sales volumes for Q4 jump to 9,153 barrels of oil equivalent per day. That was up 11% from Q3. Revenues also came in higher at more than $59.6 million for the quarter, beating Wall Street estimates by over $10 million.
Should REI stock be on your list of penny stocks to watch now? That might have a lot to do with geopolitical unrest at this point. Given the state of oil and gas right now, thanks to Russia-Ukraine and Saudi Aramco, it will be interesting to see how things unfold over the next few sessions.
4. Dynagas LNG Partners (NYSE: DLNG)
Friday hasn’t only been a big day for oil stocks. Natural gas, specifically liquified natural gas stocks, have also come into focus. That’s based on global headlines prompting more interest in LNG companies. This morning, news circulated that the U.S. plans on delivering at least 15bn cubic meters of LNG to Europe in a bid to reduce reliance on Russian energy. This helped bring some much-appreciated interest to LNG stocks, in particular. One of the penny stocks (now former penny stock), Tellurian Inc. (NYSE: TELL), was a prime example of how compounded energy industry bullishness with LNG-specific news can compound gains in the market.
Dynagas has followed suit, though not to the extent of multiple days of gains. In this case, DLNG stock surged for the first time in months on some of its heaviest trading volumes all year. The company operates as an LNG carrier operator and has contracts. In light of the move made by the U.S., carrier stocks have become a point of interest for traders today. Dynagas has select charters with Shell, Vitol, IBERDROLA, Koch, Gazprom, and OATARGAS, among others.
Will There Be A Bigger Move For Energy Stocks?
If you’re putting together a list of penny stocks based on energy industry catalysts, understand that headline risk can play a significant role. Whether or not sector stocks see a new leg higher or lower might depend heavily on underlying energy prices. Given this as the case, make sure to have your eyes open for more follow-up news. Whether supply-related or conflict-related, we’ve already seen how aggressively energy stocks can move after news hits the press wires.