In this article I’ve presented four large-cap energy stocks in the Oil & Gas industry that have been outperforming the market YTD while gaining strong upside momentum. Below is the chart showing the YTD comparison for the 4 stocks and the S&P 500, including Concho Resources Inc. (NYSE:CXO), Anadarko Petroleum Corporation (NYSE:APC), EOG Resources, Inc. (NYSE:EOG), and Pioneer Natural Resources (NYSE:PXD). Pioneer led the gains with a +20.60% increase in share priceas of Feb. 11, 2013.
Source: Google Finance
Concho Resources Inc.
Concho Resources is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. Concho Resources closed at $96.52 with 0.38% gain on Feb. 11, 2013. Concho had been trading in the range of $76.17-$116.82 in the past 52 weeks. Concho Resources has a beta of 1.21.
On Feb. 7, 2013, Concho provided a 2012 operational update and increased 2013 production guidance. For 2012, the full-year production of 29.8 million barrels of oil equivalent (MMBoe) is 26% more than in 2011. The company increased 2013 production guidance range to 33.4-34.8 MMBoe. On Feb. 13, Credit Suisse initiated coverage on Concho Resources with a Neutral rating and a PT of $94.00.
Fundamentally, Concho has an enterprise value of $13.59 billion. Concho Resources has a total cash of $291 thousand with a total debt of $3.64 billion. Concho Resources has a book value of $32.69 per share. The company generates an operating cash flow of $1.27B with a levered free cash flow of $-2.06 billion. Concho Resources has a profit margin of 14.27% and an operating margin of 32.17%. Concho Resources’s ROE is 8.61%.
Technically, the MACD (12, 26, 9) is showing a bullish trend with a diverging MACD difference. The momentum indicator, RSI (14), is indicating a strong buying momentum at 75.61 (above 70 is considered as overbought). Concho is currently trading above its 50-day MA of $85.40 and 200-day MA of $88.86, as seen in the chart below.
Source: StockCharts.com
Anadarko Petroleum Corporation
Anadarko Petroleum Corporation is an independent exploration and production company owning over 2.5 billion barrels of oil equivalent of proved reserves. The Company operates in three segments: Oil and gas exploration and production, Midstream, and Marketing. APC closed at $83.47 with a 1.16% loss on Feb. 11, 2013. Anadarko had been trading in the range of $56.42-$88.70 in the past 52 weeks, and the company has a beta of 1.50.
On Feb. 5, 2013, Anadarko posted a profit of $203 million for Q4, 2012, or 40 cents per share, which is up from a loss of $358 million or -72 cents per share in the year-ago quarter. Adjusted for special items, the profit came in at $457 million or 91 cents per share, beating analyst’ estimate of 72 cents per share, according to FactSet. The share price for APC was boosted by positive earnings.
Fundamentally, Anadarko has an enterprise value of $53.07 billion with a market cap of $41.74 billion. Anadarko has a total cash of $2.47 billion with a total debt of $13.27 billion. Anadarko has a book value of $41.26 per share. Anadarko has a profit margin of 17.97% and an operating margin of 19.23%. Anadarko’s ROE is 11.97%.
Technically, the MACD (12, 26, 9) is showing a bullish trend, but the MACD difference converged in the last trading day. RSI (14) is declining but still showing a bullish lean at 65.92. Andarko is currently trading above its 50-day MA of $77.38 and 200-day MA of $70.64, as seen from the chart below.
Source: StockCharts.com
EOG Resources, Inc.
EOG Resources, Inc. is engaged “in the exploration, development, production, and marketing of natural gas and crude oil mainly in the United States, Canada, the Republic of Trinidad, Tobago, the United Kingdom, etc.” EOG Resources closed at $133.34 with 0.05% gain on Feb. 11, 2013. EOG Resources had been trading in the range of $82.48-$133.68 in the past 52 weeks. EOG has a beta of 1.05.
On Feb. 13, 2013, EOG Resources reported a quarterly loss compared with a year-ago profit, as it wrote down the value of Canadian natural gas assets, as reported by Reuters. Excluding items like the $849 million writedown of assets, EOG Resources reported earnings of $1.61 per share, beating Wall Street’s expectation of $1.35 per share. The company also lowered its spending projection to $7 billion-$7.2 billion, which is below its spending of $7.6 billion in 2012, as the company will spend less on “money losing” natural gas drilling.
Fundamentally, EOG Resources has an enterprise value of $41.31 billion with a market cap of $36.12 billion. EOG Resources has a total cash of $1.11 billion with a total debt of $6.32 billion. EOG Resources has a book value of $50.93 per share, and generates an operating cash flow of $5.25 billion with a levered free cash flow of -3.17 billion. EOG Resources has a profit margin of 11.21% and an operating margin of 17.45%, and its ROE is 9.10%.
