In this article, we will take a look at the 5 best oil and gas penny stocks to buy. To see more such companies, go directly to 10 Best Oil and Gas Penny Stocks to Buy.
5. Baytex Energy Corp. (NYSE:BTE)
Number of Hedge Fund Holders: 11
Canadian-based Baytex Energy Corp. (NYSE:BTE) is engaged in the acquisition, development and production of crude oil and natural gas. Baytex Energy Corp. (NYSE:BTE) in June said that it completed its acquisition of Ranger Oil (NASDAQ:ROCC).
Baytex Energy Corp. (NYSE:BTE) now plans to increase direct shareholder returns to 50% of the free cash flow generated by the combined company.
Insider Monkey’s database of 943 hedge funds shows that 11 funds had stakes in Baytex Energy Corp. (NYSE:BTE) as of the end of the March quarter. The biggest stakeholder of Baytex Energy Corp. (NYSE:BTE) was Vince Maddi and Shawn Brennan’s SIR Capital Management which owns a $13.3 million stake in the company.
4. Clean Energy Fuels Corp. (NASDAQ:CLNE)
Number of Hedge Fund Holders: 16
Clean Energy Fuels Corp. (NASDAQ:CLNE) is operating in the natural gas industry. It ranks 4th in our list of the best oil and gas penny stocks to buy according to hedge funds since 16 hedge funds out of the 943 funds in our database reported owning stakes in Clean Energy Fuels Corp. (NASDAQ:CLNE). The biggest stakeholder of Clean Energy Fuels Corp. (NASDAQ:CLNE) during this period was Till Bechtolsheimer’s Arosa Capital Management which owns a $13.4 million stake in Clean Energy Fuels Corp. (NASDAQ:CLNE).
In May, Clean Energy Fuels Corp. (NASDAQ:CLNE) posted Q1 results. Adjusted EPS in the quarter came in at -$0.07. Revenue in the period jumped 58.3% year over year to $132.2 million. In 2023, Clean Energy Fuels Corp. (NASDAQ:CLNE) expects its net loss on a GAAP basis to come in the range of $105 million to $115 million.
3. VAALCO Energy, Inc. (NYSE:EGY)
Number of Hedge Fund Holders: 15
VAALCO Energy, Inc. (NYSE:EGY) shares have gained over 1% year to date. VAALCO Energy, Inc. (NYSE:EGY)’s PE ratio as of July 12 stands at 6.98. In May VAALCO Energy, Inc. (NYSE:EGY) posted Q1 adjusted EPS of $0.07 missing estimates by $0.10. Revenue in the quarter jumped 17.1% year over year to $80.4 million but missing estimates by $7.01 million.
Insider Monkey’s proprietary database of hedge funds shows that 15 hedge funds had stakes in VAALCO Energy, Inc. (NYSE:EGY) as of the end of the first quarter. The total value of these hedge funds’ stakes was about $35 million. The most notable hedge fund stakeholder of VAALCO Energy, Inc. (NYSE:EGY) was George Baxter’s Sabrepoint Capital which owns an $11 million stake in the company.
2. TETRA Technologies, Inc. (NYSE:TTI)
Number of Hedge Fund Holders: 19
Energy services and solutions company TETRA Technologies, Inc. (NYSE:TTI) ranks 2nd in our list of the best oil and gas penny stocks to buy according to hedge funds.
A total of 19 hedge funds in Insider Monkey’s database held stakes in TETRA Technologies, Inc. (NYSE:TTI) as of the end of the first quarter of 2023. The total worth of these hedge fund stakes is about $30 million.
TETRA Technologies, Inc. (NYSE:TTI) recently jumped after the company said its second quarter net and adjusted EBITDA will surpass its previous guidance, thanks to industrial calcium chloride business, strong offshore completion fluids activity and improved margins in its Water and Flowback Services segment.
1. W&T Offshore, Inc. (NYSE:WTI)
Number of Hedge Fund Holders: 21
Oil and gas company W&T Offshore, Inc. (NYSE:WTI) shares have gained about 4% over the past one year. As of the end of the first quarter, 21 hedge funds tracked by Insider Monkey had stakes in W&T Offshore, Inc. (NYSE:WTI). The biggest stakeholder of W&T Offshore, Inc. (NYSE:WTI) during this period was DE Shaw with an $11 million stake in the company. In May W&T Offshore, Inc. (NYSE:WTI) posted Q1 results. Adjusted EPS in the period came in at -$0.02. Revenue in the quarter fell 30.6% year over year to $131.73 million.
Kingdom Capital Advisors made the following comment about W&T Offshore, Inc. (NYSE:WTI) in its Q4 2022 investor letter:
“W&T Offshore, Inc. (NYSE:WTI) was our favorite trading vehicle, taking advantage of its volatile nature and gunslinging risk management department, to ride multiple >100% moves in the stock during 2022. WTI is a Gulf of Mexico E&P with a colorful CEO, no capital return plan, a valuable pile of reserves, and a slug of calls on the price of natural gas. We found this to be an exciting trade to express our belief in energy stocks, and a dangerous place to stay after sentiment peaks.”
You can also take a peek at 12 Best NASDAQ Stocks Under $20 and 10 Best Artificial Intelligence Stocks Under $10.
