7 Cheap Energy Stocks To Buy Under $20

04. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)

Number of Hedge Fund Holders: 31

Forward P/E Ratio as of September 29: 5.91

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a Brazilian integrated oil and gas company engaged in exploration, production, refining, and distribution. The company operates through three primary segments: Exploration and Production; Refining, Transportation and Marketing; and Gas and Power. With a forward P/E ratio of 5.91, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) offers investors a low valuation opportunity in the energy sector. The stock should be included in the list of cheap energy stocks to buy under $20 due to its consistent performance and strong fundamentals.

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) delivered a solid performance in Q2 2024, achieving a net income of $5.4 billion and an EBITDA of $12 billion, in line with the previous quarter. The company reported operating cash flow of approximately $10 billion, demonstrating robust cash generation despite foreign exchange volatility. These strong financial metrics, combined with efficient production and refining operations, position Petrobras as an attractive investment for value-seeking investors.

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) has been investing heavily in its future growth, particularly in its pre-salt operations, which contributed 81% of its total oil and gas production during the second quarter. The company is expected to start production ahead of schedule at the FPSO Maria Quitéria in the Jubarte field, with an estimated output capacity of 100,000 barrels of oil and 5 million cubic meters of gas per day. Furthermore, the Almirante Tamandaré unit, scheduled to start operations next year, is expected to have a production capacity of 225,000 barrels of oil per day and 12 million cubic meters of gas per day, further solidifying the company’s production capabilities.

On the refining side, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) maintained a high utilization rate of above 90%, which is indicative of its operational efficiency. The ongoing construction of the Rota 3 gas pipeline will further enhance its supply of natural gas, reducing imports and bolstering domestic availability.

Despite experiencing a decrease in hedge fund holders from 40 in Q1 2024 to 31 in Q2 2024, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) remains a strong candidate for investors seeking exposure to the energy sector due to its attractive valuation, substantial production assets, and strategic investments in new projects that promise future growth and profitability.