Investing

Validea's Top Five Energy Stocks Based On Joseph Piotroski - 4/14/2019

The following are the top rated Energy stocks according to Validea's Book/Market Investor model based on the published strategy of Joseph Piotroski. This value-quant strategy screens for high book-to-market stocks, and then separates out financially sound firms by looking at a host of improving financial criteria.

BERRY PETROLEUM CORP (BRY) is a small-cap growth stock in the Oil & Gas - Integrated industry. The rating according to our strategy based on Joseph Piotroski is 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Berry Petroleum Corporation is an independent upstream energy company. The company is engaged in the development and production of conventional oil reserves located in the Western United States. It primarily focuses on the exploration of domestic oil and natural gas reserves located in the San Joaquin Basin in California, the Uinta Basin in Utah, the Piceance Basin in Colorado, and the East Texas Basin in Texas. The San Joaquin and East Ventura Basins in California covers an area of over 7,945 net acres of properties located in Midway-Sunset, South Belridge, McKittrick and Poso Creek fields. The Utah Basin consists of operations in the Brundage Canyon, Ashley Forest and Lake Canyon areas that cover an area of over 98,804 net acres. The Colorado operating area consists of coals and carbonaceous shale in the Piceance basin that covers an area of about 8,008 net acres. The East Texas properties cover an area of about 4,533 net acres in Harrison and Limestone Counties.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

CNX RESOURCES CORP (CNX) is a mid-cap value stock in the Coal industry. The rating according to our strategy based on Joseph Piotroski is 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: CNX Resources Corp., formerly CONSOL Energy Inc., is an integrated energy company. The Company's divisions include Exploration and Production (E&P), Pennsylvania (PA) Mining Operations and Other. The E&P division operates through three segments: Marcellus Shale, Coalbed Methane (CBM) and Other Gas, which produce pipeline quality natural gas for sale primarily to gas wholesalers. Its E&P division focuses on Appalachian area natural gas and liquids activities, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. The Other Gas segment is primarily related to shallow oil and gas production and the Chattanooga Shale in Tennessee. The principal activities of the PA Mining Operations division are mining, preparation and marketing of thermal coal, sold primarily to power generators. The Other division includes business activities, such as coal terminal operations and water operations.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

NK LUKOIL PAO (ADR) (LUKOY) is a large-cap value stock in the Oil & Gas - Integrated industry. The rating according to our strategy based on Joseph Piotroski is 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: NK Lukoil PAO is an energy company. The primary activities of LUKOIL and its subsidiaries are oil exploration, production, refining, marketing and distribution. Its segments include Exploration and Production; Refining, Marketing and Distribution, and Corporate and other. The Exploration and Production segment includes its exploration, development and production operations related to crude oil and gas. These activities are located within Russia, with additional activities in Azerbaijan, Kazakhstan, Uzbekistan, the Middle East, Northern and Western Africa, Norway, Romania and Mexico. The Refining, Marketing and Distribution segment includes refining, petrochemical and transport operations, marketing and trading of crude oil, natural gas and refined products, generation, transportation and sales of electricity, heat and related services. The Corporate and other segment includes operations related to finance activities, production of diamonds and certain other activities.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: FAIL CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

MAMMOTH ENERGY SERVICES INC (TUSK) is a small-cap value stock in the Oil Well Services & Equipment industry. The rating according to our strategy based on Joseph Piotroski is 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Mammoth Energy Services, Inc. is an integrated oilfield service company. The Company is engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves. The Company's segments include Contract Land and Directional Drilling Services; Completion and Production Services; Natural Sand Proppant Services, and Remote Accommodation Services. Its Completion and Production Services division provides pressure pumping services, pressure control Services, flowback services and equipment rentals. Its Natural Sand Proppant Services division is engaged in selling, distributing and producing proppant for hydraulic fracturing. Its Contract Land and Directional Drilling Services division provides drilling rigs and crews for operators, as well as rental equipment. Its Remote Accommodation Services division provides housing, kitchen and dining, and recreational service facilities for oilfield workers located in remote areas.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: FAIL CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

EXTRACTION OIL & GAS INC (XOG) is a small-cap value stock in the Oil & Gas - Integrated industry. The rating according to our strategy based on Joseph Piotroski is 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Extraction Oil & Gas, Inc., formerly Extraction Oil & Gas, LLC, is an energy company. It is focused on the acquisition, development and production of oil, natural gas and natural gas liquids (NGL) reserves in the Rocky Mountains, primarily in the Wattenberg Field of the Denver-Julesburg Basin (the DJ Basin) of Colorado. It focuses on the development of the Codell and Niobrara formations. It offers its exploration and production processes in various steps, such as seismic, site preparation, drilling the well, completing the well, monitoring the well and reclaiming the site. The Company utilizes sound walls to mute or redirect noise caused by its operations. The Company uses an electric rig to manage its drilling operations. It uses vapor recovery units to capture emissions from storage facilities. It uses lease automatic custody transfer (LACT) units to collect oil from tanks in a closed-loop system that manages air emissions associated with the oil gathering and transportation process.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS FAIL
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: FAIL CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

Since its inception, Validea's strategy based on Joseph Piotroski has returned 156.70% vs. 153.94% for the S&P 500. For more details on this strategy, click here

About Joseph Piotroski: Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago's Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain during that time. Piotroski's findings were reported in major financial publiations like SmartMoney. Today, he teaches accounting at Stanford University's Graduate School of Business.

About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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