AMR

Validea's Top Five Energy Stocks Based On Benjamin Graham - 4/10/2022

The following are the top rated Energy stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.

ALPHA METALLURGICAL RESOURCES INC (AMR) is a mid-cap value stock in the Coal industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Alpha Metallurgical Resources, Inc. is a mining company with operations across Virginia and West Virginia. The Company is principally engaged in supplying metallurgical products to the steel industry. The Company extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities. The Company operates in one reportable segment: Met, which consists of five active mines and two preparation plants in Virginia, fourteen active mines and five preparation plants in West Virginia, as well as expenses associated with certain closed mines. The Met segment operations consist of met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch. The coal produced by its Met segment operations is predominantly met coal with some amounts of thermal coal being produced as a byproduct of mining. It conducts mining operations only in the United States with mines in Central Appalachia.

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.

SECTOR:PASS
SALES:PASS
CURRENT RATIO:PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:PASS
LONG-TERM EPS GROWTH:FAIL
P/E RATIO:PASS
PRICE/BOOK RATIO:FAIL

Detailed Analysis of ALPHA METALLURGICAL RESOURCES INC

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WARRIOR MET COAL INC (HCC) is a small-cap value stock in the Coal industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Warrior Met Coal, Inc. is a producer and exporter of metallurgical coal for the global steel industry from underground mines located in Brookwood, Alabama, southwest of Birmingham and near Tuscaloosa. These underground coal mines are approximately 1,400 to 2,100 feet underground, making them some of the deepest vertical shaft coal mines in North America. The Company's operations also extract methane gas from the Blue Creek coal seam. The Company is a producer and exporter of premium met coal, also known as hard coking coal (HCC), operating longwall operations in its underground mines based in Alabama. The HCC that Warrior produces from the Blue Creek, AL, coal seam contains very low sulfur and has strong coking properties.

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.

SECTOR:PASS
SALES:PASS
CURRENT RATIO:PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:PASS
LONG-TERM EPS GROWTH:FAIL
P/E RATIO:PASS
PRICE/BOOK RATIO:FAIL

Detailed Analysis of WARRIOR MET COAL INC

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SANDRIDGE ENERGY INC. (SD) is a small-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Benjamin Graham is 71% 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: SandRidge Energy, Inc. is an independent oil and natural gas company that is focused on acquisition, development and production activities. The Company's primary areas of operation are the Mid-Continent in Oklahoma and Kansas. The Company holds interests in over 1,442 gross producing wells, approximately 947 of which it operates, and approximately 551,000 gross total acres under lease located primarily in Oklahoma and Kansas. Its productive wells consist of wells that are producing hydrocarbons. The Company sells its oil, natural gas and natural gas liquids (NGLs) to a range of customers, including oil and natural gas companies and trading and energy marketing companies. The Company's subsidiaries include Lariat Services, Inc., SandRidge Exploration and Production, LLC, SandRidge Holdings, Inc., SandRidge Midstream, Inc., SandRidge Operating Company and SandRidge Realty, LLC.

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.

SECTOR:PASS
SALES:FAIL
CURRENT RATIO:PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:PASS
LONG-TERM EPS GROWTH:FAIL
P/E RATIO:PASS
PRICE/BOOK RATIO:PASS

Detailed Analysis of SANDRIDGE ENERGY INC.

Full Guru Analysis for SD>

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BP PLC (ADR) (BP) is a large-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Benjamin Graham is 57% 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: BP p.l.c. is engaged in the global energy business with operations in Europe, North and South America, Australasia, Asia and Africa. The Company delivers heat, light and mobility products and services to customers around the world. The Company's segments include Upstream, Downstream, Rosneft, and Other businesses and corporate. The Upstream segment is responsible for its activities in oil and natural gas exploration, field development and production. The Downstream segment has global marketing and manufacturing operations, and includes the jet fuel, bunkering, bitumen lubricants and petrochemicals business of the Company. Rosneft is the Company's Russian refining business that owns and operates approximately 13 refineries in Russia, and holds stakes in three refineries in Germany, one in India and one in Belarus. It also owns and operates approximately 3,055 retail service stations in Russia and abroad.

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.

SECTOR:PASS
SALES:PASS
CURRENT RATIO:FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:FAIL
LONG-TERM EPS GROWTH:FAIL
P/E RATIO:PASS
PRICE/BOOK RATIO:PASS

Detailed Analysis of BP PLC (ADR)

Full Guru Analysis for BP>

Full Factor Report for BP>

CHESAPEAKE ENERGY CORP (CHK) is a large-cap value stock in the Oil & Gas - Integrated industry. The rating according to our strategy based on Benjamin Graham is 57% 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: Chesapeake Energy Corporation is an independent exploration and production company, which is engaged in the acquisition, exploration and development of properties to produce oil, natural gas and natural gas liquids (NGLs) from underground reservoirs. The Company owns a diverse portfolio of onshore United States unconventional natural gas and liquids assets, including interests in approximately 7,500 gross oil and natural gas wells. Its natural gas resource plays are the Marcellus Shale in the northern Appalachian Basin in Pennsylvania, and the Haynesville/Bossier Shales in northwestern Louisiana. Its liquids-rich resource plays are the Eagle Ford Shale in South Texas and the stacked pay in the Powder River Basin in Wyoming. The Company's marketing operations include oil, natural gas and NGL marketing services, including commodity price structuring, securing and negotiating of gathering, hauling, processing and transportation services, contract administration and nomination services.

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.

SECTOR:PASS
SALES:PASS
CURRENT RATIO:FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:FAIL
LONG-TERM EPS GROWTH:FAIL
P/E RATIO:PASS
PRICE/BOOK RATIO:PASS

Detailed Analysis of CHESAPEAKE ENERGY CORP

Full Guru Analysis for CHK>

Full Factor Report for CHK>

More details on Validea's Benjamin Graham strategy

Benjamin Graham Stock Ideas

About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.

About Validea: Validea is aninvestment researchservice 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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