3 Undervalued Oil Stocks as Prices Soar

so we're up to $77 Brent and $71 WTI ... so how about some undervalued oil stocks to look at?

1) Apache (good leverage to higher oil prices)

2) Marathon (biggest, most diversified presence in terms of E&P but everyone's on to this already)

3) Carrizo (mid-cap, Eagle Ford, Delaware, beat earnings estimates and looks like good upside)

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Nice picks.  I've heard Jim Cramer speak often of Apache and Marathon.  Even though oil prices are at multi-year highs I can't believe the energy bears and claiming this is temporary.  I think WTI oil is going much higher, all the way to 100 and more.  Most of our oil stocks will soar, even those that have debts and challenges they are facing. 

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Another more gassy pick - RRC. They had the *#@) kicked out of it and after a positive Q1, I think they'll surprise markets with decent earnings next season.

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(edited)

Is anyone looking at Laredo Oil (LRDC)? They have a partnership with Alleghany (Y) and are currently engaged in enhanced oil recovery projects in Wyoming and Louisiana.

The stock has made a bit of a move up recently, but still only has a market cap of about $5 million.

Curious if anyone else is following their story.

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Edited by highstreettrader
Adding quote
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5 million market cap? are they actually producing something?!

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Their stock tanked late last year when they told investors they were going to outspend cash flow to expand production ... 

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(edited)

The properties are producing oil via conventional methods currently. Per their 10-Q, they are in the process of implenting their Underground Gravity Drainage (UGD) or enhanced oil recovery method at the Teapot Dome in Wyoming and in Louisiana.

This is a relatively unknown company, that has a large partner through Alleghany Capital and the private company Stranded Oil Resources Corporation (same CEO as Laredo). SORC was created for these enhanced oil recovery projects. Laredo acts as the field management company and gets a fee for these services and also has a royalty deal on the proceeds once the initial investment capital provided to SORC is paid.

54 million shares outstanding and executives own 36 million per their filings. This used to trade much higher before the oil swoon in 2015. There was some trial and error along the way, however, the company has been doing a lot of hiring recently, so I get the impression things are starting to ramp up again. 

14 hours ago, highstreettrader said:

Is anyone looking at Laredo Oil (LRDC)? They have a partnership with Alleghany (Y) and are currently engaged in enhanced oil recovery projects in Wyoming and Louisiana.

The stock has made a bit of a move up recently, but still only has a market cap of about $5 million.

Curious if anyone else is following their story.

 

Edited by highstreettrader
Correction
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4 hours ago, highstreettrader said:

The properties are producing oil via conventional methods currently. Per their 10-Q, they are in the process of implenting their Underground Gravity Drainage (UGD) or enhanced oil recovery method at the Teapot Dome in Wyoming and in Louisiana.

This is a relatively unknown company, that has a large partner through Alleghany Capital and the private company Stranded Oil Resources Corporation (same CEO as Laredo). SORC was created for these enhanced oil recovery projects. Laredo acts as the field management company and gets a fee for these services and also has a royalty deal on the proceeds once the initial investment capital provided to SORC is paid.

54 million shares outstanding and executives own 36 million per their filings. This used to trade much higher before the oil swoon in 2015. There was some trial and error along the way, however, the company has been doing a lot of hiring recently, so I get the impression things are starting to ramp up again. 

 

LOL - I'd rather buy a wet newspaper

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