Energy Sector: Value Investing Analysis
About the Energy Sector
Companies that produce or refine oil and gas, oilfield-services and equipment companies, and pipeline operators. This sector also includes companies that mine thermal coal and uranium. Companies in this sector include BP, ExxonMobil, Royal Dutch Shell, and China Shenhua Energy.
The Energy sector groups related businesses that share similar economic characteristics, market dynamics, and competitive forces. By analyzing stocks within this sector, you can compare companies on a more level playing field—making it easier to identify which businesses offer the best value for your investment dollars.
Understanding sector performance helps you evaluate whether individual stocks are cheap or expensive relative to their peers. A P/E ratio that looks high in one sector might be a bargain in another. This context is essential for value investors seeking to calculate realistic expected returns.
Energy Stocks: Value Analysis
Below are the stocks we track in the Energy sector, with key value investing metrics. If you have special knowledge about this sector, you have an advantage—use these metrics to find stocks that may be trading below their intrinsic value.
| Company | Current Price | Current Price Discount 10 years |
|---|---|---|
| Callon Petroleum Company (CPE) |
$35.42 | none |
| Extraction Oil & Gas (XOG) |
$64.92 | none |
| Camber Energy (CEI) |
$0.08 | none |
| Mid-Con Energy Partners, LP (MCEP) |
$5.52 | none |
| Solaris Oilfield Infrastructure (SOI) |
$9.86 | none |
| Goodrich Petroleum Corporation (GDP) |
$23.02 | none |
| PJSC LUKOIL (LUKOY) |
$6.96 | none |
| CNOOC Limited (CEO) |
$119.69 | 90% |
| Cosan Limited (CZZ) |
$20.29 | 60% |
| Berry Corporation (BRY) |
$4.31 | none |
| California Resources Corporation (CRC) |
$24.00 | none |
| Crescent Point Energy Corp. (CPG) |
$6.79 | none |
| Sinopec Shanghai Petrochemical Company Limited (SHI) |
$15.34 | none |
| Holly Energy Partners, L.P. (HEP) |
$17.39 | none |
| MRC Global (MRC) |
$11.57 | none |
| Green Plains Partners LP (GPP) |
$12.40 | none |
| Profire Energy (PFIE) |
$1.05 | none |
| Laredo Petroleum (LPI) |
$52.61 | 80% |
| Concho Resources (CXO) |
$65.60 | none |
| Whiting Petroleum Corporation (WLL) |
$25.91 | 90% |
| Oasis Petroleum (OAS) |
$45.12 | none |
| Parsley Energy (PE) |
$16.93 | none |
| GasLog Partners LP (GLOP) |
$7.18 | none |
| CSI Compressco LP (CCLP) |
$1.39 | none |
| QEP Resources (QEP) |
$4.28 | none |
| Crestwood Equity Partners LP (CEQP) |
$28.02 | none |
| NuStar Energy L.P. (NS) |
$15.02 | 20% |
| Western Midstream Partners, LP (WES) |
$16.00 | none |
| Magellan Midstream Partners, L.P. (MMP) |
$50.55 | none |
| TC PipeLines, LP (TCP) |
$30.21 | none |
| DCP Midstream, LP (DCP) |
$38.12 | none |
| Enable Midstream Partners, LP (ENBL) |
$7.05 | none |
| Seacor Holdings (CKH) |
$41.65 | none |
| Navios Maritime Acquisition Corporation (NNA) |
$3.48 | none |
| Apache Corporation (APA) |
$19.52 | 100% |
| Exterran Corporation (EXTN) |
$4.58 | 40% |
| Sprague Resources LP (SRLP) |
$20.00 | none |
| Enerplus Corporation (ERF) |
$16.76 | 40% |
| Peabody Energy Corporation (BTU) |
$8.60 | 90% |
| WPX Energy (WPX) |
$9.43 | none |
| Marathon Oil Corporation (MRO) |
$27.86 | none |
| Teekay LNG Partners L.P. (TGP) |
$17.00 | none |
| Contango Oil & Gas Company (MCF) |
$3.22 | 90% |
| Abraxas Petroleum Corporation (AXAS) |
$1.69 | none |
| PBF Logistics LP (PBFX) |
$19.90 | none |
| Adams Resources & Energy (AE) |
$38.00 | 30% |
| EnLink Midstream, LLC (ENLC) |
$11.68 | none |
| China Petroleum & Chemical Corporation (SNP) |
$45.66 | none |
| Taronis Technologies (TRNX) |
$0.00 | 100% |
| Hess Corporation (HES) |
$134.67 | none |
| Dril-Quip (DRQ) |
$23.23 | 40% |
| Gear Energy Ltd. (GENGF) |
$0.78 | none |
| Baytex Energy Corp. (BTEGF) |
$4.32 | none |
| Panhandle Oil and Gas (PHX) |
$4.15 | 70% |
| World Fuel Services Corporation (INT) |
$27.27 | 40% |
How to Invest in Energy Stocks
Sector-Specific Considerations
When evaluating Energy companies, consider these key factors:
- Sector fundamentals: Is this sector growing, mature, or declining? Growth prospects affect reasonable earnings forecasts.
- Economic sensitivity: How does this sector perform in different economic conditions? Understanding cyclicality helps you time purchases.
- Competitive dynamics: Are barriers to entry high or low? Strong moats protect profits and justify premium valuations.
- Regulatory environment: Does government policy significantly impact this sector? Regulatory changes can create risks or opportunities.
- Capital intensity: Does the business require heavy capital investment? Capital-light businesses often generate better returns.
✓ Sector Analysis Checklist
- Compare P/E ratios within the sector
- Look for strong free cash flow generation
- Assess debt levels relative to peers
- Evaluate dividend sustainability
- Check management track record
- Calculate margin of safety
Common Sector Pitfalls
- Chasing last year's hot sector
- Ignoring sector-wide headwinds
- Overpaying for market leaders
- Neglecting competitive threats
- Failing to diversify across sectors
- Not understanding the business model