3 oil stocks to Watch (Nasdaq:TRCH) (OTC:SNEC) (German stocks:OWE)

oil stocks

3 Oil Stocks to Watch

So long the global economy waxes strong so will the price of oil. Here are 3 of the oil stocks that are best poised to benefit from the upward momentum of oil.

As long as the global economy grows, oil prices would remain stable and the oil and gas industry would profit. However, not all oil companies can benefit from the upward performance of the economy. Only those companies that strategically position themselves will. Also, for investors, penny stocks might be the best tool to get into the industry because of their low costs.

For 2019, the oil industry, many analysts have projected, will post strong growth.  Nevertheless, you should note that although those stocks have an extremely attractive potential for high return, they should be handled with a lot of caution as they are speculative in nature. 

Still, these are 3 are of the best oil stocks that are poised to maximally profit from the upward movement of the price of oil.

Torchlight Energy Resources (Nasdaq: TRCH)

Based in Texas, Torchlight Energy Resources operates as an exploration and production (E&P) oil company of high growth. It primarily focuses on acquiring and developing local oil fields, with most of its operations focused on Texas. As of June, Torchlight’s shares have risen by as much as 77% for the year, only underperforming the S&P 500.

©TradingView. July 19, 2019.

Currently, Torchlight has a market capitalisation of approximately $114 million. However, having more than doubled its debt in the past year, it has a high debt to equity ratio of 76%. Hence, importantly, potential investors should consider the small market cap and high debt ratio of Torchlight before they take the plunge.

Sanchez Energy (OTC: SNEC)

When you want to talk about unconventional oil and natural gas fields in the onshore U.S. Gulf Coast, then you should talk of Sanchez. The Houston, Texas-based oil company is focused on the acquisition and development of oil and gas fields with uncommon potential. 

However, Sanchez’s unconventional business model has not been able to help its capital market performance in the past year, as its shares have shed over 60% over the period. Although performance picked up after the notable acquisition of Anadarko Petroleum in early 2017, the company has been struggling. 

©TradingView. July 19, 2019.

The major trouble with Sanchez is meeting its debt obligations. As far as its listing on the NYSE is concerned, the company is treading a narrow path as it has received multiple delisting warnings in recent times. Nevertheless, this can be a good time to buy so as to benefit from a future rebound. 

Weatherford International (German Stocks: OWE)

Weatherford International uses technology to provide innovative solutions to oil and gas operations. One of the world’s largest oilfield services businesses, it has an active stock market presence, with its shares up by over 60% already for the year. However, the company received a letter from NYSE in May that its stock had been suspended and was going to be delisted.

In 2018, Weatherford posted a $2.8 billion loss on $5.7 billion of revenue. Nevertheless, it has shown a notable commitment to bettering its balance sheet. Seeking to achieve a $1 billion incremental EBITDA run rate goal by the end of 2019, it plans to use its free cash flow and proceeds from asset sales to this effect. 

©TradingView. July 19, 2019.

As a potential investor,  you should, therefore, be on the lookout for a turnaround in its books. Weatherford’s stock is now being traded on the “pink sheets” section of the OTC Markets under the stock ticker symbol WFTIF.

About Oluwa Solademi 19 Articles
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