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Energy Companies Bumping It Up After Long Time Lows



July 12, 2011 – Comments (0) | RELATED TICKERS: SGY , FXEN.DL , AREX

The oil market has been reletively strong in comparison to the market as a whole. Despite oil and gas markets being strong, there were also a number of these stocks that were in a 52 week slump. With the slump behind them, these 6 stock picks from Michael Filloon are on their way up with major increases from their long time lows.


Approach Resources (AREX) is up 297% from its 52 week low. Analysts estimate that Approach will grow 100% this year and 57.7% next. It currently trades for a little over 19 times forward earnings. It has beat earnings for 3 out of the last 4 quarters. The company has 134500 net acres in the Permian Basin, which is 96% of its proven reserves.


 FX Energy Inc (FXEN) is one of the few natural gas stocks I favor. It is up 235% from its 52 week high, and it trades at 39 times forward earnings. Five analysts cover this stock and expect growth of 750% this year and 92.3% next year. Be careful with this name, as the company has had two big earnings misses, and two significant beats. This lack of consistency is concerning. FX Energy was a first mover in accumulating leaseholds in Poland, and has 4 million net acres there.


 Stone Energy (SGY) is up 211% from its 52 week low. It trades for eight times next year’s earnings. Stone is expected to grow 82.9% this year and 7.1% next. Analysts estimate Stone will grow 8% per year for the next five years. It has beat earnings three out of the last four quarters. Stone has made large changes to the company since 2009. It has decreased debt and increased cash on hand. Proved reserves per share and equity market value have increased. Stone plans to use stable GOM production to finance its projects in the Marcellus and Rocky Mountains. Stone has over 75000 acres in the Marcellus, and plans 18 to 20 horizontal wells this year."


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