Saturday, 16. December 2017  
20.10.2017 12:08
Author: Nic Wright

STOCK SCREEN: Solid Oil & Gas Stocks With High Dividend Yield And Solid Balance Sheet

 

Oil is holding its level above $50 a barrel for quite some time now as speculation that the Organization of Petroleum Exporting Countries will decide to extend supply curbs past the end of March when it meets in Vienna on Nov. 30 is supporting the price.

 

Geopolitical tensions in Iraq have also helped to support prices last week, with Iraqi forces regaining control of Zummar town where Batma and Ain Zala fields are located. But the key driver seems the discussion about extending the OPEC, Russia production agreement against a background of pretty good compliance.

 

The fact that U.S. production has not picked up noticeably in recent times is also increasing the likelihood that oil could inch higher. In looking for ideas this week, we screen the oil and gas sector for low valued stocks with solid balance sheets and good dividend yield.

 

Here are the filter criteria:

1. Market capitalization above 1bn.

2. NetDebt to EBITDA ratio below 3 times

3. Dividend Yield above 4 percent.

 

Despite high dividend yield,  upside seems rather capped in the sector with only few stocks above our Intrinsic Value estimate. Here is our list of stocks in alphabetical order. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted to analyse different growth scenarios with our MODELER forecasting tool:

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

COUNTRY

INDUSTRY

LAST PRICE

MARKET CAP.

PRICE / EARNINGS

PRICE / BOOK

RETURN ON EQUITY [%]

DIVIDEND YIELD [%]

NETDEBT / EBITDA

 BP PLC

 United Kingdom

 Oil & Gas Production

490,60

128120

17,1

1,3

3,9

6,2

0,0

 CHEVRON CORP

 United States

 Oil & Gas Production

118,15

223895

26,0

1,4

2,0

4,1

0,7

 FREEHOLD ROYALTIES LTD

 Canada

 Oil & Gas Production

14,91

1760

65,6

2,0

0,6

4,0

-0,2

 HELLENIC PETROLEUM SA

 Greece

 Oil & Gas Production

7,05

2155

7,8

0,9

19,8

4,7

2,5

 MOTOR OIL (HELLAS) SA

 Greece

 Oil & Gas Production

19,58

2169

9,0

2,2

40,0

5,7

0,4

 OCCIDENTAL PETROLEUM CORP

 United States

 Oil & Gas Production

64,63

49414

57,1

2,3

-2,4

5,0

1,2

 REPSOL SA

 Spain

 Oil & Gas Production

15,29

23346

10,9

0,7

7,4

5,1

1,4

 ROYAL DUTCH SHELL PLC-B SHS

 United Kingdom

 Oil & Gas Production

2338,50

253522

15,1

1,3

4,2

5,9

1,7

 SARAS SPA

 Italy

 Oil & Gas Production

2,17

2064

12,1

2,0

13,9

5,5

-0,2

 STATOIL ASA

 Norway

 Oil & Gas Production

161,50

67114

18,7

1,7

-1,9

4,3

0,1

 VALERO ENERGY CORP

 United States

 Oil & Gas Production

77,62

34282

15,7

1,4

10,4

4,4

0,5