Wednesday, 25. April 2018  
31.01.2018 21:58
Author: Nic Wright

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

 

Oil rose to a 3 year high this week as a surprise decline in U.S. gasoline supplies helped ease concerns about lackluster demand.

American gasoline inventories fell by 1.98 million barrels last week, the first draw since early November, the Energy Information Administration said. While crude stockpiles rose seasonally after a record streak of declines.

 

West Texas Intermediate for March delivery rose 23 cents to settle at $64.73 a barrel on the New York Mercantile Exchange. A weakening of the dollar also gave oil a boost as that typically makes commodities more appealing to investors.

 

With increasing likelihood that oil could inch higher, 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 3.5 percent.

 

Despite high dividend yield, Intrinsic Value 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

LAST PRICE

MARKET CAP.

PRICE / EARNINGS

PRICE / BOOK

RETURN ON EQUITY [%]

DIVIDEND YIELD [%]

NETDEBT / EBITDA

 BP PLC

 United Kingdom

504.40

141967

16.9

1.5

4.1

5.6

0.0

 CHINA PETROLEUM & CHEMICAL-H

 China

6.76

815284

15.1

0.9

7.9

5.0

0.0

 CNOOC LTD

 Hong Kong

12.18

437433

13.7

1.1

6.5

4.1

0.7

 ENI SPA

 Italy

14.56

52914

18.2

1.1

3.5

5.5

0.8

 ENSIGN ENERGY SERVICES INC

 Canada

7.27

1142

-11.0

0.6

-8.4

6.8

2.7

 EXXON MOBIL CORP

 United States

86.78

367696

23.6

2.0

7.4

3.7

0.7

 FORMOSA PETROCHEMICAL CORP

 Taiwan

124.00

1181219

17.8

3.4

26.5

4.4

-0.9

 HELLENIC PETROLEUM SA

 Greece

8.71

2662

9.2

1.2

20.2

3.6

2.5

 HELMERICH & PAYNE

 United States

72.71

7897

-191.9

1.9

-2.9

4.3

-0.0

 OCCIDENTAL PETROLEUM CORP

 United States

74.76

57210

91.9

2.8

2.5

4.2

1.2

 OIL & NATURAL GAS CORP LTD

 India

203.45

2610922

10.7

1.1

9.8

3.5

0.3

 REPSOL SA

 Spain

15.22

23705

10.5

0.7

7.5

5.2

1.2

 SK INNOVATION CO LTD

 South Korea

204500.00

18909208

7.8

0.9

11.1

3.9

-0.1

 STATOIL ASA

 Norway

180.00

78040

17.5

2.0

-2.0

3.8

0.1

 TOTAL SA

 France

46.49

117940

12.2

1.3

7.8

5.0

0.7

 VERMILION ENERGY INC

 Canada

46.68

5676

83.5

3.7

3.1

5.6

1.5

 WOODSIDE PETROLEUM LTD

 Australia

33.12

22598

21.6

1.5

7.0

3.8

1.4