The global economy is reopening, Airplanes, in the U.S. and all over the world, are almost fully operating again, traffic is now back. The reopening of major economies around the world has already sent oil up about 40% since the start of the year, but a surge in driving, as well as an increase in goods transportation and air travel, could push oil prices higher.
“Demand is ramping up very quickly because everybody’s driving, and we have the reopening of Europe, which is really starting to happen,” said Francisco Blanch, global commodities and derivatives strategist at Bank of America.
Now that crude oil prices have risen above $70, the energy sector is once again looking attractive to investors. Oil prices continued to rally on Wednesday, and well-known analysts expect the momentum to continue to rise this summer as supply and demand could create a short-term squeeze that could push up to $80 a barrel or higher.
As Oil prices are poised to push higher in the short term horizon, these four stocks look well-positioned to outperform while oil prices are high, but should also hold well if oil prices fall.
Camber Energy (NYSE: CEI)
Viking Energy Group Inc (OTC US: VKIN)
Petrobras (NYSE: PBR)
Marathon Oil Corp (NYSE: MRO)
Based in Houston, Texas, Camber Energy (NYSE: CEI) is a growth-oriented energy company.
Camber owns approximately 62% of the issued and outstanding common shares of Viking. Such interest was acquired in connection with the transactions described in Camber’s Current Reports on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on December 24, 2020 and January 13, 2021, and which are available under “investors” – “SEC filings” at www.camber.energy.
Through its majority-owned subsidiary, Viking Energy Group, Inc., Camber owns interests in oil and natural gas assets in the Gulf Coast and Mid-Continent regions.
Viking Energy Group Inc (OTC: VKIN) is an energy company with assets in Texas, Louisiana, Mississippi and Kansas.
Viking expects future capital plans to include enhancing existing wells, drilling new wells across our asset base, and acquiring producing assets.
Through its wholly-owned subsidiaries, Viking owns a working interest in multiple oil and gas fields across Texas, Louisiana and Mississippi.
Properties include over 145 active, conventional oil & gas wells, along with several development prospects utilizing hundreds of miles of 3D seismic data, proprietary seismic reprocessing, and AVO analysis of the final data. Also, multiple up-dip-proven field locations have been high-graded and can be drilled and completed. The company has utilized 3D seismic data for the majority of its assets, and management has identified and vetted numerous future drilling locations (mainly “infill drilling” and “behind pipe”).
Key Financial Highlights for Q-1 2021 (all figures are approximate):
- Revenues were $10.49 million as compared to $11.79 million in Q-1 2020
- Current Assets were $11.77 million as compared to $10.99 million in Q-1 2020
- Net Loss was ($9.05 million) as compared to a net income of $19.29 million in Q-1 20201, the majority of which loss was attributable to non-cash items, including a Change in the Fair Value of the Company’s Derivatives (i.e. hedging contracts) ($5.67 mm); Depreciation, depletion, and amortization ($2.36 mm); Amortization of Debt Discount ($1.06 mm); Loss on Debt Settlement ($926k)Value of Stock issuance ($274k); and accretion – ARO ($142k)
- $10.98 million improvements in Stockholder’s Deficit since Dec. 31, 2020
- Adjusted EBITDA was $4.63 million as compared to $6.75 million in Q-1 2020
James Doris, Viking’s President, and Chief Executive Officer, commented, “We are pleased with our Q1 results, especially following the unprecedented conditions experienced in 2020. We are extremely encouraged with the foundation we have established, and are intensely focused on pursuing growth opportunities.”
For additional information, please visit https://www.vikingenergygroup.com.
Last month, Petrobras (NYSE: PBR) awarded a ‘very large’ contract to the seabed-to-surface contractor, Subsea 7 SUBCY, to deliver subsea equipment for the development of the Mero-3 oilfield offshore Brazil. For Subsea 7, a very large contract ranges between $500 million and $750 million.
Discovered more than 10 years ago, the Mero field is a giant deep-water oil field development in the pre-salt Santos Basin.
Petrobras, the largest integrated energy firm in Brazil, made the investment decision to develop the third phase of the Mero project in August 2020. The Mero-3 field is situated nearly 200 kilometers along the coast of Rio de Janeiro, about 7,217 feet below the water surface.
As COVID-19 vaccine rollouts and increased travel demand lift crude prices, Marathon Oil Corp (NYSE: MRO) became the latest oil producer to raise its quarterly dividend.
The oil giant raised its dividend by 33% to 4 cents per share and said it reduced $500 million in debt.
Marathon Oil Corporation operates as an independent exploration and production company in the United States and Equatorial Guinea. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas. As of December 31, 2020, it had estimated proved developed reserves totaling 674 million barrels of oil equivalent (mmboe); and estimated proved undeveloped reserves totaling 298 mmboe.
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