The following are the top rated Energy stocks according to Validea’s Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
ALPHA METALLURGICAL RESOURCES INC (AMR) is a mid-cap value stock in the Coal industry. The rating according to our strategy based on Benjamin Graham is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Alpha Metallurgical Resources, Inc. is a mining company with operations across Virginia and West Virginia. The Company is principally engaged in supplying metallurgical products to the steel industry. The Company extracts, processes and markets met and thermal coal from deep and surface mines for sale to steel and coke producers, industrial customers, and electric utilities. The Company operates in one reportable segment: Met, which consists of five active mines and two preparation plants in Virginia, fourteen active mines and five preparation plants in West Virginia, as well as expenses associated with certain closed mines. The Met segment operations consist of met coal mines, including Deep Mine 41, Road Fork 52, Black Eagle, and Lynn Branch. The coal produced by its Met segment operations is predominantly met coal with some amounts of thermal coal being produced as a byproduct of mining. It conducts mining operations only in the United States with mines in Central Appalachia.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of ALPHA METALLURGICAL RESOURCES INC
WARRIOR MET COAL INC (HCC) is a small-cap value stock in the Coal industry. The rating according to our strategy based on Benjamin Graham is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Warrior Met Coal, Inc. is a producer and exporter of metallurgical coal for the global steel industry from underground mines located in Brookwood, Alabama, southwest of Birmingham and near Tuscaloosa. These underground coal mines are approximately 1,400 to 2,100 feet underground, making them some of the deepest vertical shaft coal mines in North America. The Company’s operations also extract methane gas from the Blue Creek coal seam. The Company is a producer and exporter of premium met coal, also known as hard coking coal (HCC), operating longwall operations in its underground mines based in Alabama. The HCC that Warrior produces from the Blue Creek, AL, coal seam contains very low sulfur and has strong coking properties.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of WARRIOR MET COAL INC
MAGNOLIA OIL & GAS CORP (MGY) is a mid-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Benjamin Graham is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Magnolia Oil & Gas Corporation is an oil and natural gas company. It is engaged in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquid (NGL) reserves. Its oil and natural gas properties are located primarily in Karnes County and the Giddings area in South Texas, where it targets the Eagle Ford Shale and Austin Chalk formations. The Company’s assets consist of a total leasehold position of approximately 683,145 gross (471,263 net) acres, including 43,511 gross (23,785 net) acres in the Karnes area and 639,634 gross (447,478 net) acres in the Giddings area. The Karnes County Assets are located in Karnes, Gonzales, DeWitt, and Atascosa Counties, Texas, in the core of the Eagle Ford Shale. The acreage comprising the Karnes County Assets also includes the Austin Chalk formation overlying the Eagle Ford Shale. The Giddings Assets are located in Austin, Brazos, Burleson, Fayette, Lee, Grimes, Montgomery, and Washington Counties, Texas.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of MAGNOLIA OIL & GAS CORP
PEABODY ENERGY CORPORATION (BTU) is a mid-cap value stock in the Coal industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Peabody Energy Corporation is a producer of metallurgical and thermal coal. The Company’s segments include Seaborne Thermal Mining, Seaborne Metallurgical Mining, Powder River Basin Mining and Other United States (U.S.) Thermal Mining. The Company’s Seaborne Thermal Mining segment consists of mines in New South Wales, Australia. Its Seaborne Metallurgical Mining segment consists of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, the United States. The Company’s Powder River Basin Mining segment consists of its mines in Wyoming. Its Other U.S. Thermal Mining segment includes operations that reflect the aggregation of its Illinois, Indiana, New Mexico and Colorado mining operations. The Company owns interests in over 17 coal mining operations located in the United States and Australia. It markets and brokers coal from other coal producers, both as principal and agent, and trades coal and freight-related contracts.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | FAIL |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of PEABODY ENERGY CORPORATION
LIBERTY ENERGY INC (LBRT) is a mid-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Liberty Energy Inc., formerly Liberty Oilfield Services Inc., is an integrated oilfield services and technology company. It is focused on providing hydraulic services and related technologies to onshore oil and natural gas exploration and production (E&P) companies in North America. It offers customers hydraulic fracturing services, together with complementary services including wireline services, proppant delivery solutions, data analytics, related goods (including its sand mine operations), and technologies. It primarily provides its services in the Permian Basin, the Eagle Ford Shale, the Denver-Julesburg Basin, the Williston Basin, the San Juan Basin and the Powder River Basin, the Haynesville Shale, the South-Central Oklahoma Oil Province and Sooner Trend Anadarko Canadian Kingfisher, the Marcellus Shale, the Utica Shale, and the Western Canadian Sedimentary Basin. Its hydraulic fracturing fleets consist of mobile hydraulic fracturing units and other auxiliary heavy equipment.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | FAIL |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of LIBERTY ENERGY INC
SANDRIDGE ENERGY INC (SD) is a small-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: SandRidge Energy, Inc. is an independent oil and natural gas company that is focused on acquisition, development and production activities. The Company’s primary areas of operation are the Mid-Continent in Oklahoma and Kansas. The Company holds interests in over 1,442 gross producing wells, approximately 947 of which it operates, and approximately 551,000 gross total acres under lease located primarily in Oklahoma and Kansas. Its productive wells consist of wells that are producing hydrocarbons. The Company sells its oil, natural gas and natural gas liquids (NGLs) to a range of customers, including oil and natural gas companies and trading and energy marketing companies. The Company’s subsidiaries include Lariat Services, Inc., SandRidge Exploration and Production, LLC, SandRidge Holdings, Inc., SandRidge Midstream, Inc., SandRidge Operating Company and SandRidge Realty, LLC.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | FAIL |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of SANDRIDGE ENERGY INC
SUBURBAN PROPANE PARTNERS LP (SPH) is a small-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Benjamin Graham is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Suburban Propane Partners, L.P. is engaged in the retail marketing and distribution of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets. The Company’s segments include Propane, Fuel Oil and Refined Fuels, and Natural Gas and Electricity. The Propane segment is primarily engaged in the retail distribution of propane to residential, commercial, industrial, and agricultural customers and, to a lesser extent, wholesale distribution to large industrial end users. The Company’s Fuel Oil and Refined Fuels segment is primarily engaged in the retail distribution of fuel oil, diesel, kerosene and gasoline to residential and commercial customers for use primarily as a source of heat in homes and buildings. The Natural Gas and Electricity segment engaged in the marketing of natural gas and electricity to residential and commercial customers in the deregulated energy markets of New York and Pennsylvania.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | FAIL |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | FAIL |
| LONG-TERM EPS GROWTH: | PASS |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of SUBURBAN PROPANE PARTNERS LP
ALLIANCE RESOURCE PARTNERS, L.P. (ARLP) is a mid-cap value stock in the Coal industry. The rating according to our strategy based on Benjamin Graham is 57% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Alliance Resource Partners, L.P. is an energy company. The Company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. The Illinois Basin Coal Operation includes the Gibson County Coal, LLC mining complex; the Warrior Coal, LLC mining complex; the River View Coal, LLC mining complex and the Hamilton County Coal, LLC mining complex. The Appalachia Coal Operations include the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining, LLC mining complex. The Oil & Gas Royalties includes oil and gas mineral interests held by AR Midland and AllDale I & II and includes Alliance Minerals’ equity interests in both AllDale III and Cavalier Minerals. The Coal Royalties include coal mineral reserves and resources owned or leased by Alliance Resource Properties that are leased to its mining complexes in both the Illinois Basin Coal Operations and Appalachia Coal Operations.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | FAIL |
| PRICE/BOOK RATIO: | FAIL |
Detailed Analysis of ALLIANCE RESOURCE PARTNERS, L.P.
ARCH RESOURCES INC (ARCH) is a mid-cap value stock in the Coal industry. The rating according to our strategy based on Benjamin Graham is 57% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arch Resources, Inc. is a producer of coal and metallurgical products for steel industry. The Company is a supplier of premium High-Vol A metallurgical coal globally. The Company’s segments include Metallurgical (MET) and Thermal. The MET segment contains the Company’s metallurgical operations in West Virginia. The Thermal segment contains the Company’s thermal operations in Wyoming and Colorado. It also produces low-emitting thermal products for sale to both domestic and international customers. The Company produces sub-bituminous thermal. It supplies thermal products to power generators and industrial customers from mines in Colorado and Illinois. The Company operates approximately seven active mines located in three of the coal-producing regions of the United States. The locations of its mines and access to export facilities enable it to ship coal worldwide.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | FAIL |
| PRICE/BOOK RATIO: | FAIL |
Detailed Analysis of ARCH RESOURCES INC
ANTERO RESOURCES CORP (AR) is a mid-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Benjamin Graham is 57% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Antero Resources Corporation is an oil and natural gas company that is engaged in the exploration, development, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties. The Company’s segments include Gathering and Processing and Water Handling. The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collect and process production from Antero Resources’ wells in West Virginia and Ohio. The gathering and processing segment also includes equity in earnings from the Company’s investments in the Joint Venture and Stonewall. The Water Handling segment includes two independent systems that deliver freshwater from sources including the Ohio River, local reservoirs, and several regional waterways. The water handling segment also includes the Clearwater Facility and other fluid handling services. Its other fluid handling services include high rate transfer, wastewater transportation, disposal, and treatment.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | FAIL |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | FAIL |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of ANTERO RESOURCES CORP
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the “Father of Value Investing” and the founder of the entire field of security analysis, Graham mentored several of history’s greatest investors — including Warren Buffett — and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea’s gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family’s financial woes following his father’s death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
