Natural gas prices have been under pressure lately, sinking on oversupply and predictions of warmer temperatures.
That’s put plenty of pressure on oil and gas companies, particularly junior explorers and developers. However, not all have fallen by the wayside, and some of 2015’s best natural gas stocks actually managed to see share price gains.
Here’s a look at some of the best natural gas stocks as of late. The list consists of the four TSX- and TSXV-listed oil and gas juniors and developers that have seen the greatest share price gains over the past year.
1. Advantage Oil and Gas (TSX:AAV,NYSE:AAV)
Shares of Advantage Oil and Gas have gained 20.65 percent over the last year to reach $6.66. The company is focused on continuing to develop its Montney natural gas resource in Glacier, Alberta. Advantage announced in mid-December that it is targeting annual production growth of 39 percent in 2016, having recently approved a $120-million capital budget to support that goal. The company’s gas plant was expanded last year in order to accomodate additional production growth in 2016 and 2017.
Advantage Oil and Gas has a market capitalization of $1.14 billion and has traded within a 52-week range of $4.94 to $8.36.
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2. Canacol Energy (TSX:CNE)
Over the past year, Colombia-focused Canacol Energy has seen its share price rise 13.95 percent, to $2.45. In total, 80 percent of the company’s reserves in Colombia are natural gas reserves.
Despite poor oil and gas prices, and pressure on the resource sector overall, Canacol had a fairly busy 2015. It announced a number of new oil and gas discoveries in Colombia, and secured an environmental permit to increase capacity at its Jobo to Cartagena gas pipeline in July, allowing it to increase its net gas production by 65 million standard cubic feet per day.
The company has traded within a 52-week range of $1.96 to $4.21, and has a market capitalization of $393 million.
3. Falcon Oil & Gas (TSXV:FO,LSE:FOG)
Shares of Falcon are up 9.52 percent over the past year, to $0.115 per share. The company currently holds projects in the Beetaloo Basin in Australia, the Karoo Basin in South Africa and the Mako Trough in Hungary, and has a market capitalization of 106.55 million. It has traded within a 52-week range of $0.09 to $0.20.
Falcon saw its share price shoot up in early May 2015 following the release of its full-year financial results on April 29. The release draws attention to the company’s “transformational” farm-out agreement with Origin Resources and Sasol Petroleum Australia for its Beetaloo permits. Later, in October, encouraging results from the first two wells drilled at Beetaloo led the JV partners to accelerate the drill program.
4. Madalena Energy (TSXV:MVN,OTCMKTS:MDLNF)
Madalena Energy saw its share price gain less than some of the others on this list, but the company has still proven to be resilient in the face of weak gas prices. It is up about 3.88 percent over the past year, with shares of the company now trading at $0.27.
Madalena holds a number of oil and gas plays in Canada and Argentina. In November, the company announced increases to oil and gas reserves at three of its Argentinian concessions. Madalena has traded within a 52-week range of $0.20 to $0.43, and has a market capitalization of $146.36 million.
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The data for this article was retrieved on January 7, 2016 using The Globe and Mail’s market data filter and cross-checked using Google Finance. Only oil and gas companies with market capitalization greater than $10 million if listed on the TSXV, and over $50 million if listed on the TSX, are included.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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