If you have recently started investing and want to invest less for higher returns, oil and gas stocks should be on your radar because they will yield higher returns over time.
However, having reservations about quick gains is typical for a new investor, so investing in cheap oil and gas stocks is a smart way to start your journey. This article lists evergreen oil and gas stocks that are easy on the pocket and can bring higher returns.
You Should Invest in These Cheap Oil And Gas Stocks
Aemetis, Inc. (NASDAQ: AMTX)
Based in Cupertino, California, Aemetis, Inc. is a biodiesel, ethanol, and biogas company known to sell its products to distributors, retailers, and oil refineries.
Aemetis, Inc. stocks have been performing well since September 2022, and the company has projected growth in the coming years. They have secured a $3 billion deal with Cathay Pacific. The deal will be effective once Aemetis provides the company with 916 million gallons of fuel. Aemetis’ shares are priced at $5.80 currently.
Ring Energy, Inc. (NYSE: REI)
Ring Energy, Inc. is a Texas-based oil and gas company. It has nearly 80 million barrels of oil equivalent in reserve.
The company also owns acres of land in the US. Ring Energy is expected to generate $127 million in cash at the end of 2023, making it a top choice for many seasoned and beginner investors. The shares are currently priced at $1.88. Their stocks performed well in the 2022 financial year, projecting a promising investment option.
VAALCO Energy, Inc. (NYSE: EGY)
VAALCO Energy, Inc. is known for its exploration, development, and production of crude oil and natural gas. They have the strongest balance sheets in the oil and gas industry. This makes the company a reputed name in the industry and a financially stable company with a firm footing.
The company also has a price-to-earnings ratio of 4.91, making it among the cheapest oil and natural gas companies. VAALCO Energy is based in Houston. However, it has facilities in the West African regions of Equatorial Guinea and Gabon. It is a great stock to add to your trading portfolio.
National Energy Services Reunited Corp. (NASDAQ: NESR)
National Energy Services Reunited Corp. is headquartered in Houston, Texas. The oilfield service lets companies explore, develop, and conduct research using their wells.
The company is constantly expanding its portfolio into various industries. 2022 was a successful year for the company, and it has been acquiring minority stakes while looking at the potential to transform them into major ones.
The company also has a foothold in the United Arab Emirates for manufacturing reasons. National Energy Services Reunited Corp. is a wise decision if you are looking for a company that grows your investments over time.
Independence Contract Drilling, Inc. (NYSE: ICD)
Independence Contract Drilling, Inc. is a well-known company involved in contract drilling for oil and gas. Headquartered in Houston, the company has multiple rigs working round the clock to support its growth. By the end of 2023, the enterprise aims to add eight more functional and productive rigs to its portfolio.
The company has focused on increasing its efficiency and has been able to scale significantly between 2022 and 2023 FYQ1. They also have a higher projected backlog at a fixed rate of $32,000 per day for 2024. It is an outstanding stock to invest in, considering the potential its stocks have shown.
Parting words
Investing in cheap oil and gas companies is a long-term investment. It takes oil companies time and strategic planning to grow their businesses. However, this growth is always in the upward direction, indicating a promising return on investment for investors of all sizes.
