Anadarko Petroleum Corporation (APC), Range Resources Corp. (RRC), Ultra Petroleum Corp. (UPL): Three Great Energy Stocks to Buy Now

Page 1 of 2

2013 has been a great year for oil and natural gas stocks with many appreciating double digits. As a result, investors are all looking for ways to capitalize on this market. Unfortunately there are hundreds of oil and natural gas stocks, making it difficult for investors to determine which companies are great buys and which ones aren’t. Don’t worry, I’ve found three oil and natural gas stocks that I believe are big-time winners.

Anadarko Petroleum

Anadarko Petroleum Corporation (NYSE:APC) has performed exceptionally well over the past year appreciating 30%, 13% year-to-date. I expect Anadarko Petroleum Corporation (NYSE:APC)’s share price to continue to rise due to increased production & rising natural gas prices, which in turn will lead to increased profits. Total production increased 10% last year and is expected to increase going forward. Anadarko Petroleum Corporation (NYSE:APC) plans to spend $5.5 billion on U.S. capital expenditures. While the majority of APC’s revenues come from U.S. operations, they do still have a strong global presence. International production accounted for 27% of total revenues in 2012 and is expected to increase as Anadarko Petroleum Corporation (NYSE:APC) plans to spend $1 billion in capital expenditures on its international operations. The decision to increase international spending has paid off as in 2012 Anadarko made some significant discoveries of oil in Ghana and natural gas in Mozambique.

Trading at $85.87, APC is great value and a strong long-term buy. Anadarko Petroleum Corporation (NYSE:APC) has an inexpensive forward earnings multiple of 16.5 times 2013 earnings plus a PEG ratio of 1.04. APC receives strong analyst coverage with 91% of 32 analysts issuing a BUY rating. The company has the right mix of onshore U.S. developments and foreign exploration projects to continue to thrive. Revenues should increase as well benefiting from profitable new discoveries. Overall, Anadarko Petroleum Corporation (NYSE:APC)’s a great oil play and the added benefit of natural gas exposure is a huge bonus, especially if prices rise.

Range Resources

Range Resources Corp. (NYSE:RRC) stock price has steadily climbed over the past year with shares appreciating +21% year-to-date and +38% the past 12 months. Going forward, there is nothing to doubt that Range Resources Corp. (NYSE:RRC) won’t continue to rise as future production is expected to grow between 20% to 25%. The company’s total resource potential is estimated to be anywhere between 50 to 70 trillion cubic feet. Being a low-cost producer, Range Resources Corp. (NYSE:RRC) should yield exceptional profits from these upbeat production numbers.

The company’s new strategy and focus on per-share growth instead of focusing on growth at all costs will be a big driving going forward and a key factor in surging share prices. With increased production and exports expected to continue to grow, there is little to suggest that Range Resources Corp. (NYSE:RRC)’s stock won’t stop continuing to rise.

Ultra Petroleum

Like Range Resources Corp. (NYSE:RRC), Ultra Petroleum Corp. (NYSE:UPL) is another low-cost producer utilizing a new strategy to increase overall future production. Ultra Petroleum Corp. (NYSE:UPL) now uses their cost position to focus on profitable growth. Ultra Petroleum Corp. (NYSE:UPL) has cut back its capital program to make sure they invest within their cash flow. In doing so, they were able to trim off more than a billion dollars from their capital plans for this year alone. Ultra Petroleum Corp. (NYSE:UPL)’s management team has chosen this strategy to keep the business more efficient and cash flow positive. They want to avoid the possibility of future cash flow problems and believe this new strategy will allow for them to spend only what they can afford. The fiscal belt-tightening has been evidenced by a cut in its capex from $1.56 billion in 2011 to just $415 million this year.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!