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Are Energy Penny Stocks the Cure to the Down Market?

3 Penny Stocks to Watch as the Energy Sector Continues to Shoot Up 

Over the past week or two, we’ve seen energy penny stocks continue to climb in value. There are a few reasons for this. Before we get into the causes, let’s look at some of the symptoms. On Tuesday, the international benchmark for oil, Brent Crude, hit $80 per barrel for the first time in almost three years. While this is great news for investors in penny stocks and the oil companies, it could signal a squeeze with the oil industry in the coming months. If we look at the ‘why’, we see that there are several reasons to explain this. 

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For one, Hurricane Idea had a sizable effect on several oil platforms in the Gulf of Mexico. Given that the Gulf is one of the major suppliers of oil to the country, the shortage could have a large impact. In addition, OPEC plans to meet on October 4th to discuss the potential of increasing oil supplies to combat several global shortages. These shortages are being seen in places like Britain, where gas lines are incredibly long. 

In a note, analysts at Goldman Sachs stated that “the current global oil supply-demand deficit is larger than we expected.” If we couple all of this with increased demand in the U.S. as people go back to work and begin traveling once again, we see the situation that we are in currently. So, with all of that in mind, let’s take a look at three energy penny stocks to watch right now. 

3 Energy Penny Stocks to Watch in October 2021 
  1. New Concept Energy Inc. (NYSE: GBR
  2. Camber Energy Inc. (NYSE: CEI
  3. Transocean Ltd. (NYSE: RIG
New Concept Energy Inc. (NYSE: GBR)

New Concept Energy Inc. is an oil and gas penny stock that has climbed by over 17% in the past five days. Despite a sizable drop today, which is most likely a correction, YTD, shares of GBR are up by over 140%. For the past twelve months, that number jumps to over 240%, indicating sizable bullish sentiment.

Since its inception in 1978, the company has acquired over 153 gas-producing wells and 44 non-producing wells. Currently, New Concept’s mineral leases cover about 20,000 acres. The company’s properties focus on the Athens County and Meigs County regions of Ohio, as well as various regions in West Virginia.

Back in August, the company reported its second-quarter results for 2021. In the results, its net income from continuing operations for the quarter ending June 30, 2021, came in at $49,000. It also experienced a net loss of $57,000 from continuing operations year over year. New Concept received other income of $100,000 from a sale of a receivable that had previously been fully reserved.

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Despite no company-specific news, GBR stock managed to shoot up by over 30% on September 27th, before falling by around 17% the next day. It’s worth noting that the company’s volume is more than 4 times its market average as well. Considering all of this information, will GBR make your list of penny stocks to watch?

Penny_Stocks_to_Watch_New_Concept_Energy_Inc_GBR_Stock_ChartCamber Energy Inc. (NYSE: CEI)

Camber Energy Inc. is a penny stock that is at complete top of mind for many investors right now. If you trade penny stocks or blue chips, you’ve likely followed CEI’s one-month gain of almost 500%. While no one puts gains like these past penny stocks, it is still an astounding figure to consider. If you’re not familiar with Camber Energy, it is an oil and natural gas company that is based in Texas. Primarily, the company acquires projects, develops them, and then sells crude oil, natural gas, and natural gas liquids. As of March 31, 2020, the company had 133,442 million barrels of oil equivalent for its total estimated proved reserves.

Last month, Camber announced that it had secured an exclusive IP license for a patented carbon-capture system, This IP license is for the ESG Clean Energy System from ESG Clean Energy LLC. The license is exclusive unlimitedly in Canada, and limited in the United States. This system can generate clean electricity from internal combustion engines and uses waste heat to capture about 100% of the CO2 from the engine without losing efficiency.

“In my view, this transaction positions us as an industry leader in terms of being able to assist with the power generation needs of commercial and industrial organizations while at the same time helping them reduce their carbon footprint to satisfy regulatory requirements or to simply follow best ESG-practices.”

President and CEO of Camber, James Doris

Since this announcement was made, CEI stock has continued to shoot up in value. In the last month, CEI stock has gone from $0.50 per share on average to over $3 per share as of September 28th. Considering its major gains in the past few months, will CEI stock make your list of penny stocks to watch right now?

Penny_Stocks_to_Watch_Camber_Energy_IncTransocean Ltd. (NYSE: RIG)

Another oil and gas penny stock that we have discussed frequently in the past few months is Transocean Ltd. With over 20% in gains in the past five days and 350% in the past year, it’s no wonder that so many investors are paying attention to RIG stock. Transocean provides offshore contract drilling services to a variety of companies around the world.

The company contracts drilling rigs, drilling equipment, and work crews for oil and gas wells. Transocean currently owns or has partial ownership in 37 mobile offshore drilling units. These units include 27 ultra-deepwater floaters and 10 harsh environment floaters, with 2 more ultra-deepwater drillships in construction.

On August 26th, the company secured a $252 million contract for a Newbuild ultra-deepwater drillship. This contract was awarded by BOE Exploration & Production LLC and is for the Deepwater Atlas. The contract included a mobilization fee of $30 million. It also provides a significant performance bonus opportunity based on agreed operating metrics.

“We are extremely pleased to have secured the maiden contract for the Deepwater Atlas; the first of our two 8th generation ultra-deepwater drillships that will enter the market in 2022, both of which will be outfitted for 20,000 psi ultra-deepwater well operations.”

Jeremy Thigpen, the President and CEO of Transocean

In the month since this announcement was made, RIG stock has increased substantially in the market. And, it’s worth noting that it’s likely RIG stock is increasing due to the heightened demand for oil and gas right now. While shares are somewhat volatile, it could be worth taking a look at RIG stock for your penny stocks watchlist

Penny_Stocks_to_Watch_Transocean_Ltd._(RIG_Stock_Chart)Which Penny Stocks Are You Watching Right Now?

Finding the best penny stocks for your buy list can be challenging. But, with so many to choose from, picking the ones with the most value will help you to make money with penny stocks.

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In 2021, it is all about staying up to date with the news, and the current events. So, considering all of these moving parts, which penny stocks are you watching right now?

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