Seeking Alpha
Profile| Send Message|
( followers)  
Most energy related stocks have seen nice gains lately, as oil has surged about 20% since the protests and violence started in the Middle East. What makes the names below very interesting is that these companies have reported substantial insider buying, even as stocks have been rising. The fact that insiders are buying these names could be a good sign that there is still significant upside potential in them. All of these companies have seen insider buys which total over $100,000 in recent share purchases. Most companies report constant insider selling, so it's notable to see the heavy buying in these names.
The world economy appears to be generally improving and even though there will be speed bumps along the way, it seems highly likely that even if peace breaks out in the Middle East, oil will remain in strong demand. I think exposure to oil is a must for investors in the long run. In the short term, it has been paying off to buy the dips in energy stocks when they occur. We can also expect to see the usual spike in oil / gas prices as the Summer driving season will be starting up around Memorial Day. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are the six stocks:
Triangle Petroleum (TPLM), is trading around $7.78. Triangle is a independent oil and gas company based in Colorado. These shares have traded in a range between 90 cents to $9.73 in the last 52 weeks. The 50 day moving average is $7.65 and the 200 day moving average is $6.14. TPLM is estimated to lose about 20 cents per share in 2011. You can see the repeated insider buying here.
What Triangle insiders and other investors might be seeing: Triangle owns an interest in the Bakken Shale range, which consists of about 2,600 net acres in the Williston Basin, North Dakota, as well as a 87% interest in about 474,625 gross acres in the Windsor Sub-Basin of the Maritimes Basin, in Nova Scotia. Oil stocks with exposure to the Bakken Range have surged. The CEO of one leading oil company says he thinks there are 20 BILLION barrels of oil in the Bakken. Read about this estimate here.
Energy XXI (EXXI) is trading around $31.74. Energy XXI is a independent oil and gas company, based in Bermuda. These shares have traded in a range between $12.68 to $34.73 in the last 52 weeks. The 50 day moving average is $30.74 and the 200 day moving average is $23.58. EXXI is estimated to earn about 65 cents per share in 2011. You can see the insider buying here.
What Energy XXI insiders and other investors might be seeing: Analysts see earnings estimates for EXXI jumping from 65 cents to $1.81 in 2012, as new wells come into play and rising energy prices boost profit margins. Also, this company should benefit as waiting times and regulations for drilling permits in the Gulf of Mexico improve.
Chesapeake Energy (CHK) is trading around $33.74. Chesapeake Energy is a major independent oil and gas company, based in Oklahoma. These shares have traded in a range between $19.62 to $35.95 in the last 52 weeks. The 50 day moving average is $30.96 and the 200 day moving average is $24.46. CHK is estimated to earn about $2.73 per share in 2011. You can see the insider buying here.
What Chesapeake Energy insiders and other investors might be seeing: Chesapeake has several shale plays: Barnett Shale in the Fort Worth Basin of north-central Texas, Haynesville and Bossier Shales in Louisiana and east Texas, Fayetteville Shale in Arkansas, Marcellus Shale in West Virginia, Pennsylvania, and New York and the Eagle Ford Shale in Texas. Analysts see earnings estimates for CHK rising from $2.73 cents to over $3 in 2012, as rising energy prices boost profits.
Amerigas Partners (APU) is trading around $46.05. Amerigas is a leading distributor of propane fuel products, based in Pennsylvania. These shares have traded in a range between $35 to $51.50 in the last 52 weeks. The 50 day moving average is $48.41 and the 200 day moving average is $44.93. APU is estimated to earn about $2.98 per share in 2011. You can see the insider buying here.
What Amerigas insiders and other investors might be seeing: Amerigas could benefit significantly as the U.S. economy continues to improve. More propane will be used by businesses, and consumers and pricing power should improve for Amerigas. Also, APU pays a generous dividend, $2.82 per share which is equivalent to a 6.2% yield.
Energy Partners Ltd. (EPL) is trading around $15.34. Energy Partners is a independent oil and gas company, based in Louisiana. These shares have traded in a range between $9.61 to $16.88 in the last 52 weeks. The 50 day moving average is $15.54 and the 200 day moving average is $13.08. EPL is estimated to earn about $1.29 per share in 2011. You can see the insider buying here.
What Energy Partners insiders and other investors might be seeing: Analysts see earnings estimates for EPL jumping from $1.29 to $1.56 in 2012, as rising energy prices boost profit margins. Also, this company should benefit as waiting times and regulations for drilling permits in the Gulf of Mexico improve.
Ferrellgas Partners (FGP) is trading around $25.86. Ferrellgas is a leading distributor of propane fuel products, based in Kansas. These shares have traded in a range between $19.05 to $29 in the last 52 weeks. The 50 day moving average is $27.20 and the 200 day moving average is $24.95. FGP is estimated to earn about $2.98 per share in 2011. You can see the insider buying here.
What Ferrellgas insiders and other investors might be seeing: Ferrellgas could benefit significantly as the U.S. economy continues to improve. More propane will be used by businesses, and consumers and pricing power should improve for Ferrellgas. Also, FGP pays a generous dividend, $2 per share which is equivalent to a 7.4% yield.
The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: 6 Energy Stocks With Substantial Insider Buying