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This year the energy sector hasn’t been a favorite of the market, but that doesn’t mean the world has become any less dependent on oil. At this point, we’ve seen this temporary dislike of the space as a chance to look for opportunity. After all, when oil prices are down and cash is on hand, this sometimes makes for a good asset buying environment. The names listed here look interesting and are worth reviewing, not only because they're trading near their 52-week lows, but also because they have plenty of cash on hand to take advantage of cheap energy opportunities.

The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn’t mean the company will go bankrupt tomorrow, but it also doesn’t bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.

We first looked for energy stocks trading near their 52-week lows. From this narrowed list of candidates, we then looked for energy companies with a large amount of cash on hand (Current Ratio>2). We did not screen out market caps.

The list is ranked from highest to lowest by the current ratio:

1. Spectra Energy Partners, LP. (NYSE:SEP)

Sector

Energy

Industry

Oil & Gas Midstream

Market Cap

$2,893M

Beta

0.17

The company Spectra Energy Partners, LP operates as an investment arm of Spectra Energy Corp. Spectra Energy Partners, LP, through its subsidiaries, engages in the transportation of natural gas through interstate pipeline systems, and the storage of natural gas in underground facilities in the United States. SEP has a Current ratio of 7.34 & is trading 17.63% above its 52-week low. The short interest was N/A as of 10/14/2011.

2. Diamond Offshore Drilling, Inc. (NYSE:DO)

Sector

Energy

Industry

Oil & Gas Drilling

Market Cap

$9,119M

Beta

1.01

The company Diamond Offshore Drilling, Inc., together with its subsidiaries, operates as an offshore oil and gas drilling contractor worldwide. DO has a Current ratio of 5.18 & is trading 28.21% above its 52-week low. The short interest was 15.70% as of 10/14/2011.

3. Western Gas Partners, LP. (NYSE:WES)

Sector

Energy

Industry

Oil & Gas Midstream

Market Cap

$3,230M

Beta

0.31

The company Western Gas Partners, LP, together with its subsidiaries, engages in the acquisition, ownership, development and operation of midstream energy assets in east and west Texas, the Rocky Mountains and the Mid-Continent. WES has a Current ratio of 3.50 & is trading 24.63% above its 52-week low. The short interest was 1.90% as of 10/14/2011.

4. Rowan Companies, Inc. (NYSE:RDC)

Sector

Energy

Industry

Oil & Gas Drilling

Market Cap

$4,453M

Beta

1.66

The company Rowan Companies, Inc. provides onshore and offshore oil and gas contract drilling services in the United States and internationally. RDC has a Current ratio of 2.71 & is trading 26.66% above its 52-week low. The short interest was 5.20% as of 10/14/2011.

5. Sasol, Ltd. (NYSE:SSL)

Sector

Energy

Industry

Oil & Gas Integrated

Market Cap

$28,127M

Beta

1.26

The company Sasol Limited operates as an integrated energy and chemicals company worldwide. SSL has a Current ratio of 2.39 & is trading 23.07% above its 52-week low. The short interest was N/A as of 10/14/2011.

6. Ultrapar Holdings Inc (NYSE:UGP)

Sector

Energy

Industry

Oil & Gas Refining & Marketing

Market Cap

$9,864M

Beta

0.61

The company Ultrapar Holdings Inc., through its subsidiaries, engages in the distribution of liquefied petroleum gas, and light fuel and lubricants. UGP has a Current ratio of 2.31 & is trading 24.36% above its 52-week low. The short interest was N/A as of 10/14/2011.

We hope this list helps as investors do their own due diligence and research on the energy space.

Source: 6 Oversold Energy Stocks Hoarding Cash While Waiting For The Right Opportunities