3 Oil And Gas Drilling Stocks Hoarding Cash But With Strong Projected Growth

 |  Includes: ATW, FXEN, HK
by: ZetaKap

Interested in oil & gas drilling companies? Company liquidity is an important consideration in any stock analysis. Liquidity gives a company the ability to make big acquisitions if it sees investment opportunities, a cushion for future lulls in demand, and most importantly, it keeps a company's doors open. Are these the types of stocks that you're looking for? Do you prefer stocks that are projected to grow over the next year? You might be interested in this list.

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.

The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

We first looked for oil & gas drilling stocks. From here, we then looked for companies with a large amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We then looked for businesses with estimated high-growth, with 1-year projected EPS growth above 25%. We did not screen out any market caps.

Do you think these stocks offer both value and growth? Please use our list to assist with your own analysis.

1) Atwood Oceanics, Inc. (NYSE:ATW)

Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Market Cap: $2.63B
Beta: 1.48
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Atwood Oceanics, Inc. has a Current Ratio of 2.76 and Quick Ratio of 2.21 and 1-Year Projected Earnings Per Share Growth Rate of 31.19%. The short interest was 6.86% as of 05/24/2012. Atwood Oceanics, Inc., an offshore drilling contractor, engages in the drilling and completion of exploratory and developmental oil and gas wells worldwide. The company owns 10 mobile offshore drilling units located in the U.S.

2) Halc (NYSE:HK)

Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Market Cap: $1.34B
Beta: 1.88
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Halc has a Current Ratio of 29.52 and Quick Ratio of 29.34 and 1-Year Projected Earnings Per Share Growth Rate of 228.57%. The short interest was 7.62% as of 05/24/2012. Halcn Resources Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas properties in the United States. The company holds its interests in Electra/Burkburnett fields located in Wichita and Wilbarger Counties, Texas; Northeast Fitts and Allen fields in Oklahoma; and various fields in Louisiana. As of December 31, 2010, it had proved reserves of 14.

3) FX Energy Inc. (NASDAQ:FXEN)

Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Market Cap: $273.12M
Beta: 1.70
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FX Energy Inc. has a Current Ratio of 6.47 and Quick Ratio of 6.45 and 1-Year Projected Earnings Per Share Growth Rate of 350.00%. The short interest was 6.53% as of 05/24/2012. FX Energy, Inc. engages in the exploration and production of oil and gas properties primarily in Poland and the United States. The company primarily focuses on the exploration of Rotliegend sandstones in the Permian Basin, Poland. As of December 31, 2011, its estimated proved reserves were 53.

*Company profiles were sourced from Finviz. Financial data was sourced from Google Finance and Yahoo Finance.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.