4 Oil & Gas Drillers With Cash On Hand And Analyst Confidence

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 |  Includes: ATW, FXEN, HK, HP
by: ZetaKap

Interested in oil & gas drilling stocks? To help give you ideas where to look, we focused today on companies with good reserves of cash - cash that could fund strategic investments or acquisitions. We narrowed our search to companies that analysts have rated positively recently. You might be interested in the list we came up with.

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).

We first looked for oil & gas drilling stocks. We then looked for companies that analysts rate as "Buy" (2 < mean recommendation < 3). We then looked for businesses that have strong liquidity (Current Ratio>2)(Quick Ratio>2). We did not screen out any market caps.

Do you think these stocks hold solid value? Use this list as a starting-off point for your own analysis.

1) Halc (NYSE:HK)

Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Market Cap: $1.30B
Beta: 1.85
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Halc has a Analysts' Rating of 1.80 and Current Ratio of 29.52 and Quick Ratio of 29.34. The short interest was 8.06% as of 06/05/2012. 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.

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

Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Market Cap: $2.42B
Beta: 1.48
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Atwood Oceanics, Inc. has a Analysts' Rating of 2.20 and Current Ratio of 2.76 and Quick Ratio of 2.21. The short interest was 5.92% as of 06/05/2012. 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.

3) Helmerich & Payne Inc. (NYSE:HP)

Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Market Cap: $4.85B
Beta: 1.21
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Helmerich & Payne Inc. has a Analysts' Rating of 2.30 and Current Ratio of 2.59 and Quick Ratio of 2.43. The short interest was 4.36% as of 06/05/2012. Helmerich & Payne, Inc. engages in the contract drilling of oil and gas wells. It provides drilling rigs, equipments, personnel, and camps on a contract basis to explore for and develop oil and gas from onshore areas and fixed platforms, tension-leg platforms, and spars in offshore areas. The company conducts land drilling operations primarily in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Mississippi, Pennsylvania, Utah, Arkansas, New Mexico, Alabama, Montana, North Dakota, and West Virginia; offshore drilling operations in the Gulf of Mexico, offshore of California, Trinidad, and Equatorial Guinea; and international land drilling operations in Ecuador, Colombia, Argentina, Mexico, Tunisia, and Bahrain.

4) FX Energy Inc. (NASDAQ:FXEN)

Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Market Cap: $250.36M
Beta: 1.72
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FX Energy Inc. has a Analysts' Rating of 1.70 and Current Ratio of 6.47 and Quick Ratio of 6.45. The short interest was 7.03% as of 06/05/2012. 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 Yahoo Finance.

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