When insiders buy shares on the open market, their companies are usually under valued. Corporate insiders often have the inside track on their companies' prospects. Insider probably wouldn't risk investing too much of their own money into their own company unless they thought the stock might rise.
I screened for companies where at least one insider made an open-market buy in the last 30 days. Here are 3 energy stocks that I found:
1. Lone Pine Resources (LPR) is an independent oil and gas exploration, development, and production company with operations in Canada. The company's reserves, producing properties and exploration prospects are located in the provinces of Alberta, British Columbia, and Quebec and the Northwest Territories. The company was incorporated under the laws of the State of Delaware on September 30, 2010 and, until the completion of its initial public offering on June 1, 2011, the company was a wholly owned subsidiary of Forest Oil Corporation (FST). On September 30, 2011, Forest distributed to its stockholders all of the shares of common stock of Lone Pine it owned and, as a result, Lone Pine became a stand-alone public company. As of December 31, 2011, the company had approximately 401 Bcfe of estimated proved reserves, of which approximately 26% was oil and natural gas liquids and approximately 53% was classified as proved developed. As of December 31, 2011, the company had approximately 1.1 million gross (.8 million net) acres of land (approximately 79% of which is undeveloped) and approximately 151 gross (125 net) proved undeveloped drilling locations.
The stock has seen broad based insider buying by 10 different insiders during the last month.
Mr. Bereznicki was appointed as Lone Pine's Executive Vice President & Chief Financial Officer in July 2011. Mr. Bereznicki purchased 17,500 shares on June 7th. Mr Bereznicki currently holds 86,382 shares of the company.
Mr. Anderson was appointed as Lone Pine's President in November 2010 and as President & Chief Executive Officer and a director in December 2010. Mr. Anderson has served as President of LPR Canada (formerly Canadian Forest Oil Ltd.), since August 2008. Mr. Anderson purchased 5,000 shares on June 4th and 6,500 shares on May 18th. Mr. Anderson currently owns 160,175 shares of the company.
Mr. Keough was appointed to Lone Pine's Board in June 2011. Mr. Keough purchased 15,000 shares on May 24th. Mr. Keough currently owns 49,867 shares of the company.
Mr. Burke was appointed as Lone Pine's Vice President, New Ventures & Technology in November 2011. Mr. Burke purchased 15,000 shares on May 23th. Mr. Burke currently owns 36,195 shares of the company.
Mr. Wonnacott was elected to Lone Pine's Board in September 2011. Mr. Wonnacott purchased 15,000 shares on May 18th. Mr. Wonnacott currently owns 56,837 shares of the company.
Mr. Bush was appointed as Lone Pine's Vice President, Operations in October 2011. Mr. Bush purchased 10,000 shares on May 18th. Mr. Bush currently owns 55,334 shares of the company.
Mr. Kraus was appointed as Lone Pine's Vice President, General Counsel & Corporate Secretary in September 2011. Mr. Kraus purchased 1,400 shares on May 18th. Mr. Kraus currently owns 55,237 shares of the company.
Ms. Mackenzie was appointed as Lone Pine's Vice President, Engineering & Exploitation in March 2011. Ms. Mackenzie purchased 3,000 shares on May 17th. Ms. Mackenzie currently owns 58,309 shares of the company.
Mr. McKenzie was appointed to Lone Pine's Board in September 2011. Mr. Mackenzie purchased 84,700 shares on May 17th. Mr. Mackenzie currently owns 126,537 shares of the company.
2. Continental Resources (CLR) is a top 10 petroleum liquids producer in the United States and the largest leaseholder in the nation's premier oil play, the Bakken Play of North Dakota and Montana. Based in Oklahoma City, the company also has a leading presence in the Anadarko Woodford Play of Oklahoma and the Red River Units Play of North Dakota, South Dakota and Montana. Founded in 1967, Continental's growth strategy has focused on crude oil since the 1980s. The company reported total revenues of $1.6 billion for 2011 and is on track to triple production and proved reserves from 2009 to 2014.
Harold G. Hamm has served as Chief Executive Officer and a director since the company's inception in 1967 and currently serves as Chairman of the board of directors. Hamm purchased 100,000 shares on May 16th. Mr. Hamm currently owns 123,259,048 shares of the company. The company has 180,283,000 shares outstanding which creates Mr. Hamm a 68.4% owner of the company.
3. Gastar Exploration (GST) is engaged in the exploration, development and production of natural gas, natural gas liquids, condensate and oil in the United States. The company's current focus is on the Marcellus Shale play, where the company is in the early stages of developing and producing natural gas reserves that also yield significant quantities of condensate and high-value natural gas liquids. The company's legacy assets are located in the deep Bossier natural gas play in East Texas, where the company currently has gas production from about 25 wells and oil production from four others that are testing shallower oil plays. In addition, the company is a non-operating partner in a small coalbed methane project in the Powder River Basin.
J. Russell Porter has been a member of the company's Board and has served as the company's President and Chief Executive Officer since February 2004. Mr. Porter purchased 50,000 shares on May 23rd. Mr. Porter currently owns 1,125,601 shares of the company. The company has 63,336,437 shares outstanding which creates Mr. Porter a 1.78% owner of the company.
The S&P Oil & Gas Exploration & Production Index is currently down for the year. Only Continental Resources is outperforming the index. By buying all three of these companies I believe you have a high chance of beating this index in one to two years time.
Disclosure: I am long LPR.