3 Energy Penny Stocks to Add to Your Watchlist Right Now
Right now, energy penny stocks are heating up. And, there are a few reasons why this is the case. Over the past two years, investing in penny stocks in the energy industry has been extremely popular following the crash that occurred at the beginning of the pandemic.
Why Are Energy Penny Stocks Climbing Right Now?
Since then, the Biden Administration has put forth plans to get renewable energy on a bright path with historic demand rises for fossil fuels occurring simultaneously. As a result, we’ve seen many energy penny stocks climb substantially during the past year and a half or so.
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One thing to keep in mind is that the pandemic has a major effect on energy consumption and speculation surrounding the industry. For example, when case numbers rise, we tend to see a correlative dip in energy consumption and vice versa. But, with many believing that the Omicron variant could lead Covid to an endemic state, investors seem bullish on the future of the energy industry at large.
As always, traders should have a complete understanding of what the company does and what its fundamentals are. With energy, this is crucial as it tells exactly where the company is headed and could go in the future. So, with all of this in mind, let’s take a look at three energy penny stocks to add to your watchlist right now.
3 Energy Penny Stocks to Watch in 2022
- Camber Energy Inc. (NYSE: CEI)
- Transocean Ltd. (NYSE: RIG)
- Southwestern Energy Company (NYSE: SWN)
Camber Energy Inc. (NYSE: CEI)
By midday, shares of CEI stock had pushed up by around 4%, which is no small feat considering the rest of the market’s trajectory today. This brings CEI stock’s six-month gain to over 37%, which is one of the reasons that the company has remained so popular.
In addition, CEI is often discussed as a Reddit penny stock due to its constant mentions on the social media platform. Today, however, big news dropped for Camber Energy, which likely is the reason behind its decent uptick during intraday trading. Early on in the day, the company stated that it closed a $100 million equity investment with an institutional investor. The deal, worth 10,544 convertible preferred stock was paid via $5 million in cash and the execution of four promissory notes.
“With the funding commitment in place we can confidently pursue new acquisitions and other important value-added initiatives throughout 2022, yet we have the option of redeeming all or a portion of the shares and not accept the funds if we do not believe it is in the best interest of the company to do so at the particular time. The structure was purposely designed to provide the organization with unprecedented optionality. “
The President and CEO of CEI, James Doris
This is great news for the company and shows just how much progress it is making now and could continue to make in the future. Whether this makes CEI stock worth adding to your list of penny stocks to watch, however, is up to you.
Transocean Ltd. (NYSE: RIG)
Another decent gainer of the day so far is Transocean Ltd., which pushed up by over 3% at midday. This brings its five-day and one-year gain to over 15% and 22% respectively. Today, news was announced that new options for RIG stock are available with a Feb 25th expiration date. This in combination with the overall bullishness on energy penny stocks right now, seems to both be driving RIG’s price increase.
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The most recent news for RIG stock however came over a month ago when it announced a partnership with Intellilift to commercialize products for digital well construction. The pair will aptly name the joint venture, Inteliwell, and it will be used to provide real-time well monitoring, downhole progress, and well conditions.
This is exciting as Transocean is one of the largest offshore drilling contractors in the world. And because of this, the company has a sizable amount of exposure to the energy industry at large. While we have seen high volatility with RIG stock, we are also seeing solid bullish interest with the company right now. With that in mind, do you think that RIG stock is a worthwhile addition to your penny stocks watchlist?
Southwestern Energy Company (NYSE: SWN)
Southwestern Energy is another penny stock that investors have been watching over the past few weeks. In the last twelve months, shares of SWN stock have climbed by a solid 34%, which is no small feat.
If you’re not familiar, SWN is a producer and marketer of natural gas and natural gas liquids. The company states that its main focus is on developing a variety of assets in some of the largest shale basins in the U.S. At the end of last week, SWN made an exciting announcement that caused it to increase in popularity since that time. The company stated that it had completed the acquisition of GEP Haynesville.
This deal comes on the back of the company completing a $1.15 billion offering of 4.75% senior notes due 2032 as well as a $550 million institutional term loan. All of this should offer the company ample funding to continue its operations into the near future and beyond. Whether this makes SWN stock worth watching, however, is up to you.
Are Energy Penny Stocks Worth Buying in 2022?
If you’re looking for the best energy penny stocks to buy in 2022, there are hundreds of options. But, investors need to take a few things into consideration. For one, we need to understand the difference between renewable energy penny stocks and fossil fuel-related penny stocks. Both have different rates of volatility and both may be worth it in different time frames.
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So, understand exactly what your trading strategy is and what your tolerance for risk may be. This will help to align the stocks in your portfolio with your overall investing goals. However, with the energy industry continuing to see heightened bullish sentiment, there is a lot to look forward to. With that in mind, do you think that energy penny stocks are worth buying in 2022?
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