The share prices of the top oil and gas stocks this month, including Valeura Energy Corp., F3 Uranium Corp., and NGL Energy Partners LP, have more than quadrupled in the past year. Oil and gas stocks, as represented by the Energy Select Sector SPDR ETF (XLE), have risen 5% in the past 12 months compared with a 16% gain for the Russell 1000, which trac🦋ks the broader U.S. stock market.

Here are the top three oil and gas stocks for best value, th🐠e fastest growth, and th💃e most momentum. All data is as of Oct 17.

Best Value Oil and Gas Stocks

These are the oil and gas stocks with the lowest 12-month trailing 澳洲幸运5官方开奖结果体彩网:price-to-earnings (P/E)꧑ ratio. A low P/E ratio means that you're paying less for each dollar of profit generated. Profit can be returned to shareholders in the form of dividends a🍌nd share buybacks.

• Saturn Oil & Gas Inc.: This is an oil and natural gas exploration company with properties located in western Canada. The company also trades 澳洲幸运5官方开奖结果体彩网:over-the-counter under the ticker symbol OILSF.
• Amplify Energy Corp.: An oil and gas exploration company, Amplify Energy has operating properties in Texas, Southern California, Oklahoma, Louisiana, and Wyoming. The company is trading at a reduced P/E ratio partly because of its fourth-quarter earnings for the full year 2022. Its stock price fell by about 25%. The company reported a drop in total revenue of 22% and a decrease in net income of 36%.
• Spartan Delta Corp.: Headquartered in Calgary, Canada, Spartan Delta acquires and explores oil and natural gas properties located in western Canada. The company also trades over-the-counter under the ticker symbol DALXF.

Fastest-Growing Oil and Gas Stocks

These are the top oil and gas stocks ranked by 🤡a growth model that scores companies ღbased on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth.

Sales and earnings are both critical factors in the success of a company. As such, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of a single quarter (such as changes in tax law or restructuring costs) that may make one figure or the other unreprese💜ntative of the business in general. (Companies with quarterly EPS or revenue growth of more than 1,000% were excluded as outliers.)

• Teekay Corp.: Headquartered in Bermuda, Teekay transports crude oil products and offers other marine services. The company owns a fleet of 54 vessels. Over the past year, its stock price has risen 74%, partly because of recent revenue increases. For its most recently reported quarter, the company had an increase in net income of over eightfold, and total revenue grew by 41% over the previous year.
• Crestwood Equity Partners LP: A midstream energy company, Crestwood processes, treats, stores, and transports oil and natural gas resources. Its properties are in Texas, New Mexico, North Dakota, and Montana.
• Kinetic Holdings Inc.: A midstream energy company, Kinetic Holdings operates in the Delaware Basin in Texas. The company gathers, treats, stores, and transports crude oil and natural gas products.

Oil and Gas Stocks With the Most Momentum

These oil and gas🤪 stocks had the highest total return over the past 12 months. Companies with total returns over 1,000% werꦫe excluded as outliers.

• Valeura Energy Corp.: Located in Calgary, Canada, Valeura Energy produces petroleum products and natural gas in Turkey and Thailand. The company also trades over-the-counter under the ticker symbol VLERF.
• F3 Uranium Corp.: Headquartered in Kelowna, Canada, F3 Uranium explores for uranium within northern Saskatchewan. The company changed its name from Fission 3.0 Corp. to F3 Uranium Corp. in January 2023.
• NGL Energy Partners LP: This energy company transports, stores, and sells crude oil and natural gas products. For its most recently reported results, NGL Energy Partners' net income decreased by 15%, and its total revenue fell by 35%.

Advantages of Oil and Gas Stocks

Inflation/interest rate hedge: Historically, rising inflation corresponds to higher oil prices, offering investors a potential portfolio hedge with stakes in oil and gas stocks. Typically, the Federal Reserve raises interest rates to tackle inflation, aiming to lower consumer demand. In that light, the price of 澳洲幸运5官方开奖结果体彩网:West Texas Intermediate crude oil futures has risen by about 12% year-to-date.

Tax advantages: Investing in oil and gas stocks offers a range of tax benefits. Some key advantages include the favorable way active and passive income is treated by the Internal Revenue Service (IRS), as well as how certain drilling and lease costs are deductible. For instance, the IRS tax code considers earnings from oil and gas royalties as passive income and categorizes net losses as 澳洲幸运5官方开奖结果体彩网:active income. This could allow some investors to offset their production revenue losses from other forms of income, such as capital gains.

Risks of Oil and Gas Stocks

Tightening government regulations: Oil and gas stocks face increasing challenges from environmental regulations as governments set targets for lowering carbon emissions and encourage the transition from fossil fuels to renewable energy sources. Stocks in the sector already have high capi🎀tal expenditures; therefore, adding more costs to a📖djust to climate goals eats into cash reserves, especially if energy prices fall.

Price volatility: Oil and gas stocks are prone to significant commodity price volatility, driven by supply-and-demand fundamentals and geopolitical events. A surprise decision to increase production by the Org༺anization of the Petroleum Exporting Countries members can cause a sudden drop in oil prices. Conversely, the outbreak of war can cause a surge in energy prices. For instance, given Russia's position as the world's largest gas exporter, natural gas prices rose about 75% in the first half of 2022 following Russia's invasion of Ukraine. Over the past year, though, natural gas futures have fallen dramatically, by 50%, from their highs during 2022 because of a decrease in demand.

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As of the date this article was written, the author does not own any of the above stocks.