This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

7 Undervalued Oil and Gas Stocks Ripe for Gains

Stocks in this article: DVN SU APA UPL EPD KMP PXD

3. Enterprise Products Partners (EPD)

Company profile: Enterprise, a partnership with a market value of $43 billion, is an integrated provider of natural gas and natural gas liquids services, including processing, transportation and storage.

Dividend Yield: 5.20%

Investor takeaway: Its shares are up 11% this year and have a three-year, average annual return of 31%. Analysts give its shares 13 "buy" ratings, eight "buy/holds," and one "hold," according to a survey of analysts by S&P. S&P has it rated "strong buy" with a $59 price target, which is a 23% premium to the current price.

The ratings firm says it "is well-positioned to benefit from its strategically located assets, diverse cash flows, and solid balance sheet. It has a strong asset base, in our view, with access to high-demand markets and major supply sources" and adds that "we expect rising pipeline volumes to boost earnings and cash flow over the next several years."

Enterprise Products Partners has a forward P/E of 18.4.

2. Pioneer Natural Resources (PXD)

Company profile: Pioneer, with a market value of $10 billion, explores for and produces oil and natural gas in the U.S.

Dividend Yield: 0.10%

Investor takeaway: Its shares are down 7 % this year, including 21% this year. Analysts give its shares 16 "buy" ratings, six "buy/holds," and eight "holds," according to a survey of analysts by S&P. S&P has it rated "strong buy" with a $135 price target, a 63% premium to its current price.

S&P says "a higher liquids mix," meaning a shift to producing more oil and natural gas liquids, should help boost earnings growth to $5.78 per share in 2012 and $8.85 in 2013, up from $3.95 per share last year. Pioneer Natural Resources has a forward P/E of 10.9.

1. Apache (APA)

Company profile: Apache, with a market value of $33 billion, is one of the largest independent exploration and production companies in the U.S. It explores for, develops and produces natural gas, crude oil and natural gas liquids. An international company, in North America, its interests is focused on the Gulf of Mexico, the Gulf Coast, and Permian and Central regions of the U.S. and Canada thanks to several recent acquisitions.

Apache has gone on an acquisition binge recently, spending more than $18 billion over the past several quarters and has greatly diversified its product mix of oil and gas and where they are produced, which should serve to mitigate market price swings in any one particular product.

Dividend Yield: 0.7%

Investor takeaway: Its shares are down 5.5% this year, including 14% in the past three months. Analysts give its shares 20 "buy" ratings, six "buy/holds," and seven "holds," according to a survey of analysts by S&P.

S&P has it rated "strong buy" with a $136 price target, a 65% premium to its current price, and that's after knocking down the target price from $145 in May. Apache has a forward P/E of 6.8.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs