5 Fracking Stocks with Encouraging Accounts Receivable

The fracking industry is under fire. So we rounded up 5 fracking stocks showing positive accounts receivable trends.

It's been a really bad week for the oil and gas refining industry. 

A damning new report released by the Center for Public Integrity and The Weather Channel, have called out Texas regulators, saying that they don't, well, regulate the natural gas industry.

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Among other things, the report found that unplanned toxic emissions had more than doubled since 2009 and that companies who are found to be breaking the law aren't even fined. 

And yet, that's not nearly as bad as the firestorm of controversy that Chevron (CVX) brought on itself.

After one of their hydraulic fracturing wells in Pennsylvania exploded killing a worker, the firm (the 11th most profitable in the world) apologized to the town by buying everyone a free pizza. Aaron Task, Yahoo! Finance's Editor in Chief, said the decision "turns tragedy into farce."

Popular opinion still seems very split on the practice of hydraulic fracturing, commonly known as fracking. There are plenty of critics on the left who argue that fracking pollutes groundwater and causes a number of health problems for the people that live near wells. Industry experts and geologists argue that the vast majority of wells are completely sound. 

Methane emissions offer another argument against fracking. A recent study published in  Science suggests that the benefits of natural gas, and the fact that it emits less carbon dioxide than other fossil fuels, are offset by widespread methane leaks.  

We decided to build a list of some of the companies that work in hydraulic fracturing and shale. We started with the holdings in the Unconventional Oil and Gas ETF (FRAK) and screened for companies that had encouraging accounts receivable trends. 

Accounts receivable is money that a company is owed but doesn't have yet. For receivables to decrease while revenue climbs means that the company is doing a better job of increasing its profitability.  

Click on the interactive chart to view data over time. 

1.Encana Corporation ( ECA):Engages in the exploration for, development, production, and marketing of natural gas and natural gas liquids primarily in Canada and the United States. Market cap at $14.01B, most recent closing price at $18.98.

Revenue grew by 35.8% during the most recent quarter ($1,392M vs. $1,025M y/y).

Accounts receivable grew by -16.96% during the same time period ($1,263M vs. $1,521M y/y).

Receivables, as a percentage of current assets, decreased from 36.09% to 25.4% during the most recent quarter (comparing 3 months ending 2013-09-30 to 3 months ending 2012-09-30). 
 

 

2.Chesapeake Energy Corporation ( CHK):Engages in the acquisition, development, exploration, and production of natural gas and oil properties in the United States. Market cap at $17.32B, most recent closing price at $26.40.

Revenue grew by 63.87% during the most recent quarter ($4,867M vs. $2,970M y/y).

Accounts receivable grew by 6.5% during the same time period ($2,440M vs. $2,291M y/y).

Receivables, as a percentage of current assets, decreased from 63.45% to 61.09% during the most recent quarter (comparing 3 months ending 2013-09-30 to 3 months ending 2012-09-30).
 

 

3.Schlumberger Limited ( SLB):Supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Market cap at $118.89B, most recent closing price at $90.48.

Revenue grew by 7.63% during the most recent quarter ($11,966M vs. $11,118M y/y).

Accounts receivable grew by 1.29% during the same time period ($11,497M vs. $11,351M y/y).

Receivables, as a percentage of current assets, decreased from 46.99% to 43.84% during the most recent quarter (comparing 3 months ending 2013-12-31 to 3 months ending 2012-12-31).
 

 

4.SeaDrill Limited ( SDRL):Provides offshore drilling services to the oil and gas industries worldwide. Market cap at $17.01B, most recent closing price at $36.27.

Revenue grew by 17.32% during the most recent quarter ($1,280M vs. $1,091M y/y).

Accounts receivable grew by 6.49% during the same time period ($1,116M vs. $1,048M y/y).

Receivables, as a percentage of current assets, decreased from 45.6% to 43.56% during the most recent quarter (comparing 3 months ending 2013-09-30 to 3 months ending 2012-09-30). 
 

 

5.Ensco plc ( ESV):Provides offshore contract drilling services to the oil and gas industry. Market cap at $11.94B, most recent closing price at $51.68.

Revenue grew by 12.7% during the most recent quarter ($1,266.2M vs. $1,123.5M y/y).

Accounts receivable grew by -9.11% during the same time period ($775.5M vs. $853.2M y/y).

Receivables, as a percentage of current assets, decreased from 60.48% to 51.12% during the most recent quarter (comparing 3 months ending 2013-09-30 to 3 months ending 2012-09-30). 
 

( List compiled by James Dennin, a Kapitall Writer. Analyst ratings sourced from Zacks Investment Research, Accounts Receivable sourced from Google Finance. All other data sourced from Finviz.)

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