What does the BP ruling mean for these oil stocks?

By James Dennin for Kapitall.

The supermajor oil company BP (BP) has already paid out $28 billion in damage costs related to its major oil spill in the Gulf Coast, but if a major ruling on Thursday is upheld, the fines could get even steeper.

Throughout litigation, BP had hoped to share more of the blame with its contractors during the spill:  Halliburton (HAL) and Transocean (RIG).  

However, a judge ruled the contractors could not be held responsible for failing to avert a "catastophe" that BP put in place. The company plans to appeal the decision, although legal scholars interviewed by The New York T imes say it will be an uphill battle. 

The news has to be a relief for oil contractors as the ruling, to a certain extent, insulates them from the actions of the conglomerates that hire them. With that in mind, we decided to run a stock screen on this sector to see if there were any stocks whose price may have been affected disproportionately to a discount. 

So we looked for mismatches between share price change and earnings change, which happens when the average full-year earnings estimates for a company grows faster than the company's share price. 

This indicates the possibility that these stocks may be undervalued. Do you still invest in the oil industry? Use the list below to begin your analysis, and let us know what you mean in the comments.  

Click on the interactive chart to view data over time. 

1. Basic Energy Services, Inc. ( BAS): Provides a range of well site services to oil and gas drilling and producing companies in the United States. Market cap at $945.74M, most recent closing price at $23.17.  

The EPS estimate for the company's current year increased from 0.48 to 0.54 over the last 30 days, an increase of 12.5%.

This increase came during a time when the stock price changed by -14.39% (from 27.8 to 23.8 over the last 30 days).  

 

2. Cameron International Corporation ( CAM): Provides flow equipment products, systems, and services to oil, gas, and process industries worldwide. Market cap at $14.59B, most recent closing price at $71.20.  

The EPS estimate for the company's current year increased from 3.96 to 4.16 over the last 30 days, an increase of 5.05%.

This increase came during a time when the stock price changed by 0.19% (from 72.44 to 72.58 over the last 30 days).  

 

3. Hornbeck Offshore Services, Inc. ( HOS): Operates offshore supply vessels (OSVs), multi-purpose support vessels, and a shore-base to provide logistics support and specialty services to the offshore oil and gas exploration and production industry primarily in the United States and Gulf of Mexico. Market cap at $1.45B, most recent closing price at $40.71.  

The EPS estimate for the company's current year increased from 2.46 to 2.76 over the last 30 days, an increase of 12.2%.

This increase came during a time when the stock price changed by -1.06% (from 42.4 to 41.95 over the last 30 days).  

 

4. Newpark Resources Inc. ( NR): Newpark Resources, Inc. and its subsidiaries provide fluids management, waste disposal, and well site preparation products and services primarily to the oil and gas exploration and production industry. Market cap at $998.12M, most recent closing price at $11.82.  

The EPS estimate for the company's current year increased from 0.63 to 0.73 over the last 30 days, an increase of 15.87%.

This increase came during a time when the stock price changed by 6.6% (from 11.66 to 12.43 over the last 30 days).  

 

5. Oil States International Inc. ( OIS): Provides specialty products and services to the oil and gas drilling and production companies worldwide. Market cap at $3.44B, most recent closing price at $63.71.  

The EPS estimate for the company's current year increased from 3.43 to 3.65 over the last 30 days, an increase of 6.41%.

This increase came during a time when the stock price changed by -1.05% (from 63.63 to 62.96 over the last 30 days).  

 

6. Superior Energy Services, Inc. ( SPN): Provides specialized oilfield services and equipment to serve the production and drilling related needs of oil and gas companies. Market cap at $5.31B, most recent closing price at $34.15.  

The EPS estimate for the company's current year increased from 1.71 to 1.83 over the last 30 days, an increase of 7.02%.

This increase came during a time when the stock price changed by -3.43% (from 35.89 to 34.66 over the last 30 days).  

 

7. Weatherford International Ltd. ( WFT): Provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells to independent oil and natural gas producing companies worldwide. Market cap at $18.12B, most recent closing price at $23.12.  

The EPS estimate for the company's current year increased from 1.09 to 1.15 over the last 30 days, an increase of 5.5%.

This increase came during a time when the stock price changed by -6.82% (from 24.03 to 22.39 over the last 30 days).  

(List compiled by James Dennin. EPS data sourced from Yahoo! Finance. Monthly returns sourced from Zacks Investment Research. All other data sourced from finviz.)

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