Looking for a value company when oil prices rebound? If so, then Swift Energy Co (SFY) should be on the radar. Currently SFY stock is just above a 52-week low of $0.36 per share down 96% from its 52-week high of $10.41 on September 23, 2014.
Like most oil company securities, SFY stock has plummeted as profit margins went negative with the advent of $40 per barrel oil. How long will oil stay below $50 levels? It depends on who you talk to.
Yesterday’s news from OPEC to lower production to bring oil up to $80 a barrel by 2020 brought out some bullish speculators, but the continuing gloomy global economic outlook and talk of supply gluts has kept oil below $50 since late July 2015.
It is not surprising the Saudi’s would look to lowering production at this point since it appears their mission has been accomplished. Rather than curbing production a year ago to prop up oil prices, it was full steam production ahead as oil prices tanked to stymie the burgeoning U.S. shale oil industry.
The hardest hit by the OPEC strategy have been small cap oil producers. The oil companies that can hold on through the current environment will certainly make investors very happy in the long term. Some of these we have reported on here at TKO Stocks include Penn West (PWE), Abraxas Petroleum (AXAS), Forbes Energy Services (FES) and Seventy Seven Energy (SSE).
Now it’s time to add Swift Energy Co (SFY) to the oil stock watch list. Stay tuned TKO’ers!