Some of the biggest gainers in the market this year have come from the energy sector. And no surprise, really, since the price of crude oil has been rising steadily for the better part of 2009. But it's amongst the juniors and in the alternative energy and energy-related sub-sectors, that some of the most explosive gains have been seen. Here are several names worth looking at: companies with assets the market has recently come to recognize.
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Uranium Energy Corp. (NYSE:UEC) stock has risen nearly 800% since January 1, 2009, placing it among the top 15 appreciating stocks in the Russell 3000 universe year-to-date. The company has interests in over 46,000 acres of potential uranium producing properties from the Mexico border north to Wyoming. Its principal properties, the Goliad and Cebolleta projects, in Texas and New Mexico recently received approvals from state authorities to begin production.
A New, Cleaner Renewable Energy Source
Syntroleum Corporation (Nasdaq:SYNM) is a Tulsa, Oklahoma-based company with a hot idea - and an even hotter share price. The company produces clean, synthetic liquid hydrocarbons that are free of the normal contaminants found in typical hydrocarbon product. Their unique technology can produce kerosene, diesel fuel, jet fuel, naphtha and propane by heating assorted fats and vegetable oils.
SYNM stock is up 300% YTD, with much of the enthusiasm coming from the company's partnering in building the first commercial-scale renewable diesel plant in North America.
Another uranium outfit that's up nearly 150% since bottoming earlier in the year is Cameco Corporation (NYSE:CCJ). Not a junior outfit by any stretch, Cameco sports a market cap of $10.8 billion and has operations spanning several continents.
Two Thundering Juniors
Venoco, Inc. (NYSE:VQ) is a junior oil and gas operation focused on the Gulf of Mexico and the California coast. The company's shares are up 375 YTD, and next year's production guidance numbers look just as exciting: for fiscal 2010 VQ expects over 20,000 barrels of crude production a day.
Warren Resources, Inc. (Nasdaq:WRES) stock is up 300% in only the last two quarters. The company's niche lies primarily in exploring and developing its Rocky Mountain coalbed, natural gas properties. Its waterflood oil recovery program in California's Los Angeles Basin also possesses significant natural gas reserves.
The Bottom Line
It's easy to get caught up with the price of crude and become overly focused on the big cap, integrated producers. A look around the entire energy sector, however, yields a great many worthy companies, large and small, for investors to consider purchasing. (For more, check out Determine What Market Cap Suits Your Style.)
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