It has been a big year for small-cap energy companies. The S&P SmallCap 600 Capped Energy Index, which tracks small-cap US companies involved in operating and servicing of the upstream and midstream segments of the oil and gas industry has added over 35 percent in 2013, and the PowerShares S&P SmallCap Energy ($PSCE) ETF that tracks the performance of the index is currently priced at $45.71 per share on the NASDAQ.
Small oil and gas companies have the US shale boom to thank more than anything for the year’s gains, especially those who were able to snatch the best spots in the plentiful Bakken and Eagle Ford shale formations. Dramatic increases in the production of shale oil and gas have turned the notion of American energy independence from a faraway dream into a fast-approaching reality in a very short period of time.
But while many small companies have been well-positioned to profit off of a generally more bullish climate, the rising tide of shale has not necessarily lifted all boats. The following five small-cap oil & gas companies concluded the previous week of trading with the largest percentage of short-selling transactions (a short float of over 20 percent), an indication that investors and traders are betting on further declines. Furthermore, the high percentage of short-selling took place on greater than average volume, as measured by the relative volume ratio (the multiple of a stock’s one-day trading volume against the three-month average).
Bill Barrett Corporation (BBG)
Industry: Oil & Gas Drilling/Exploration
Market Cap: $1.25 billion
Price: $26.22
Relative Volume: 1.27
Short Float: 24.65 percent
Performance YTD: +47.93
Northern Oil and Gas, Inc. (NOG)
Industry: Oil & Gas Drilling/Exploration
Market Cap: $900.81 million
Price: $14.43
Relative Volume: 2.75
Short Float: 22.98 percent
Performance YTD: -14.21 percent
Goodrich Petroleum Corp. ($GDP)
Industry: Independent Oil & Gas
Market Cap: $658.24 million
Price: $17.92
Relative Volume: 2.00
Short Float: 22.62 percent
Performance YTD: +92.27 percent
Swift Energy Co. (SFY)
Industry: Independent Oil & Gas
Market Cap: $545.40 million
Price: $12.57
Relative Volume: 1.61
Short Float: 28.65 percent
Performance YTD: -18.32 percent
Miller Energy Resources, Inc. (MILL)
Industry: Independent Oil & Gas
Market Cap: $334.60 million
Price: $7.70
Relative Volume: 1.00
Short Float: 28.90 percent
Performance YTD: +94.44
