Sunday, July 21, 2013

The Best Oil & Gas Exploration & Production Stock in the S&P 500

Is Range Resources (RRC).

And if it's all the same to everyone, I think I'm just going to let the numbers do the talking from now on.

Let's start with the Omega Ratio, which is a risk measure that divides the Cumulative Weekly Gain % over the past 10 years of trades by the Cumulative Weekly Loss %.

RankSymbolCompanyCumulative Weekly Gains %Cumulative Weekly Losses %Omega Ratio
1 RRC Range Resources Corp.+1201.52%-864.68%1.39
2 EOG EOG Resources+959.53%-691.68%1.39
3 SWN Southwestern Energy+971.12%-708.67%1.37
4 PXD Pioneer Natural Resources+1058.07%-777.25%1.36
5 OXY Occidental Petroleum+872.22%-658.58%1.32
6 BTU Peabody Energy+733.28%-564.31%1.30
7 CNX CONSOL Energy Inc.+796.07%-633.13%1.26
8 APC Anadarko Petroleum Corp+775.38%-627.05%1.24
9 COG Cabot Oil & Gas+993.40%-805.69%1.23
10 WMB Williams Cos.+343.27%-279.55%1.23
11 MRO Marathon Oil Corp.+587.00%-478.99%1.23
12 NBL Noble Energy Inc+608.82%-504.71%1.21
13 DNR Denbury Resources Inc.+802.69%-678.90%1.18
14 APA Apache Corporation+308.12%-266.46%1.16
15 DVN Devon Energy Corp.+784.40%-708.89%1.11
16 NFX Newfield Exploration Co+724.32%-695.67%1.04

Next up is the Sortino Ratio. It divides the Average Excess Return % by Downside Deviation % (<0.22% weekly).

RankSymbolCompanyAverage Weekly Excess Return %Downside Deviation %Sortino Ratio
1 RRC Range Resources Corp.+0.66%2.94%+0.2226
2 SWN Southwestern Energy+0.64%3.11%+0.2053
3 EOG EOG Resources+0.54%2.67%+0.2034
4 PXD Pioneer Natural Resources+0.54%2.85%+0.1906
5 OXY Occidental Petroleum+0.37%2.27%+0.1635
6 BTU Peabody Energy+0.53%3.58%+0.1489
7 CNX CONSOL Energy Inc.+0.49%3.69%+0.1324
8 APC Anadarko Petroleum Corp+0.32%2.54%+0.1263
9 COG Cabot Oil & Gas+0.39%3.14%+0.1252
10 MRO Marathon Oil Corp.+0.25%2.22%+0.1141
11 NBL Noble Energy Inc+0.24%2.24%+0.1092
12 WMB Williams Cos.+0.22%2.09%+0.1073
13 DNR Denbury Resources Inc.+0.31%3.26%+0.0944
14 APA Apache Corporation+0.20%2.65%+0.0750
15 DVN Devon Energy Corp.+0.15%2.45%+0.0631
16 NFX Newfield Exploration Co+0.07%3.22%+0.0224

This is obviously a closer race than the Biotechnology sub-industry, where Gilead Sciences was (and still is) clearly the best stock in the group.

Range Resources is neck and neck with EOG Resources based on their Omega Ratios, but EOG Resources slides to third behind Southwestern Energy when it comes to the Sortino Ratio, so I think we can safely call Range Resources as the winner.

Disclaimer: I do not own any of the stocks mentioned in this post nor do I intend to open any positions in any of these stocks in the next 72 hours.

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