Penny stocks in oil have had a rough time in recent months. Most of the industry reflected the downtrodden price of oil brought on by a glut in the latter half of 2018.
As oil prices declined, so did oil stocks. The resulting decline, however, opened up several opportunities for new investors to snatch up some undervalued penny stocks in a sector that could easily recover once oil prices do.
Oil Penny Stocks: MCEP
Upstream oil and natural gas producer Mid-Con Energy Partners LP (NASDAQ:MCEP) has struggled to make revenue in this environment of low oil prices.
At the moment, crude oil is still trading around the mid-$50s USD per barrel mark. It’s a far cry from September 2018’s $70-per-barrel range, which was also the highest oil price since 2014.
During the good days, the MCEP penny stock was reflective of these healthy oil prices and sold for approximately $27 per share. But by 2016, MCEP traded as low as $0.73 cents and had officially become a penny stock contender.
Mid-Con Energy Partners has since struggled to gain traction and today still trades below $1 USD. At the time of writing, MCEP shares are selling for $0.96 USD to be precise.
Is there a turnaround here though? Oil prices are climbing once again, albeit slowly. When oil traded above $100 per barrel, this penny stock sold for over $20 per share. If oil can hit those levels again, then MCEP has a chance to also hit its highs again.
Company financials are also recovering somewhat from 2014’s slump. In 2016 the company was pulling in $56.1 million. Revenues rose to $58.93 million by 2017, and now analysts are estimating revenues closer to $60 million USD for both 2018 and 2019.
It’s a steady climb, but it could be hinting at what’s to come. MCEP’s low price today could turn around in the not too distant future and become one of the sector’s hottest penny stocks.
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