Oil price is increasing steadily amid a decline in US crude inventories after a massive drop of crude supplies from Canada. Analysts also think that OPEC countries will keep a cap on oil production, which would result in a swift oil price recovery in 2018. If you are looking to invest in the energy sector, but don’t have a lot of capital, here are the best energy penny stocks for big profits in 2018.
EnerJex Resources Inc (NYSEAMERICAN:ENRJ)
EnerJex Resources Inc(NYSEAMERICAN:ENRJ) is a Texas-based energy company. EnerJex focuses on oil and gas operations based in Kansas, Colorado, Nebraska and Texas. The company is narrowing its losses for the last four quarters. The stock is down over 3% since the start of this year. EnerJex management is cutting costs to offset the damage done by declining oil prices.
Bellatrix Exploration Ltd (NYSE:BXE)
Bellatrix Exploration Ltd(NYSE:BXE) is a Canadian oil and gas exploration company. The company has strong production capacity of 30,000 boe per day. Analysts think that Bellatrix is poised for growth amid its massive discovery of gas resources in Spirit River sedimentary basin in Canada. Spirit River has 380 net drilling locations. Spirit River area is one of the most low cost production areas in North America. The company also announced a new development plan which will result in growth at CAGR of over 10%. Bellatrix’s board of directors has also approved a capital budget plan of $105 million. The company is well on track to dig 19 new wells this year.
Denbury Resources Inc. (NYSE:DNR)
Denbury Resources Inc. (NYSE:DNR) is a Texas-based energy company. The stock is down more than 54% year-to-date, but a recovery has kicked off that will result in growth in the near future. The company posted excellent third quarter results earlier this month. Denbury’s management said that it is expecting production increase in the fourth quarter. The company managed to cut its expenses by 4.3% in the third quarter year-over-year. Denbury Resources also increased its production guidance to 60,000 BOE/d-62,000 BOE/d for 2017. Production in 2018 is also expected to increase.
Author has no positions in any stocks mentioned, and no plans to initiate any positions within the next few days.