No sooner had we filed our natural gas post last Friday (June 8) than Jim Cramer began raving about it (natural gas, not our post) on his daily Mad Moneysegment that evening on CNBC. Cramer’s guest was David Demers, CEO of Westport Innovations (WPRT, a $1.6 billion market cap, a bit high for our purposes) who discussed the news that Westport had agreed to build natural gas engines in partnership with Caterpillar (CAT). During the course of the discussion, it was noted that Cummins (CMI, $18.6 billion in market cap) was also developing natural gas technology.
Demers told Cramer that the railroads are closely watching Westport’s development of a natural gas locomotive, which is expected to be ready next year.
According to Cramer, Westport is the “best bet on America finally adopting natural gas as a surface fuel,” according to a Mad Money recap posted on Yahoo.
We found some interesting statistics on natural gas from the Natural Gas Vehicles for America organization: there are about 120,000 natural gas vehicles in the U.S. and more than 14.8 million worlwide; the about 1,000 natural gas fueling stations currently in the U.S. are expected to increase significantly in the next two years; global natural gas vehicle sales should increase at a compound annual growth rate of 7.9 percent to total 19.9 million vehicles by 2016, according to Pike Research.
Armed with all this natural gas information, and to “top off” our post from last week, here are four more randomly chosen small caps involved in natural gas, in one way or another.
New York City-based Fuel Systems Solutions (Nasdaq: FSYS, http://www.fuelsystemssolutions.com) is a designer, manufacturer and supplier of alternative fuel components and systems the control the pressure and flow of gaseous alternative fuels, such as natural gas, used in internal combustion engines. Seeking Alpha just listed FSYS as one of “six highly-shorted small caps being bought up by insiders” (http://seekingalpha.com/article/652351-6-highly-shorted-small-caps-being-bought-up-by-insiders?source=yahoo). Its market cap is $309 million and 52-week trading range is $14.02-$29.41. It closed June 12 at $15.44, no change for the day.
Denver-based Bonanza Creek Energy Inc. (NYSE: BCEI, http://www.bonanzacrk.net) is an independent oil and natural gas company. Its interests are focused in southern Arkansas of the Mid-Continent region, and the Wattenberg field and North Park basins of the Rocky Mountain region, as well as assets in the San Joaquin Basin of California. Its market cap is $600 million and 52-week trading range is $12.39-$22.66. It closed June 12 at $15.20, up 8 cents on the day.
Oklahoma City-based Panhandle Oil and Gas (NYSE:PHX, http://www.panhandleoilandgas.com) acquires and develops oil and natural gas properties primarily in Arkansas, New Mexico, North Dakota, Oklahoma and Texas. The company was founded in 1926. PHX stock was downgraded from Buy to Hold by TheStreet Ratings on May 2 due to “weaknesses including the generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.” Its market cap is $229 million and 52-week trading range is $24.16-$36.25. It closed June 12 at $27.74, up 36 cents on the day.
Denver-based Credo Petroleum Corp. (Nasdaq: CREDO, http://www.credopetroleum.com) acquires, develops and markets crude oil and natural gas properties in the Mid-Continent and Rocky Mountain regions of othe U.S. It currently owns properties in Kansas, Texas, Wyoming, Colorado, Nebraska, Oklahoma. The company owns and operates approximately 108 wells as well as owns working interest in 337 producing wells and overriding royalty interests in approximately 1,200 wells. It has a $144 million market cap and a 52-week range of $7.14-$14.47. It closed June 12 at $14.34, down 1 cent for the day but still near its high for the year.