Stephenson Names Top Picks for North American Oil & Gas Sector

John Stephenson, founder and oil & gas analyst at Granite Point Research, shares his top picks for North American Oil, Gas & Utility Stocks. He believes energy will remain well-positioned to lead the market through the balance of the year.

Crude oil is expected to stay elevated around $100 per barrel, while North American natural gas prices are under pressure. The US markets appear over-valued with a Shiller PE ratio of 40.52 compared to its long-term mean of 17.42.

Stephenson recommends investors focus on inexpensive securities with identifiable catalysts.

He highlights three top picks: BluEnergies, Spartan Delta, and CanCambria Energy.

BluEnergies (BLU TSX) has partnered with TotalEnergies in offshore Liberia and acquired a previously discovered sand channel play offshore Louisiana. It has significant multi-billion boe resource potential and is the only junior active in offshore Liberia.

Spartan Delta (SDE TSX) operates 550,000 acres in the Duvernay, with production up 37% in Q2 and shifting investor focus to the region's economics. The company aims for additional growth plans and continued strong well results.

CanCambria Energy (CCEC TSX) has identified a high-impact exploration trend within its Kiskunhalas concession and is evaluating ten new oil prospects.