5 Examples of Oil Penny Stocks

Despite the ongoing geopolitical and macroeconomic challenges, the oil and gas industry is in good health. Oil demand is set to grow by 2.3 million barrels per day compared to 2023 and exceed the 100 million barrels per day mark for the first time in history.

In this environment, penny stocks appeal to investors due to their low share prices—which are usually below $10 in the oil and gas sector. Oil penny stocks are usually represented by an exchange-traded fund (ETF) such as the Invesco S&P SmallCap Energy ETF.

However, penny stocks' inherent volatility could cause significant losses over a short period, so it's important to remain cautious.

1. Kosmos Energy Limited

Kosmos Energy Ltd is an oil and gas exploration business based in Dallas, TX, focusing on deep-water development solutions. They currently conduct operations in the Atlantic Margins region, with other critical project assets in Western Africa, Mauritania, and Equatorial Guinea.



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While energy prices are rising, Kosmos Energy continues to invest in growth facilities and market penetration. Combined with Kosmos' global investments, their penny stock could yield a potential profit in favourable conditions.

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2. Ultrapar Participacoes SA

Brazil's fourth-largest corporation is one of the lesser-explored NYSE-listed oil penny stock companies since it belongs to a developing economy.

Ultrapar has expanded its operations over the last decade to become Brazil's most significant fuel operator. Several parts of the business process crude oil procurement, distribution, and logistics across its subsidiaries.



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3. Ardmore Shipping Corp

As sustainability gains importance in the oil and gas industry, Ardmore Shipping remains one of the most innovative oil companies in the penny stock market. Remarkably, it manages to do this while maintaining a historic record of zero spills.

The company puts a significant effort into making its operations more environmentally friendly.



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As global economic activity picks up, Ardmore's performance would likely receive a boost again following the significant dip it experienced in Q2 2023.

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4. NGL Energy Partners LP

NGL Energy Partners is a midstream company offering services to the crude oil industry. The company increases supply to the natural gas and renewable energy sectors, too.

After the COVID-19 hit in 2020, NGL Energy Partners stock dropped significantly. In August 2021, the stock dropped again despite the initial surge in revenue, due to massive losses in earnings.



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With investments and improved returns year-on-year, along with the latest debt refinancing transactions and amends, NGL is likely to remain a steady riser in the world of volatile oil penny stocks.

5. Helix Energy Solutions Group Inc

One of the biggest global players in the oil penny stock sector, Helix Energy Solutions Group provides well-intervention services to companies in the deep-water oil industry.

The company deploys intervention vessels around the globe, including the Asia Pacific, the North Sea, West Africa, and the Gulf of Mexico.



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This move has substantially improved Helix's credit outlook and made it a strong option in the oil penny stock sector.

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Oil Penny Stocks on the Rise

With oil prices on the rise again, it is a good time to explore the oil penny stocks market.

Many big players focus on innovation and sustainability, so plenty of excellent long-term options are available on the market at accessible prices.

However, as always, make sure to conduct thorough research and a full risk assessment on all your instruments before committing to them.

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