We’ve come to know that penny stocks in the energy sector have gotten major attention this month. If you remember last week, we saw alternative power take hold of the stock market. Everything from EV penny stocks to power production stocks and everything in between was captivating investor interest. One of the key drivers to that was Tesla’s Battery Day and statements regarding the mass expansion of EV technology.
Fast-forward to this week and that trend has continued holding strong. Monday we saw several solar, natural gas, and alternative energy stocks begin climbing. That has carried through into Tuesday’s premarket with countless names making new highs before the opening bell. Yesterday we saw the acquisition between Devon Energy and WPX wake things up even further, wrapping in oil and natural gas in the mix of energy names capturing attention.
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This morning, the small-cap sector continued seeing momentum in the sector with another big industry deal. One of the low float penny stocks that initially sparked attention was U.S. Energy Corp. (USEG Stock Report). Based on filings, USEG shows an outstanding share count of less than 2 million shares making it an incredibly low float stock.Energy Penny Stocks To Watch Today
The company’s shares closed under $5 on Monday. However, by Tuesday morning, USEG stock was trading as high as $22.51. What was behind this initial jump? The company announced entry into an asset purchase agreement and closed on a transaction to acquire certain assets of FieldPoint Petroleum Corporation.
U.S. energy was able to acquire these assets pursuant to Fieldpoint’s Chapter 7 bankruptcy process. Proved Developed Producing reserves were estimated at approximately 237,263 barrels of oil equivalent. According to the company, the proved developed producing reserves at a present value are estimated at $2.5 million.
Considering that the company acquired these assets for $500,000 in cash, this could prove beneficial to the company. U.S. Energy also announced that the company entered into a $375,000 Secured Promissory Note with its largest shareholder, APEG Energy II, L.P. So, keep this in mind as well especially considering the huge move in price the stock has made during premarket hours. Needless to say, this was just one of the recent events sparking further interest in oil and gas penny stocks on Tuesday.Penny Stocks To Watch: Houston American Energy
Houston American Energy (HUSA Stock Report) is another one of the energy penny stock surging during Tuesday’s premarket session. The company’s recent focus was on its activities in the Permian Basin area of the U.S. Due to the coronavirus pandemic, the company had to pause operations.
Last month, Houston American restarted drilling in this area. Furthermore, earlier this month, in Hockley County, TX, the company announced that its total acreage block increased from 5,871 acres to 6,336 acres. Houston American Energy owns 20% of the block. The operator has informed Houston that drilling operations were planned to begin on September 18, 2020.
Aside from these recent updates, Houston American hasn’t released any further information in recent weeks. Like we saw last week, this could be sympathy with the rest of the sector’s big move. Keep this in mind if HUSA stock is on your list. Premarket momentum is great but it’s only great if it can continue into the open. All too often, we’ve seen premarket gapping stocks fall apart at the open. Will that happen with HUSA or can this trend continue into the week?Penny Stocks To Watch: Enservco Corp.
It isn’t just operators taking flight premarket. The pick and shovels of the sector are also benefiting from this sympathy momentum. Enservco Corp. (ENSV Stock Report) is among the list of penny stocks meeting those criteria right now. The company provides oilfield services, including hot oiling, acidizing, frac water heating and related services. Monday the company grabbed early attention after inking its latest deal. It wasn’t to expand operations, per se, however, it did reposition it financially.
The company closed its refinancing agreement with East West Bank. According to the company, the refinancing “significantly strengthens Enservco’s balance sheet by cutting its bank debt nearly in half and increasing shareholders’ equity by approximately $17.5 million.”
ENSV is one of the lower-priced names on this list. As one of the stocks under 20 cents right now, shares gapped up from a previous close of $0.1556 to premarket highs of over $0.17. What’s more is that yesterday saw a similar surge. ENSV stock gapped up pre market to highs of $0.24. However, once the opening bell rang, the penny stock slumped. Will that be the case again today or will sector momentum help propel things a bit?Penny Stocks To Watch: AYRO Inc.
One of the energy penny stocks unrelated to oil and gas has also taken flight today. AYRO Inc. (AYRO Stock Report) manufactures light-duty, urban and short-haul electric vehicles. This morning the company announced the formation of a strategic manufacturing, engineering and design partnership with Karma Automotive’s Innovation and Customization Center.
The deal will see Karma provide its expertise and manufacturing services to AYRO for its next generation of light duty vehicles. Greg Tarr, chief strategy officer at Karma Automotive said, “AYRO has a large footprint in fleet and commercial vehicle applications and they are helping us to better understand that space as we expand into new commercial sectors that can benefit from our sustainable vehicle solutions.”
AYRO has been one of the EV penny stocks to watch for a while now. July was a huge month for this company and we actually were there right from July 2nd when AYRO stock was still under $3. It ended up skyrocketing to highs of $8.18 before going through a consolidation period. Given the state of EV stocks right now, and this news, will AYRO stock manage to remain in this uptrend heading into the week?Penny Stocks To Watch: Mid-Con Energy Partners Lp
Mid-Con Energy Partners Lp (MCEP Stock Report) is another one of the energy penny stocks taking off on Tuesday. It’s also another one of the relatively low float names on this list. Similar to others on this list, MCEP stock has benefited from sector sympathy today. There hasn’t been any new updates from the company in weeks.
The company develops and produces oil and natural gas properties. The company’s properties are located in Oklahoma and Wyoming core areas. Like most oil and gas companies, the name of the game is capital preservation. While there’s been a lack of public info on the company, recent filings show some interest by several firms including Stallings Management. Other than that, we’ll have to see if sympathy momentum continues pushing shares higher today or if MCEP stock pulls back at the open.