Oil Stocks 2020

Kyaw Thu
2020-5-26

Introduction

The spread of coronavirus crashed the oil stocks this year as the lock down and stay home pandemic depression.

Some oil and gas exploration and production companies bacome difficult to survive for long.

Here, we will explore the likelihood of bankruptcy candidates of the oil stocks in NYSE that include:

  • BORR : Borr Driling
  • CRC : Califonia Resources
  • DNR : Denbury Resources
  • OAS : Oasis Petroleum

Getting Data

The tickers and information are collected from Yahoo Finance.

Financial Analysis

BORR

             Desc measure  unit
1       MarketCap      66     m
2    ProfitMargin   -87.7   per
3             ROE   -25.3   per
4             EPS   -3.26      
5    CurrentRatio    1.19      
6 LeveredFreeCash      na      
7            Beta      na      
8      DebtEquity     150 times

Financial Analysis

CRC

             Desc measure  unit
1       MarketCap   71.00     m
2    ProfitMargin   -1.04   per
3             ROE   19.51   per
4             EPS   -0.57      
5    CurrentRatio    0.69      
6 LeveredFreeCash  303.00     m
7            Beta    6.00      
8      DebtEquity  997.00 times

Financial Analysis

OAS

             Desc measure  unit
1       MarketCap  129.00     m
2    ProfitMargin   26.13   per
3             ROE   24.28   per
4             EPS    0.62      
5    CurrentRatio    0.99      
6 LeveredFreeCash  203.80     m
7            Beta    4.38      
8      DebtEquity  156.50 times

Financial Analysis

OAS

             Desc measure  unit
1       MarketCap   165.8     m
2    ProfitMargin  -242.7   per
3             ROE  -260.7   per
4             EPS   -13.7      
5    CurrentRatio    1.31      
6 LeveredFreeCash    -2.7     B
7            Beta    3.81      
8      DebtEquity      na times

Methodology

First, we will analyse the Fiancial data and then

we will use R programming language and BatchGetSymbols package for data visualization.

Finding from Financial Data

Oil Stocks are running as high geared companies although they maintained pretty current ratio.

Profit margin shows negative return except DNR.

Furthermore, negative free cashflows means the signal of insolvency.

Data Visualization

# A tibble: 4 x 6
  ticker src   download.status total.obs perc.benchmark.dates threshold.decision
  <chr>  <chr> <chr>               <int>                <dbl> <chr>             
1 BORR   yahoo OK                     40                    1 KEEP              
2 CRC    yahoo OK                     40                    1 KEEP              
3 DNR    yahoo OK                     40                    1 KEEP              
4 OAS    yahoo OK                     40                    1 KEEP

plot of chunk unnamed-chunk-5

Finding from the Plot

Among the four, BORR shows a big fall since the month of April.

Reference

https://www.fool.com/investing/2020/05/24/4-more-oil-stocks-that-could-go-bankrupt-in-2020.aspx