Gettin’ Energetic: all the news impacting small cap oil, gas and renewable stocks

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Stockhead is introducing regular wraps of news from the hottest ASX small cap themes.

Recently we’ve added columns on infant formula exporters, cannabis stocks, battery metals, health and tech stocks.

Today we’re adding a fortnightly look at the ASX’s small cap energy stocks — including oil, gas and renewables.

There are around 140 energy stocks listed on the ASX — though here we’re only looking at those up to $400 million market cap. So you won’t find the likes of Santos or AGL below.

>> Scroll down for a list of 105 small cap energy stocks and their performance over the past year 

Oil is up again

The European Brent oil price has recovered strongly over the past month (see graph below) and is now flirting with $US80 again — while the system of international supply is looking fragile.

US sanctions on Iran and its oil exports are set to start in November after it withdrew from a nuclear deal forged in 2015. With Venezuela’s production rapidly declining, the International Energy Agency (EIA) said last week the market was looking pretty tight.

China is Iran’s number one importer and they’re refusing to stop buying from the pariah state.

But there’s less fear of a Donald Trump Twitter frenzy demanding Saudi Arabia lift production and drop prices this time because, perversely, US producers can’t get their oil out.

The US West Texas benchmark price hasn’t moved much since July.

The EIA reckons they’re likely now the world’s largest crude producer but the ensuing soft prices and bottlenecks in infrastructure, labour and equipment at the country’s oil centre, the Permian basin in Texas, are beginning to slow the rush.

ASX oil producers are happily riding the higher price waves.

Pancontinental (ASX:PCL) is talking up its “1 billion barrels” of oil that might be under the Namibian sea and Global Petroleum (ASX:GBP) is buying the story, taking a licence only 40km away.

Investors aren’t yet convinced though, with both stocks down over the last two weeks.

In the US, Byron (ASX:BYE) reckons they’re now the number 12 oil and gas producer in the Gulf of Mexico — and they’re up 27 per cent over the last two weeks.

Gas

A federal Labor plan to cement to make permanent powers to divert pre-sold export gas into the domestic market is causing Japanese buyers to freak out and throw around the term “sovereign risk”.

But Australia is one of the only countries in the region that doesn’t have standing local-first supply rules, even as serious shortages on the East Coast are picked to start again in the early 2020s.

Tim Treadgold is picking Armour Energy (ASX:AJQ) as an interesting entry point to the hot East Coast gas market, while Vintage Energy (ASX:VEN) is one of the newest, landing on the ASX on Monday.

Helios (ASX:HE8) shares surged 47 per cent over the last two weeks — but told the ASX they have no idea why.

Gas shipper Global Energy Ventures (ASX:GEV) bounced 33 per cent because it has signed a deal to talk about shipping compressed natural gas to India.

The loose deal so far says GEV is responsible for sourcing the gas from the Middle East and the price will be tied to the Brent oil price.

And it was curtains for Sino Gas and Energy (ASX:SEH) yesterday, which delisted after being bought by American raider Lone Star Fund X Acquisitions.

Renewables

South Australia yet another step closer to 100 per cent — renewables that is.

Three times over the last seven days rooftop and large scale solar combined have been the number one energy producer over midday, according to Reneweconomy.

The energy market operator says it will likely be able to power itself off solar, wind and battery power alone by 2025.

They were followed by Victoria finally announcing the six winners of its state renewable energy target: Tilt Renewables (ASX:TLT) was one of them.

They used the news and an independent expert report to beat bidders Infratil (ASX:IFT) and Mercury NZ (ASX:MCY) around the head for a higher price, saying it’s worth heaps more than the $2.30 on offer.

Windlab was the biggest mover over the last two weeks, rising 11 per cent to $1.47.

ASX renewables are split between utilities like Tilt, off-grid players like Tag Pacific (ASX:TAG) and hyper-futuristic tech companies like wave power proponent Carnegie Clean Energy (ASX:CCE).

Here’s a table of 105 small cap energy stocks and their performance over the past year 

Swipe or scroll to reveal full table. Click headings to sort

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