Energy Companies That Won’t Have a Problem Paying Their Bills

The following five companies in the Energy sector have high current ratios.

Note that this list excludes all companies whose market capitalization is less than $500 million.

  1. Dorchester Minerals, LP (NASDAQ:DMLP):  The shares have traded in a 52-week range of $23.06 to $30.09 and most recently traded at $27.50.  Its market capitalization is $843 million and it earned $1.11 per share last year.  Its current ratio is 35.20 and its book value per share is $4.82.  About the company: Dorchester Minerals LP is a limited partnership whose principal operating assets are net profits interest in working interest properties.  The Company also owns and holds producing and non-producing mineral, royalty, overriding royalty, net profits, and leasehold interests.
  2. Houston American Energy Corporation (NYSE:HUSA):  The shares have traded in a 52-week range of $6.01 to $19.18 and most recently traded at $16.01 per share.  Its market capitalization is $500 million and it earned $0.66 per share last year.  Its current ratio is 7.74 and its book value per share is $1.62.  About the company: Houston American Energy Corp. explores for and produces oil and gas.  The Company’s current business activities are primarily conducted in Texas.
  3. Dril-Quip, Inc. (NYSE:DRQ):  The shares have traded in a 52-week range of $40.38 to $83.80 and most recently traded at $67.50.  Its market capitalization is $2.7 billion and it earned $2.55 per share last year.  Its current ratio is 6.18 and its book value per share is $20.68.  About the company: Houston America Energy Corp. explores for and produces oil and gas.  The Company’s current business activities are primarily located in Texas.
  4. Kodiak Oil & Gas Corp. (AMEX:KOG): The shares have traded in a 52-week range of $2.43 to $7.70 and most recently traded at $6.17 per share.  Its current ratio is 3.66 and its book value per share is $1.65.  About the company:  Kodiak Oil & Gas Corporation explores for oil and natural gas in the western United States.
  5. EV Energy Partners, LP (NASDAQ:EVEP):  The shares have traded in a 52-week range of $25.52 to $59.95 and most recently traded at $53.75 per share.  Its market capitalization is $1.65 billion and it earned $3.34 per share last year.  Its current ratio is 4.72 and its book value per share is $25.54.  About the company: EV Energy Partner LP explores for oil and natural gas.

The current ratio is calculated as current assets over current liabilities.  Current assets are those accounts such as cash, receivables, and other highly liquid assets that can be readily converted to cash.  Current liabilities are generally considered to be those debts due within one fiscal quarter, such as accounts payable, wages, interest payments on long-term debt that are due in the near future, etc.  Therefore, the current ratio is essentially a measure of a company’s ability to pay its bills in the near term.  Companies that are liquid enough to pay their bills can continue operating without trouble.  Accordingly, the higher the current ratio the more likely it is that the company won’t have a problem paying its bills.  Of course, as with all financial ratios, the current ratio can’t be used in isolation to determine whether a stock is a buy or not.

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

Fresh Off the Press: Wall St. Cheat Sheet’s newest Feature Trades of the Month!