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Seadrill Among Energy Stocks Trading With Low P/E

These are the companies in the energy industry that are trading with the lowest P/E ratio, according to the All-In-One Screener from GuruFocus.

SandRidge Mississippian Trust II. (SDR) is trading with a P/E ratio of 1.01. According to the DCF calculator, the stock has a fair value of $17.23, while it is trading at about $1.68. That means it is trading with a margin of safety of 90%. The price has dropped by 56% during the last 12 months and is now 68.54% below its 52-week high and 25.37% above its 52-week low.


The trust receives royalties from the sale of oil, natural gas liquids and natural gas production through interest in 54 wells producing and 13 additional wells.

Seadrill Partners LLC (SDLP) is trading with a P/E ratio of 1.25. According to the DCF calculator, the stock has a fair value of $26.22, while it is trading at about $3.77. That means it is trading with a margin of safety of 86%. The price has dropped by 74% during the last 12 months and is now 78.25% below its 52-week high and 29.11% above its 52-week low.

The company owns, operates and acquires offshore drilling units. The company's drilling units are under long-term contracts with oil companies such as Chevron, Total, BP, ExxonMobil and Tullow. During the last quarter, the inclusion of the West Polaris for a full quarter resulted in an increase of revenue.

The largest shareholder among the gurus is Ron Baron (Trades, Portfolio), who holds 0.01% of outstanding shares.

SandRidge Permian Trust (PER) is trading with a P/E ratio of 1.28. According to the DCF calculator, the stock has a fair value of $20.44, while it is trading at about $2.55. That means it is trading with a margin of safety of 88%. The price has dropped by 58% during the last 12 months and is now 70.96% below its 52-week high and 26.87% above its 52-week low.

The trust together with its subsidiaries also owns and operates gas gathering and processing facilities and conduct marketing operations.

Jones Energy Inc. (JONE) is trading with a P/E ratio of 1.52. According to the DCF calculator, the stock has a fair value of $26.43, while it is trading at about $3.75. That means it is trading with a margin of safety of 86%. The price has dropped by 67% during the last 12 months and is now 70.21% below its 52-week high and 17.19% above its 52-week low.

The company is engaged in the acquisition, exploration, and production of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma.

In the last quarter, as a result of its strong performance, the company was ahead of expectations on production and was able to reduce its capital budget for the year by $20 million to $220 million.

The last guru shareholder of the company was Jim Simons (Trades, Portfolio), who sold out his stake during the second quarter.

Atwood Oceanics Inc. (ATW) is trading with a P/E ratio of 1.69. According to the DCF calculator, the stock has a fair value of $189.31, while it is trading at about $10.33. That means it is trading with a margin of safety of 95%. The price has dropped by 65% during the last 12 months and is now 71.03% below its 52-week high and 3.51% above its 52-week low.

The company is an offshore drilling contractor, engaged in drilling and completion of exploratory and developmental oil and gas wells.

Steven Cohen (Trades, Portfolio) is the largest shareholder among the gurus with 2.31% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 2.09%, Chuck Royce (Trades, Portfolio) with 1.77%, Arnold Van Den Berg (Trades, Portfolio) with 1.42% and David Dreman (Trades, Portfolio) with 0.43%.

EP Energy Corp. (EPE) is trading with a P/E ratio of 1.85. According to the DCF calculator, the stock has a fair value of $26.86, while it is trading at about $4.6. That means it is trading with a margin of safety of 83%. The price has dropped by 55% during the last 12 months and is now 70.89% below its 52-week high and 35.29% above its 52-week low.

It is an oil exploration and production company. It is engaged in the acquisition and development of unconventional onshore oil and natural gas properties in the U.S. In the third quarter, the company delivered outstanding well results in all four of its capital programs, while substantially reducing costs.

The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.55% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.06%.

Chesapeake Granite Wash Trust (CHKR) is trading with a P/E ratio of 1.88. According to the DCF calculator, the stock has a fair value of $18.3, while it is trading at about $3.19. That means it is trading with a margin of safety of 83%. The price has dropped by 36% during the last 12 months and is now 65.85% below its 52-week high and 7.05% above its 52-week low.

The company owns royalty interests in oil and natural gas wells in Washita County, Oklahoma, producing from the Colony Granite Wash Play within the broader Granite Wash formation of the Anadarko Basin.

Sprague Resources LP (SRLP) is trading with a P/E ratio of 2.40. According to the DCF calculator, the stock has a fair value of $113.33, while it is trading at about $20.28. That means it is trading with a margin of safety of 82%. The price has dropped by 10% during the last 12 months and is now 29.83% below its 52-week high and 18.25% above its 52-week low.

The company is engaged in the purchase, storage, distribution and sale of refined products and natural gas, and also provides storage and handling services for a broad range of materials.

SandRidge Mississippian Trust I (SDT) is trading with a P/E ratio of 2.15. According to the DCF calculator, the stock has a fair value of $11.45, while it is trading at about $2.34. That means it is trading with a margin of safety of 80%. The price has dropped by 27% during the last 12 months and is now 56.91% below its 52-week high and 16.42% above its 52-week low.

The company receives royalties from the sale of oil, natural gas liquids ("NGL") and natural gas production. It has interest in 36 wells producing, and one additional well undergoing completion.

Ultra Petroleum Corp. (UPL) is trading with a P/E ratio of 1.86. According to the DCF calculator, the stock has a fair value of $14.34, while it is trading at about $2.48. That means it is trading with a margin of safety of 83%. The price has dropped by 81% during the last 12 months and is now 86.25% below its 52-week high and 34.05% above its 52-week low.

The company is an independent oil and natural gas company engaged in the acquisition, exploration, development, and production of oil and natural gas properties. Its main business activities are in the Green River Basin of southwest Wyoming and the north-central Pennsylvania area of the Appalachian Basin and the Uinta Basin in northeast Utah.

The largest shareholder among the gurus is Chris Davis (Trades, Portfolio) with 13.46% of outstanding shares, followed by Richard Snow (Trades, Portfolio) with 1.52%, David Dreman (Trades, Portfolio) with 0.37%, Jeremy Grantham (Trades, Portfolio) with 0.04% and Prem Watsa (Trades, Portfolio) with 0.04%.

This article first appeared on GuruFocus.