Four Small-Cap Energy Stocks Ready to Pump Out Cash

Little But Mighty

These small-cap energy stocks are expected to have an increase in free cash flow:

Bonanza Creek Energy (BCEI) is a Denver-based oil and gas company that recently announced an all-stock merger with Extraction Oil & Gas (XOG), another Colorado company. The firms claim to be the largest pure-play energy producer in Colorado's Denver-Julesburg Basin, and that their dividend would be increased. Civitas will be the new company's name, and it will, according to the corporations, have net-zero emissions in its operations (as opposed to Scope 3 emissions, which are the emissions caused by the items they make).

Rex American Resources (REX) manufactures ethanol, distillers' grains, and non-food-grade maize oil, all of which could become increasingly essential as the United States transitions to lower-emissions fuels. The company is also pursuing carbon capture and sequestration, which it sees as having "the potential to be a major player in that industry."

Consol Energy, a gas and coal producer, used to own CNX Resources (CNX). CNX took over the natural gas component of that company when it split in 2017. It is benefiting from increased global gas demand, which is up 41% this year.

Helmerich & Payne (HP) is a Tulsa-based oil services company. As producers cut back on drilling, oil service businesses have struggled. However, there is indications of a production comeback in the United States, as producers begin to take advantage of increased oil and gas prices. Firms like Helmerich are benefiting from this. In July, CEO John Lindsay stated, "We remain hopeful that current oil prices will translate into increased 2022 exploration and production drilling budgets and activity in the US land market."