So far in 2013, commodity markets have had a troublesome year, with many analysts speculating that the epic commodity boom seen in recent years is finally over. On the equity side, however, major commodity producers have benefited from this year’s bull run, logging in double- and triple-digit gains. Oil and gas producers in particular continue to come out on top, while precious and industrial metal miners struggle to stay out of the red. But on this Thanksgiving Day, it is perhaps most appropriate for us to reflect on those commodity producers we’re particularly grateful for [for more commodity news and analysis subscribe to our free newsletter].
Below, we highlight three commodity stocks that have delivered stellar performances thus far in 2013 (YTD returns as of November 26, 2013):
This Houston-based firm is a momentum trader favorite, as its movements are closely followed as a gauge of the liquefied natural gas market. The company primarily operates through two segments: its LNG terminal business and its LNG and natural gas marketing business. Cheniere owns and operates terminal projects in western Cameron Parish, Louisiana and Chorpus Christi, Texas. Over the past year, Cheniere has seen its price more than double; year-to-date, the stock is up over 100%.
First Solar (FSLR), Up 87%
This popular solar company has been one of the most talked about stocks this year, with analysts arguing for both the bull and bear case. Headquartered in Tempe, Arizon, First Solar is one of the leaders in the alternative energy industry, providing solar energy solutions for both retail and commercial consumers. Just over the last three months, FSLR has gained more than 50%; for the year, the stock is up nearly 90% [see also What To Do With Losing Gold Positions].
YPF S.A. (YPF), Up 78%
This Argentinian firm engages in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas. YPF holds interest in roughly 90 oil and gas fields in Argentina, with proved reserves of 590 million barrels of oil and 2,186 billion cubic feet of gas. Many analysts note YPF’s recent success in response to the Argentinian government’s incentives to promote additional investment by foreign energy companies including, Chevron (CVX), Exxon Mobil (XOM), Petrobras (PBR), and Apache (APA). The efforts have seemingly paid off, with YPF gaining nearly 80% YTD.
SM Energy Company (SM), Up 64%
This independent oil and gas company was founded in 1908 and is headquartered in Denver, Colorado. The company has operations across North America, including South Texas, the Gulf Coast, the Rocky Mountain region, Oklahoma, and New Mexico. Over the trailing six-month period, SM has gained more than 40%; year-to-date, the company has logged in an impressive 64% gain [see A Closer Look At EIA's Latest Short-Term Energy Outlook].
Cimarex Energy Co. (XEC), Up 68%
Another Denver-based independent oil and gas firm, Cimarex owns interest in nearly 5,000 net productive oil and gas wells, primarily located in Oklahoma, Texas, New Mexico, and Kansas. The company has proved reserves of 1.3 trillion cubic feet of gas and 168 million barrels of oil and natural gas liquids. Though the company has a relatively short history, as it was founded in 2002, the stock has fared quite well, gaining more than 200% over the trailing five-year period.
Disclosure: No positions at time of writing