The 4 Worst Oil and Gas Stocks of 2015

Companies in the energy sector, especially those that specialize in oil and gas production,
have become some of the largest publicly traded businesses by market cap.
However, the entire energy sector declined through the first quarter of 2015, and the trend has
continued throughout the second quarter. To combat this, the overall sector has set low
expectations for the performance of the companies within the energy sector.
Even though the bar was set low and investors have expected low performance, there are a
few energy companies that have even underperformed the sector's low bar.

Chesapeake Energy Corporation

Chesapeake Energy Corporation (NYSE: CHK) operates as a company that acquires,
explores and develops properties for the production of oil, natural gas and natural gas liquids
in the United States.
While the company has a market cap of $7.4 billion, it has a year-to-date return of more than
-43%. The company has seen its share price decline from over $19 per share to under $10 per
share.
This large decrease in share price is due in large part to its net income decrease of almost
1,000% in the first quarter of 2015 compared to the same quarter of 2014. Return on equity
(ROE) and operating cash flow has also decreased exponentially in 2015, and all of this has
caused the company's earnings per share to decrease significantly.

CONSOL Energy, Inc.

CONSOL Energy, Inc. (NYSE: CNX) is an U.S.-based energy company that specializes in
integrated operations of multiple energy sources, such as oil and gas.
The company has seen its share price drop by over 40% in 2015, from a high of over $33 to a
current price of less than $14.
It's not surprising that the company's earnings per share (EPS) have declined by 35.8% in the
first quarter of 2015 when compared to the same quarter of last year. Its ROE has also
declined in the first quarter of 2015, further leading to the decline in share price.
The company's quick ratio is very low, a signal that the company might not have cash or
liquidity to pay its short-term obligations.

Diamond Offshore Drilling, Inc.

Diamond Offshore Drilling, Inc. (NYSE: DO) provides other multinational energy companies
with contract drilling services. The company specializes in offshore oil drilling.
The company's year-to-date return in 2015 is -29.7%, with the share price decreasing from a
high of $37 in January to a current level of less than $25.
The company's debt-to-equity (D/E) ratio of 0.54 is low and below the industry average, and
its return on equity has declined in the first quarter of 2015 compared to the same quarter of
2014. In addition, net operating cash flow decreased over the same time period.
While there are many negatives, the company reports a strong gross profit margin of 40%,
which is strong for the industry.

National Oilwell Varco, Inc.

National Oilwell Varco, Inc. (NYSE: NOV) designs, manufactures, and sells equipment and
smaller components that are used in larger oil and gas drilling operations. It also provides
oilfield services to the upstream oil and gas industry worldwide.
The company's share price has declined from a high of more than $65 in January 2015 to a
price level of roughly $40 through the second quarter of 2015. This has resulted in a 2015
year-to-date return of more than -30%.
The company's D/E ratio is very low at 0.22 and is way below the industry average. Its gross
profit margin is low when compared to the industry average at just above 28%.
The company has also lost revenue in the first quarter of 2015 but has actually outperformed
the industry average's decline in revenue over the same period