With the prospect of Donald Trump returning to the White House, is it time to revisit US petroleum stocks? One such is Evolution Petroleum [NYSEAM:EPM], which has seen its stock price bid up off a September floor of around $4.64 to break six dollars in November.
Evolution Petroleum stock is still down 1.9% on a YTD basis however and is looking a little expensive with a current PE of over x40 times. That could be a little pricey for some tastes. Having said that, Evolution Petroleum is a very cash rich business with an attractive dividend yield of 8.45%.
Evolution Petroleum stock is subject to the perennial balancing act many oil companies in the US are facing: the incoming Trump administration is considered a Good Thing for oil, but the slowdown in China's economy is very much a Bad Thing, undermining global demand. Crude oil at current levels is very much dependent on Chinese consumption, and even if OPEC+ cuts production in the New Year, this is likely to have little impact if China continues to reduce its energy consumption.
What will this mean for Evolution Petroleum and its peers?
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