Companies Outside "Big 6" Are Handing Investors Best Returns

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"Two companies are dwarfing "big oil" in profit margins and reserves. They're about to hand investors a double in the short run…"

No other oil company is nearly as profitable as Hong Kong-based CNOOC Ltd. The offshore oil and natural gas explorer has a jaw-dropping profit margin of 34.45%, more than quadrupling those of four super majors—ConocoPhillips (6.75%), Royal Dutch Shell (8.35%), BP (8.40%) and Chevron (8.61%).

Its huge reserves are growing in value with every uptick in oil prices. Add in a dividend of $1.13, and this company's prospects sing to both short- and long-term investors. It also has one of the highest profit margins in the industry, which translates to stock appreciation.

According to Money Morning Investment Director Keith Fitz-Gerald, every investor must have a China strategy—and that especially holds true for the energy sector."Beijing alone is adding 1,500 cars a day," said Fitz-Gerald, "Across China, the number is obviously higher. The same is true in India, but to a lesser degree."

The second high-profit play is Norway-based StatoilHydro ASA is an integrated company that's involved in nearly every element of the oil and natural gas industries—both regionally and worldwide. It just trounced Wall Street estimates by 34.29% for the first quarter. And it pumps out a healthy 2% dividend. StatoilHydro saw its year-over-year net income rocket 62% in the first quarter. The company also bested Wall Street’s first-quarter estimates by 34.29%, serving investors a 94-cents-per-share profit compared to its 70-cent forecast.

It’s now the world’s largest energy operator in waters more than 100 meters deep, producing an average of 1.7 million barrels of oil equivalent per day. It has proven reserves of more than 6 billion barrels of oil, has operations in 40 countries and is expanding aggressively to diversify internationally. But more pertinent in the face of an energy crisis, StatoilHydro sends out one-third of its total daily output to the U.S.

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