5 Under the Radar Energy Stocks that Most Investors are Missing

Photo credit: SandRidge Energy

All too often investing is a popularity contest as we want to fill our portfolios with popular stocks.

Photo credit: Chesapeake Energy

Because of this companies like SandRidge Energy and Kodiak Oil & Gas have become widely owned and followed.

Photo credit: Chesapeake Energy

There’s good reason for this as both offer a very compelling investment opportunity.

SandRidge Energy is turning around under new management.

It has a visible growth plan that has it on pace to grow production 20-25% annually through 2016.

Not only that but it has upside to stacked oil and gas formations underneath its acreage.

It’s also very undervalued.

Kodiak Oil & Gas has a very strong position in the Bakken Shale of North Dakota.

171,000 net acreage position and about 1,300 future well sites.

35-45% year-over-year production growth expected in 2014.

Upside to downspacing and the Three Forks formation.

However, as good as these companies are, the drive to buy what’s popular still has many investors missing some really

great energy stocks with even better prospects.

Photo credit: SandRidge Energy

The next few slides contain five energy stocks that in many cases offer better opportunities than today’s most popular

energy stocks.

Photo credit: Chesapeake Energy

Concho Resources (NYSE: CXO)Key characteristics: Pure-play Permian Basin operator.

605,000 net acres. Approximately 22,000 drilling locations. 3 billion barrels of oil equivalent of resource

potential. Expected to double production by 2016.

Concho Resources (NYSE: CXO)Key characteristics: Pure-play Permian Basin operator.

605,000 net acres Approximately 22,000 drilling locations. 3 billion barrels of oil equivalent of resource

potential. Expected to double production by 2016.

Source: Concho Resource Investor Presentation

Concho Resources (NYSE: CXO)Why invest? 2 x 3 growth plan will grow production by a 25%

compound annual rate by 2016. Oil production to go from 63% of production to

66% by 2016. Accelerated growth plan will actually improve its

leverage ratio. Offers oilier growth than the more popular

SandRidge Energy over 2014-2016 timeframe.

Oasis Petroleum (NYSE: OAS)Key characteristics: Pure-play Williston Basin operator.

506,960 net acres. Approximately 3,590 drilling locations. 17 years worth of drilling inventory. Company owned Oasis Well Services is saving it

$400,000 per well.

Oasis Petroleum (NYSE: OAS)Key characteristics: Pure-play Williston Basin operator.

506,960 net acres. Approximately 3,590 drilling locations. 17 years worth of drilling inventory. Company owned Oasis Well Services is saving the

company $400,000 per well.

Source: Oasis Petroleum Investor Presentation

Oasis Petroleum (NYSE: OAS)Why invest? Large, concentrated acreage position in the

Williston Basin. Well Services segment lowers costs and

improves returns. Larger acreage position, more drilling locations

and lower well costs than the more popular Kodiak Oil & Gas.

Laredo Petroleum (NYSE: LPI)Key characteristics: Pure-play Permian Basin operator.

144,107 net acres. Approximately 3,500 drilling locations. 1.6 billion barrels of oil equivalent of resource

potential. More than 45 years of drilling inventory at current

pace.

Laredo Petroleum (NYSE: LPI)Key characteristics: Pure-play Permian Basin operator.

144,107 net acres. Approximately 3,500 drilling locations. 1.6 billion barrels of oil equivalent of resource

potential. More than 45 years of drilling inventory at current

pace.

Source: Laredo Petroleum Investor Presentation

Laredo Petroleum (NYSE: LPI)Why invest? 30-35% compound annual production growth

through 2016. Resource potential is 10 times current proved

reserves. Offers much faster growth and untapped upside

than the popular SandRidge Energy.

Clayton Williams Energy (NYSE: CWEI)

Key characteristics: Large acreage position in Texas.

170,000 net acres in the Permian Basin and 185,000 net acres in the Eagle Ford Shale

More than 1,000 drilling locations. First quarter production up 25% pro forma for

recent asset sales.

Clayton Williams Energy (NYSE: CWEI)

Key characteristics: Large acreage position in Texas.

170,000 net acres in the Permian Basin and 185,000 net acres in the Eagle Ford Shale

More than 1,000 drilling locations. First quarter production up 25% pro forma for

recent asset sales.

Source: Clayton Williams Energy Investor Presentation

Clayton Williams Energy (NYSE: CWEI)

Why invest? Acreage positions in both of Texas’ horizontal oil

plays. On a per share basis it has more acreage in each

play than many of its peers. Better liquidity than a popular stock like

SandRidge Energy to fund its growth.

Carrizo Oil & Gas (NASDAQ: CRZO)Key characteristics: High-quality acreage position in four shale plays.

25,700 net acres in the Utica Shale. 37,300 net acres in the Marcellus Shale. 67,700 net acres in the Eagle Ford Shale. 47,500 net acres in the Niobrara.

Carrizo Oil & Gas (NASDAQ: CRZO)Key characteristics: High-quality acreage position in four shale plays.

25,700 net acres in the Utica Shale. 37,300 net acres in the Marcellus Shale. 67,700 net acres in the Eagle Ford Shale. 47,500 net acres in the Niobrara.

Source: Carrizo Oil & Gas Investor Presentation

Carrizo Oil & Gas (NASDAQ: CRZO)Why invest? Crude oil accounts for 60% of reserves and

production. Upside from probable reserves equivalent to 4.3

times proved reserves as well as further unbooked potential.

Better liquidity position than SandRidge Energy to fund growth.

Investor takeawayWhile popular energy stocks like SandRidge Energy and Kodiak

Oil & Gas both have lots of upside, some under the radar peers actually have more upside with less financial risk.

Photo credit: Carrizo Oil & Gas

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