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: Chesa...
Because of this companies like SandRidge Energy and
Kodiak Oil & Gas have become widely owned and
followed.
Photo credit: ...
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 prod...
 Kodiak Oil & Gas has a very strong position in
the Bakken Shale of North Dakota.
 171,000 net acreage position and abou...
However, as good as these companies are, the drive to buy
what’s popular still has many investors missing some really
grea...
The next few slides contain five energy stocks that in
many cases offer better opportunities than today’s
most popular ene...
Concho Resources (NYSE: CXO)
Key characteristics:
 Pure-play Permian Basin operator.
 605,000 net acres.
 Approximately...
Concho Resources (NYSE: CXO)
Key characteristics:
 Pure-play Permian Basin operator.
 605,000 net acres
 Approximately ...
Concho Resources (NYSE: CXO)
Why invest?
 2 x 3 growth plan will grow production by a 25%
compound annual rate by 2016.
...
Oasis Petroleum (NYSE: OAS)
Key characteristics:
 Pure-play Williston Basin operator.
 506,960 net acres.
 Approximatel...
Oasis Petroleum (NYSE: OAS)
Key characteristics:
 Pure-play Williston Basin operator.
 506,960 net acres.
 Approximatel...
Oasis Petroleum (NYSE: OAS)
Why invest?
 Large, concentrated acreage position in the
Williston Basin.
 Well Services seg...
Laredo Petroleum (NYSE: LPI)
Key characteristics:
 Pure-play Permian Basin operator.
 144,107 net acres.
 Approximately...
Laredo Petroleum (NYSE: LPI)
Key characteristics:
 Pure-play Permian Basin operator.
 144,107 net acres.
 Approximately...
Laredo Petroleum (NYSE: LPI)
Why invest?
 30-35% compound annual production growth
through 2016.
 Resource potential is ...
Clayton Williams Energy (NYSE: CWEI)
Key characteristics:
 Large acreage position in Texas.
 170,000 net acres in the Pe...
Clayton Williams Energy (NYSE: CWEI)
Key characteristics:
 Large acreage position in Texas.
 170,000 net acres in the Pe...
Clayton Williams Energy (NYSE: CWEI)
Why invest?
 Acreage positions in both of Texas’ horizontal oil
plays.
 On a per sh...
Carrizo Oil & Gas (NASDAQ: CRZO)
Key characteristics:
 High-quality acreage position in four shale
plays.
 25,700 net ac...
Carrizo Oil & Gas (NASDAQ: CRZO)
Key characteristics:
 High-quality acreage position in four shale
plays.
 25,700 net ac...
Carrizo Oil & Gas (NASDAQ: CRZO)
Why invest?
 Crude oil accounts for 60% of reserves and
production.
 Upside from probab...
Investor takeaway
While popular energy stocks like SandRidge Energy and
Kodiak Oil & Gas both have lots of upside, some un...
Do you know this energy
tax “loophole”?
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5 Under the Radar Energy Stocks that Most Investors are Missing

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Investors have flocked to popular energy stocks like SandRidge Energy and Kodiak Oil & Gas. While both have great growth prospects, there are some underfollowed energy stocks with even better prospects.

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  • http://kodiakog.investorroom.com/index.php?s=43&item=232 and http://www.kodiakog.com/pdf/KOG_June2014.pdf
  • http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTQ2MDk0fENoaWxkSUQ9MjM3NDE2fFR5cGU9MQ==&t=1
  • http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTQ2MDk0fENoaWxkSUQ9MjM3NDE2fFR5cGU9MQ==&t=1
  • http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTQ2MDk0fENoaWxkSUQ9MjM3NDE2fFR5cGU9MQ==&t=1
  • http://www.oasispetroleum.com/wp-content/uploads/2014/06/2014-6-OAS-IR-Presentation.pdf
  • http://www.oasispetroleum.com/wp-content/uploads/2014/06/2014-6-OAS-IR-Presentation.pdf
  • http://www.oasispetroleum.com/wp-content/uploads/2014/06/2014-6-OAS-IR-Presentation.pdf
  • http://www.laredopetro.com/media/28895/june-2014-corporate-presentation.pdf
  • http://www.laredopetro.com/media/28895/june-2014-corporate-presentation.pdf
  • http://www.laredopetro.com/media/28895/june-2014-corporate-presentation.pdf
  • http://b2icontent.irpass.cc/844%2F155021.pdf?AWSAccessKeyId=1Y51NDPSZK99KT3F8VG2&Expires=1403209154&Signature=OoiNdiJnej41Bftou3h3WiORsBg%3D
  • http://b2icontent.irpass.cc/844%2F155021.pdf?AWSAccessKeyId=1Y51NDPSZK99KT3F8VG2&Expires=1403209154&Signature=OoiNdiJnej41Bftou3h3WiORsBg%3D
  • http://www.laredopetro.com/media/28895/june-2014-corporate-presentation.pdf
  • http://www.carrizo.com/docs/6-18-14-tph-conference
  • http://www.carrizo.com/docs/6-18-14-tph-conference
  • http://www.carrizo.com/docs/6-18-14-tph-conference
  • http://www.carrizo.com/news
  • 5 Under the Radar Energy Stocks that Most Investors are Missing

    1. 1. 5 Under the Radar Energy Stocks that Most Investors are Missing Photo credit: SandRidge Energy
    2. 2. All too often investing is a popularity contest as we want to fill our portfolios with popular stocks. Photo credit: Chesapeake Energy
    3. 3. Because of this companies like SandRidge Energy and Kodiak Oil & Gas have become widely owned and followed. Photo credit: Chesapeake Energy
    4. 4. There’s good reason for this as both offer a very compelling investment opportunity.
    5. 5.  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.
    6. 6.  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.
    7. 7. 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
    8. 8. 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
    9. 9. 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.
    10. 10. 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
    11. 11. 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.
    12. 12. 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.
    13. 13. 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
    14. 14. 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.
    15. 15. 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.
    16. 16. 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
    17. 17. 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.
    18. 18. 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.
    19. 19. 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
    20. 20. 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.
    21. 21. 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.
    22. 22. 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
    23. 23. 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.
    24. 24. Investor takeaway While 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
    25. 25. Do you know this energy tax “loophole”?

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