Bakken Players Expecting Big Increases
The Bakken has made many people money over the past year. There are a number of companies that are expected to increase by 50%. Which companies are they? Kraken suggests a few you should consider investing in.
EOG Resources, Inc., (EOG) together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad and Tobago, the United Kingdom, and the People’s Republic of China.
While EOG has not been able to max out its production levels, I still believe it’s a great investment for multiple reasons. EOG is not just a Bakken play, but also an Eagle Ford play as well. With EOG’s size you get strong diversification. While more than 70% of the company’s revenue comes from Eagle Ford, the company has begun to increase its presence in the Bakken. EOG is one of the largest players with a market cap of $28 billion, which makes it more stable than its peers. The stock has a forward P/E of 21 and pays a small dividend of .6%.
Oasis Petroleum Inc. (OAS), through its subsidiary, Oasis Petroleum LLC, engages in the acquisition and development of oil and natural gas resources primarily in the Williston Basin.
Oasis has been increasing production and decreasing cost. It is continuously investing in additional wells so it can extract oil at a faster rate and lower cost. Oasis is also delivering its results by consistently meeting expectations for the previous 3 quarters. Oasis has plenty more growth ahead. They believe their Indian Hills area, where they lease 23,000 acres, will yield strong production numbers. The company plans to invest 20% of their budget to drill that acreage. The stock has a forward P/E of 15.5.
The Bakken is going to do some major good for these companies in the next year. Some additional due diligence would be a good idea here, but these two stocks are some of our favorites. So we recommend looking into them!
Quotes taken from report by Kraken, Read the entire article here.
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