We tend to focus on oil stocks, but lets shift gears back to natural gas. Natural gas has had an interesting run over the past year. Aimee Duffy has 5 picks, and we picked our favorites!
Magnum Hunter Resources (NYSE: MHR )
Magnum Hunter Resources is an example of a company turning the corner. The stock spent much of 2011 in decline, only to reverse course in November, climbing slowly but steadilysince then. A crucial component to the future success of this company is its reserve mix that consists of a 48% crude and NGLs to natural gas ratio.It has set a target 2012 exit rate of 15,000 barrels of oil equivalent per day. For perspective, the company’s average daily rate right now is 13,000 BOE/d.
Stone Energy (NYSE: SGY )
Stone Energy is also one of the top 40 producers of U.S. natural gas, No. 39 to be exact. Though the company is a major producer of natural gas, oil makes up 42% of all reserves and 59% of its proved producing reserves. Stone’s gas comes from the booming Appalachian region; its oil from crucial assets is located offshore in the Gulf of Mexico, and onshore ranges from Alberta’s Bakken down to the Eagle Ford shale in Texas.
These stocks have potential to double. This is a great analysis for you and the stocks alike. We like underdog stocks, and that is exactly what they are. If these strike your interest, continue your research!
Quotes taken from report by Aimee Duffy, Read the entire article here.
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