Diamondback Energy (NASDAQ:FANG) has been one of the best small cap oil and gas performers this year. It is one of the few ways to get pure small cap Permian exposure other than Approach (NASDAQ:AREX) and Laredo (NYSE:LPI). This has created some scarcity value, making these names a little expensive.
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The Permian is one of my favorite areas in 2013. The reason is simple, asset valuation. If you look at individual well results in the Midland Basin, NPV-10 is not as high as the Eagle Ford's average of $9.0MM/well. The above picture shows there is greater value due to the Midland's stacked resource potential and well spacing. This combination will...
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