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Multiple companies are benefitting from the rapid production growth in the Bakken oil shale in both North Dakota and Montana. While many investors are looking for momentum plays in Bakken growth stocks, others would like to find value. The following is a comparison of seven different oil and gas stocks whose primary operations are in the Bakken based on two metrics; multiple to oil and gas net assets and multiple to oil sales (excluding natural gas). The comparison uses each companies 10Q for the third quarter of 2011 to get net oil and gas assets, third quarter oil sales only, and shares outstanding. In order to make a more apples to apples comparison for the fastest growing stocks third quarter oil sales are annualized for all seven companies. The average multiple for net oil and gas assets was 2.8. The average multiple for third quarter annualized oil only sales was 11.59. Combining the two metrics provides an asset and revenue based value target price for each stock.

Northern Oil and Gas (NYSEMKT:NOG) is the closest to fair value of the seven stocks in the comparison. NOG closed at $25.27 per share on January 11, 2011. The company has $7.95 per share invested in net oil and gas assets at the end of the third quarter. Based on an average multiple of 2.8 NOG has a net oil and gas asset valuation of $22.26. The company has $2.65 per share worth of third quarter annualized oil sales. Based on an average multiple of 11.59 NOG has an oil sales valuation of $30.71. The average of the two metrics gives NOG a value target price per share of $26.49.

Triangle Petroleum (NYSEMKT:TPLM) had the widest disparity between its asset valuation and its oil sales valuation. TPLM closed at $7.04 per share on January 11. The company has $2.95 per share invested in net oil and gas assets at the end of the third quarter. TPLM has a net oil and gas asset valuation of $8.26. The company has $.33 per share worth of third quarter annualized oil sales. TPLM has an oil sales valuation of $3.82. The average of the two metrics gives TPLM a value target price per share of $6.04.

Continental Resources (NYSE:CLR) also had a wide disparity between its two metrics, but in the opposite direction. CLR closed at $74.72 per share on January 11. The company has $22.47 per share invested in net oil and gas assets at the end of the third quarter. CLR has a net oil and gas asset valuation of $62.92 per share. The company has $9.91 per share worth of third quarter annualized oil sales. CLR has an oil sales valuation of $114.85 per share. The average of the two metrics gives CLR a value target price per share of $88.89.

Kodiak Oil and Gas (NYSE:KOG) is trading at the highest valuation of the seven stocks in the comparison. KOG closed at $9.64 per share on January 11. The company has $2.23 per share invested in net oil and gas assets at the end of the third quarter. KOG has a net oil and gas asset valuation of $6.24 per share. The company has $.55 per share worth of third quarter annualized oil sales. KOG has an oil sales valuation of $6.43 per share. The average of the two metrics gives KOG a value target price per share of $6.33.

Voyager Oil and Gas (VOG) closed at $2.61 per share on January 11. The company has $1.26 per share invested in net oil and gas assets at the end of the third quarter. VOG has a net oil and gas asset valuation of $3.53 per share. The company has $.19 per share worth of third quarter annualized oil sales. VOG has an oil sales valuation of $2.20 per share. The average of the two metrics gives VOG a value target price per share of $2.87.

Oasis Petroleum (NYSE:OAS) closed at $31.95 per share on January 11. The company has $9.23 per share invested in net oil and gas assets at the end of the third quarter. OAS has a net oil and gas asset valuation of $25.84 per share. The company has $3.73 worth of third quarter annualized oil sales. OAS has an oil sales valuation of $43.23 per share. The average of the two metrics gives OAS a value target price of $34.53 per share.

U.S. Energy (NASDAQ:USEG) is trading at the lowest valuation of the seven stocks in the comparison. USEG closed at $3.07 per share on January 11. The company has $3.62 per share invested in net oil and gas assets at the end of the third quarter. USEG has a net oil and gas asset valuation of $10.13 per share. The company has $1.04 per share worth of third quarter annualized oil sales. USEG has an oil sales valuation of $12.05 per share. The average of the two metrics gives USEG a value target price of $11.09 per share.

USEG is the only company in the comparison undervalued in both its net oil and gas asset valuation and its oil sales valuation. KOG is the only company in the comparison overvalued in both its net oil and gas asset valuation and its oil sales valuation.

Source: Finding Value In Bakken Growth Stocks