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Are you looking for companies in the oil and gas sector that could grow significantly over the next few years? One area to look at is mid caps. After all, mid caps by definition have room to grow. Today we screened for mid caps that have strong profit metrics to back up strong projected growth trends. We think you'll find the list we came up with rather interesting.

EPS growth illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin is increasing over time this means that it's earning more per dollar of sales. Finding trends in the Operating Profit Margin helps investors identify companies that are improving profitability over time and managing the economic landscape better than competitors.

The Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability. Net Margin = Net Income/Total Revenue.

We first looked for mid cap oil and gas stocks. From here, we then looked for companies with estimated high-growth, with 1-year projected EPS growth above 25%. From here, we then looked for companies with strong profit margins (1-year operating margin>15%)(Net Margin [TTM]>10%).

Do you think these mid-cap stocks deserve to trade higher? Use our screened list as a starting point for your own analysis.

1) Oasis Petroleum Inc. (NYSE:OAS)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$2.44B
Beta:-

Oasis Petroleum Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 60.12% and Operating Profit Margin of 45.14% and Net Margin of 25.03%. The short interest was 7.88% as of 05/31/2012. Oasis Petroleum Inc., an independent exploration and production company, engages in the acquisition and development of oil and natural gas resources in the Montana and North Dakota regions of the Williston Basin. The company's primary project areas include West Williston, East Nesson, and Sanish. As of December 31, 2011, it had approximately 78.

2) Rosetta Resources, Inc. (NASDAQ:ROSE)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$2.08B
Beta:2.15

Rosetta Resources, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 49.80% and Operating Profit Margin of 42.41% and Net Margin of 24.13%. The short interest was 6.37% as of 05/31/2012. Rosetta Resources Inc., an independent exploration and production company, engages in the acquisition, exploration, development, and production of onshore oil and gas resources in the United States. It owns producing and non-producing oil and gas properties located primarily in South Texas, including the Eagle Ford, and in the Southern Alberta Basin in Northwest Montana. As of December 31, 2011, the company had an estimated 965 billion cubic feet equivalent of proved reserves, including 36,370 million barrels of oil, 50,219 million barrels of natural gas liquids, and 446 billion cubic feet of natural gas, as well as drilled 53 net wells.

3) Laredo Petroleum Holdings, Inc. (NYSE:LPI)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$2.69B
Beta:-

Laredo Petroleum Holdings, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 57.69% and Operating Profit Margin of 37.07% and Net Margin of 22.97%. The short interest was 1.11% as of 05/31/2012. Laredo Petroleum Holdings, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of oil and natural gas in the Permian and Mid-Continent regions of the United States. The company's principal properties include the Permian Basin covering an area of 134,680 net acres in approximately 300 sections in the Wolfberry and deeper horizons located in west Texas and southeastern New Mexico; and the Anadarko Granite Wash property comprising 37,850 net acres situated in the Texas Panhandle and Western Oklahoma. As of December 31, 2011, its total estimated proved oil and natural gas reserves were 156 bcf.

4) Cabot Oil & Gas Corporation (NYSE:COG)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$6.89B
Beta:1.06

Cabot Oil & Gas Corporation has a 1-Year Projected Earnings Per Share Growth Rate of 80.85% and Operating Profit Margin of 30.41% and Net Margin of 12.26%. The short interest was 4.14% as of 05/31/2012. Cabot Oil & Gas Corporation, an independent oil and gas company, engages in the development, exploitation, exploration, production, and marketing of natural gas, crude oil and, and natural gas liquids in the United States. The company's properties primarily located in Appalachia, east and south Texas, and Oklahoma. It also transports, stores, gathers, and produces natural gas for resale.

5) Linn Energy, LLC (NASDAQ:LINE)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$7.13B
Beta:0.71

Linn Energy, LLC has a 1-Year Projected Earnings Per Share Growth Rate of 30.94% and Operating Profit Margin of 55.74% and Net Margin of 41.79%. The short interest was 1.03% as of 05/31/2012. Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and gas properties. The company's properties are primarily located in the Mid-Continent, the Permian Basin, Michigan, California, and the Williston Basin in the United States. As of December 31, 2011, it had proved reserves of 3,370 billion cubic feet equivalent of oil and gas, and natural gas liquids, as well as operated 7,759 gross productive wells.

6) Energen Corp. (NYSE:EGN)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$3.14B
Beta:1.18

Energen Corp. has a 1-Year Projected Earnings Per Share Growth Rate of 27.75% and Operating Profit Margin of 27.73% and Net Margin of 15.74%. The short interest was 1.75% as of 05/31/2012. Energen Corporation, an energy holding company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the continental United States. The company is also involved in the purchase, distribution, and sale of natural gas to residential, commercial, and industrial customers, as well as other end-users of natural gas in central and north Alabama. In addition, it provides gas transportation services to industrial and commercial customers located on its distribution system. The company has proved oil and gas reserves of approximately 343 bcf.

7) SM Energy Company (NYSE:SM)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$3.44B
Beta:1.56

SM Energy Company has a 1-Year Projected Earnings Per Share Growth Rate of 86.46% and Operating Profit Margin of 27.66% and Net Margin of 15.63%. The short interest was 3.96% as of 05/31/2012. SM Energy Company, an independent energy company, together with its subsidiaries, engages in the acquisition, exploration, exploitation, development, and production of crude oil, natural gas, and natural gas liquids in North America. Its operations are primarily concentrated in five principal operating areas, including the South Texas and Gulf Coast region covering Eagle Ford shale program; the Rocky Mountain region covering the Bakken/Three Forks formations in the North Dakota portion of the Williston Basin; the Mid-Continent region consisting of the Woodford shale in the Arkoma Basin in eastern Oklahoma, the Granite Wash formation in western Oklahoma, and the Texas Panhandle; the ArkLaTex region comprising the Haynesville shale in east Texas; and the Permian region covering a portion of western Texas and eastern New Mexico focusing on Wolfberry tight oil play and Mississippian limestone play.

8) Cimarex Energy Co. (NYSE:XEC)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$4.56B
Beta:1.58

Cimarex Energy Co. has a 1-Year Projected Earnings Per Share Growth Rate of 25.05% and Operating Profit Margin of 46.46% and Net Margin of 29.52%. The short interest was 4.90% as of 05/31/2012. Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Texas, Oklahoma, New Mexico, and Kansas. As of December 31, 2010, it had proved oil and gas reserves of approximately 2.05 trillion cubic feet.

Company profiles and financial data sourced from Finviz.

Source: 8 Profitable Mid Cap Oil And Gas Stocks Poised For Growth