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Mid cap companies are always an interesting opportunity. Mid caps carry some of the risk of their smaller cap peers, but still have room to grow and join the ranks of their larger-cap peers. Today we focused on oil and gas drilling companies where all the signs point towards growth: they've got strong profits and even stronger projected growth. The list we came up with is short, but sweet. We hope you enjoy.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.

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.

EPS growth (earnings per share 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.

We first looked for mid cap oil & gas drilling stocks. We then screened for businesses that have shown strong bottom line growth over the last year (1-year fiscal EPS growth rate>10%)(1-year operating margin>15%). We then looked for businesses with estimated high-growth, with 1-year projected EPS growth above 25%.

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

1) Concho Resources, Inc. (CXO)

Sector:Basic Materials
Industry:Oil & Gas Drilling & Exploration
Market Cap:$9.33B
Beta:1.25

Concho Resources, Inc. has a Earnings Per Share Growth Rate of 144.35%, a Operating Profit Margin of 53.27%, and a 1-Year Projected Earnings Per Share Growth Rate of 41.97%. The short interest was 1.65% as of 06/14/2012. Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, exploration, and development of oil and natural gas properties in the United States. Its principal operating areas are located in the Permian Basin region of southeast New Mexico and west Texas. As of December 31, 2011, the company had estimated proved reserves of 386.

2) Kodiak Oil & Gas Corp. (KOG)

Sector:Basic Materials
Industry:Oil & Gas Drilling & Exploration
Market Cap:$2.02B
Beta:3.33

Kodiak Oil & Gas Corp. has a Earnings Per Share Growth Rate of 205.75%, a Operating Profit Margin of 36.26%, and a 1-Year Projected Earnings Per Share Growth Rate of 73.77%. The short interest was 11.56% as of 06/14/2012. Kodiak Oil & Gas Corp. engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas in the United States. The company's oil and natural gas reserves and operations are primarily concentrated in the Williston Basin of North Dakota and Montana, and the Green River Basin of Wyoming and Colorado. As of December 31, 2011, it had estimated proved reserves of 35.

3) MarkWest Energy Partners LP (MWE)

Sector:Basic Materials
Industry:Oil & Gas Drilling & Exploration
Market Cap:$3.51B
Beta:1.00

MarkWest Energy Partners LP has a Earnings Per Share Growth Rate of 6353.29%, a Operating Profit Margin of 21.93%, and a 1-Year Projected Earnings Per Share Growth Rate of 55.75%. The short interest was 0.39% as of 06/14/2012. Markwest Energy Partners, L.P., together with its subsidiaries, engages in the gathering, processing, and transportation of natural gas in the southwest, Gulf Coast, and northeast regions of the United States.

*Company profiles were sourced from Finviz.

Source: 3 Mid Cap Oil & Gas Drillers Growing On Strong Profitability