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Many oil and gas companies are experiencing significant increases in growth and demand in the current market. While growth opportunities are appealing, to be considered sound investments in this sector, it is vital for these companies to have solid fundamentals in place. With this in mind, we screened for oil and gas companies that have attractive projected EPS growth rates for the next year, but also have not accrued significant debt. Analyzing debt ratios is key in finding companies that have not leveraged assets to provide current funding, and it also shows that there are other sources of funding in place, like profits and reserves. We think you will find the graphs and data below helpful for your analysis to see if these companies have what it takes to achieve their projected growth.

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.

The Long Term Debt/Equity Ratio is a variation of the traditional debt-to-equity ratio; this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies that finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios.

The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead to substantial trouble.

We first looked for oil and gas stocks. We next screened for businesses that have expected earnings per share growth of more than 25 percent for next year(1-year projected EPS Growth Rate>25%). We next screened for businesses that have maintained a sound long term capital structure (Long Term D/E Ratio<.1). We then looked for businesses that operate with little to no debt (D/E Ratio<.1). We did not screen out any market caps.

Do you think these stocks have room to trade higher? Use our list along with your own analysis.

1) Sanchez Energy Corporation (NYSE:SN)

SectorBasic Materials
IndustryIndependent Oil & Gas
Market Cap$668.99M
Beta-

SN stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate339.39%
Long Term Debt/Equity Ratio0.00
Debt/Equity Ratio0.00
Short Interest7.22%

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition, exploration, and development of unconventional oil and natural gas resources. As of December 31, 2011, it had approximately 91,000 net leasehold acres in the oil and condensate, or black oil and volatile oil, windows of the Eagle Ford Shale in Gonzales, Zavala, Frio, Fayette, Lavaca, Atascosa, Webb, and DeWitt Counties of South Texas; approximately 1,200 net acres in the Haynesville Shale in Natchitoches Parish, Louisiana; and approximately 82,000 net acres in Lewis and Clark, Meagher, and Cascade counties of Montana. The company was founded in 2011 and is headquartered in Houston, Texas.

2) Enbridge Energy Management, LLC (NYSE:EEQ)

SectorBasic Materials
IndustryIndependent Oil & Gas
Market Cap$1.25B
Beta0.76

EEQ stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate27.96%
Long Term Debt/Equity Ratio0.00
Debt/Equity Ratio0.00
Short Interest1.70%

Enbridge Energy Management, L.L.C. operates as a limited partner of Enbridge Energy Partners, L.P. that owns and operates crude oil and liquid petroleum transportation and storage assets in the United States. It also owns and operates natural gas gathering, treating, processing, transportation, and marketing assets. The company manages and controls the business and affairs of Enbridge Energy Partners, L.P. Enbridge Energy Management, L.L.C. was founded in 2002 and is based in Houston, Texas.

3) Chesapeake Granite Wash Trust (NYSE:CHKR)

SectorBasic Materials
IndustryIndependent Oil & Gas
Market Cap$964.86M
Beta-

CHKR stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate123.58%
Long Term Debt/Equity Ratio0.00
Debt/Equity Ratio0.00
Short Interest5.53%

Chesapeake Granite Wash Trust owns royalty interests in oil, natural gas liquids, and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of western Oklahoma. It has royalty interests in 69 horizontal producing wells and 118 horizontal development wells, as well as in approximately 29,300 net acres of area. As of December 31, 2011, the reserve estimates for the royalty interests were 17.9 million boe of proved developed reserves and 24.3 million boe of proved undeveloped reserves. The company was founded in 2011 and is based in Austin, Texas.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/19/2012.

Source: 3 Oil And Gas Stocks Keeping Debt Down And Projected For Big Growth