CRZO, CXO, GPOR, PDCE can "easily survive at $35" oil, SunTrust says

• SunTrust’s energy team suggests four E&P stocks it believes “can thrive at $55 and easily survive at $35" oil: Carrizo Oil & Gas (NASDAQ:CRZO), Concho Resources (NYSE:CXO), Gulfport Energy (NASDAQ:GPOR) and PDC Energy (NASDAQ:PDCE).
• The firm believes the four companies can grow production 200%-plus next year if oil surpasses $50/bbl but more importantly can spend relatively within cash flow while doing so, with the option of dramatically cutting spending and activity if oil falls toward $35, yet their cash flow coverage actually could increase slightly.
• SunTrust says the companies are best positioned to take advantage of either type of oil environment, and rates each of them a Buy.