Carrizo Oil & Gas
The Eagle Ford is the gift that keeps on giving for the E&P industry. Like the previous two small-caps on our list, things are no different for Carrizo Oil & Gas (CRZO). While the firm does have productive acreage in the Utica, Marcellus, Barnett and Niobrara shales, its main focus on growing production is currently in the prolific formation in Texas.
Based on rising production at its 68 Eagle Ford wells, Carrizo expects that its second quarter production will jump between 10,800 and 11,200 barrels per day, up from previous estimates of 9,600 to 10,000. That would boost total 2013 crude oil production by an estimated 40% and total production growth by 10%. However, even those estimates could prove low, given that Carrizo’s Eagle Ford production jumped by 57% during Q1.
That’s pretty good considering CRZO has been able to average about $105 a barrel for its energy because it’s focused on exporting it to Latin America’s growing diesel market.
With a forward P/E of just 10, CRZO shares could represent a great bargain based on its production growth.