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5 Small-Cap Energy Stocks to Power your Portfolio

One gusher could make any of these stocks pop

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Approach Resources

Approach Resources Inc. (NASDAQ: AREX)

With a trailing P/E of 232, investors are expecting big things from Approach Resources (AREX). And big things they just might get.

The small firm is focusing its operating area in West Texas and features a concentrated 148,000 net acres in the Permian Basin. That acreage has roughly 95.5 million barrels of oil equivalent. That’s some hefty profit considering the recent climb in West Texas Intermediate crude prices and the liquids-oriented nature of the Permian.

Overall, Approach represents a real startup firm in the energy space as the company has only three horizontal rigs currently drilling in the region. However, with the continuous acreage it owns in West Texas, along with sufficient capital to fund its $260 million capex budget, the potential for AREX shares is enormous.

As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, http://investorplace.com/2013/08/five-electric-small-cap-energy-stocks/.

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