SM Energy Company
Two of the hottest shale plays in the nation are the previously mentioned Bakken and Texas’s Eagle Ford. Both have the right mixture of shale oil and NGLs that make them hugely profitable for E&P firms.
Covering production in both is midcap energy stock SM Energy (SM).
That acreage in the prime plays continue to pay big benefits for the firm. Profits at SM surged in the last quarter as higher oil and NGL prices padded the firm’s already hefty bottom-line. And SM predicts more will be in store throughout the year as its production will increase 16% in 2014.
While the growth in its Bakken and Eagle ford assets are enough to be excited about SM stock, the firm does have another ace up its sleeve — namely the Permian Basin and Wolfcamp shales. SM has recent amassed drilling rights on 53,500 acres in the Permian, while its first series of two test wells in the Wolfcamp have been absolute gushers.
Those two new catalysts could be exactly what SM needs to be a great energy stock midcap pick in 2014.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.