While it’s a smaller firm than energy stocks like OXY or PXD, Concho Resources (CXO) Permian power is still quite impressive. Focusing on the Delaware Basin of the massive Permian, CXO has continued to see rising reserve and production growth as it fracks the field.
For all of 2013, CXO saw a 20% production increase versus 2012’s numbers to reach 33.6 million barrels BOE. More importantly, 63% of that production was higher priced crude oil.
Yet, the best may still be ahead for CXO. The firm estimates that its Permian drilling programs will allow it to see a CAGR of 25% in its production. This will allow Concho to more than double its total production of oil and natural gas by 2016, making it very competitive with other energy stocks in the region.
CXO stock shares are the most expensive on this list, but the smaller producer may be worth it. Especially when you consider that its $11 billion market cap could be easily swallowed by a larger integrated major looking to add to its production numbers.
The Bottom Line: For investors, the prolific Permian contains all the energy socks they need to buy now.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.