Midcap Energy Stocks To Buy #3: SM Energy Company (SM)
Ask any investor to name the hottest shale formations in the U.S. and odds are the words Bakken and Eagle Ford would be at the top of their lists. Add in the prolific Permian Basin and you have a trifecta of shale oil and natural gas liquids (NGLs) that can power profits for years to come.
Now what if I told you there was a midcap energy stock tapping all three regions with gusto?
Well, SM Energy Company (SM) has exposure to all three as well as the upcoming Wolfcamp. Those hot shale plays should help push SM’s production up around 16% this year. And the fact that SM enjoys liquids rich production will keep the profits coming.
For the latest quarter, SM saw a 31% increase in total operating revenues for the first quarter of 2014 versus the same period a year ago. Profits registered 96 cents per diluted share, beating analysts’ estimates.
But given the company’s exposure, those hefty revenue and profit gains could be just for the beginning for SM Energy and SM stock investors. Meanwhile, its midcap size makes it perfect for a buyout.