Carrizo Oil & Gas, Inc. (CRZO): The Eagle Ford Is Booming, Here Are Three Ways To Participate

A large-cap production grower

EOG Resources is the largest oil producer in the Eagle Ford. And although it was not the first to this play, it is generally regarded as having the best and oiliest acreage. As a company, EOG is a big player in the best US resource plays: the Bakken, Permian and Eagle Ford. Its market cap is over $46 billion, in the middle of ConocoPhillips (NYSE:COP) and Carrizo Oil & Gas, Inc. (NASDAQ:CRZO).

Looking at its drilling results, it’s not hard to see: Crude oil production is growing at 28% annually. Returns on equity and capital employed have both increased and are in the double digits. Margins have continuously improved and now sit at over $39 per barrel. Well efficiency continues increasing, too. In describing its Eagle Ford operations, EOG says it has “captured the biggest US crude oil discovery net to one company in the past 40 years.” It really is that good. For all these reasons, I believe EOG is the best play in the Eagle Ford.

Conclusion

The Eagle Ford shale has been a major discovery, now rivaling even the Bakken. Any of these three would be a good way to participate. In addition, all three stocks have dipped in this pullback, with ConocoPhillips (NYSE:COP) being down the most, by about 8%. If oil exposure is what you’re looking for, this is a premier play and these three companies are perhaps the best way to be in it.

The article The Eagle Ford Is Booming, Here Are Three Ways To Participate originally appeared on Fool.com and is written by Casey Hoerth.

Casey Hoerth is long ConocoPhillips. Casey is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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