Emerald Oil Inc (EOX), Continental Resources, Inc. (CLR): Three Attractive Bakken Plays

The company is tracking toward better-than-50% sales gains this year and the stock has a minuscule five-year projected PEG (0.48). Oasis is a cash flow machine and trailing-12-month operating cash flow is approximately 10 times that of FY2010. Given the company’s production and reserve growth, the stock is selling at a very reasonable 12.5 times 2014’s projected earnings.

Emerald

Emerald Oil Inc (NYSEMKT:EOX) is experiencing massive production growth with revenues projected to increase more than 90% in both FY2013 & FY2014. Oil now constitutes over 90% of overall production as well. Unusual for an E&P concern, the company has net cash on its balance sheet which represents more than 10% of its overall market capitalization. Finally, out of the three picks profiled it has greatest possibility of being acquired for its prime Bakken assets given its small market capitalization.

To summarize, energy production in the Bakken shale region has experienced exponential growth over the last half decade. This growth is projected to continue in the immediate future. Despite this growth, there are myriad Bakken focused E & P concerns that sell at attractive valuations and should reward savvy investors who pick up shares at these price levels.

Bret Jensen owns shares of Oasis Petroleum. The Motley Fool has no position in any of the stocks mentioned. Bret is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Attractive Bakken Plays originally appeared on Fool.com is written by Bret Jensen.

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