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These Two Small-Cap Oil Stocks are Shining

US oil producers are among the most prominent beneficiaries of higher oil prices considering their breakeven-level that is substantially higher than Middle East producers.

Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) shares soared sharply higher in the last three months, driven by improving financials and strengthening oil prices. The company appears in a stable position to enjoy higher oil prices. Its first-quarter revenue rose 49% over the past year period, supported by higher oil prices and higher production volume.

Carrizo’s first quarter production volumes were standing at 51,257 boe per day, representing a growth of 11% Y/Y and up 40% on a pro forma basis. The huge increase in its production volume was due to its investments in the Eagle Ford Shale and Delaware Basin. The company’s total crude oil production rose 18% Y/Y to 34.1K bbl/day.

The company expects its total production volume to increase at a double-digit rate this year to 58.5K-60.1K boe/day.

Commenting on future fundamentals, its CEO said, “By implementing a steady development program in Eagle Ford and Delaware Basin, including a measured increase in activity over time, we believe we can generate double-digit production growth while improving our ROCE and moving toward a free-cash-flow-positive development program.”

Halcón Resources Corporation (NYSE:HK) is among the companies that are generating substantial production growth. Its total production averaged around 10,967 barrels of oil equivalent per day (Boe/d) in the latest quarter, up 75% from the previous quarter. Its production volume was composed of 70% oil, 15% natural gas and 15% natural gas liquids (NGLs) in the first quarter of fiscal 2018.

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