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US E&P Winners of 2013

Top 2 industry movers and shalers were 2012 IPO's. All 6 top performers have running room in 2014.

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Diamondback Energy

Up 177%

November 5, 2013

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Matador Resources

Up 127%

December 12, 2013

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This docFinder Alert highlights the Top Six (6) US E&P stock winners in 2013 based on US-focused publicly traded E&P companies with market caps greater than $500 million. Using CapIQ data, docFinder and PLS analysis all of the winners - FANG, MTDR, PVA, CRZ, MHR and GDP - are firms entrenched in executing US unconventional plays including the Permian (FANG); Eagle Ford (MTDR, PVA, CRZ); Utica, (MHR); Niobrara, (CRZ) and Tuscaloosa Marine Shale (GDP). With the exception of Magnum Hunter, the 2013 Winners are notably absent from the Bakken which continues to perform well but is largely priced into the Bakken stocks already.


CompanyTicker Stock Price 01/01/2013Stock Price 12/31/2013Market Cap 12/31/2013Stock Price % Change
Diamondback Energy FANG $19.12 $52.88 $2,489 177%
Matador Resources MTDR $8.20
$18.64 $1,223 127%
Carrizo Oil & Gas CRZO $20.92 $44.77 $2,034 114%
Penn Virginia Corp. PVA $4.41 $9.43 $616 114%
Magnum Hunter Resources MHR $3.99 $7.31 $1,250 83%
Goodrich Petroleum GDP $9.32 $17.02 $743 83%
Source CAP IQ, market cap in $MM.

Diamondback Energy celebrates with Top Honors in 2013 with a 177% return. FANG went public in October 2012 and is focused exclusively in the Permian Basin of West Texas where 3,500' of stacked pay potential is rewriting history. The company is enjoying success drilling Wolfcamp B wells with results to date at or above the type curve of 600 MBOE (71% oil). FANG has plenty of running room with 18 years of inventory using a 6-rig program and individual well economics showing a 47% IRR based on well costs of $7.0MM and $90 WTI. In fact, the success in the Wolfcamp B is driving some of the best horizontal economics in the entire US with a breakeven price of just $55/bbl. Here's a quick map of some Wolfcamp B results in FANG's area.


Matador Resources takes runner-up honors with a 2013 stock price rise of 127%. Like FANG, MTDR went public in 2012 - on February 7 specifically - and has delivered in 2013. The two core plays for MTDR are the Eagle Ford and the Permian. The Eagle Ford is expected to continue to be the major production growth driver as MTDR looks to tack on another 40-50% growth in 2014 on top of 70% in 2013. Through a series of operational improvements, including advancing from pad drilling to batch drilling, gas lift technology, better frac design and downspacing, MTDR continues to drive costs down and signficantly enhance Eagle Ford economics.


More HOT slides and data below.

The other four stock US E&P winners of 2013 highlighted below are Carrizo Oil & Gas, Penn Virginia Corporation, Magnum Hunter Resources and Goodrich Petroleum.


Did you know?

Oil company execs, investors and bankers know full well the value of "competitive reconnaissance." PLS's docFinder database is a valuable DATA source to help you stay current on industry and company developments. DocFinder lets you quickly view and compare type curves, oil price differentials, drilling costs, operating costs, CAPEX plans past, present and future, and other critical data.


featured.slides from docFinder

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Carrizo Oil & Gas

Up 114%

December 11, 2013

Penn Virginia

Up 114%

December 12, 2013

Magnum Hunter

Up 83%

December 2, 2013

Goodrich Petroleum

Up 83%

December 11, 2013

Carrizo's stock steadily climbed throughout 2013 hitting nearly $48 in mid-October before pulling back. Per CRZO, the company is "putting all the right pieces together" - comprised of Eagle Ford, Utica and Niobrara assets. In Q3, CRZO set a record of 12,228 boepd - up 41% YOY. CRZO has also lowered net debt/Adj. LTM EBITDA from 4.1X in Q1 2011 to pro forma 1.8X in Q3 2013. Providing years of growth, CRZO characterizes its probable reserves as low risk with a "very high likelihood of conversion to proved". In the near term, CRZO is awaiting flowback on its first Utica well, which could spur the stock higher.

Penn Virginia's stock traded in the $4 to $5 range until surging to past $10 in early September. The quick rise reflects investor confidence in PVA executing its Eagle Ford strategy. PVA completed a $401 MM acquisition from MHR in April, improved the balance sheet and guides 65% to 85% growth in 2014. PVA is also on the oil transition leaderboard. Devon's recent $6.0 B buy of GeoSouthern's Eagle Ford position - which is in PVA's neighborhood - confirms PVA's stance that its Eagle Ford position is worth a minimum $2.0 billion.

Magnum Hunter's stock took a tumble in April as it sold Eagle Ford assets for $401 MM. However, investors recovered and the stock ran from $4 to nearly $8 from mid-August to late-October. The stock performance is indicative of investor backing for MHR's strategy to focus on three stellar shale plays - Utica, Marcellus and Bakken. In the Utica, MHR is the second most leveraged company to the play where acreage prices have traded up to $12,000. This slide shows a range of NAV for MHR from $8.83 to $14.37.


Goodrich Petroleum is a top stock performer in 2013 despite having slipped 42% from its early October high of $28.55. The volatility around the stock is due to competing viewpoints regarding GDP's focus area - the Tuscaloosa Marine Shale - where the company plans to spend 80% of its $375 MM 2014 budget. This map shows TMS well results with GDP's - Crosby 12H #1 - being one of the key wells (30-Day IP rate of 1,137 boepd). Economics can be superb with IRR's of development wells soaring past 100% at $95 oil.

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featured.transactions from PLS global M&A database

Date Headline Value
09/30/13 Diamondback Energy buys 20% RI on 12,500 net acres $440 MM
08/12/13 Magnum Hunter buys 32,000 Utica acres $142 MM
07/22/13 Goodrich Petroleum buys 185,00 Tuscaloosa Marine acres from Devon $27 MM
04/02/13 Penn Virginia buys 19,037 prime Eagle Ford acres from Magnum Hunter $401 MM

Source: PLS M&A Database

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