One of the keys to making money in the oil business in a lower pricing environment to have outstanding well returns. A new report from SunTrust Robinson Humphrey points out that although some Eagle Ford well economics are plagued by weak natural gas liquids pricing sub-optimal results, various parts of Karnes, Gonzalez and La Salle counties acreage continues to generate 50% or more returns at current commodity prices with a break-even oil price down to just around $30 per barrel.
With pricing expected to stay flat for the foreseeable future, the outstanding unconventional plays in the Eagle Ford may continue to be a solid place for investors looking to own energy stocks. With very reasonable oil services pricing and continued efficiencies by the better operators in the region, more oil production and revenues are a definite possibility.
Here are four top Eagle Ford shale stocks to buy now with massive SunTrust price targets.
Carrizo Oil & Gas
This is a top energy stock for value buyers to consider. Carrizo Oil & Gas Inc. (NASDAQ: CRZO) is a Houston-based energy company actively engaged in the exploration, development and production of oil and gas from resource plays located in the United States. Carrizo’s current operations are principally focused in proven, producing oil and gas plays primarily in the Eagle Ford Shale, the Utica Shale in Ohio, the Niobrara Formation in Colorado and the Marcellus Shale in Pennsylvania.
Many on Wall Street see the company as one of the best positioned due to the low breakeven costs, solid operating scale and a very good balance sheet with ample liquidity. The analysts also think they company may take advantage of difficult situations for others and make acquisitions, especially in the Eagle Ford.
Some analysts sees as much as 13% oil growth next year, even if the company does not add a fourth rig in the Eagle Ford. Wall Street as a whole is also very positive that the firm’s capital expenditures will prove to be accretive.
The SunTrust price target on the stock is $65. The Thomson/First Call consensus target is $60.75. Shares closed Wednesday at $46.11.