Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, small-cap energy company Contango Oil & Gas (NYSE: MCF) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Contango's business and see what CAPS investors are saying about the stock right now.

Contango facts

   

Headquarters (Founded)

Houston (1986)

Market Cap

$714.1 million

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$155.8 million

Management

Founder/CEO Kenneth Peak

CFO Sergio Castro

Return on Equity (Average, Past 3 Years)

21.7%

Cash/Debt

$100.4 million / $3.8 million

Competitors

BP (NYSE: BP)

Newfield Exploration (NYSE: NFX)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 443 members who have rated Contango believe the stock will outperform the S&P 500 going forward. These bulls include ozzfan1316 and All-Star TMFDeej, who is ranked in the top 1% of our community.

Just last month, ozzfan1316 brought Contango's recent reserve disappointment to our community's attention: "Lowered reserve estimates on the last two wells drilled have led to the stock price getting hammered. ... A great company with great management on sale what's not to love?"

Since that early June announcement, in which reserve estimates came in 13.5% lower than its March figure, Contango's shares are down 10.5%, while rivals Newfield Exploration and the embattled BP are up handsomely over the same period. To be sure, Contango operates primarily out of the Gulf of Mexico, so worries over its future prospects seem to make sense. However, when you couple BP's well-capping progress with the fact that Contango mainly drills in shallower waters in the first place, it's easy to see why Fools are currently so high on the stock.

CAPS All-Star TMFDeej elaborates:

Taking advantage of the share price implosion caused by low natural gas prices and the Gulf of Mexico disaster.

While Contango's reserves are located in the Gulf of Mexico, they're in shallow water. Ultimately shallow water drilling in the GOM should return somewhat close to normal.

Contango should be able to weather the drilling issues in the Gulf because its balance sheet is in great shape. ...

The company's founder and CEO Ken Peak currently owns approximately 20% of Contango's outstanding shares. I like the fact that he's along for the ride. If shareholders do well, so does he.

What do you think about Contango, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!