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1 Natural Gas Company to Put on Your Radar?

By Tyler Crowe - Apr 11, 2013 at 7:37PM

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This unsung natural gas producer doesn't get much media attention, but its recent finds should garner some attention.

Several investors wrote off natural gas plays after spot prices bottomed out last year, but the subsequent rise in gas prices hasn't seemed to change the opinion of many investors. It's a shame, because they could be missing out on some great companies that could make big returns in the future. One company that comes to mind is WPX Energy (WPX), which just announced that its most recent well in the Piceance Basin of Colorado sported an impressive 100-day output of 1 billion cubic feet of gas. 

The implications of this gas find could mean a large uptick in the company's reserves. With the company valued at $1.00 per thousand cubic feet equivalent of proved reserves, WPX is one of the lowest-valued gas company's on the market. Also, even though the company has a gas-heavy portfolio, its liquid component just happens to be in one of the best tight oil plays in the U.S. -- the Bakken. In this video, Fool.com contributor Tyler Crowe talks about how the low market value per proven reserve could be an opportunity to get in on a strong natural gas play that just also happens to have the same amount of proven oil reserves in the Bakken as Kodiak Oil & Gas (NYSE: KOG).

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Stocks Mentioned

WPX Energy, Inc. Stock Quote
WPX Energy, Inc.
WPX
Anadarko Petroleum Corporation Stock Quote
Anadarko Petroleum Corporation
APC
Ultra Petroleum Corp. Stock Quote
Ultra Petroleum Corp.
UPL

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