Staying Out Of Volatile Regions Is a Plus

Article Excerpt

We continue to like the prospects for oil and gas stocks — and the recent pullback in share prices makes them attractive right now. It’s uncertain if oil and gas prices will drop further in the short term, or move back up. Either way, prices will likely remain way above long-term averages. We think the best way to cut risk in today’s volatile oil and gas markets is to look for companies with rising production – but also trading at reasonable multiples to cash flow per share. Here are four with great long-term prospects. They come with the added bonus of operating mainly in geographic areas with low political risk. CIMAREX ENERGY $61.38 (New York symbol XEC; SI Rating: Extra risk) (303-295-3995; www.cimarex.com; Shares outstanding: 82.9 million; Market cap: $5.1 billion) is an oil and gas explorer and producer primarily focused in western Oklahoma, Kansas, the upper Gulf Coast areas of Texas and South Louisiana, the Permian Basin area of West Texas, plus…

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