Clayton Williams Energy, Inc. (CWEI)

[OilStockReport]

Thoughts on this prediction?

Clayton Williams Energy (CWEI) is my favorite company outside the Bakken. This company has 166400 net acres in the Eagle Ford. Clayton purchased these acres in 1996, and purchased the acres cheap. The Eagle Ford is a low risk shale play with moderate return. Wells can be completed here for less than half the price of a Bakken well. Although Eagle Ford wells have a lower estimated ultimate recovery, lower costs allow the operator to make a profit more quickly. Management has done a very good job. Clayton has beaten quarterly estimates for four straight quarters. Clayton Williams Energy: Significant Growth Aimed at Oil Production is a more in depth article on this stock. Clayton's valuation metrics are:

P/E Ratio-31.55

2011 Annual EPS Growth-68.9%

PEG Ratio-.458