Petroquest Energy Inc. (PQ)

[OilStockReport]

I see some upside potential here...

PetroQuest Energy (PQ) is a balanced oil and gas producer. This company's chart looks good over the past three months. PetroQuest has a 28% CAGR over the past twelve years with respect to production growth. The twelve year CAGR on reserve growth is 25%. As of the end of 2010, this company has had a success rate of 94%. PetroQuest has 45000 net acres in the Woodford shale, and 16000 net acres in the Fayetteville shale. The Arkoma Basin has been kind to PetroQuest. Since 2005 it has seen a CAGR of 41% with reserves and 33% with production. PetroQuest has 1600 net acres in the Eagle Ford. Three gross wells will be drilled here in 2011 and PetroQuest is aggressively seeking more acreage. Twelve percent of the 2011 capital budget is being spent here. In east Texas, PetroQuest's 23900 net acres are in SE Carthage field. A total of seven gross operated wells will be planned for this year. PetroQuest is increasing its exposure to liquids. In 2010, PetroQuest had liquids production of 21% of the total. This was 10% better than in 2009, and 2011 should see production growth of an addition 10%. PetroQuest also has shallow water assets in the Gulf of Mexico. Going forward, the Woodford JV will continue to produce liquidity, while the Niobrara and Eagle Ford add significant upside, depending on well results.

P/E Ratio- 13.9

Price to Sales- 2.86

Price to Tangible Book- 2.23