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Cameron Horwitz, Director of Exploration and Production Equity Research at U.S. Capital Advisors LLC, Interviews with Wall Street Transcript: Productive and Efficient Outlook for Domestic E&Ps

67 WALL STREET, New York - February 6, 2013 - The Wall Street Transcript has just published its Oil & Gas: Exploration & Production Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Capital Expenditures and Consolidation Activity - Refining Crude Price Differentials - Frontier Exploration and Development - Shale Drilling Capital Expenditures - Oil Price Expectations - Oil and Gas Transportation Infrastructure Demand - Shale Drilling Dynamics - Shale, Offshore and Deepwater Drilling

Companies include: Exxon Mobil Corp. (XOM), Pioneer Natural Resources Co. (PXD), EOG Resources, Inc. (EOG), Cimarex Energy Co. (XEC), SandRidge Energy, Inc. (SD), Goodrich Petroleum Corp. (GDP), Gulfport Energy Corp. (GPOR)

In the following excerpt from the Oil & Gas: Exploration & Production Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Where are you pointing investors now? What are some of your favorite stories?

Mr. Horwitz: I really try to place these things in different buckets and different opportunity sets. We talked about having scale, being able to drive efficiency, being able to improve your capital productivity, and those things are generally being seen in some of these larger-cap companies that have captured the core of these resource plays.

We think one of the large-cap names that has not only captured the resource, but is demonstrating potential for capital efficiency accretion would be EOG (EOG), really driven by their core position in the Eagle Ford shale.

I think the core of the Eagle Ford shale is probably the most economic resource play in the country, and that's what is driving EOG. I think there's potential for further inventory upgrades as the company tests tighter well placing in the Eagle Ford. And I think on the margins and the ancillary activity, whether it be the Bakken or the Permian, EOG is starting to see some improvement from a productivity standpoint as well.

We continue to like EOG. It's obviously a name that worked in 2012. The stock is trading at about five times our 2013 EBITDA estimate, so it's really not expensive. The historic average has been about 5.5 times and the industry median is at about six times.

The other name from a large-cap perspective that I think falls into that shale-scale category would be Pioneer. Again, they have 900,000 acres in the Permian, and the Permian seems to be the basin has the most upside, in our opinion, from a resource estimate perspective...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.