As the fracking revolution continues to drive production up and costs down all across the United States, companies that can deliver production beats are the companies getting big jumps in share prices. The energy research team at Jefferies recently held an energy summit in Boston with some of the top names they cover. With most basins in the country in development mode, they believe cost efficiencies, depth of inventory and visibility toward free cash generation will drive stock performance going forward.

Here are the top oil and gas exploration stocks to buy at Jefferies.

Anadarko Petroleum Corp. (NYSE: APC) is one of the leading stocks to buy at all the firms we cover on Wall Street. Anadarko has discovered more than 100 trillion cubic feet of natural gas in the Rovuma Basin area, offshore Mozambique. The area is touted to contain around 250 trillion cubic feet of natural gas, a volume sufficient enough to meet global natural-gas demand for two years. The company also is planning to build the second-largest liquid natural gas (LNG) export terminal in the world to serve the energy-hungry Asian countries. Jefferies has a $111 price target for this top name. The Thomson/First Call estimate is at $108.50. Investors are paid a small 0.4% dividend.

Cabot Oil and Gas Corp. (NYSE: COG) may generate significant free cash flow next year. The Jefferies analysts are forecasting more than $300mm in 2014, based on a $4 gas deck. The company has highlighted acceleration of the Marcellus drilling program as the preferred use of free cash flow. The company also is working on a new five-year plan, which may be shared with investors during the third-quarter earnings report. The consensus price target for the stock is $77.50.

Gulfport Energy Corp. (NASDAQ: GPOR) is a top play in the Utica shale. Gulfport is on track to ramp activity up to seven horizontal rigs by mid-year. Meanwhile, the use of rotary steerable technology is improving their drilling times. Jefferies thinks Gulfport will be able to outperform prior expectations of drilling a well per month with each rig. The consensus price objective is $62.

Newfield Exploration Co. (NYSE: NFX) delivered via railroad a batch of 30,000 barrels of waxy crude out of the Uinta region in the first quarter, and discussed railing 100,000 incremental barrels on their earnings call. In the second quarter, it successfully railed well over 200,000 barrels, which is more than expected and may set the stage for growth above expectations in the basin. The consensus price target for the stock is $30.

Oasis Petroleum Inc. (NYSE: OAS) is currently quite confident that two-thirds of its Bakken acreage is very prospective at its Three Forks part of the shale. The company is drilling 15 extension wells in the first bench of the Three Forks this year that could further expand prospects across the play. The consensus target for the stock is $44.

Energy production in the United States is expected to pass imports in September for the first time in years. We have written about the prospects of American energy independence. The companies that are exploiting the hydraulic fracturing technologies are making huge production strides in all of the major shale areas in the country. Now may be a good time to add them to portfolios after recent market weakness.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.