US oil and gas companies have been strong for a while due to the boom in shale oil production, and one of our latest featured stocks is a key up-and-comer in the US oil production scene, suggests Mike Cintolo, editor of Cabot Top Ten Trader.

Diamondback Energy (FANG) went public in October 2012, and has been growing at a breakneck pace ever since. The company currently explores and is developing the oil-rich Wolfberry area of the Permian Basin in West Texas.

Diamondback Energy currently estimates its proved oil and natural gas reserves at 63.6 billion barrels of oil equivalent (BOE), but believes that figure could grow by another 393 million (BOE) as methods improve for extracting resources from shale oil fields.

Diamondback has been extremely aggressive with organic growth, expanding production by nearly 150% in fiscal 2013. Furthermore, the company expects production to grow by more than 100% again in fiscal 2014.

Diamondback expects this expansion to further lower its overall production costs, with lease operating expenses (LOE) seen falling $6.04 per BOE in the fourth quarter, versus $7.27 per BOE in the third.

In fact, the company has seen double-digit percentage declines in LOE for the past five quarters. All of this is causing the bottom line to explode higher. We like it.

FANG shares have been in rally mode ever since their initial public offering in October 2012. Throughout its uptrend, FANG has seen unfailing support from its ten-week and 25-week moving averages, below which FANG has never closed a week.

Currently, the stock is enjoyed a period of cooling off north of the 60 region. Since peaking at $68 on February 24, FANG has consolidated into rising support at its 25-day moving average. This brief respite in FANG's uptrend looks like a solid entry point for a long position.

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