Big Rewards From Small-Cap Energy

Big energy companies are not the only places in the sector for an investor to play, according to Jason Votruba of Scout Investment Advisors. He has some promising smaller energy-related names.

Votruba's four-star UMB Scout Small Cap fund is up an average of 14.6 percent per year over the last five years.

"Some of the cheapest oil and gas you'll find right now is in the U.S. stock market," he told CNBC.

(Scroll down for Web Extra picks.)

His first pick is an exploration and production company, Swift Energy.

"About two-thirds of their production is oil," he said. "They had some production issues in the first quarter...I think you'll see production climb about 30 percent in the second half."

Based on energy prices, he believes the stock should be trading at three times its current price.

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Votruba also likes Woodward Governor and Unit Corporation.

Woodward Governor produces systems that help users become more efficient in their use of energy, and Unit is a natural gas driller and producer.


Votruba owns Swift Energy, Woodward Governor and Unit through his fund.