Onshore Drillers Bullish Outlook

Dan Steffens |

Onshore Drillers UDRLThe ongoing volatility in the stock market is affording investors with an opportunity to invest in high quality oil & gas producers and oilfield service companies at a deep discount to their asset value. In particular, junior and mid-cap companies at trading at extremely attractive valuations.

In my opinion, equities are pricing in much lower oil prices over the long-term. My view is that while there may be additional volatility in the crude oil price in the short-term, supply and demand fundamentals are very strong for oil and long-term pricing will remain high and equity prices will rise to correct this disconnect.



EPG has just completed a company profile for Union Drilling (UDRL) has been posted under our Watch List Tab.

We have been tracking UDRL on our Watch List for almost a year. The company's 3rd quarter results beat our forecast. We are bullish on the onshore drillers as we see continued strong demand for high quality onshore drilling equipment in the North American market, driven primarily by expanding drilling budgets in the shale plays.

At Energy Prospectus, we are focused on finding small and mid-cap energy firms that have significant near-term production growth and catalysts that will draw the market’s attention. Our current recommendation is that investors stay heavily weighted to crude oil, although we do see long-term potential for natural gas.

Author note: Company profiles are available to EPG members only but readers that would like to receive a free copy can contact Dan at dmsteffens@comcast.net.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
REE Rare Element Resources n/a n/a n/a n/a
AYI Acuity Brands Inc (Holding Company) 200.00 -2.34 -1.16 605,053 Trade
ORCL Oracle Corporation 44.65 -0.30 -0.67 13,110,178 Trade
GLW Corning Incorporated 27.41 0.07 0.26 4,461,895 Trade
GEN Genesis Healthcare Inc. 2.53 0.12 4.98 365,117 Trade
FTR Frontier Communications Corporation 2.09 0.15 7.73 79,704,865 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.05 0.00 0.00 17,447 Trade
PG Procter & Gamble Company (The) 90.57 -0.20 -0.22 9,251,949 Trade
GE General Electric Co 29.72 0.10 0.34 27,857,462 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.99 0.00 0.00 0
FOSL Fossil Group Inc. 16.38 -0.02 -0.12 970,083 Trade
AA Alcoa Inc. 32.56 -0.75 -2.25 4,110,169 Trade
CSX CSX Corporation 46.32 0.21 0.46 5,742,567 Trade
TRV The Travelers Companies Inc. 120.77 -0.52 -0.43 1,334,242 Trade
MO Altria Group Inc. 73.17 -0.85 -1.15 11,772,496 Trade
P Pandora Media Inc. 11.85 0.33 2.86 7,095,524 Trade
BONT The Bon-Ton Stores Inc. 0.71 0.05 7.56 157,787 Trade
S Sprint Corporation 8.50 0.04 0.47 9,354,770 Trade
PPL PPL Corp 37.60 -0.04 -0.11 2,269,041 Trade
AKAM Akamai Technologies Inc. 63.63 -0.03 -0.05 1,008,272 Trade
MET MetLife Inc. 52.01 -0.04 -0.08 4,944,521 Trade
VOD Vodafone Group Plc 26.88 0.10 0.37 5,617,395 Trade
TJX TJX Companies Inc. (The) 78.43 0.00 0.00 2,806,106 Trade
SCCO Southern Copper Corp 36.55 0.14 0.38 1,012,997 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 39.83 -0.12 -0.30 1,138,607 Trade
AES The AES Corporation 11.23 0.05 0.45 3,479,756 Trade
JBLU JetBlue Airways Corporation 19.94 0.02 0.10 4,219,693 Trade
COST Costco Wholesale Corporation 166.02 -0.88 -0.53 1,410,390 Trade
VZ Verizon Communications Inc. 49.68 0.04 0.08 9,310,353 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 87.19 -0.20 -0.23 950,930 Trade
GM General Motors Company 34.56 0.30 0.88 16,223,464 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.97 -0.05 -0.83 823,488 Trade
GOOG Alphabet Inc. 814.43 -3.15 -0.39 1,980,603 Trade
BMY Bristol-Myers Squibb Company 55.89 0.12 0.22 6,170,597 Trade
TTM Tata Motors Ltd Limited 35.74 0.03 0.08 1,432,370 Trade
UNM Unum Group 45.79 -0.28 -0.61 912,888 Trade
EE El Pasoectric Company 49.55 0.35 0.71 126,356 Trade
ACHN Achillion Pharmaceuticals Inc. 3.76 -0.03 -0.79 1,104,844 Trade
HIG Hartford Financial Services Group Inc. (The) 47.33 -0.24 -0.50 2,633,779 Trade
F Ford Motor Company 11.62 -0.05 -0.43 43,738,432 Trade
PFG Principal Financial Group Inc 62.17 -0.01 -0.02 969,545 Trade
AZN Astrazeneca PLC 31.31 0.01 0.03 3,983,616 Trade
NFLX Netflix Inc. 142.02 0.18 0.13 3,546,047 Trade
MRK Merck & Company Inc. (new) 63.18 -0.10 -0.16 9,136,520 Trade
ANF Abercrombie & Fitch Company 11.31 0.06 0.53 1,948,839 Trade
SUN Sunoco LP representing limited partner interests 24.37 0.04 0.16 304,864 Trade
IHG Intercontinental Hotels Group American Depositary 48.00 -0.03 -0.06 86,141 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 36.12 0.16 0.44 3,605,565 Trade
T AT&T Inc. 41.68 0.03 0.07 14,201,504 Trade
DUK Duke Energy Corporation (Holding Company) 82.99 0.31 0.37 2,078,812 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 79.74 0.52 0.66 1,069,422 Trade
CMCSA Comcast Corporation Class A Common Stock 37.38 0.16 0.43 17,814,463 Trade

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