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) 169.73 -0.41 -0.24 794,750 Trade
ORCL Oracle Corporation 44.56 -0.07 -0.16 6,841,693 Trade
GLW Corning Incorporated 29.18 -0.13 -0.44 5,759,945 Trade
GEN Genesis Healthcare Inc. 1.96 -0.13 -6.22 386,041 Trade
FTR Frontier Communications Corporation 1.40 -0.07 -4.76 28,655,963 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.00 0.00 0.00 28,364 Trade
PG Procter & Gamble Company (The) 86.08 -0.13 -0.15 4,042,266 Trade
GE General Electric Co 28.28 0.10 0.35 23,819,272 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.75 0.00 0.00 272
FOSL Fossil Group Inc. 12.20 -0.47 -3.71 1,288,249 Trade
AA Alcoa Inc. 33.26 0.30 0.91 2,949,106 Trade
CSX CSX Corporation 51.80 0.34 0.66 8,111,595 Trade
TRV The Travelers Companies Inc. 121.66 0.01 0.01 1,128,622 Trade
MO Altria Group Inc. 72.13 0.09 0.12 6,491,776 Trade
P Pandora Media Inc. 9.14 0.02 0.22 8,308,468 Trade
BONT The Bon-Ton Stores Inc. 0.58 -0.04 -6.45 139,634 Trade
S Sprint Corporation 8.18 0.01 0.12 19,270,006 Trade
PPL PPL Corp 39.29 0.14 0.36 2,650,555 Trade
AKAM Akamai Technologies Inc. 47.41 -0.34 -0.71 2,326,002 Trade
MET MetLife Inc. 50.51 0.36 0.72 5,923,739 Trade
VOD Vodafone Group Plc 29.50 -0.12 -0.41 3,399,780 Trade
TJX TJX Companies Inc. (The) 74.40 -0.89 -1.18 5,411,170 Trade
SCCO Southern Copper Corp 35.01 -0.09 -0.26 385,596 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 42.36 0.47 1.12 1,924,110 Trade
AES The AES Corporation 11.37 0.01 0.09 3,695,618 Trade
JBLU JetBlue Airways Corporation 22.08 0.51 2.36 5,535,206 Trade
COST Costco Wholesale Corporation 172.47 0.07 0.04 1,788,036 Trade
VZ Verizon Communications Inc. 45.48 0.00 0.00 8,050,821 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 89.05 -0.88 -0.98 399,976 Trade
GM General Motors Company 33.22 0.30 0.91 17,572,309 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.93 0.07 1.02 2,025,209 Trade
GOOG Alphabet Inc. 948.82 6.96 0.74 1,263,486 Trade
BMY Bristol-Myers Squibb Company 54.21 0.11 0.20 7,177,443 Trade
TTM Tata Motors Ltd Limited 36.81 1.91 5.47 2,720,452 Trade
UNM Unum Group 45.70 0.36 0.79 954,478 Trade
EE El Pasoectric Company 53.05 0.05 0.09 153,772 Trade
ACHN Achillion Pharmaceuticals Inc. 4.13 -0.02 -0.48 686,819 Trade
HIG Hartford Financial Services Group Inc. (The) 49.15 0.35 0.72 1,474,684 Trade
F Ford Motor Company 11.05 -0.05 -0.45 40,779,898 Trade
PFG Principal Financial Group Inc 61.71 0.28 0.46 1,409,643 Trade
AZN Astrazeneca PLC 34.08 0.13 0.38 3,979,157 Trade
NFLX Netflix Inc. 157.95 0.79 0.50 3,346,249 Trade
MRK Merck & Company Inc. (new) 64.55 0.51 0.80 5,704,428 Trade
ANF Abercrombie & Fitch Company 12.20 -0.30 -2.40 2,013,023 Trade
SUN Sunoco LP representing limited partner interests 30.44 0.05 0.16 237,369 Trade
IHG Intercontinental Hotels Group American Depositary 55.72 -0.09 -0.16 86,916 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 35.37 -0.16 -0.45 10,757,808 Trade
T AT&T Inc. 38.31 0.06 0.16 13,452,832 Trade
DUK Duke Energy Corporation (Holding Company) 84.30 0.20 0.24 1,747,223 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 67.70 -0.54 -0.79 1,786,132 Trade
CMCSA Comcast Corporation Class A Common Stock 39.78 0.29 0.73 15,419,447 Trade

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