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) 206.15 -4.47 -2.12 946,732
ORCL Oracle Corporation 39.19 0.09 0.23 10,394,029
GLW Corning Incorporated 24.56 0.37 1.53 5,860,684
GEN Genesis Healthcare Inc. 4.34 -0.02 -0.46 93,178
FTR Frontier Communications Corporation 3.54 -0.01 -0.28 8,947,957
ECT ECA Marcellus Trust I of Beneficial Interest 2.40 0.00 0.00 37,691
PG Procter & Gamble Company (The) 84.93 0.39 0.46 10,521,421
GE General Electric Co 31.23 -0.04 -0.13 24,701,360
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.76 -0.51 -3.84 667
FOSL Fossil Group Inc. 25.26 -0.37 -1.44 1,808,908
AA Alcoa Inc. 34.81 2.17 6.65 6,420,118
CSX CSX Corporation 36.88 -1.21 -3.18 20,660,656
TRV The Travelers Companies Inc. 118.54 1.08 0.92 1,486,815
MO Altria Group Inc. 69.16 0.68 0.99 8,063,446
P Pandora Media Inc. 13.00 0.25 1.96 5,171,456
BONT The Bon-Ton Stores Inc. 1.29 0.01 0.78 85,660
S Sprint Corporation 8.73 0.08 0.92 11,496,361
PPL PPL Corp 34.54 -0.15 -0.43 2,218,783
AKAM Akamai Technologies Inc. 69.60 -0.19 -0.27 1,075,488
MET MetLife Inc. 54.06 0.51 0.95 5,236,366
VOD Vodafone Group Plc 25.97 -0.27 -1.03 6,166,662
TJX TJX Companies Inc. (The) 76.68 -0.07 -0.09 3,215,457
SCCO Southern Copper Corp 35.89 0.74 2.11 1,182,431
MR Mindray Medical International n/a n/a n/a 0
XL XL Group plc 37.42 0.33 0.89 1,526,542
AES The AES Corporation 11.93 0.02 0.17 4,558,526
JBLU JetBlue Airways Corporation 21.49 0.15 0.70 8,762,427
COST Costco Wholesale Corporation 164.27 0.46 0.28 1,834,836
VZ Verizon Communications Inc. 52.25 -0.49 -0.93 12,931,244
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
VRSN VeriSign Inc. 80.62 0.31 0.39 877,914
GM General Motors Company 37.47 0.16 0.43 11,220,136
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.43 -0.07 -1.27 1,030,682
GOOG Alphabet Inc. 806.07 1.46 0.18 1,294,416
BMY Bristol-Myers Squibb Company 56.07 -0.21 -0.37 6,640,000
TTM Tata Motors Ltd Limited 38.35 0.14 0.37 1,094,227
UNM Unum Group 44.49 0.58 1.32 1,465,696
EE El Pasoectric Company 46.55 0.25 0.54 124,174
ACHN Achillion Pharmaceuticals Inc. 4.15 0.04 0.97 1,001,449
HIG Hartford Financial Services Group Inc. (The) 49.40 0.86 1.77 4,826,190
F Ford Motor Company 12.41 0.00 0.00 33,830,841
PFG Principal Financial Group Inc 59.48 1.21 2.08 987,436
AZN Astrazeneca PLC 28.50 0.03 0.11 6,149,614
NFLX Netflix Inc. 133.26 0.37 0.28 16,181,165
MRK Merck & Company Inc. (new) 61.17 -0.31 -0.50 8,131,662
ANF Abercrombie & Fitch Company 12.08 0.03 0.25 2,264,070
SUN Sunoco LP representing limited partner interests 26.68 -0.08 -0.30 2,689,399
IHG Intercontinental Hotels Group American Depositary 46.21 0.51 1.12 169,240
BRCM Broadcom Corp. n/a n/a n/a 0
EXC Exelon Corporation 35.71 -0.17 -0.47 3,016,309
T AT&T Inc. 40.80 -0.31 -0.75 19,476,461
DUK Duke Energy Corporation (Holding Company) 77.50 0.04 0.05 2,235,709
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 89.29 -0.29 -0.32 1,400,974
CMCSA Comcast Corporation Class A Common Stock 72.29 -0.27 -0.37 9,006,902

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