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) 143.69 1.34 0.94 452,070 Trade
ORCL Oracle Corporation 48.36 0.26 0.54 11,411,979 Trade
GLW Corning Incorporated 33.02 0.30 0.92 3,127,173 Trade
GEN Genesis Healthcare Inc. 1.54 -0.01 -0.65 674,208 Trade
FTR Frontier Communications Corporation 5.32 -0.03 -0.56 2,598,081 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 1.95 0.05 2.63 47,545 Trade
PG Procter & Gamble Company (The) 83.69 0.00 0.00 8,409,296 Trade
GE General Electric Company 12.30 0.00 0.00 46,941,742 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.74 -0.01 -0.08 1,400
FOSL Fossil Group Inc. 24.77 0.79 3.29 984,075 Trade
AA Alcoa Corporation 42.03 0.58 1.40 2,264,910 Trade
CSX CSX Corporation 73.69 0.25 0.34 3,553,138 Trade
TRV The Travelers Companies Inc. 130.42 0.08 0.06 1,664,327 Trade
MO Altria Group Inc. 61.00 0.17 0.28 5,438,265 Trade
P Pandora Media Inc. 8.02 -0.18 -2.20 5,971,419 Trade
BONT The Bon-Ton Stores Inc. n/a n/a n/a n/a
S Sprint Corporation 6.13 0.01 0.16 8,168,073 Trade
PPL PPL Corporation 29.88 0.32 1.08 5,068,249 Trade
AKAM Akamai Technologies Inc. 71.44 0.05 0.07 1,463,022 Trade
MET MetLife Inc. 45.94 0.37 0.81 5,158,940 Trade
VOD Vodafone Group Plc 22.78 -0.07 -0.31 3,668,889 Trade
TJX TJX Companies Inc. (The) 100.35 0.82 0.82 3,162,205 Trade
SCCO Nautilus Minerals Inc. 43.63 0.72 1.68 561,963 Trade
MR Mindray Medical International Ltd ADR (Sponsored) Repstg Cl A n/a n/a n/a 0 Trade
XL XL Group Ltd. 56.94 0.09 0.16 1,403,532 Trade
AES The AES Corporation 13.94 0.07 0.50 4,541,754 Trade
JBLU JetBlue Airways Corporation 18.80 0.14 0.75 2,790,778 Trade
COST Costco Wholesale Corporation 225.68 2.49 1.12 1,980,933 Trade
VZ Verizon Communications Inc. 54.79 0.52 0.96 19,102,725 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 150.75 -1.95 -1.28 988,964 Trade
GM General Motors Company 36.38 0.09 0.25 7,796,113 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.24 0.03 0.48 497,562 Trade
GOOG Alphabet Inc. 1,200.96 -5.53 -0.46 1,389,627 Trade
BMY Bristol-Myers Squibb Company 60.89 -0.22 -0.36 8,868,260 Trade
TTM Tata Motors Ltd Limited 18.37 0.62 3.49 2,183,893 Trade
UNM Unum Group 36.00 -0.01 -0.03 1,036,251 Trade
EE El Pasoectric Company 63.90 0.80 1.27 222,479 Trade
ACHN Achillion Pharmaceuticals Inc. 2.53 -0.05 -1.94 585,781 Trade
HIG Hartford Financial Services Group Inc. (The) 51.96 0.26 0.50 1,150,050 Trade
F Ford Motor Company 9.55 0.04 0.42 32,733,730 Trade
AZN Astrazeneca PLC 38.12 0.16 0.42 8,235,454 Trade
NFLX Netflix Inc. 316.78 -5.66 -1.76 10,400,198 Trade
MRK Merck & Company Inc. (new) 69.06 0.21 0.31 7,847,116 Trade
ANF Abercrombie & Fitch Company 27.63 0.26 0.95 1,642,066 Trade
SUN Sunoco LP representing limited partner interests 26.94 0.28 1.05 241,206 Trade
IHG Intercontinental Hotels Group American Depositary Shares (Each representing one) 61.28 0.68 1.12 115,628 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 44.53 0.20 0.45 8,284,176 Trade
T AT&T Inc. 33.03 -0.06 -0.18 26,127,477 Trade
DUK Duke Energy Corporation (Holding Company) 82.28 0.49 0.60 3,090,176 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 135.41 3.06 2.31 842,592 Trade
CMCSA Comcast Corporation Class A Common Stock 35.60 -0.06 -0.17 12,079,509 Trade

Comments

Emerging Growth

Margaux Resources Ltd.

Margaux Resources Ltd is a Calgary based resource company. The Company is focused on its Jersey Emeral Tungsten-Zinc property located in the southeast portion of British Columbia.