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) 247.52 0.75 0.30 347,379
ORCL Oracle Corporation 40.45 0.10 0.25 6,939,394
GLW Corning Incorporated 24.57 -0.31 -1.25 7,553,190
GEN Genesis Healthcare Inc. 4.11 0.10 2.49 231,741
FTR Frontier Communications Corporation 3.68 -0.02 -0.54 15,974,614
ECT ECA Marcellus Trust I of Beneficial Interest 2.30 0.05 2.22 30,996
PG Procter & Gamble Company (The) 84.20 0.70 0.84 5,410,849
GE General Electric Co 31.72 0.19 0.61 20,722,843
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.65 0.00 0.00 0
FOSL Fossil Group Inc. 34.03 -0.59 -1.70 446,799
AA Alcoa Inc. 32.02 0.71 2.27 3,023,996
CSX CSX Corporation 37.18 -0.04 -0.11 4,465,757
TRV The Travelers Companies Inc. 118.80 0.42 0.35 1,439,350
MO Altria Group Inc. 66.38 1.02 1.56 3,897,439
P Pandora Media Inc. 13.74 -0.10 -0.72 2,596,807
BONT The Bon-Ton Stores Inc. 1.79 -0.03 -1.38 23,379
S Sprint Corporation 8.51 -0.24 -2.69 12,591,918
PPL PPL Corp 33.50 0.39 1.18 2,283,031
AKAM Akamai Technologies Inc. 65.05 -1.27 -1.91 711,606
MET MetLife Inc. 57.35 0.16 0.28 3,360,336
VOD Vodafone Group Plc 25.14 0.11 0.44 4,112,559
TJX TJX Companies Inc. (The) 77.79 -0.19 -0.24 1,859,322
SCCO Southern Copper Corp 34.87 0.03 0.09 457,519
MR Mindray Medical International n/a n/a n/a 0
XL XL Group plc 36.92 0.21 0.57 977,096
AES The AES Corporation 11.88 0.04 0.34 2,709,881
JBLU JetBlue Airways Corporation 21.78 -0.05 -0.23 7,124,481
COST Costco Wholesale Corporation 158.74 1.15 0.73 1,516,582
VZ Verizon Communications Inc. 51.42 0.29 0.57 5,178,350
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
VRSN VeriSign Inc. 82.10 0.49 0.60 292,708
GM General Motors Company 37.30 0.88 2.42 17,901,271
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.47 -0.13 -2.32 1,350,821
GOOG Alphabet Inc. 785.71 9.29 1.20 1,271,669
BMY Bristol-Myers Squibb Company 56.98 1.75 3.17 8,474,312
TTM Tata Motors Ltd Limited 33.96 -0.42 -1.22 443,621
UNM Unum Group 43.60 -0.49 -1.11 849,141
EE El Pasoectric Company 47.25 0.75 1.61 92,097
ACHN Achillion Pharmaceuticals Inc. 4.31 0.08 1.89 1,008,018
HIG Hartford Financial Services Group Inc. (The) 48.50 0.51 1.06 1,779,171
F Ford Motor Company 13.14 0.11 0.84 26,193,574
PFG Principal Financial Group Inc 60.27 -0.59 -0.97 865,089
AZN Astrazeneca PLC 27.10 0.83 3.16 6,574,072
NFLX Netflix Inc. 122.55 -0.69 -0.56 3,636,421
MRK Merck & Company Inc. (new) 61.35 1.23 2.05 6,671,716
ANF Abercrombie & Fitch Company 15.87 -0.37 -2.28 1,510,014
SUN Sunoco LP representing limited partner interests 24.60 0.29 1.21 595,958
IHG Intercontinental Hotels Group American Depositary 42.37 0.08 0.19 86,096
BRCM Broadcom Corp. n/a n/a n/a 0
EXC Exelon Corporation 34.79 0.59 1.73 7,262,020
T AT&T Inc. 40.24 -0.17 -0.42 10,322,075
DUK Duke Energy Corporation (Holding Company) 75.44 0.71 0.94 1,864,448
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 108.82 -0.06 -0.06 253,536
CMCSA Comcast Corporation Class A Common Stock 69.28 0.05 0.07 4,693,052

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