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) 178.60 1.84 1.04 108,272 Trade
ORCL Oracle Corporation 51.40 1.10 2.19 13,996,779 Trade
GLW Corning Incorporated 29.92 0.21 0.70 1,001,265 Trade
GEN Genesis Healthcare Inc. 1.89 0.00 0.00 116,549 Trade
FTR Frontier Communications Corporation 1.16 0.04 3.57 10,942,401 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.15 0.05 2.38 4,568 Trade
PG Procter & Gamble Company (The) 89.70 0.67 0.75 1,440,687 Trade
GE General Electric Co 27.67 0.12 0.44 9,899,235 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.80 0.00 0.00 0
FOSL Fossil Group Inc. 9.82 0.19 1.97 940,251 Trade
AA Alcoa Inc. 30.45 0.65 2.18 1,206,097 Trade
CSX CSX Corporation 52.81 0.21 0.39 1,010,725 Trade
TRV The Travelers Companies Inc. 128.01 -0.30 -0.23 231,750 Trade
MO Altria Group Inc. 76.76 0.28 0.37 932,402 Trade
P Pandora Media Inc. 8.24 0.44 5.64 14,993,503 Trade
BONT The Bon-Ton Stores Inc. 0.51 0.02 4.08 30,724 Trade
S Sprint Corporation 8.05 -0.03 -0.31 2,048,224 Trade
PPL PPL Corp 39.11 0.09 0.22 487,043 Trade
AKAM Akamai Technologies Inc. 51.03 1.01 2.02 793,165 Trade
MET MetLife Inc. 52.48 0.27 0.51 939,897 Trade
VOD Vodafone Group Plc 28.89 0.14 0.49 789,841 Trade
TJX TJX Companies Inc. (The) 68.49 -0.26 -0.38 2,085,961 Trade
SCCO Southern Copper Corp 34.67 0.28 0.81 98,130 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 43.41 0.14 0.32 324,664 Trade
AES The AES Corporation 11.70 0.13 1.12 796,085 Trade
JBLU JetBlue Airways Corporation 22.49 0.16 0.69 1,168,294 Trade
COST Costco Wholesale Corporation 157.68 -2.11 -1.32 2,990,675 Trade
VZ Verizon Communications Inc. 45.37 -0.05 -0.12 2,494,077 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 93.87 0.35 0.37 127,260 Trade
GM General Motors Company 34.12 -0.08 -0.22 2,344,158 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.30 0.00 0.00 196,108 Trade
GOOG Alphabet Inc. 961.12 4.03 0.42 434,803 Trade
BMY Bristol-Myers Squibb Company 56.86 -0.47 -0.83 2,059,770 Trade
TTM Tata Motors Ltd Limited 34.14 -0.82 -2.35 350,851 Trade
UNM Unum Group 45.19 -0.16 -0.35 214,312 Trade
EE El Pasoectric Company 52.75 0.40 0.76 34,959 Trade
ACHN Achillion Pharmaceuticals Inc. 4.28 -0.03 -0.58 224,035 Trade
HIG Hartford Financial Services Group Inc. (The) 51.69 0.09 0.16 303,098 Trade
F Ford Motor Company 11.02 -0.12 -1.03 16,857,663 Trade
PFG Principal Financial Group Inc 62.83 0.14 0.22 338,669 Trade
AZN Astrazeneca PLC 34.98 -0.38 -1.07 1,523,428 Trade
NFLX Netflix Inc. 156.19 1.30 0.84 2,039,099 Trade
MRK Merck & Company Inc. (new) 66.20 0.18 0.27 2,521,665 Trade
ANF Abercrombie & Fitch Company 12.13 -0.07 -0.57 464,149 Trade
SUN Sunoco LP representing limited partner interests 29.96 -0.15 -0.49 61,991 Trade
IHG Intercontinental Hotels Group American Depositary 55.93 0.18 0.32 37,495 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 36.73 0.07 0.19 841,198 Trade
T AT&T Inc. 38.05 -0.05 -0.13 4,688,649 Trade
DUK Duke Energy Corporation (Holding Company) 86.58 0.30 0.34 304,745 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 71.85 0.42 0.59 302,614 Trade
CMCSA Comcast Corporation Class A Common Stock 39.64 -0.30 -0.75 8,906,315 Trade

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