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) 203.32 0.37 0.18 486,237 Trade
ORCL Oracle Corporation 50.45 -0.72 -1.41 16,511,500 Trade
GLW Corning Incorporated 29.49 -0.93 -3.06 15,723,039 Trade
GEN Genesis Healthcare Inc. 1.46 -0.02 -1.35 227,908 Trade
FTR Frontier Communications Corporation 15.75 0.80 5.35 2,291,100 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.20 0.00 0.00 14,679 Trade
PG Procter & Gamble Company (The) 90.68 1.38 1.55 11,089,531 Trade
GE General Electric Co 25.79 0.20 0.78 39,909,529 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.75 0.00 0.00 0
FOSL Fossil Group Inc. 10.97 0.14 1.29 2,094,310 Trade
AA Alcoa Inc. 36.36 -0.27 -0.74 2,045,659 Trade
CSX CSX Corporation 50.00 -2.06 -3.96 15,552,911 Trade
TRV The Travelers Companies Inc. 125.88 -0.12 -0.10 1,694,031 Trade
MO Altria Group Inc. 73.96 2.23 3.11 9,698,364 Trade
P Pandora Media Inc. 9.65 -0.10 -1.03 5,580,201 Trade
BONT The Bon-Ton Stores Inc. 0.64 0.01 1.60 548,240 Trade
S Sprint Corporation 8.20 -0.35 -4.09 19,287,855 Trade
PPL PPL Corp 38.12 0.03 0.08 3,185,815 Trade
AKAM Akamai Technologies Inc. 46.01 0.52 1.14 4,637,871 Trade
MET MetLife Inc. 55.04 0.31 0.57 3,339,011 Trade
VOD Vodafone Group Plc 29.52 0.35 1.20 3,484,580 Trade
TJX TJX Companies Inc. (The) 69.64 1.17 1.71 4,674,319 Trade
SCCO Southern Copper Corp 39.33 -0.39 -0.98 786,379 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 42.88 -3.10 -6.74 3,436,243 Trade
AES The AES Corporation 11.10 -0.06 -0.54 5,997,280 Trade
JBLU JetBlue Airways Corporation 21.71 -0.36 -1.63 7,848,855 Trade
COST Costco Wholesale Corporation 152.52 0.43 0.28 3,637,957 Trade
VZ Verizon Communications Inc. 47.81 3.41 7.68 44,713,668 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 101.95 0.13 0.13 877,958 Trade
GM General Motors Company 35.94 0.32 0.90 10,006,739 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.63 -0.07 -1.04 663,027 Trade
GOOG Alphabet Inc. 934.09 -13.71 -1.45 3,220,502 Trade
BMY Bristol-Myers Squibb Company 54.24 -1.74 -3.11 21,645,836 Trade
TTM Tata Motors Ltd Limited 34.49 -1.06 -2.98 1,158,514 Trade
UNM Unum Group 48.44 0.44 0.92 1,020,698 Trade
EE El Pasoectric Company 51.95 0.00 0.00 140,994 Trade
ACHN Achillion Pharmaceuticals Inc. 4.12 -0.08 -1.90 993,911 Trade
HIG Hartford Financial Services Group Inc. (The) 52.92 -0.30 -0.56 3,435,058 Trade
F Ford Motor Company 11.18 0.12 1.09 38,694,987 Trade
PFG Principal Financial Group Inc 66.63 -0.03 -0.05 810,606 Trade
AZN Astrazeneca PLC 28.88 -5.06 -14.91 27,380,055 Trade
NFLX Netflix Inc. 182.68 -6.40 -3.38 11,261,747 Trade
MRK Merck & Company Inc. (new) 63.69 1.89 3.06 21,864,541 Trade
ANF Abercrombie & Fitch Company 9.85 0.31 3.25 3,013,471 Trade
SUN Sunoco LP representing limited partner interests 31.86 0.42 1.34 285,587 Trade
IHG Intercontinental Hotels Group American Depositary 56.78 -0.28 -0.49 98,832 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 37.99 0.31 0.82 5,253,671 Trade
T AT&T Inc. 39.41 1.38 3.63 62,001,442 Trade
DUK Duke Energy Corporation (Holding Company) 85.05 0.60 0.71 2,179,750 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 75.61 0.95 1.27 943,442 Trade
CMCSA Comcast Corporation Class A Common Stock 39.43 0.08 0.20 51,420,734 Trade

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