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) 162.27 0.45 0.28 145,748 Trade
ORCL Oracle Corporation 49.05 0.11 0.22 5,850,021 Trade
GLW Corning Incorporated 31.76 0.13 0.41 1,253,441 Trade
GEN Genesis Healthcare Inc. 0.94 0.03 3.81 163,950 Trade
FTR Frontier Communications Corporation 7.36 0.40 5.75 2,545,258 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.30 0.00 0.00 29,122 Trade
PG Procter & Gamble Company (The) 88.33 -0.11 -0.12 2,635,233 Trade
GE General Electric Co 17.92 -0.29 -1.57 41,632,308 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.82 0.00 0.00 0
FOSL Fossil Group Inc. 7.71 -0.25 -3.08 1,013,178 Trade
AA Alcoa Inc. 42.27 -1.13 -2.60 3,013,552 Trade
CSX CSX Corporation 49.72 -0.20 -0.40 2,470,725 Trade
TRV The Travelers Companies Inc. 129.91 -0.01 -0.01 705,043 Trade
MO Altria Group Inc. 66.00 -0.42 -0.63 2,591,515 Trade
P Pandora Media Inc. 5.14 0.00 0.00 2,965,519 Trade
BONT The Bon-Ton Stores Inc. 0.40 -0.03 -6.98 111,829
S Sprint Corporation 6.22 -0.02 -0.24 3,390,505 Trade
PPL PPL Corp 36.02 -0.24 -0.66 1,524,756 Trade
AKAM Akamai Technologies Inc. 55.33 -0.11 -0.20 669,978 Trade
MET MetLife Inc. 51.84 0.19 0.37 1,552,487 Trade
VOD Vodafone Group Plc 30.89 -0.08 -0.24 1,862,027 Trade
TJX TJX Companies Inc. (The) 71.18 0.16 0.22 3,610,375 Trade
SCCO Southern Copper Corp 43.02 0.07 0.16 281,535 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 38.50 -0.13 -0.34 475,691 Trade
AES The AES Corporation 10.66 0.05 0.47 1,944,884 Trade
JBLU JetBlue Airways Corporation 19.73 -0.26 -1.30 1,566,184 Trade
COST Costco Wholesale Corporation 171.93 0.95 0.55 956,548 Trade
VZ Verizon Communications Inc. 46.13 0.71 1.56 9,917,429 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 114.93 1.18 1.04 370,110 Trade
GM General Motors Company 45.05 1.17 2.67 7,288,689 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 7.34 -0.01 -0.14 477,883 Trade
GOOG Alphabet Inc. 1,019.06 -0.03 -0.00 574,301 Trade
BMY Bristol-Myers Squibb Company 60.68 -0.64 -1.04 2,693,826 Trade
TTM Tata Motors Ltd Limited 32.41 -0.07 -0.21 448,446 Trade
UNM Unum Group 53.69 0.23 0.43 484,203 Trade
EE El Pasoectric Company 59.95 -0.25 -0.42 79,268 Trade
ACHN Achillion Pharmaceuticals Inc. 3.45 0.02 0.58 1,010,845 Trade
HIG Hartford Financial Services Group Inc. (The) 55.99 -0.15 -0.27 615,092 Trade
F Ford Motor Company 12.14 0.13 1.04 16,430,240 Trade
PFG Principal Financial Group Inc 68.91 0.27 0.39 272,980 Trade
AZN Astrazeneca PLC 33.35 -0.11 -0.34 1,232,050 Trade
NFLX Netflix Inc. 194.04 0.84 0.43 2,264,586 Trade
MRK Merck & Company Inc. (new) 54.19 -1.01 -1.83 11,013,229 Trade
ANF Abercrombie & Fitch Company 16.94 1.39 8.94 6,940,257 Trade
SUN Sunoco LP representing limited partner interests 30.52 0.05 0.16 156,636 Trade
IHG Intercontinental Hotels Group American Depositary 57.20 0.65 1.15 56,068 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 41.35 0.09 0.22 1,807,133 Trade
T AT&T Inc. 34.60 0.09 0.26 13,108,168 Trade
DUK Duke Energy Corporation (Holding Company) 88.77 0.25 0.28 1,778,140 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 89.65 0.54 0.61 515,641 Trade
CMCSA Comcast Corporation Class A Common Stock 35.97 -0.19 -0.53 9,450,021 Trade

Comments

Emerging Growth

Liberty One Lithium Corp

Liberty One Lithium Corp is a mineral exploration company engaged in acquisition and development of high grade lithium brine deposits.

Private Markets

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…