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) 177.91 0.26 0.15 822,103 Trade
ORCL Oracle Corporation 44.84 0.41 0.92 10,849,601 Trade
GLW Corning Incorporated 27.52 0.50 1.85 9,718,142 Trade
GEN Genesis Healthcare Inc. 2.37 0.07 3.04 102,363 Trade
FTR Frontier Communications Corporation 1.90 -0.04 -2.06 29,125,397 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.05 -0.05 -2.38 23,485 Trade
PG Procter & Gamble Company (The) 89.55 0.93 1.05 8,339,533 Trade
GE General Electric Co 29.55 0.00 0.00 48,738,944 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 13.10 0.00 0.00 0
FOSL Fossil Group Inc. 16.91 -0.08 -0.47 659,154 Trade
AA Alcoa Inc. 33.31 1.61 5.08 7,922,262 Trade
CSX CSX Corporation 50.13 -0.64 -1.26 11,196,959 Trade
TRV The Travelers Companies Inc. 120.57 1.47 1.23 1,957,673 Trade
MO Altria Group Inc. 72.55 1.08 1.51 5,590,575 Trade
P Pandora Media Inc. 10.75 -0.18 -1.65 4,292,771 Trade
BONT The Bon-Ton Stores Inc. 0.60 0.00 0.00 117,075 Trade
S Sprint Corporation 8.71 0.21 2.47 15,264,196 Trade
PPL PPL Corp 38.00 0.07 0.18 3,471,345 Trade
AKAM Akamai Technologies Inc. 61.39 1.11 1.84 1,954,289 Trade
MET MetLife Inc. 52.02 0.75 1.46 7,096,758 Trade
VOD Vodafone Group Plc 26.34 0.51 1.97 3,823,855 Trade
TJX TJX Companies Inc. (The) 78.62 0.06 0.08 2,414,661 Trade
SCCO Southern Copper Corp 35.52 0.24 0.68 671,210 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 41.00 0.59 1.46 1,398,843 Trade
AES The AES Corporation 11.59 0.21 1.85 6,948,219 Trade
JBLU JetBlue Airways Corporation 21.75 0.22 1.02 8,063,408 Trade
COST Costco Wholesale Corporation 172.33 1.56 0.91 1,906,922 Trade
VZ Verizon Communications Inc. 47.05 -0.20 -0.42 23,164,459 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 88.50 0.05 0.06 978,449 Trade
GM General Motors Company 33.91 0.16 0.47 13,985,964 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.41 0.25 4.06 1,971,544 Trade
GOOG Alphabet Inc. 862.76 19.57 2.32 1,375,495 Trade
BMY Bristol-Myers Squibb Company 53.55 0.07 0.13 9,783,867 Trade
TTM Tata Motors Ltd Limited 34.18 0.46 1.36 1,770,062 Trade
UNM Unum Group 46.77 1.25 2.75 1,712,721 Trade
EE El Pasoectric Company 51.85 0.20 0.39 175,933 Trade
ACHN Achillion Pharmaceuticals Inc. 3.21 -0.43 -11.81 4,649,370 Trade
HIG Hartford Financial Services Group Inc. (The) 47.36 0.08 0.17 7,786,562 Trade
F Ford Motor Company 11.43 0.09 0.79 41,075,646 Trade
PFG Principal Financial Group Inc 63.92 1.11 1.77 1,244,865 Trade
AZN Astrazeneca PLC 30.24 0.48 1.61 2,662,620 Trade
NFLX Netflix Inc. 143.83 0.96 0.67 4,917,257 Trade
MRK Merck & Company Inc. (new) 62.14 0.25 0.40 8,846,263 Trade
ANF Abercrombie & Fitch Company 11.93 0.25 2.14 2,947,903 Trade
SUN Sunoco LP representing limited partner interests 30.17 -0.05 -0.17 416,065 Trade
IHG Intercontinental Hotels Group American Depositary 50.62 0.52 1.04 58,748 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 35.50 0.47 1.34 4,433,549 Trade
T AT&T Inc. 40.02 0.09 0.23 24,038,661 Trade
DUK Duke Energy Corporation (Holding Company) 82.58 0.37 0.45 2,641,318 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 79.61 0.69 0.87 1,442,185 Trade
CMCSA Comcast Corporation Class A Common Stock 38.01 -0.15 -0.39 20,030,535 Trade

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