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) 163.99 2.57 1.59 342,476 Trade
ORCL Oracle Corporation 48.16 0.19 0.40 15,341,907 Trade
GLW Corning Incorporated 30.05 -0.05 -0.17 4,278,858 Trade
GEN Genesis Healthcare Inc. 1.03 -0.01 -0.96 159,753 Trade
FTR Frontier Communications Corporation 11.81 0.12 1.03 951,211 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.20 -0.05 -2.22 23,942 Trade
PG Procter & Gamble Company (The) 92.24 -0.40 -0.43 6,837,699 Trade
GE General Electric Co 24.87 0.12 0.48 39,717,546 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.85 0.00 0.00 0
FOSL Fossil Group Inc. 8.88 0.09 1.02 1,215,780 Trade
AA Alcoa Inc. 45.38 -0.87 -1.88 3,224,564 Trade
CSX CSX Corporation 53.10 0.25 0.47 3,796,058 Trade
TRV The Travelers Companies Inc. 122.04 0.55 0.45 1,291,782 Trade
MO Altria Group Inc. 62.49 0.99 1.61 8,550,108 Trade
P Pandora Media Inc. 8.23 0.06 0.73 6,248,322 Trade
BONT The Bon-Ton Stores Inc. 0.44 -0.00 -0.21 248,397 Trade
S Sprint Corporation 8.52 0.49 6.10 26,203,014 Trade
PPL PPL Corp 38.47 -0.34 -0.88 2,237,386 Trade
AKAM Akamai Technologies Inc. 48.33 0.81 1.70 1,657,146 Trade
MET MetLife Inc. 50.54 0.09 0.18 5,754,267 Trade
VOD Vodafone Group Plc 28.64 0.02 0.07 2,090,836 Trade
TJX TJX Companies Inc. (The) 72.45 -0.37 -0.51 4,258,747 Trade
SCCO Southern Copper Corp 39.11 -0.51 -1.29 575,995 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 39.19 -0.45 -1.14 2,432,560 Trade
AES The AES Corporation 11.11 -0.02 -0.18 2,554,843 Trade
JBLU JetBlue Airways Corporation 18.62 -0.28 -1.48 8,916,712 Trade
COST Costco Wholesale Corporation 161.29 -0.19 -0.12 1,535,895 Trade
VZ Verizon Communications Inc. 49.90 0.96 1.96 20,646,413 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 104.58 -1.19 -1.13 833,952 Trade
GM General Motors Company 39.42 0.32 0.82 12,670,643 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 7.16 0.02 0.28 657,151 Trade
GOOG Alphabet Inc. 928.53 -3.92 -0.42 1,052,704 Trade
BMY Bristol-Myers Squibb Company 63.36 0.03 0.05 3,667,703 Trade
TTM Tata Motors Ltd Limited 31.75 -0.03 -0.09 676,017 Trade
UNM Unum Group 50.12 0.09 0.18 607,626 Trade
EE El Pasoectric Company 54.65 -0.25 -0.46 239,778 Trade
ACHN Achillion Pharmaceuticals Inc. 4.11 0.01 0.24 794,057 Trade
HIG Hartford Financial Services Group Inc. (The) 54.45 0.10 0.18 1,427,861 Trade
F Ford Motor Company 11.84 0.12 1.02 30,196,459 Trade
PFG Principal Financial Group Inc 63.12 0.19 0.30 867,570 Trade
AZN Astrazeneca PLC 33.95 1.14 3.47 10,233,531 Trade
NFLX Netflix Inc. 187.35 -1.43 -0.76 5,464,312 Trade
MRK Merck & Company Inc. (new) 65.13 -0.47 -0.72 7,465,921 Trade
ANF Abercrombie & Fitch Company 14.26 0.29 2.08 1,893,198 Trade
SUN Sunoco LP representing limited partner interests 30.90 0.13 0.42 176,888 Trade
IHG Intercontinental Hotels Group American Depositary 51.51 0.85 1.68 127,848 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 37.12 -0.03 -0.08 3,383,822 Trade
T AT&T Inc. 38.59 0.37 0.97 23,212,623 Trade
DUK Duke Energy Corporation (Holding Company) 84.25 -0.91 -1.07 1,799,186 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 88.42 -0.06 -0.07 657,852 Trade
CMCSA Comcast Corporation Class A Common Stock 38.10 0.63 1.68 21,749,229 Trade

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