Onshore Drillers Bullish Outlook

Dan Steffens  |

The 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. 116.75 0.18 0.15 458,343 Trade
ORCL Oracle Corporation 47.23 -0.09 -0.19 23,295,388 Trade
GLW Corning Incorporated 31.97 -0.01 -0.03 4,527,525 Trade
GEN Genesis Healthcare Inc. 1.66 -0.03 -1.78 215,134 Trade
FTR Frontier Communications Corporation 2.71 -0.10 -3.56 5,122,391 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 1.78 -0.07 -3.78 13,885 Trade
PG Procter & Gamble Company (The) 96.49 2.46 2.62 18,541,297 Trade
GE General Electric Company 7.20 0.49 7.30 207,282,025 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.60 0.00 0.00 0
FOSL Fossil Group Inc. 15.99 -1.02 -6.00 1,532,441 Trade
AA Alcoa Corporation 29.10 -0.14 -0.48 2,557,680 Trade
CSX CSX Corporation 68.84 -0.04 -0.06 4,522,175 Trade
TRV The Travelers Companies Inc. 121.50 -0.51 -0.42 1,282,355 Trade
MO Altria Group Inc. 53.92 0.59 1.11 8,119,954 Trade
P Pandora Media Inc. 8.73 -0.14 -1.58 10,385,395 Trade
BONT Bankers Petroleum Ltd. n/a n/a n/a n/a
S Sprint Corporation 6.07 0.03 0.50 10,778,925 Trade
PPL PPL Corporation 30.83 0.14 0.46 4,402,305 Trade
AKAM Akamai Technologies Inc. 67.25 -0.78 -1.15 1,625,438 Trade
MET MetLife Inc. 39.52 -0.05 -0.13 7,424,233 Trade
VOD Vodafone Group Plc 20.09 -0.35 -1.71 7,939,814 Trade
TJX TJX Companies Inc. (The) 45.81 -0.29 -0.63 8,450,172 Trade
SCCO Southern Copper Corporation 32.08 0.09 0.28 701,736 Trade
MR Mindray Medical International Ltd ADR (Sponsored) Repstg Cl A n/a n/a n/a 0 Trade
AES The AES Corporation 15.78 -0.11 -0.69 4,633,276 Trade
JBLU JetBlue Airways Corporation 17.27 -0.38 -2.15 11,099,765 Trade
COST Costco Wholesale Corporation 226.51 -1.29 -0.57 2,170,188 Trade
VZ Verizon Communications Inc. 57.09 -0.16 -0.28 15,454,706 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 156.30 -0.82 -0.52 882,040 Trade
GM General Motors Company 35.11 -0.57 -1.60 9,000,996 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.32 0.03 0.57 1,136,568 Trade
GOOG Alphabet Inc. 1,061.90 -1.78 -0.17 1,329,768 Trade
BMY Bristol-Myers Squibb Company 53.64 0.20 0.37 8,455,634 Trade
TTM Tata Motors Ltd Limited 11.58 0.07 0.61 1,463,486 Trade
UNM Unum Group 30.35 0.08 0.26 3,423,499 Trade
EE El Pasoectric Company 55.97 0.72 1.30 368,447 Trade
ACHN Achillion Pharmaceuticals Inc. 3.07 -0.12 -3.76 2,059,851 Trade
HIG Hartford Financial Services Group Inc. (The) 41.32 -0.07 -0.17 3,044,099 Trade
F Ford Motor Company 8.50 -0.14 -1.62 34,200,443 Trade
AZN Astrazeneca PLC 39.24 0.33 0.85 2,060,397 Trade
NFLX Netflix Inc. 276.02 1.14 0.41 8,379,292 Trade
MRK Merck & Company Inc. (new) 79.01 1.00 1.28 10,756,280 Trade
ANF Abercrombie & Fitch Company 18.80 -0.42 -2.19 2,519,019 Trade
SUN Sunoco LP representing limited partner interests 27.92 0.30 1.09 562,167 Trade
IHG Intercontinental Hotels Group American Depositary Shares (Each representing one) 53.52 -0.28 -0.52 146,957 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 46.95 0.06 0.13 4,429,909 Trade
T AT&T Inc. 29.91 -0.25 -0.83 49,097,777 Trade
DUK Duke Energy Corporation (Holding Company) 90.90 1.30 1.45 4,180,894 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 103.48 -4.66 -4.31 1,227,893 Trade
CMCSA Comcast Corporation Class A Common Stock 36.76 -0.22 -0.59 18,407,297 Trade

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