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. 130.63 2.44 1.90 391,308 Trade
ORCL Oracle Corporation 52.48 0.37 0.71 11,689,681 Trade
GLW Corning Incorporated 34.85 0.35 1.01 2,528,335 Trade
GEN Genesis Healthcare Inc. 1.54 -0.04 -2.53 100,898 Trade
FTR Frontier Communications Corporation 2.55 -0.03 -1.16 3,466,676 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 1.85 0.05 2.78 56,431 Trade
PG Procter & Gamble Company (The) 100.25 0.47 0.47 7,925,568 Trade
GE General Electric Company 10.17 0.14 1.40 50,741,310 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.50 0.00 0.00 0
FOSL Fossil Group Inc. 15.95 0.80 5.28 2,652,422 Trade
AA Alcoa Corporation 30.17 0.59 1.99 3,197,583 Trade
CSX CSX Corporation 73.31 0.74 1.02 2,756,467 Trade
TRV The Travelers Companies Inc. 131.02 1.20 0.92 1,422,860 Trade
MO Altria Group Inc. 51.50 1.13 2.24 8,232,923 Trade
BONT Bankers Petroleum Ltd. n/a n/a n/a n/a
S Sprint Corporation 6.44 -0.04 -0.62 13,318,703 Trade
PPL PPL Corporation 31.64 0.22 0.70 3,077,027 Trade
AKAM Akamai Technologies Inc. 69.86 1.04 1.51 1,016,205 Trade
MET MetLife Inc. 44.74 -0.02 -0.04 4,876,548 Trade
VOD Vodafone Group Plc 18.45 0.17 0.93 3,426,877 Trade
TJX TJX Companies Inc. (The) 50.35 0.22 0.44 5,261,133 Trade
SCCO Southern Copper Corporation 36.19 0.33 0.92 1,514,501 Trade
AES The AES Corporation 17.53 0.21 1.21 3,323,154 Trade
JBLU JetBlue Airways Corporation 17.22 -0.27 -1.54 3,811,012 Trade
COST Costco Wholesale Corporation 216.29 1.06 0.49 1,542,501 Trade
VZ Verizon Communications Inc. 56.92 0.77 1.37 12,534,431 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 178.79 2.79 1.59 509,914 Trade
GM General Motors Company 39.99 0.37 0.93 6,742,713 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.72 0.00 0.00 591,690 Trade
GOOG Alphabet Inc. 1,110.37 13.40 1.22 1,049,545 Trade
BMY Bristol-Myers Squibb Company 50.98 0.85 1.70 14,910,252 Trade
TTM Tata Motors Ltd Limited 12.39 0.59 5.00 2,156,421 Trade
UNM Unum Group 37.27 0.17 0.46 1,053,860 Trade
EE El Pasoectric Company 55.00 0.11 0.20 120,391 Trade
ACHN Achillion Pharmaceuticals Inc. 2.50 0.03 1.21 1,549,084 Trade
HIG Hartford Financial Services Group Inc. (The) 48.89 0.06 0.12 1,529,538 Trade
F Ford Motor Company 8.71 0.00 0.00 40,947,503 Trade
AZN Astrazeneca PLC 40.94 0.51 1.26 5,956,298 Trade
NFLX Netflix Inc. 363.02 6.05 1.69 7,088,214 Trade
MRK Merck & Company Inc. (new) 80.77 0.94 1.18 7,955,621 Trade
ANF Abercrombie & Fitch Company 20.63 0.60 3.00 1,545,876 Trade
SUN Sunoco LP representing limited partner interests 29.86 0.37 1.25 484,017 Trade
IHG Intercontinental Hotels Group American Depositary Shares (Each representing one) 60.95 0.41 0.68 44,420 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 48.74 0.25 0.52 4,250,747 Trade
T AT&T Inc. 31.15 0.32 1.04 23,357,232 Trade
DUK Duke Energy Corporation (Holding Company) 89.91 0.32 0.36 2,538,531 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 127.12 0.88 0.70 672,691 Trade
CMCSA Comcast Corporation Class A Common Stock 38.61 0.14 0.36 20,376,913 Trade

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