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) 121.41 3.45 2.92 1,127,189 Trade
ORCL Oracle Corporation 44.10 1.00 2.32 30,497,162 Trade
GLW Corning Incorporated 28.49 0.20 0.71 12,913,460 Trade
GEN Genesis Healthcare Inc. 2.75 0.16 6.18 2,777,194 Trade
FTR Frontier Communications Corporation 6.54 -0.16 -2.39 6,186,497 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 1.95 -0.05 -2.50 13,176 Trade
PG Procter & Gamble Company (The) 77.43 0.99 1.30 11,790,421 Trade
GE General Electric Company 13.05 0.29 2.27 72,448,946 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.70 0.00 0.00 0
FOSL Fossil Group Inc. 31.00 -0.08 -0.26 2,263,145 Trade
AA Alcoa Corporation 45.56 0.75 1.67 3,382,811 Trade
CSX CSX Corporation 64.78 0.73 1.14 8,643,625 Trade
TRV The Travelers Companies Inc. 124.41 0.96 0.78 1,816,652 Trade
MO Altria Group Inc. 57.02 0.33 0.58 7,575,297 Trade
P Pandora Media Inc. 8.27 0.01 0.12 32,439,219 Trade
BONT The Bon-Ton Stores Inc. n/a n/a n/a n/a
S Sprint Corporation 5.50 0.15 2.80 19,386,548 Trade
PPL PPL Corporation 28.26 0.42 1.51 8,044,810 Trade
AKAM Akamai Technologies Inc. 80.32 -1.37 -1.68 5,725,779 Trade
MET MetLife Inc. 45.71 0.05 0.11 7,640,520 Trade
VOD Vodafone Group Plc 24.87 0.40 1.63 3,069,506 Trade
TJX TJX Companies Inc. (The) 95.08 -1.21 -1.26 3,984,886 Trade
SCCO Southern Copper Corporation 46.72 0.05 0.11 1,768,885 Trade
MR Mindray Medical International Ltd ADR (Sponsored) Repstg Cl A n/a n/a n/a 0 Trade
XL XL Group Ltd. 56.15 -0.05 -0.09 1,161,163 Trade
AES The AES Corporation 12.86 -0.03 -0.23 7,981,058 Trade
JBLU JetBlue Airways Corporation 18.98 -0.29 -1.50 5,554,535 Trade
COST Costco Wholesale Corporation 211.10 1.14 0.54 1,729,160 Trade
VZ Verizon Communications Inc. 49.76 1.13 2.32 40,936,268 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 138.68 -1.64 -1.17 1,899,642 Trade
GM General Motors Company 41.25 0.13 0.32 9,541,083 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 7.01 0.09 1.30 586,597 Trade
GOOG Alphabet Inc. 1,155.48 -2.18 -0.19 1,310,156 Trade
BMY Bristol-Myers Squibb Company 55.14 1.20 2.22 10,732,464 Trade
TTM Tata Motors Ltd Limited 22.25 0.06 0.27 2,123,119 Trade
UNM Unum Group 37.99 0.11 0.29 2,387,650 Trade
EE El Pasoectric Company 58.80 0.40 0.68 401,035 Trade
ACHN Achillion Pharmaceuticals Inc. 2.84 0.01 0.35 2,505,060 Trade
HIG Hartford Financial Services Group Inc. (The) 51.78 0.31 0.60 2,279,959 Trade
F Ford Motor Company 11.65 -0.06 -0.51 37,434,868 Trade
AZN Astrazeneca PLC 35.06 -0.09 -0.26 5,375,610 Trade
NFLX Netflix Inc. 411.09 -4.35 -1.05 10,405,640 Trade
MRK Merck & Company Inc. (new) 61.47 0.29 0.47 12,912,889 Trade
ANF Abercrombie & Fitch Company 27.93 0.34 1.23 2,390,209 Trade
SUN Sunoco LP representing limited partner interests 25.18 -0.12 -0.47 275,206 Trade
IHG Intercontinental Hotels Group American Depositary Shares (Each representing one) 64.23 0.54 0.85 104,863 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 41.50 0.07 0.17 4,719,661 Trade
T AT&T Inc. 31.69 0.09 0.28 63,852,150 Trade
DUK Duke Energy Corporation (Holding Company) 77.43 0.52 0.68 3,278,467 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 130.26 -4.83 -3.58 1,844,358 Trade
CMCSA Comcast Corporation Class A Common Stock 33.81 1.02 3.11 105,509,542 Trade

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