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) 160.59 0.00 0.00 0 Trade
ORCL Oracle Corporation 49.59 0.00 0.00 2,488 Trade
GLW Corning Incorporated 34.41 0.00 0.00 714 Trade
GEN Genesis Healthcare Inc. 0.86 0.00 0.00 0 Trade
FTR Frontier Communications Corporation 7.82 0.00 0.00 90 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.20 0.00 0.00 0 Trade
PG Procter & Gamble Company (The) 90.22 0.00 0.00 7,885 Trade
GE General Electric Co 18.21 0.00 0.00 2,267,044 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.75 0.00 0.00 0
FOSL Fossil Group Inc. 9.17 0.00 0.00 0 Trade
AA Alcoa Inc. 56.24 0.00 0.00 1,144 Trade
CSX CSX Corporation 58.13 0.00 0.00 19,011 Trade
TRV The Travelers Companies Inc. 135.52 0.00 0.00 4,080 Trade
MO Altria Group Inc. 68.92 0.00 0.00 410 Trade
P Pandora Media Inc. 4.54 0.00 0.00 0 Trade
BONT The Bon-Ton Stores Inc. 0.23 0.00 0.00 0
S Sprint Corporation 5.60 0.00 0.00 7,549 Trade
PPL PPL Corp 31.26 0.00 0.00 400 Trade
AKAM Akamai Technologies Inc. 64.50 0.00 0.00 50 Trade
MET MetLife Inc. 51.85 0.00 0.00 0 Trade
VOD Vodafone Group Plc 32.33 0.00 0.00 98,890 Trade
TJX TJX Companies Inc. (The) 76.59 0.00 0.00 41 Trade
SCCO Southern Copper Corp 49.34 0.00 0.00 0 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 35.24 0.00 0.00 0 Trade
AES The AES Corporation 10.68 0.00 0.00 2,700 Trade
JBLU JetBlue Airways Corporation 22.30 0.00 0.00 702 Trade
COST Costco Wholesale Corporation 191.53 0.00 0.00 851 Trade
VZ Verizon Communications Inc. 51.66 0.00 0.00 4,548 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 112.65 0.00 0.00 0 Trade
GM General Motors Company 44.19 0.00 0.00 14,695 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 8.30 0.00 0.00 75 Trade
GOOG Alphabet Inc. 1,121.76 0.00 0.00 10,571 Trade
BMY Bristol-Myers Squibb Company 59.92 0.00 0.00 4,119 Trade
TTM Tata Motors Ltd Limited 33.11 0.00 0.00 1,728 Trade
UNM Unum Group 55.54 0.00 0.00 20 Trade
EE El Pasoectric Company 51.00 0.00 0.00 0 Trade
ACHN Achillion Pharmaceuticals Inc. 2.93 0.00 0.00 4,500 Trade
HIG Hartford Financial Services Group Inc. (The) 55.24 0.00 0.00 6 Trade
F Ford Motor Company 13.10 0.00 0.00 803,209 Trade
PFG Principal Financial Group Inc 72.90 0.00 0.00 0 Trade
AZN Astrazeneca PLC 34.99 0.00 0.00 157,538 Trade
NFLX Netflix Inc. 221.53 0.00 0.00 67,585 Trade
MRK Merck & Company Inc. (new) 62.07 0.00 0.00 67,918 Trade
ANF Abercrombie & Fitch Company 18.59 0.00 0.00 1,287 Trade
SUN Sunoco LP representing limited partner interests 32.12 0.00 0.00 2 Trade
IHG Intercontinental Hotels Group American Depositary 66.17 0.00 0.00 133,163 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 38.47 0.00 0.00 29 Trade
T AT&T Inc. 36.72 0.00 0.00 20,578 Trade
DUK Duke Energy Corporation (Holding Company) 78.42 0.00 0.00 608 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 104.42 0.00 0.00 8 Trade
CMCSA Comcast Corporation Class A Common Stock 41.82 0.00 0.00 9,438 Trade

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