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) 160.94 -1.23 -0.76 670,349 Trade
ORCL Oracle Corporation 49.35 -0.23 -0.46 10,048,594 Trade
GLW Corning Incorporated 30.06 0.14 0.47 3,484,214 Trade
GEN Genesis Healthcare Inc. 1.02 0.03 3.02 182,636 Trade
FTR Frontier Communications Corporation 11.48 0.02 0.17 2,528,956 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.38 0.03 1.06 20,822 Trade
PG Procter & Gamble Company (The) 91.59 -0.49 -0.53 8,584,972 Trade
GE General Electric Co 23.58 0.46 1.99 75,574,053 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.99 0.00 0.00 0
FOSL Fossil Group Inc. 8.92 -0.09 -1.00 961,513 Trade
AA Alcoa Inc. 46.54 -1.21 -2.53 6,033,142 Trade
CSX CSX Corporation 54.06 0.38 0.71 5,174,084 Trade
TRV The Travelers Companies Inc. 133.17 3.15 2.42 2,970,858 Trade
MO Altria Group Inc. 64.37 -0.44 -0.68 6,037,022 Trade
P Pandora Media Inc. 7.59 -0.09 -1.17 5,253,632 Trade
BONT The Bon-Ton Stores Inc. 0.33 -0.03 -7.14 257,634 Trade
S Sprint Corporation 7.07 0.02 0.28 12,033,183 Trade
PPL PPL Corp 37.81 0.29 0.77 2,768,924 Trade
AKAM Akamai Technologies Inc. 51.65 0.65 1.27 1,277,996 Trade
MET MetLife Inc. 52.99 0.19 0.36 2,503,971 Trade
VOD Vodafone Group Plc 28.93 -0.05 -0.17 1,743,828 Trade
TJX TJX Companies Inc. (The) 71.41 0.11 0.15 3,452,294 Trade
SCCO Southern Copper Corp 43.29 -0.14 -0.32 786,844 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 42.46 1.12 2.71 3,116,430 Trade
AES The AES Corporation 11.29 0.16 1.44 2,997,333 Trade
JBLU JetBlue Airways Corporation 20.34 0.27 1.35 6,968,892 Trade
COST Costco Wholesale Corporation 158.46 0.91 0.58 2,981,719 Trade
VZ Verizon Communications Inc. 49.21 0.56 1.15 29,173,869 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 108.19 -1.07 -0.98 748,205 Trade
GM General Motors Company 45.35 0.23 0.51 13,051,579 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 7.45 0.02 0.27 506,188 Trade
GOOG Alphabet Inc. 984.45 -8.36 -0.84 1,313,575 Trade
BMY Bristol-Myers Squibb Company 64.67 0.97 1.52 4,919,544 Trade
TTM Tata Motors Ltd Limited 32.95 0.09 0.27 851,872 Trade
UNM Unum Group 52.28 0.09 0.17 611,359 Trade
EE El Pasoectric Company 57.40 0.20 0.35 185,038 Trade
ACHN Achillion Pharmaceuticals Inc. 4.16 -0.12 -2.80 2,819,929 Trade
HIG Hartford Financial Services Group Inc. (The) 56.47 0.95 1.71 1,333,156 Trade
F Ford Motor Company 12.23 0.04 0.33 29,678,158 Trade
PFG Principal Financial Group Inc 68.17 0.27 0.40 667,475 Trade
AZN Astrazeneca PLC 34.71 0.06 0.17 2,443,658 Trade
NFLX Netflix Inc. 195.13 -0.41 -0.21 7,034,602 Trade
MRK Merck & Company Inc. (new) 63.75 0.24 0.38 10,071,235 Trade
ANF Abercrombie & Fitch Company 13.40 0.16 1.21 1,289,904 Trade
SUN Sunoco LP representing limited partner interests 30.80 0.35 1.15 668,313 Trade
IHG Intercontinental Hotels Group American Depositary 54.23 -0.09 -0.17 90,937 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 39.77 0.15 0.38 4,810,929 Trade
T AT&T Inc. 35.69 -0.02 -0.06 32,887,368 Trade
DUK Duke Energy Corporation (Holding Company) 87.85 0.81 0.93 1,672,524 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 86.38 1.05 1.23 732,875 Trade
CMCSA Comcast Corporation Class A Common Stock 36.90 0.70 1.93 25,334,168 Trade

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