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) 220.29 1.80 0.82 812,360
ORCL Oracle Corporation 42.06 0.47 1.13 18,545,336
GLW Corning Incorporated 27.65 -0.06 -0.22 4,456,285
GEN Genesis Healthcare Inc. 3.88 -0.05 -1.27 124,538
FTR Frontier Communications Corporation 3.29 0.00 0.00 26,123,818
ECT ECA Marcellus Trust I of Beneficial Interest 2.80 0.25 9.80 80,705
PG Procter & Gamble Company (The) 91.09 0.30 0.33 12,152,428
GE General Electric Co 30.37 -0.08 -0.26 21,849,428
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 13.60 0.00 0.00 0
FOSL Fossil Group Inc. 20.73 0.49 2.42 3,198,727
AA Alcoa Inc. 36.21 -0.25 -0.69 4,516,838
CSX CSX Corporation 48.54 0.85 1.78 11,766,424
TRV The Travelers Companies Inc. 121.95 0.16 0.13 1,334,680
MO Altria Group Inc. 72.97 0.26 0.36 5,568,728
P Pandora Media Inc. 13.58 0.64 4.95 14,397,398
BONT The Bon-Ton Stores Inc. 1.15 0.04 3.60 43,970
S Sprint Corporation 9.30 0.30 3.33 43,255,377
PPL PPL Corp 35.63 -0.09 -0.25 3,438,736
AKAM Akamai Technologies Inc. 62.34 -1.90 -2.96 3,981,112
MET MetLife Inc. 52.97 -0.68 -1.27 7,975,887
VOD Vodafone Group Plc 25.11 -0.11 -0.44 4,414,961
TJX TJX Companies Inc. (The) 77.19 0.36 0.47 6,142,925
SCCO Southern Copper Corp 37.30 -0.68 -1.79 1,438,708
MR Mindray Medical International n/a n/a n/a 0
XL XL Group plc 40.95 0.31 0.76 1,767,988
AES The AES Corporation 11.46 -0.19 -1.63 6,336,825
JBLU JetBlue Airways Corporation 20.11 0.27 1.36 7,073,565
COST Costco Wholesale Corporation 175.86 0.11 0.06 2,425,236
VZ Verizon Communications Inc. 49.19 0.73 1.51 23,190,659
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
VRSN VeriSign Inc. 82.30 0.38 0.46 647,373
GM General Motors Company 37.22 0.19 0.51 15,777,399
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.06 -0.05 -0.82 1,368,870
GOOG Alphabet Inc. 828.07 3.91 0.47 1,611,039
BMY Bristol-Myers Squibb Company 54.59 0.31 0.57 9,706,078
TTM Tata Motors Ltd Limited 33.46 0.41 1.24 1,424,703
UNM Unum Group 48.51 -0.59 -1.20 1,898,715
EE El Pasoectric Company 46.60 -0.15 -0.32 157,435
ACHN Achillion Pharmaceuticals Inc. 4.27 0.00 0.00 1,338,970
HIG Hartford Financial Services Group Inc. (The) 48.36 -0.24 -0.49 3,492,766
F Ford Motor Company 12.58 0.04 0.32 26,407,405
PFG Principal Financial Group Inc 62.12 -0.48 -0.77 990,232
AZN Astrazeneca PLC 29.16 0.40 1.39 4,496,430
NFLX Netflix Inc. 142.22 0.21 0.15 4,588,073
MRK Merck & Company Inc. (new) 65.39 0.13 0.20 9,048,256
ANF Abercrombie & Fitch Company 12.20 0.13 1.08 2,665,098
SUN Sunoco LP representing limited partner interests 28.04 -0.47 -1.65 1,022,112
IHG Intercontinental Hotels Group American Depositary 48.20 -0.13 -0.27 212,136
BRCM Broadcom Corp. n/a n/a n/a 0
EXC Exelon Corporation 35.58 0.16 0.45 4,962,991
T AT&T Inc. 41.48 0.23 0.56 24,156,415
DUK Duke Energy Corporation (Holding Company) 78.36 -0.54 -0.68 4,104,558
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 78.39 -0.08 -0.10 1,802,185
CMCSA Comcast Corporation Class A Common Stock 75.32 -0.67 -0.88 9,799,976

Comments

Emerging Growth

PixarBio Corp

PixarBio Corp is a specialty pharmaceutical/biotechnology company focused on pre-clinical and commercial development of novel neurological drug delivery systems for post-operative pain.

Private Markets

WayBetter

The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…