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
AA Alcoa Inc. 9.59 -0.09 -0.93 354,349
ACHN Achillion Pharmaceuticals Inc. 8.35 0.01 0.12 16,325
AES The AES Corporation 13.13 0.01 0.08 58,072
AKAM Akamai Technologies Inc. 52.27 0.51 0.99 28,050
ANF Abercrombie & Fitch Company 16.15 0.01 0.06 24,124
AYI Acuity Brands Inc (Holding Company) 258.27 -0.04 -0.02 203
AZN Astrazeneca PLC 33.03 -0.52 -1.55 371,368
BMY Bristol-Myers Squibb Company 55.64 0.16 0.29 217,584
BONT The Bon-Ton Stores Inc. 1.66 0.00 0.00 20
BRCM Broadcom Corp. n/a n/a n/a 0
CMCSA Comcast Corporation Class A Common Stock 65.66 -0.15 -0.23 199,773
COST Costco Wholesale Corporation 150.72 -0.47 -0.31 62,400
CSX CSX Corporation 29.77 0.06 0.20 131,466
DUK Duke Energy Corporation (Holding Company) 82.75 0.60 0.73 43,264
ECT ECA Marcellus Trust I of Beneficial Interest 2.14 0.00 0.00 0
EE El Pasoectric Company 48.46 0.12 0.25 1,161
EXC Exelon Corporation 34.91 0.09 0.26 137,519
F Ford Motor Company 11.99 -0.02 -0.17 1,286,263
FOSL Fossil Group Inc. 28.50 -0.27 -0.94 5,114
FTR Frontier Communications Corporation 4.39 0.03 0.65 298,606
GE General Electric Co 29.58 0.04 0.14 791,618
GEN Genesis Healthcare Inc. 2.72 0.01 0.46 6,944
GLW Corning Incorporated 23.08 0.08 0.35 149,301
GM General Motors Company 31.71 -0.09 -0.28 249,818
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
GOOG Alphabet Inc. 777.50 3.29 0.42 64,258
HIG Hartford Financial Services Group Inc. (The) 42.23 -0.15 -0.35 35,888
IHG Intercontinental Hotels Group American Depositary 40.58 -0.08 -0.20 190,156
JBLU JetBlue Airways Corporation 17.07 0.13 0.77 170,837
MET MetLife Inc. 42.86 -0.54 -1.24 148,986
MO Altria Group Inc. 63.06 0.03 0.05 128,601
MR Mindray Medical International n/a n/a n/a 0
MRK Merck & Company Inc. (new) 61.94 -0.21 -0.34 215,665
NFLX Netflix Inc. 95.57 1.01 1.07 389,154
ORCL Oracle Corporation 38.99 -0.04 -0.10 205,415
P Pandora Media Inc. 14.03 0.04 0.29 53,522
PFG Principal Financial Group Inc 49.05 -0.37 -0.75 32,085
PG Procter & Gamble Company (The) 87.83 -0.02 -0.02 241,087
PPL PPL Corp 35.91 0.15 0.42 61,794
RBS Royal Bank of Scotland Group Plc New (The) ADS 4.48 -0.13 -2.82 226,052
REE Rare Element Resources n/a n/a n/a n/a
RL Ralph Lauren Corporation 96.64 -0.14 -0.14 5,562
S Sprint Corporation 6.75 0.10 1.50 203,287
SCCO Southern Copper Corp 25.46 -0.31 -1.22 18,181
SUN Sunoco LP representing limited partner interests 29.71 -0.04 -0.13 6,744
T AT&T Inc. 41.19 0.05 0.12 587,574
THRX Theravance Inc n/a n/a n/a 0
TJX TJX Companies Inc. (The) 75.14 -0.04 -0.05 38,688
TRV The Travelers Companies Inc. 113.83 -0.11 -0.10 22,965
TTM Tata Motors Ltd Limited 39.92 0.04 0.10 33,266
UNM Unum Group 33.98 -0.46 -1.34 28,105
VOD Vodafone Group Plc 28.89 -0.18 -0.63 448,751
VRSN VeriSign Inc. 78.52 0.29 0.37 6,835
VZ Verizon Communications Inc. 52.11 -0.04 -0.08 310,001
XL XL Group plc 33.89 0.01 0.03 12,584

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