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) 178.33 -2.82 -1.56 426,940 Trade
ORCL Oracle Corporation 48.62 0.07 0.14 10,248,442 Trade
GLW Corning Incorporated 27.88 0.01 0.04 5,178,017 Trade
GEN Genesis Healthcare Inc. 1.05 -0.02 -1.87 384,387 Trade
FTR Frontier Communications Corporation 13.56 -0.25 -1.81 2,527,197 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 2.35 0.10 4.44 16,605 Trade
PG Procter & Gamble Company (The) 92.47 0.40 0.43 6,815,008 Trade
GE General Electric Co 24.55 -0.20 -0.81 34,273,076 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.68 0.00 0.00 0
FOSL Fossil Group Inc. 7.49 -0.28 -3.60 3,735,836 Trade
AA Alcoa Inc. 37.76 -0.04 -0.11 2,118,671 Trade
CSX CSX Corporation 48.78 -0.10 -0.20 6,910,756 Trade
TRV The Travelers Companies Inc. 127.89 -0.30 -0.23 1,246,905 Trade
MO Altria Group Inc. 63.69 -0.61 -0.95 10,210,604 Trade
P Pandora Media Inc. 8.27 -0.22 -2.59 4,989,659 Trade
BONT The Bon-Ton Stores Inc. 0.67 -0.02 -2.94 149,769 Trade
S Sprint Corporation 8.07 -0.02 -0.25 4,690,810 Trade
PPL PPL Corp 38.92 0.10 0.26 2,413,049 Trade
AKAM Akamai Technologies Inc. 45.36 -0.04 -0.09 1,378,991 Trade
MET MetLife Inc. 47.02 0.07 0.15 7,662,137 Trade
VOD Vodafone Group Plc 28.55 -0.01 -0.04 3,242,459 Trade
TJX TJX Companies Inc. (The) 70.47 0.22 0.31 6,655,057 Trade
SCCO Southern Copper Corp 39.12 0.10 0.26 704,030 Trade
MR Mindray Medical International n/a n/a n/a 0 Trade
XL XL Group plc 43.79 -0.17 -0.39 1,644,772 Trade
AES The AES Corporation 11.07 0.06 0.54 4,446,730 Trade
JBLU JetBlue Airways Corporation 20.28 -0.21 -1.02 5,206,068 Trade
COST Costco Wholesale Corporation 157.08 -1.49 -0.94 2,747,925 Trade
VZ Verizon Communications Inc. 47.69 -0.20 -0.42 16,919,130 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 98.20 0.27 0.28 490,459 Trade
GM General Motors Company 34.83 -0.17 -0.49 7,193,463 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.69 0.04 0.60 852,963 Trade
GOOG Alphabet Inc. 910.67 -0.31 -0.03 1,342,689 Trade
BMY Bristol-Myers Squibb Company 56.42 -0.35 -0.62 4,809,885 Trade
TTM Tata Motors Ltd Limited 29.32 -0.12 -0.41 2,001,431 Trade
UNM Unum Group 47.93 -0.23 -0.48 1,608,398 Trade
EE El Pasoectric Company 53.95 0.70 1.31 175,902 Trade
ACHN Achillion Pharmaceuticals Inc. 4.67 -0.21 -4.30 1,489,155 Trade
HIG Hartford Financial Services Group Inc. (The) 55.56 -0.04 -0.07 4,524,540 Trade
F Ford Motor Company 10.56 -0.08 -0.75 43,998,743 Trade
PFG Principal Financial Group Inc 62.93 0.00 0.00 1,204,709 Trade
AZN Astrazeneca PLC 29.12 0.04 0.14 4,185,092 Trade
NFLX Netflix Inc. 166.54 0.45 0.27 7,385,736 Trade
MRK Merck & Company Inc. (new) 61.49 -0.35 -0.57 8,421,689 Trade
ANF Abercrombie & Fitch Company 9.66 0.17 1.79 2,316,291 Trade
SUN Sunoco LP representing limited partner interests 30.44 -0.05 -0.16 312,303 Trade
IHG Intercontinental Hotels Group American Depositary 50.52 -0.51 -1.00 88,046 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 37.99 0.39 1.04 3,853,849 Trade
T AT&T Inc. 37.37 -0.23 -0.61 23,017,865 Trade
DUK Duke Energy Corporation (Holding Company) 86.38 0.51 0.59 2,853,827 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 84.32 -1.18 -1.38 1,231,456 Trade
CMCSA Comcast Corporation Class A Common Stock 40.52 0.25 0.62 19,547,097 Trade

Comments

Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.

Private Markets

Mesa-Marshall 2 Well Project

MESA Resources ("MESA") is sponsoring the development of the two well direct drilling project -- "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development of…

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