Onshore Drillers Bullish Outlook

Dan Steffens  |

The 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) 123.00 0.23 0.19 403,678 Trade
ORCL Oracle Corporation 47.12 -0.07 -0.15 15,693,598 Trade
GLW Corning Incorporated 31.79 -0.34 -1.06 6,027,222 Trade
GEN Genesis Healthcare Inc. 1.46 0.02 1.39 145,575 Trade
FTR Frontier Communications Corporation 5.26 -0.11 -2.05 4,064,837 Trade
ECT ECA Marcellus Trust I of Beneficial Interest 1.80 -0.02 -1.10 18,069 Trade
PG Procter & Gamble Company (The) 80.13 1.07 1.35 9,691,455 Trade
GE General Electric Company 12.15 -0.17 -1.38 62,640,173 Trade
TXT.PR.A:CA Top 10 Split Trust Preferred Securities 12.56 0.00 0.00 0
FOSL Fossil Group Inc. 21.03 0.36 1.74 1,000,296 Trade
AA Alcoa Corporation 35.34 -0.33 -0.93 2,439,871 Trade
CSX CSX Corporation 70.86 0.66 0.94 5,489,928 Trade
TRV The Travelers Companies Inc. 123.39 -0.26 -0.21 1,305,179 Trade
MO Altria Group Inc. 61.44 1.38 2.30 8,122,851 Trade
P Pandora Media Inc. 9.12 0.08 0.88 5,595,402 Trade
BONT The Bon-Ton Stores Inc. n/a n/a n/a n/a
S Sprint Corporation 6.28 -0.13 -2.03 11,455,804 Trade
PPL PPL Corporation 30.45 0.20 0.66 5,005,615 Trade
AKAM Akamai Technologies Inc. 63.30 0.30 0.48 2,734,557 Trade
MET MetLife Inc. 43.77 -0.06 -0.14 5,393,433 Trade
VOD Vodafone Group Plc 20.36 0.37 1.85 8,126,981 Trade
TJX TJX Companies Inc. (The) 110.51 1.07 0.98 2,532,205 Trade
SCCO Southern Copper Corporation 42.14 0.38 0.91 916,927 Trade
MR Mindray Medical International Ltd ADR (Sponsored) Repstg Cl A n/a n/a n/a 0 Trade
AES The AES Corporation 14.84 0.19 1.30 4,671,481 Trade
JBLU JetBlue Airways Corporation 16.48 0.12 0.73 4,964,965 Trade
COST Costco Wholesale Corporation 224.51 -2.44 -1.08 2,441,901 Trade
VZ Verizon Communications Inc. 53.60 -0.13 -0.24 13,022,030 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 142.51 -1.47 -1.02 460,481 Trade
GM General Motors Company 32.12 0.33 1.04 13,621,121 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.50 -0.02 -0.31 457,785 Trade
GOOG Alphabet Inc. 1,092.25 -17.83 -1.61 1,372,393 Trade
BMY Bristol-Myers Squibb Company 57.61 0.10 0.17 6,356,568 Trade
TTM Tata Motors Ltd Limited 12.47 0.10 0.81 2,767,367 Trade
UNM Unum Group 37.03 -0.29 -0.78 1,513,534 Trade
EE El Pasoectric Company 57.96 0.40 0.69 158,991 Trade
ACHN Achillion Pharmaceuticals Inc. 2.91 -0.22 -7.03 3,995,665 Trade
HIG Hartford Financial Services Group Inc. (The) 46.44 -0.35 -0.75 2,478,589 Trade
F Ford Motor Company 8.81 0.17 1.97 40,183,227 Trade
AZN Astrazeneca PLC 37.47 0.32 0.86 3,034,664 Trade
NFLX Netflix Inc. 333.13 -6.43 -1.89 11,214,956 Trade
MRK Merck & Company Inc. (new) 69.46 -0.35 -0.50 6,580,933 Trade
ANF Abercrombie & Fitch Company 18.20 -0.23 -1.25 2,616,229 Trade
SUN Sunoco LP representing limited partner interests 29.05 -0.06 -0.21 370,318 Trade
IHG Intercontinental Hotels Group American Depositary Shares (Each representing one) 55.50 -1.11 -1.96 247,191 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
EXC Exelon Corporation 43.03 0.12 0.28 5,579,636 Trade
T AT&T Inc. 32.36 0.11 0.34 33,242,645 Trade
DUK Duke Energy Corporation (Holding Company) 80.13 0.14 0.18 3,018,442 Trade
THRX Theravance Inc n/a n/a n/a 0
RL Ralph Lauren Corporation 126.51 5.09 4.19 2,300,716 Trade
CMCSA Comcast Corporation Class A Common Stock 35.09 0.47 1.36 22,877,283 Trade

Comments

Emerging Growth

Singlepoint Inc

SinglePoint Inc is a mobile technology company engaged in mobile payments, mobile giving, and mobile bidding. It operates mobile commerce and communications platform to accept mobile credit card payments.