• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 22 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 2 hours Saudi Arabia turns to solar
  • 13 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 7 hours Could oil demand collapse rapidly? Yup, sure could.
  • 2 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 3 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 5 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 8 hours Gazprom Exports to EU Hit Record
  • 4 hours U.S. Withdraws From U.N. Human Rights Council
  • 8 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 12 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 6 hours What If Canada Had Wind and Not Oilsands?
  • 6 hours "The Gasoline Car Is a Car With a Future"
  • 1 hour EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 19 hours EVs Could Help Coal Demand
  • 7 hours Sell out now or hold on?
Alt Text

Russia Boosts Oil Production Before OPEC Meeting

Russia pumped almost 11.1 million…

Alt Text

China Deals Shocking Blow To Solar Industry

China surprised the markets by…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Looking For Bargains? This Profitable E&P Company Is A Good Place To Start

For most oil and gas exploration and production (E&P) companies the last year or so has been about survival. The spectacular collapse in oil prices has been followed by a less publicized drop in natural gas to the point where the lows of 2012 are well in sight. Those that were slow to react to the changing environment or who were under hedged when the drop began have found themselves struggling to keep afloat. There are, however, one or two that reacted quickly enough to still be making money, even after prices fell. I am not talking here about the large integrated firms, whose diversity protects them at times like this, but about North American, pure play E&P companies.

With oil looking like it may have finally bottomed out and natural gas about to get the stabilizing effects of winter demand and, at some point, the benefit from exports, many see it as a good time to go shopping for bargains in the E&P space. If the last year has taught us anything, however, it is that false dawns are extremely possible. It would be prudent, therefore, to look first at companies who have remained profitable. Their stock has generally still been hit hard and so has some upside, but reward is only one half of the equation. Risk, which constitutes the other half is still present, of course, but it is manageable downside risk rather than existential risk that can result in a total loss of your investment.

With that in mind I set out to find a profitable E&P operation…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News