• 5 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 2 hours Can the World Survive without Saudi Oil?
  • 1 min Sears files Chapter 11
  • 18 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 27 mins Natural disasters and US deficit
  • 2 hours China Is the Climate-Change Battleground
  • 17 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 2 days COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 1 day How Long Until We Have Working Nuclear Fusion Reactor?
  • 2 days $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 10 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 15 hours German Voters Set to Punish Merkel’s Conservative Bloc
  • 16 hours Saudi A Threatens to Block UN Climate Report
  • 2 days China Tariff Threatens U.S. LNG Boom
Alt Text

Oil Prices Rise On Iran, Hurricane Outages

Oil prices recovered on Tuesday,…

Alt Text

Fuel Oil Isn’t Going Anywhere

Refiners are getting ready for…

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