>> Where are the E&P earnings? Oil and gas prices were good last quarter, but it seems the money didn't come through to the bottom line (unless I just happen to be following a bunch of losers). We expected a time lag with the drillers, but why are the E&P's having such a hangover? It's gotten to the point that some of the small companies are collapsing. Have we seen the worst? Any thoughts? <<
Your statement almost made me laugh. I think you must invest in solely debt heavy, small cap E&P's because PXD, OEI, APC, NBL, VPI etc blew away estimates - especially when compared to service stocks.
Now is the time to be playing the big cap E&P's (NBL, EOG, BR, PXD, OEI). Notice most of the big cap E&P's are up strong today while the small caps continue to lag. These big caps are still steals here. Until most of them rise another 20-30% I wouldn't even consider any small caps, although I'd make an exception for XTO, HSE and RGO (small, but not micro's like MEXP etc).
As for the small caps collapsing what do you expect with so many weak hands... |
