Look For a Positive Energy Investor Sentiment Shift in the Coming Weeks
Raymond James Energy Group, September 29
"It is the stocks that were beat up the most that should move up the most."
"The oilservice index has seen meaningful rallies in four of the past five October time period. This seasonal trend
is especially interesting since three of the last five winters have started out meaningfully warmer than normal."
"An early start to winter last year led to an injection of only 60 bcf for the entire month of October.
Most analysts are anticipating 200 to 300 bcf injected this October."
"There is over a 75% probability that winter gas supply/demand
will be tight enough to drive gas prices above $5.00/mcf this winter."
"The combination of seasonal oil demand increases and lower OPEC production
should keep oil inventories very tight over the next four months."
"The favorite names in our oilservice universe are Strong-Buy rated
Patterson-UTI (PTEN/$26.35),
Nabors Industries (NBR/$37.02),
Grey Wolf (GW/$3.33),
Maverick Tube (MVK/$15.18),
National-Oilwell (NOI/$17.93)."
"On the E&P front, our favorite names remain those companies that have the ability
to economically grow production on a per share basis including Strong Buy-rated
Pioneer Natural Resources (PXD/$25.08),
XTO Energy (XTO/$20.62),
Western Gas Resources (WGR/$37.69),
Denbury Resources (DNR/$1.25),
Remington Oil & Gas (REM/$17.09),
Ultra Petroleum (UPL/$13.78),
Comstock Resources (CRK/$13.14)."
Full analysis:
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