He writes: “The fundamentals for the E&P sector have never looked better: Tight oil inventories bode well over the next 18 months, natural gas prices have shifted to a considerably higher trading range and managements are exercising impressive financial discipline. We believe this backdrop could provide a longer-than-average cycle.”
PaineWebber’s picks include: Anadarko Petroleum, Apache, Barrett Resources, Burlington Resources, Devon Energy, EOG Resources, Evergreen Resources, Houston Exploration, Newfield Exploration, Patina Oil & Gas, Swift Energy and Triton Energy.
Most of these guys are medium to small players. They will either grow or be swallowed by bigger fish looking for secure oil and gas reserves. That’s the way I think of them.
Brett Fromson writes daily for TheStreet.com. In keeping with TSC’s editorial policy, he doesn’t own or short individual stocks, although he owns stock in TheStreet.com. He invites you to send your feedback to email@example.com.