Watch Lists

dan_s · Post by **dan_s** » Mon Jul 23, 2012 8:56 pm

Our E&P, Drillers and MLP Watch Lists have all been updated. EPG Members must log in to see them.

A couple things that pop out at me.
1. The MLPs are doing fine, primarily because they have a very high percentage of their revenues locked in by hedging and long-term contracts. You should all read our profile on MMP.
2. NRP has hammered by all the bad press regarding coal. However, NRP has solid earnings locked in and the annual cash distribution yield is now over 10.5%.
3. UNT is now trading at less than 3X CFPS. Unit Corp. is lumped in with all of the onshore drillers but they have a very significant E&P division. If I'm right about natural gas prices bouncing back, the market may be very impressed by the earnings UNIT reports.
4. HP is clearly the "Big Dog" among the onshore drillers.
5. The offshore drillers have bounced back from the Macondo Blowout. They are on-track to report strong year-over-year results.