EPG Watch Lists

[dan_s]

Our Watch Lists are a great place to look for good investment ideas.

Each weekend we update all three of our Watch Lists. The Drillers and E&P Watch Lists can be found under the Watch List Tab. The MLP Watch List is under the MLP Tab.

The 14 Midstream MLPs on our Watch List offer a nice combination of low risk and high tax deferred yield. Midstream business (gathering, processing and transportation) is very strong right now. We also have three company profiles on MLPs under the MLP Tab. PAA looks very good.

Check out the forecasts for the onshore drillers. I believe that Wall Street has oversold this group on the assumption that the active rig count is going to drop sharply with lower natural gas prices. So far, I have not seen much of a drop. In fact, the active rig count was up 11 rigs last week. The number of rigs drilling for gas is down more than 230 from this time last year but they have all been moved to the liquid prone areas of the shale plays. Drilling in the Eagle Ford, Bakken and Permian Basin is really picking up. More rigs are moving into the Utica Shale. I do think we will see a dip in the rig count during the 2nd quarter but it won't be too bad. If liquids prices stay up (and I think they will), we should see a nice increase in the active rig count this summer.

[bearcatbob]

Dan, I do not understand why the drillers are moved to a watch list while MIND is allowed to remain a member of the Sweet 16. It would seem to me that there needs to be a Recommended List of the service companies separate from the producers. For a stock to be on a "watch list" is one thing. For a stock to make the Sweet 16 is an entirely different thing.

Bob

[dan_s]

I just like MIND better. Plus, the purpose of the Watch Lists is so you can compare a company to its peer group. I like all of the companies on our Watch Lists are they would not be there.

I moved HP and PTEN off the Sweet 16 because I believe Wall Street will be down on the onshore drillers until late Q3.

MIND is going to report very strong numbers the next two quarters.