Onshore Drillers

[dan_s]

Onshore Drillers: Updated company profiles for Patterson-UTI Energy (PTEN) and Precision Drilling (PDS) are now available under the Watch List Tab.

I am working on the profile for Helmerich & Payne (HP). I should finish it by Monday.

The onshore drillers have come off their bottoms. This group has been dumped by the market all year but it will get some "love" if oil prices hold and natural gas prices rise as we approach winter.

Remember, the price of crude oil drives E&P earnings for the large-caps.. Increasing cash flows leads to expanding exploration budgets, which in turn means more demand for seismic (check out MIND) and for drilling rigs. If natural gas prices go where I think they are heading, 2013 is going to be a very good year for the drillers. They are definitely "On Sale" today.

An updated Drillers Watch List will be posted tomorrow. It is updated by one of our top SMU MBA Student Interns each weekend. You can find it under the Watch List Tab.

[setliff]

the charts are looking very bullish for pds and pten.

[dan_s]

I will be sending an EPG Flash Alert to Energy Prospectus Group members Monday morning.