Buysiders have taken notice of price-appreciaition potential in oil and gas exploration amd production stocks. here's why.
Through 2000, up to 9 billion barrels of new reserves were discovered in the deepwater Gulf of Mexico. Much more is on the way.
Intelligent wells aren't routine yet, but industry acceptance is growing at a rapid pace.
We have a message for the skeptics and the cautious: the scales have tipped in favor of the exploration and production stocks. Many analysts now believe the upside potential of the E&Ps far outweighs any remaining downside. Some go so far as to predict that the E&Ps will outperform the broader market during the next 12 to 18 months. We strongly believe astute investors should begin to build their positions in these companies now, anticipating a robust 2003.
With recent energy stock valuations not much to write home about, and interest rates hovering near record lows, raising capital in the public equity markets has been largely abandoned this year by producers and service providers. Instead, these companies are focusing on debt financing-both public and private-and private equity transactions.
Managers find that outsourcing helps them better manage fluctuating personnel needs, and brings them expertise in areas not core to finding oil and gas or producing it.
A small E&P company and a service giant join forces to achieve efficiency and economy.