Buy These Domestic Oil Services Firms
Several trends are colliding to make 2014 likely a lucrative one for investors in domestic oil services firms. First, natural gas inventories have plunged 40% below five-year averages. Second, domestic drilling rig counts are starting to move up. Third, there has been a pullback in deepwater capital budgets despite high oil prices. All of these scenarios set up the need for increasing domestic drilling budgets, at least short-term.
Despite the bullish trends and the bull market in stocks, a lot of the domestic oil service stocks trade below levels of the 2011 peaks. The firms of intrigue include: C&J Energy Services (NYSE: CJES ), Baker Hughes (NYSE: BHI ), and even lowly Key Energy Services (NYSE: KEG ).
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Disclosure: Long CJES. Please review the disclaimer page for more details.
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