Oil Drilling Stocks: 14 Ways to Strike It Rich

With the price of oil bouncing around between $90 and $100 per barrel, maybe its time to look at the oil drillers, which can provide substantially more upside than the large integrated oil companies or the oil income trusts. Here are a list of 14 oil drillers, all but two of which have market caps above $1 billion, and all but two of which pay dividends:.

Atlas Energy Resources (ATN) is a developer of of natural gas and oil principally in Michigan, New York, Pennsylvania, Ohio, and Tennessee. The stock has a P/E of 23, a PEG of 0.42, and a yield of 7.5.

Markwest Energy (MWE) is a Denver, Colorado-based oil and gas company. The stock has a P/E of 28, a PEG of 2.12, and a yield of 6.1.

Patterson-UTI Energy (PTEN) is a Snyder, Texas-based provider of onshore contract drilling services. The stock has a P/E of 6, a PEG of 1.17, and a yield of 2.5.

StatoilHydro ASA (STO) is a Norway-based company that explores for, produces and refines petroleum. The stock has a P/E of 8, a PEG of 2.19, and a yield of 2.

Gulf Island Fabrication (GIFI) manufactures offshore drilling and production platforms. The stock has a P/E of 16, a PEG of 0.57, and a yield of 1.3.

Rowan Cos Inc. (RDC) is a Houston, Texas-based contract drilling company. The stock has a P/E of 11, a PEG of 0.73, and a yield of 1.1.

Helmerich Payne (HP) is a Tulsa, Oklahoma-based contract driller of oil and gas. The stock has a P/E of 9, a PEG of 1.02, and a yield of 0.5.

Diamond Offshore (DO) is a Houston, Texas-based an offshore oil and gas drilling contractor. The stock has a P/E of 20, a PEG of 0.96, and a yield of 0.4.

W&T Offshore (WTI) is a Houston, Texas-based explorer and producer of oil and natural gas. The stock has a P/E of 19, a PEG of 1.15, and a yield of 0.4.

Atlas America (ATLS) is a Pennsylvania-based producer and developer of oil and gas. The stock has a P/E of 31, and a yield of 0.4.

Noble Corp. (NE) is a Texas-based company that provides contract drilling services. The stock has a P/E of 13, a PEG of 0.55, and a yield of 0.3.

Ensco Intl. Inc. (ESV) is a Dallas, Texas-based provider of contract drilling services. The stock has a P/E of 9, a PEG of 0.47, and a yield of 0.2.

Transocean Inc (RIG) is a Houston, Texas-based offshore contract drilling company. The stock has a P/E of 16, a PEG of 0.68.

Parker Drilling (PKD) is a Houston, Texas-based provider of land and offshore contract drilling services. The stock has a P/E of 7.5.

Disclosure: The author does not own any of the above.

Comments

[Norman Lepo...:]

Very good article. Thanks for writing it.

2008 Jan 18 01:15 PM

[lefty:]

Me wonders why author doesn't own any.

2008 Jan 19 06:14 AM

[peshooter:]

good job copying stockpickr

2008 Jan 19 02:06 PM

[Yael Pipano:]

STO especially! StatoilHydro was chosen by Gazprom to be a partner in the development of the massive Shtokman gas project, joining France's Total. Gazprom is one of 4 operators controling 20% of the arctic which has a potential prize of 109 Bboe (98 fields were discovered to date). The other 3 largest arctic operators are BP with 18%, Statoil with 16% and Exxon with 14%. STO has has 7,000 kilometers of pipeline from the Norwegian continental shelf to Europe, and is highly involved in deepwater exploration in the Barent's sea which contains an estimated +300 MMBbl of recoverable oil. Nearly $25 billion is projected to be the annual deepwater capital expenditure by 2012 (a 30% growth rate for the next 4 years). Deepwater oil production will account for almost 20% of total offshore production (a 5% increase) by 2011.

2008 Jan 19 06:38 PM

[sunrises:]

Rig is an excellent company & worth the investment. Just curious why doesn't it offer dividends?

Swimjames mentions BP and XOM stake of operations. I agree that along with the above companies XOM and BP are excellent long investments. Thanks for the summation -- very nice.

2008 Feb 22 12:13 AM

[ACEMAN:]

You missed the best pick to make money, namely, PDE. On all metrics, especially its business plan, it will out perform. Drilling for the sake of drilling just keeps the EE's working, but drilling at lower cost and a piece of the oil reserves, now that's how it should be done.

2008 Mar 04 11:10 AM

[User 101223:]

You did not mention XTO.
Is something wrong with owning it?

Gertie

2008 Jun 12 04:29 PM