We're "in the later innings" of the long-oil/short-gas trade but "not yet in the bottom of the...

|By:, SA News Editor

We're "in the later innings" of the long-oil/short-gas trade but "not yet in the bottom of the ninth," Sterne Agee says, believing well-capitalized operators with sufficient scale in oil basins and/or optionality on natural gas should continue to outperform. Energen (EGN), Pioneer Natural (PXD) and Oasis Petroleum (OAS) are the firm's favorites; avoid pure gas plays SWN and UPL.