Sterne Agee selects five E&P stocks poised for continued run

|By:, SA News Editor

E&P stocks still have room to run and investors should remain selectively exposed to the industry, Sterne Agee's Tim Rezvan says, pointing to five favorites for the near and medium term: Diamondback Energy (FANG), Energen (EGN), Whiting Petroleum (WLL), Ultra Petroleum (UPL) and QEP Resources (QEP).

The sharp rally in the WTI futures curve, with crude prices expected to keep rising through 2015, gives confidence in a strong growth outlook for select oil-focused companies, Rezvan writes.

WLL shares remain among the cheapest in the group, EGN has important near-term catalysts in the San Juan Basin, and FANG continues to trade cheap following the recent IPO of its mineral rights interest, he says.