Done With the Oil Majors for Now

This earnings season has proven to me that our strategy -- concentrating on domestic mid- and large-cap exploration-and-production companies -- is the way to continue investing in the energy space. We're just done with the majors, at least for now.

If we look at the Exxon Mobil (XOM) earnings particularly, we can see the trend. The company came in light, and much of that can be traced superficially to downstream performance. But more important is the lack of upstream profits, which are down more than $2 billion compared with the second quarter of 2012. For this, Exxon might want to blame the dip of crude prices in the early part of 2013 -- but, with the monumental exploration spend it has been making, this doesn't wash with me. The company just isn't getting the upstream results we want....461 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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