A Pair of E&P Plays

The market has not given investors with cash on the sidelines many opportunities to buy on the dips over the past three months, as stocks have rallied almost immediately off any pullback.  Oil prices had their biggest drop in two months on Wednesday, and oil-related stocks had significant selloffs, continuing weakness in the sector over the past few trading sessions. The long-term environment remains positive for the oil sector given the reflationary measures of the Federal Reserve, which could easily overshoot and ignite inflation.  In addition, any measures that might depress the price of oil, such as the release of strategic reserves or the recently announced moves by Saudi Arabia, are likely to be temporary and should cease shortly after the election. I believe the current pullback provides a decent opportunity to put cash to work in some exploration-and-production names with reasonable valuations and great growth prospects.  Here are two companies that I like at current levels.

Gulfport Energy (GPOR) has oil- and natural gas-producing properties in the Louisiana Gulf Coast, in west Texas in the Permian Basin, and in west Colorado in the Niobrara Formation. It is also active in Alberta, Thailand and the Utica Shale....330 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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