Be Patient With E&P Companies


Daniel Dicker

 | Jun 30, 2014 | 11:00 AM EDT
  • Comment
  • Print Print
  • Print

The ostensible end of the domestic crude import ban ended last week, as we saw catastrophic stock retreats from all the major dedicated refiners. What we didn't see is an equally enthusiastic price response for the mid-cap exploration-and-production (E&P) companies working in the Eagle Ford and Permian basins. Both of these trends strike me as worth heeding: I would not own any refinery stock right now and I remain cautious on the newly advantaged (E&P) players.

Many analysts are pushing back on my point of view on the new Commerce Department ruling on Condensates, giving "refined product" status and, therefore, export ability to these grades of crude oil -- specifically to Pioneer Natural Resources (PXD) and Enterprise Product Partners (EPD). While they believe that it is a small ruling that will only marginally affect exports, I believe it marks the end of the export ban....417 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money trading floor.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. Staffed with nearly 3 dozen investing pros, money managers, journalists and analysts, Real Money gives you a flood of opinions, analysis and trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please Login
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.