I spend a majority of my time exploring a world of opportune stocks and up setter chances, which most of you will simply never hear about. According to the International Energy Agency, the United States is well on track to become the world’s largest oil producing country by 2018.
In North Dakota alone, production has doubled in last two years, Hydraulic fracturing and horizontal drilling is enough to push the U.S of A into an oil self-sufficient zone by early 2018.
That brings me to this incredible list of the best American oil drilling companies. This is exhaustive list of key stocks in this sector that will benefit from this surging production activity imminently.
I have looked into oil drilling companies that have operations in the US of A primarily, even though most have international operations too. I believe we probably have at least a 1-year window of opportunity to take advantage of investing into these oil drilling companies.
However this is just a bit of head start, so do your own research before you jump onto the bandwagon.
Okay here we go…
The National Oil Well Varco (NOV) tops my list of darlings, by the way this stock happens to be Berkshire Hathaway’s favorite too, and the Motley Fools Tom and David Gardner have also been teasing this stock as Warren Buffett’s New Toy in their widely circulated teaser ads, for a couple of years.
National Oil Well Varco is a pretty omnipresent in the oil services arena, quite apparently 90% of the drilling rigs in operation have some kind of Varco equipment on them, as they sell and lease rigs and also provide a range of oilfield services.
Their biggest profit center however is the high-tech equipment they manufacture and own. And yes, Berkshire Hathaway’s position in NOV increased by 2,189,500 shares in the first quarter of this year, appreciations to their investment managers Ted Wechsler and Todd Coombs.
And currently (NOV) is pretty inexpensive with a forward PE that is less than of business leader Schlumberger (SLB) and same as of Halliburton (HAL) unlike others NOV has been growing sales at faster rate. With a sexy balance sheet and a small debt and pretty low PE to Book ratio of 1.5.
They tend to stream major cash flows back into acquisitions. With a strong market position and the probability that more high-tech drilling equipment will be vital for the world’s oil producers and explorers, the years into the future.
I look for the facts surrounding these picks and I almost always look for businesses that are shareholder-friendly and that will make money in almost any economy.
If I can buy sales and cash flow at a low-cost of holding, I must have it, over and over again and that brings me to my second pick… so without wasting any more time let’s get on to it, shall we?
Disclosure: I don’t have any positions in any stock mentioned herein, and no plans to initiate any in the near future as well.