Standard & Poor's expects domestic-focused energy stocks to benefit from the energy policy unveiled by President Bush on May 17. Shares in the group were higher as Bush unveiled a balanced plan to promote increased supply of oil & gas, improve efficiencies, and upgrade the existing energy infrastructure (pipelines, power grid, refineries).
S&P expects exploration & production spending in the U.S. to increase over 25% in 2001. The main beneficiaries should be energy contractors in construction, services, and drilling.
Top picks in the group? S&P has a 5 STARS (buy) ranking on each of BJ Services (BJS ), Ensco International (ESV ), Global Marine (GLM ), Nabor Industries (NBR ), Noble Drilling (NE ), Patterson-UTI Energy (PTEN ), and Rowan Cos. (RDC ).
Halliburton (HAL ), Helmerich & Payne (HP ), National-Oilwell (NOI ), Smith International (SII ), and Weatherfold International (WFT ) are ranked 4 STARS (accumulate).