Robert Cordray, Director at Guggenheim Securities, LLC, Interviews with The Wall Street Transcript: E&Ps Focus on Domestic Resources Development and International Exploration

Wall Street Transcript

67 WALL STREET, New York - July 2, 2013 - The Wall Street Transcript has just published its Oil & Gas Review 2013 Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Emerging Shale Plays - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Outlook for Natural Gas Liquids - Low Treasury Yields and MLP Dividends

Companies include: Apache Corp. (APA), Anadarko Petroleum Corp. (APC), Devon Energy Corporation (DVN), EOG Resources, Inc. (EOG), Noble Corp. (NE), Pioneer Natural Resources Co. (PXD), St. Mary Land & Exploration Co (SM), McMoRan Exploration Co. (MMR), Eni SpA (E), Total SA (TOT) and many more.

In the following excerpt from the Oil & Gas Review 2013 Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Broadly speaking, what's sort of your take on current valuations for the group at the moment?

Mr. Cordray: In terms of valuation, companies that are in this turn-the-crank mode of standardization - and two that come to mind in my coverage group are Pioneer and EOG - are pretty fully valued. They've been very good at telling the market, "here's what we've got, and here's what we're going to do with it," and I think that has led to a lot of that value, or most of that value, being priced into the stock. Those are not stocks that I would want to be shorting, for sure, but our call is really to sort of fade those into some of these other stocks and other opportunities, stocks that haven't yet realized their full value potential.

TWST: Where are you pointing investors now? You mentioned QEP. What are some of your other favorite stories?

Mr. Cordray: We certainly like QEP in terms of a way to play the gas call without explicitly focusing on just the gas call. Again, you have oil upside there.

As far as top picks in my group, I really like Anadarko. We have thought and we continue to think that the Tronox case is overblown. We recommend clients be in that stock now, ahead of the resolution, as we think the stock legs up after Tronox and doesn't look back. You also have multiple exploration catalysts, both from international exploration and the Gulf of Mexico. You also have probably one of the better performers in the U.S. onshore and conventionals, all wound into one company. We certainly like that.

The other top pick is Cobalt. We think that...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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