- Geopolitical events and the disaster in Japan exacerbate the upward-sloping trend in oil prices.
- Natural gas fundamentals should improve over the course of 2011, as the gas-directed rig count continues to shrink.
- Major integrated firms and foreign national energy companies continue to support U.S. E&P shale drilling through joint ventures, although JVs are shifting more toward liquids-rich plays.
- Energy stocks appear slightly overvalued as a group. Small-cap stocks seem the most richly priced, while large- and mid-cap stocks are close to fairly valued.
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Jason Stevens has a position in the following securities mentioned above: RRC. Find out about Morningstar’s