Down one notch to third place is Thomas Driscoll, whom one portfolio manager values for his “years of experience and great perspective on the industry.” Barclays’s researcher deems the prospects for the sector “rather strong right now, as horizontal oil and liquid-rich drilling opportunities have vastly improved prospects for shareholder returns.” He cautions, though, that exploration and production companies’ health, as well as the industry’s debt-adjusted high-single-digit growth rate, will still depend on access to appealing prospects and the persistence of a rapid pace of technical innovation. Against this backdrop, Driscoll favors EOG Resources and Noble Energy, both of which are based in Houston. “Quality at an attractive price will continue to reward investors,” he advises. In particular, EOG has “very strong positions in the heart of the two most important horizontal oil drilling opportunities today,” he notes, the Bakken formation in Montana and North Dakota, and the Eagle Ford site in southern Texas. For its part, Noble is “well positioned to deliver double-digit per-share results over the next decade,” he explains. — Carolyn Koo |