< The 2014 All-America Research TeamStephen RichardsonDeutsche Bank SecuritiesFirst-Place Appearances: 0
Total Appearances: 2
Analyst Debut: 2013Rising from runner-up to No. 3 is Stephen Richardson of Deutsche Bank Securities. Over the past three years, the analyst reports, companies in this sector with high-quality core positions in unconventional shale plays have moved rapidly to development, resulting in falling unit operating costs, better operating efficiency and improved visibility on returns associated with reinvested cash flow. Those names with the best acreage and the ability to execute and fund their programs should be able to generate better returns than in previous cycles and drive better valuations in the equity market, he forecasts. For these reasons, Richardson favors Houston-based EOG Resources in the large-cap space. He also likes Anadarko Petroleum Corp. of Woodlands, Texas. The stock is “a play on the theme, but it is a diversified portfolio of assets which offers a highly capital-efficient U.S. onshore portfolio with an international and offshore portfolio that provides exposure to exploration,” he notes. “Anadarko has a track record of understanding and realizing value from the portfolio, and our view has been that this continues.” The researcher’s midcap picks include Denver-based Cimarex Energy Co. and Concho Resources of Midland, Texas, because both are exposed to emerging-resource plays in the Delaware Basin of West Texas and southern New Mexico. Finally, Richardson is a fan of WPX Energy, believing that its new management will improve execution and restructure the Tulsa, Oklahoma-based company’s portfolio.
RUNNER(S)-UP
Joseph Allman
J.P. Morgan
Thomas Driscoll
Barclays
Douglas Leggate
Bank of America Merrill Lynch
Robert Morris
Citi
Jonathan Wolff
ISI Group