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).