Well-capitalized operators with sufficient scale in oil basins and/or options on natural gas should continue to outperform, says Sterne Agee, as it picks Pioneer Natural Resources Company (NYSE:PXD), Energen Corporation (NYSE:EGN), and Oasis Petroleum (NYSE:OAS), as its favorites. At the same time, the analyst recommends that pure gas plays such as Southwestern Energy Company (NYSE:SWN) and Ultra Petroleum Corporation (NYSE:UPL) should be avoided.
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