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5 Promising Ancillary Domestic Energy Plays

E&P firms are just one step in the energy process

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Lufkin Industries

lufkin185 5 Promising Ancillary Domestic Energy PlaysYou know those stereotypical oil field “beam-style” pumps, swinging up and down across Texas fields? Yeah, Lufkin Industries (NASDAQ:LUFK) makes those — along with a whole host of other sophisticated pumps and power-transmission equipment, while also providing various oil-field maintenance services.

That puts it in a good position to profit as wells move into the production phase — perhaps even more so as the various shale fields require specialized pressure pumping devices to tackle fracked wells’ depths.

Execution at Lufkin has been so-so lately, causing its shares to sink badly. However, like Exterran, the longer-term picture for Lufkin is a bit rosier — especially considering just how vital its equipment is to the oil and gas sector.

Shares of LUFK are currently trading for roughly $30 below their 52-week highs — now that the momentum players have left the stock. This allows value hounds to come in scoop up shares at a more reasonable price.

As of this writing, Aaron Levitt did not own a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2013/01/5-top-ancillary-domestic-energy-plays/.

©2014 InvestorPlace Media, LLC

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