Summary: In this episode, Tracey is joined by Sheraz Mian, Zacks Director of Research, who also worked as an oil analyst for seven years. That makes him the perfect guest to have on to discuss what’s really going on in the energy market. With crude still stuck around $40 a barrel over a year after the largest sell off in crude began, it’s worth asking if this energy contraction is different than the others. The two previous major price contractions, in 2008-2009 and 1985-1986, were both swift. The price fell quickly and then started to recover within a year. This time, the chart doesn’t look so friendly. Not only has crude not rebounded, some analysts believe it hasn’t even hit bottom yet. They think crude may go as low as $20 a barrel if the dollar continues to strengthen. With so much uncertainty in the crude market, where does that leave investors interested in the oil stocks? Tracey and Sheraz discuss some of the major exploration and production companies including Anadarko (APC) and Apache (APA). Will they survive the energy downturn? What about their dividends? Will the companies continue to pay those out? Should investors stay clear of all the smaller E&P companies due to the high risks? Or is that where they’ll find the highest reward? They also chat about the big integrated energy companies including Chevron (CVX), Exxon (XOM) and British Petroleum (BP). These are the blue chip energy companies. They’ve been through downturns many times before. Chevron and Exxon have been paying, and raising, their dividends for over two decades. Shares of Big Oil are still weak, but have moved off their lows. Are they even a bargain at these levels? And how safe are those juicy dividends? Sheraz gives his top energy pick and Tracey discloses which energy stocks are already in her portfolio. Listen to the podcast to find out more about what is going on in the oil patch. Anadarko Petrol: http://www.zacks.com/stock/quote/APC?cid=cs-soundcloud-ft-pod Apache Corp: http://www.zacks.com/stock/quote/APA?cid=cs-soundcloud-ft-pod Chevron Corp: http://www.zacks.com/stock/quote/CVX?cid=cs-soundcloud-ft-pod Exxon Mobile: http://www.zacks.com/stock/quote/XOM?cid=cs-soundcloud-ft-pod BP Plc: http://www.zacks.com/stock/quote/BP?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch
