Shale-Gas Boom Could Bring Bounty to Companies and Investors

Investors can’t merely use a dartboard approach to pick the long-term winners in the sector, however.

Coleman says if the low-price environment persists, the quality of gas a company produces, its lack of debt and its proximity to market will matter even more. (There are greater costs of transmission for remote gas fields that are hundreds of miles from large population centers.)

“If you’re a Marcellus producer 200 miles from New York City, that probably gives you more of a margin of safety,” he says. “If you don’t have a giant balance sheet sitting behind you, or if you’re not right next to market, those guys could be a little more challenged.”

Hallead says in the energy-services sector, the companies most likely to be “challenged” are those that are solely focused on land-based drilling in the United States, where rig counts are expected to show just a small increase this year.

“You have no more pricing power, and you can only grow your business by volume, which is growing just 5 percent.”

Disclosures: The above analysts Hallead (RBC) Hanson (Morningstar) and Coleman (Raymond James) explicitly say they do not own shares. Barclays' compliance says West "has not disclosed" that he owns shares.

RBC did not receive compensation from Cameron in the last 12 months.

Raymond James has not received compensation from the two companies Coleman mentioned. Morningstar has not received and does not seek compensation from issuers.

Barclays Bank PLC and/or an affiliate have received compensation for investment banking services from Baker Hughes Inc.(BHI), Weatherford International Ltd (WFT) and Cameron International Corp (CAM) in the past 12 months.

Barclays Bank PLC and/or an affiliate have received non-investment banking related compensation from Baker Hughes Inc.(BHI), Weatherford International Ltd (WFT) and Cameron International Corp (CAM) within the past 12 months.

Baker Hughes Inc.(BHI), Weatherford International Ltd (WFT) and Cameron International Corp (CAM) are, or during the past 12 months have been, investment banking clients of Barclays Bank PLC and/or an affiliate.

Baker Hughes Inc.(BHI), Weatherford International Ltd (WFT) and Cameron International Corp (CAM) are, or during the past 12 months have been, non-investment banking clients (securities related services) of Barclays Bank PLC and/or an affiliate.