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Analyst's Bakken oil stock plays

Lower oil prices will be around for at least several more quarters and that means shares of U.S. oil producers will also continue to be hit, one market pro told CNBC Monday.

"While we're constructive on the group, within selected pockets, I think it's going to take a few more quarters to sort itself out," Eric Otto, research analyst at CLSA Americas, said in an interview with "Street Signs."

Oil is down almost 10 percent since OPEC decided not to cut production.

U.S. producers have been feeling the pain. Names like Oasis Petroleum fell 38 percent in November, Kodiak Oil, PDC Energy, and Whiting Petroleum were down 32 percent and Continental Resources was down 27 percent.

A gas flare is seen at an oil well near Williston, North Dakota.
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A gas flare is seen at an oil well near Williston, North Dakota.

Otto noted there are "haves" and "have nots" within the group.

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"Macro trumps micro. We're focused more on balance sheet and funding ability," he said.

One of his buys is Cimarex Energy, "which is barely outspending its internally generated cash flow of a very strong balance sheet." Plus, he likes that 50 percent of its production comes from gas.

Otto also likes Cabot Oil & Gas since it is primarily a dry gas operator and EQT, another gas producer.

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However, CLSA Americas downgraded Continental Resources to a "sell" on Nov. 6 after the company made a "wrong-headed move" to monetize its hedges in order to participate in what it saw as a near-term oil price recovery.

Laredo Petroleum, which the firm downgraded to "underperform" in early November, also jumped to the top of Otto's list as "one to be cautious about."

"We saw the likelihood of a period of lower oil prices continue and we also saw their high leverage," Otto said. "They continue to way outspend their internally generated cash flow."

—CNBC's Jackie O'Sullivan contributed to this report.

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