With oil prices expected to remain low well into this year, energy investors should focus on companies that show good upside while factoring in current commodity prices, Capital One Securities energy analyst Richard Tullis told CNBC on Friday.
Slowing demand as well as surging production in the United States have sent oil prices plummeting and slammed the energy sector.
"You want to look for companies that have good balance sheets going into this downturn that could still generate good production growth and have liquidity to fund any expected outspend," he said in an interview with "Street Signs."
For Tullis, certain names fit the bill.
Both companies are expected to show production growth of 40 to 100 percent for 2014 and better than 40 percent for 2015, Tullis said.
"Both have adequate liquidity and are going into this downturn with good balance sheets," he said.