Which resource firms can weather energy price shocks?

Plunging energy prices have led to concerns over the future profitability of resource firms. But some high yield names can still thrive, argues Hermes' Ron Daigle.

Unconventional oil and gas production has transformed the US from a net energy importer to a net exporter in less than five years, and further infrastructure development will enable more production to reach the market. This rapid growth means a range of drillers - from a new breed of one-well explorers, to medium-sized companies and the international majors - heading to the shale reserves of Texas, Pennsylvania, North Dakota, and other states. Stability There has been a lot of talk about the stability and viability of these operators during the recent sharp decline in energy prices...