ProPetro Holding Corporation (PUMP)

(A Top Pick September 15/17 Up 35%) It actually traded above $20 recently. They have recently sold out of this position to move into Canadian heavy producers. In the Permian basin there is a great infrastructure constraint on takeaway capacity, so they had foreseen a necessary slowdown in the region. In 2020 he expects greater prospects as the bottleneck is mitigated.

(A Top Pick September 15/17 Up 52%) This company is a pressure pumping business in fracing in the Permian region. As the E&P companies started to spend again they were one of the first to benefit. However, there is a debate now that costs have increased and there could be too much equipment entering the market, so he has taken some length off the table.

(A Top Pick May 23/17, Up 25%) Demand in pressure pumping is projected to rise 25% from 2017 to this year, but the amount of equipment that companies like this are bringing on exceed that. Also, wear and tear on equipment is very high, so you lose 20-25% annual capacity. Oil price will rise though we're a few years away from the peak multiple.

A US pumper. Well regarded Management team. Good assets. Pure play on Permian. He sold at 17 and bought it cheaper. Strong balance sheet.

A pure play pressure pumper in the Permian Basin. Very clean balance sheet. Trading at 3.5X next year’s EBITDA, which is about half of its historical multiples. They have long-standing relationships with the best Permian players in the business. Very cheap. (Analysts’ price target is $18.50.)

A pressure pumper in the US, a 100% pure play in the Permian. They have a tier 1 customer list and exposed 100% to the highest growth Basin in the world. Trading roughly at 4.4X forward EBITDA. If his guess is right, this could be a $20 stock. (Analysts’ price target is $19.)