NEW YORK (TheStreet) - After a brutal multi-week selloff, it seemed as though oil prices finally approached a bottom. But sure enough, West Texas Intermediate crude, an oil benchmark, resumed its decline, falling 3.3% on Thursday. The commodity currently trades at $74.63 per barrel.
For the most part, energy stocks have traded in unison with oil prices. But that shouldn't necessarily be the case, according to TheStreet's Jack Mohr.
Rex Energy REXX, Halcon Resources HK and SandRidge Energy SD data by YCharts
Some companies, such as SandRidge Energy (SD) , Rex Energy (REXX) and Halcon Resources (HK) , are in trouble. These companies paid a premium for the oil fields they operate in, didn't hedge against a potential decline in oil prices and carry a lot of debt.
As a result, some of these energy companies have to resort to selling assets in order to pay bills, Mohr said, which is a fairly unattractive business model.
SPDR Energy ETF XLE and EOG Resources EOG data by YCharts
The company's track record for knowing where to drill for oil - and where not to - is impressive, Mohr said. EOG's management is strong on execution and the company owns some of the best property for drilling.