A year ago, West Texas Intermediate (WTI) was trading at $91.35 a barrel (bbl), while Brent crude was $110.35/bbl. That $19/bbl spread was a boon for oil refiners who could buy crude oil at prices based on WTI and sell finished products at prices tied to Brent. It was also a boon to railroads whose customers were happy to pay $10-$15/bbl to have oil shipped from North Dakota to the East or West Coast, where the delivered cost was still lower than for waterborne crudes like Brent.
Today WTI is trading at $103.38/bbl and Brent is at $108.85, for a Brent-WTI differential of $5.47/bbl. At that level, the windfall that refiners were enjoying a year ago is gone, and it is no longer economical to rail crude oil across the country. So the lower differential hurts both refiners and the railroads.
Top 10 Oil Stocks To Buy Right Now: Denbury Resources Inc (DNR)
Denbury Resources Inc., incorporated in 1951, is an independent oil and natural gas company. As of December 31, 2011, the Company had 461.9 million barrel of oil equivalent of proved oil and natural gas reserves, of which 77% was oil. The Company�� oil and natural gas properties are concentrated in the Gulf Coast and Rocky Mountain regions in the United States. As of December 31, 2011, the Company's properties with proved and producing reserves in the Gulf Coast region were situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region were primarily situated in Montana, North Dakota, Utah and Wyoming. In April 2012, it sold certain non-operated assets in the Greater Aneth Field in the Paradox Basin of Utah to Resolute Energy Corporation and the Navajo Nation Oil and Gas Company. In December 2012, the Company closed its first phase of its previously announced Bakken sale and asset exchange with Exxon Mobil Corporation and its wholly owned subsidiary XTO Energy Inc. In March 2013, it announced the closing of acquisition of producing property interests in the Cedar Creek Anticline (CCA) of Montana and North Dakota.
The Company�� CO2 source, Jackson Dome is located near Jackson, Mississipp. In addition to the proved reserves, it has an additional 2.5 trillion cubic feet of probable CO2 reserves at Jackson Dome. As of December 31, 2011, there have been 13 structures drilled within the Jackson Dome area and only one has not been productive. In addition to using CO2 for the Company�� Gulf Coast tertiary operations, it sells CO2 to third-party industrial users under long-term contracts and has three CO2 volumetric production payment contracts (VPPs). Approximately 91% of its average daily CO2 production during the year ended December 31, 2011 was used in its tertiary recovery operations on its own behalf and on behalf of other working interest owners in recovery fields, with the balance delivered to third-party industrial users. During 2011, the Company sold an av! erage of 89 million cubic feet per day of CO2 to commercial users, and the Company used an average of 920 million cubic feet per day for its tertiary activities.
In Eastern Mississippi properties, the Company has four tertiary operations (Soso, Martinville, Eucutta and Heidelberg Fields). The majority of the conventional oil production at Heidelberg is from waterflood units that produce from the Eutaw formation (at approximately 4,400 feet). The Company has converted all of the waterflood units in West Heidelberg to CO2 enhanced oil recovery (EOR). As of December 31, 2011, the Company either owned, or controlled through long-term financing leases, approximately 864 miles of CO2 pipelines in the Gulf Coast region. In addition to the NEJD CO2pipeline, the major pipelines are the Free State Pipeline (90 miles), the Delta Pipeline (110 miles) and the Green Pipeline (325 miles).
The Company�� primary Rocky Mountain CO2 source, Riley Ridge is located in southwestern Wyoming. The gas composition from Riley Ridge is approximately 65% CO2, 19% natural gas, 5% hydrogen sulfide (H2S), 0.6% helium, and the remainder other gases. As of December 31, 2011, its interest in Riley Ridge and minor surrounding acreage contained net proved reserves of 415 billion cubic feet of natural gas and 2.2 trillion cubic feet of CO2 reserves. Bell Creek Field is located in southeast Montana. Cedar Creek Anticline (CCA) is primarily located in Montana. CCA is a series of 10 producing oil units. During 2011, the Company fracture stimulated 31 operated wells in the Bakken and four wells in the Selma Chalk utilizing water-based fluids.
Advisors' Opinion:- [By Johanna Bennett]
Denbury Resources (DNR) shares dropped 5.9% after oil-and-natural-gas explorer on Sunday announced that it will initiate quarterly dividend and raised its share repurchase plan to $250 million from the $109 million remaining in its program.
- [By Dan Caplinger]
But Kinder Morgan also needs to demonstrate its ability to keep its organic growth going. In the first quarter, the company's terminals business only managed to report flat growth, leaving it well off track to meet Kinder Morgan's 12% growth goal for the segment. Also, its carbon dioxide business only saw 1% growth in the quarter, despite producers Occidental Petroleum (NYSE: OXY ) and Denbury Resources (NYSE: DNR ) having used CO2 as part of their tertiary recovery methods to get additional oil from largely depleted oil fields in the Permian Basin and on the Gulf Coast.
- [By David Smith]
Denbury Resources (NYSE: DNR )
Plano, Texas-based Denbury represents a truly unique way to play the strength in the U.S. oil and gas markets. The company utilizes a process called carbon dioxide enhanced oil recovery (CO2 EOR), or tertiary recovery, to produce oil from wells that otherwise might have seen their last days. Through the process, carbon dioxide is injected under high pressure into the otherwise spent wells, thereby facilitating production of large percentages of the remaining oil. - [By Claudia Assis]
Denbury Resources Inc. (DNR) �declined 5.5%.
Top 10 Oil Stocks To Buy Right Now: Santos Ltd (STOSF)
Santos Limited is an oil and gas producer, supplying Australian and Asian customers. The Company is primarily engaged in the exploration for, and development, production, transportation and marketing of, hydrocarbons. The Company develops major oil and gas liquids businesses in Australia, and operates in all mainland states and the Northern Territory. The Company has exploration-led Asian portfolio, with a focus on three core countries: Indonesia, Vietnam and Papua New Guinea. The Company operates in four business units of Eastern Australia; Western Australia and Northern Territory; Asia Pacific, and Gladstone LNG (GLNG). The Asia Pacific operating segment includes operations in Indonesia, Papua New Guinea, Vietnam, India and Bangladesh. Advisors' Opinion:- [By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Australian stocks fell early Wednesday, tracking a weak lead from the U.S. but with a few blue-chip miners higher after gains for some commodities overnight. The S&P/ASX 200 (AU:XJO) retreated 0.4% to 5,237.80 after similar losses for the main Wall Street indexes, with the Australian benchmark trading around its lowest level since October. Among the major decliners, Qantas Airways Ltd. (AU:QAN) (QUBSF) lost 2.5%, Harvey Norman Holdings Ltd. (AU:HVN) (HNORY) gave up 1.3%, and Incitec Pivot Ltd. (AU:IPL) (ICPVY) fell 1.8%. Santos Ltd. (AU:STO) (STOSF) fell 2.6% on indication it will miss its lowered production guidance for 2013, according to the Australian Financial Review. On the upside, top miners BHP Billiton Ltd. (AU:BHP) (BHP) and Rio Tinto Ltd. (AU:RIO) (RIO) rose 0.3% and 0.7%, respectively, while Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) traded 1% higher. Shares of global shopping-mall developer Westfield Group Australia (AU:WDC) (WEFIF) were on halt
Top 10 Retail Stocks To Buy Right Now: Marathon Oil Corporation(MRO)
Marathon Oil Corporation, through its subsidiaries, operates as an international energy company with operations in the United States, Canada, Africa, the Middle East, and Europe. It operates through three segments: Exploration and Production, Oil Sands Mining, and Integrated Gas. The Exploration and Production segment explores for, produces, and markets liquid hydrocarbons and natural gas. The Oil Sands Mining segment mines, extracts, and transports bitumen from oil sands deposits in Alberta, Canada; and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil. The Integrated Gas segment markets and transports products manufactured from natural gas, such as liquified natural gas and methanol. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in July 2001. Marathon Oil Corporation was founded in 1887 and is based in Houston, Texas.
Advisors' Opinion:- [By Ben Levisohn]
Goldman Sachs, however, does see a pickup in capital spending, which is generally linked to an acceleration in economic growth and and an increase in sales, as companies only start to spend after they see a “�increased activity and demand.” That could benefit companies who aren’t spending much now but have strong returns on invested capital, including�Marathon Oil�(MRO),�ConocoPhillips�(COP), and�Starbucks (SBUX).
- [By Jon C. Ogg]
Marathon Oil Corp. (NYSE: MRO) was upgraded to Outperform from Market Perform by Raymond James.
Illumina Inc. (NASDAQ: ILMN) was reiterated as Buy but that price target was raised to $90 from $83 at BofA/Merrill Lynch.
Top 10 Oil Stocks To Buy Right Now: Transdigm Group Incorporated(TDG)
TransDigm Group Incorporated designs, produces, and supplies engineered aircraft components for use on commercial and military aircraft principally in the United States. The company?s products include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, pumps and valves, power conditioning devices, AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, cockpit displays, aircraft audio systems, lavatory components, engineered interior surfaces, and lighting and control technology. Its customers comprise distributors of aerospace components; commercial airlines, including national and regional airlines; commercial transport and regional and business aircraft original equipment manufacturers (OEMs); various armed forces of the United States and foreign governments; defense OEMs; system suppliers; and various other industrial customers. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.
Advisors' Opinion:- [By Eric Volkman]
TransDigm (NYSE: TDG ) is rewarding its shareholders mightily with an extraordinary payout. The company has declared a special dividend of $22.00 per share, which will be paid on July 25 to shareholders of record as of July 15.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on TransDigm Group (NYSE: TDG ) , whose recent revenue and earnings are plotted below.
Top 10 Oil Stocks To Buy Right Now: ATP Oil And Gas Corp (AOB)
ATP Oil & Gas Corporation, incorporated in 1991, is engaged in the acquisition, development and production of oil and natural gas properties. As of December 31, 2011, the Company had estimated net proved reserves of 118.9 Million barrels of crude oil equivalent (MMBoe), of which approximately 75.9 MMboe (64%) were in the Gulf of Mexico and 42.9 MMBoe (36%) were in the North Sea. The reserves consisted of 78.6 Million barrels (MMBbls) of oil (66%) and 241.5 billion cubic feet (Bcf) of natural gas (34%). Its proved reserves in the deepwater area of the Gulf of Mexico account for 62% of the Company�� total proved reserves and its proved reserves on the Gulf of Mexico Outer Continental Shelf account for 2% of its total proved reserves. During the year ended December 31, 2011, the Company acquired three licenses in the Mediterranean Sea covering potential natural gas resources in the deepwater off the coast of Israel (East Mediterranean). On August 17, 2012, ATP Oil And Gas Corp filed for Chapter 11 bankruptcy protection.
The Company�� natural gas reserves are split between the Gulf of Mexico (57%) and the North Sea (43%). Of its total proved reserves, 8.3 MMBoe (7%) were producing, 19.0 MMBoe (16%) were developed and not producing and 91.6 MMBoe (77%) were undeveloped. The Company�� average working interest in its properties at December 31, 2011, was approximately 81%. The Company operates 92% of its platforms. At December 31, 2011, in the Gulf of Mexico, it owned leasehold and other interests in 38 offshore blocks and 49 wells, including 23 subsea wells. The Company operates 43 (88%) of these wells, including 100% of the subsea wells. In the North Sea, it also had interests in 13 blocks and two Company-operated subsea wells. As of March 15, 2011, the Company owned an interest in 13 platforms, including two floating production facilities in the Gulf of Mexico, the ATP Titan at its Telemark Hub and the ATP Innovator at its Gomez Hub. It operates the ATP Innovator and the ATP Titan.
Advisors' Opinion:- [By John Emerson]
Most of the Chinese companies that I purchased now reside on the Pink Sheets or have disappeared altogether, but at one time they all traded on major US exchanges. One of them (AOB), even received the honor of ringing the opening bell at the New York Stock Exchange in 2007, and people say that crime does not pay.
Top 10 Oil Stocks To Buy Right Now: Emerald Oil Inc (EOX)
Emerald Oil, Inc. (Emerald) incorporated on May 31, 2011, is an independent oil and natural gas exploration and production company. The Company focuses on developing oil wells in the Williston Basin of North Dakota and Montana primarily targeting the Bakken and three forks shale oil formations. Emerald controls approximately 35,000 net acres in the Williston Basin. In February 2014, Emerald Oil Inc acquired core Bakken and Three Forks producing properties and undeveloped leasehold in McKenzie and Williams Counties, North Dakota.
Emerald holds positions in the Rocky Mountain oil and natural gas plays. It has approximately 14,500 net acres in the Sand Wash Basin in northwest Colorado prospective for oil in the Niobrara formation. It has approximately 33,500 net acres in central Montana prospective for oil in the Heath formation. The Company also has approximately 72,800 net acres in the Tiger Ridge Field located in Blaine, Hill, and Chouteau Counties, Montana, prospective for natural gas, and another approximate 1,700 net acres in the Denver-Julesburg (DJ) Basin in Weld County, Colorado, prospective for oil in the Niobrara formation.
Advisors' Opinion:- [By John Udovich]
Small cap Triangle Petroleum Corporation (NYSEMKT: TPLM), just like its peers Emerald Oil Inc (NYSEMKT: EOX) and Kodiak Oil & Gas Corp (NYSE: KOG), is focused on the Williston Basin�� Bakken and Three Forks formations and the company is scheduled to release second quarter fiscal year 2014 financial results after the close of trading�next Monday.�And the last time earnings were reported, shares jumped around 10% plus management gave some rosy commentary for investors. With that in mind, should investors in Triangle Petroleum Corporation be ready for another earnings report that excites the bulls?
- [By Bret Jensen]
Emerald Oil (EOX) is a small (~$330mm) capitalization Bakken producer that I think has significant upside. It has fast growing production with sales tracking to better than a 70% gain this fiscal year and analysts' consensus for FY2014 have revenue more than doubling. A beneficial owner obviously finds the shares attractive as the entity took more than a $16mm stake in the firm in late May.
- [By Monica Gerson]
Emerald Oil (NYSE: EOX) is projected to post a Q4 loss at $0.02 per share on revenue of $18.04 million.
Callon Petroleum Company (NYSE: CPE) is estimated to post its Q4 earnings at $0.00 per share on revenue of $26.83 million.
Top 10 Oil Stocks To Buy Right Now: Delek US Holdings Inc. (DK)
Delek US Holdings, Inc. operates as an integrated downstream energy company that operates in petroleum refining, logistics, and convenience store retailing businesses. The company operates in three segments: Refining, Logistics, and Retail. The Refining segment owns and operates two refineries in Tyler, Texas, and El Dorado, Arkansas; and produces various petroleum-based products used in transportation and industrial markets. The Logistics segment gathers, transports, and stores crude oil, as well as markets, distributes, transports, and stores refined products. It also offers crude oil transportation services for terminalling and marketing services; and markets light products using third-party terminals. This segment owns approximately 400 miles of crude oil transportation pipelines, 123 miles of refined product pipelines, 600-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 2.6 million barrels of active shell capa city. The Logistics segment serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, and independent retail fuel operators. The Retail segment markets gasoline, diesel, and other refined petroleum products, as well as convenience merchandise. As of May 8, 2013, this segment operated 373 retail fuel and convenience stores under the MAPCO Express, MAPCO Mart, Discount Food Mart, Fast Food and Fuel, East Coast, Delta Express, and Favorite Markets brands. The company was founded in 2001 and is headquartered in Brentwood, Tennessee. Delek US Holdings, Inc. is a subsidiary of Delek Petroleum Ltd.
Advisors' Opinion:- [By Ben Levisohn]
Phillips 66 fell 2.6% yesterday, while Holly Frontier dropped 3.1%, Tesoro (TSO) declined 1.4%, Western Refining (WNR) plunged 4.3% and Delek US (DK) finished off 5.2%.
- [By Ben Levisohn]
The last three months were good for refiners like Phillips 66 (PSX), Western Refining (WNR) and Delek US (DK), which each gained more than 14% during that period.
- [By Dennis Slothower]
Several of the stocks in our portfolio have become even more attractive while the stock market discounts their future growth:
Delek Holdings (DK), a petroleum refiner, has a P/E ratio of 4, pays a 2% dividend, and has a 30%+ return on equity.
HollyFrontier (HFC), also a petroleum refiner, has a P/E ratio of 5.5, pays a 3% dividend, and is growing revenue by more than 40%.
CF Holdings (CF), one of the largest fertilizer companies in the world, has a P/E ratio of 8 and a rock-solid balance sheet.
We are in a point in the economic cycle where it is crucial to own stocks currently trading below the underlying worth of the business.
Top 10 Oil Stocks To Buy Right Now: Transocean Ltd (RIGN)
Transocean Ltd. (Transocean) is an international provider of offshore contract drilling services for oil and gas wells. The Company operates in two segments: contract drilling services and drilling management services. Contract drilling services, the Company�� primary business, involves contracting its mobile offshore drilling fleet, related equipment and work crews primarily on a dayrate basis to drill oil and gas wells. Its drilling management services segment provides oil and gas drilling management services on either a dayrate basis or a completed-project, fixed-price (or turnkey) basis, as well as drilling engineering and drilling project management services. As of February 14, 2012, it owned or had partial ownership interests in and operated 134 mobile offshore drilling units. On October 4, 2011, the Company acquired Aker Drilling ASA (Aker Drilling). In February 2011, it sold the subsidiary that owns the High-Specification Jackup Trident 20.
During the year ended December 31, 2011 (during 2011), the Company completed the sale of its 50% ownership interest in ODL to Siem Offshore Inc. In October 2011, the Company completed the sale of Challenger Minerals (North Sea) Limited. As of December 31, 2011, the Company�� fleet consisted of 50 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh Environment semisubmersibles and drillships), 25 Midwater Floaters, nine High-Specification Jackups, 49 Standard Jackups and one swamp barge. In addition, it had two Ultra-Deepwater Floaters and four High-Specification Jackups under construction.
Drilling Fleet
The Company engaged in both types of drilling activity: floaters, including drillships and semisubmersibles, and jackups. Also included in its fleet is a swamp barge drilling unit. It categorized the drilling units of its fleet as High-Specification Floaters, consisting of its Ultra-Deepwater Floaters, Deepwater Floaters and Harsh Environment Floaters, Midwater Floaters, High-Specification Jackups, St! andard Jackups and a swamp barge. High-Specification Floaters are specialized offshore drilling units that it categorize into three sub-classifications based on their capabilities. Ultra-Deepwater Floaters are equipped with mud pumps and are capable of drilling in water depths of 7,500 feet or greater. Deepwater Floaters are generally those other semisubmersible rigs and drillships capable of drilling in water depths between 7,500 and 4,500 feet. Harsh Environment Floaters are capable of drilling in harsh environments in water depths between 10,000 and 1,500 feet and have displacement, which offers variable load capacity, more useable deck space and motion characteristics. Midwater Floaters are generally consists of those non-high-specification semisubmersibles that have a water depth capacity of less than 4,500 feet.
As of February 14, 2012, the Company�� fleet was located in the Far East (27 units), Middle East (16 units), West African countries other than Nigeria and Angola (14 units), United States Gulf of Mexico (13 units), United Kingdom North Sea (12 units), India (12 units), Brazil (10 units), Nigeria (10 units), Norway (eight units), Angola (four units), Australia (three units), the Mediterranean (two units), Canada (two units), and Romania (one unit).
Contract Drilling Services
The Company specializes in offshore drilling business with a particular focus on deepwater and harsh environment drilling services. Its contract drilling operations are geographically dispersed in oil and gas exploration and development areas throughout the world.
Drilling Management Services
The Company provides drilling management services primarily on a turnkey basis through Applied Drilling Technology Inc., its wholly owned subsidiary, which primarily operates in the United States Gulf of Mexico, and through ADT International, a division of one of its United Kingdom subsidiaries, which primarily operates in the North Sea (together, ADTI). As part o! f its tur! nkey drilling services, the Company provides planning, engineering and management services. Under turnkey arrangements, it designs and executes of a well and delivers a logged or cased hole to an agreed depth. In addition to turnkey drilling services, Transocean participates in project management operations that include providing certain planning, management and engineering services, purchasing equipment and providing personnel and other logistical services to customers.
Integrated Services
Transocean provides well and logistics services in addition to its normal drilling services through third party contractors and the Company�� employees. These other services include integrated services. As of February 10, 2011, it was performing such services in India.
Advisors' Opinion:- [By Corinne Gretler]
Nestle, which makes up 21 percent of the benchmark Swiss Market Index by weight, slid 2.6 percent after reporting the slowest first-half revenue growth in four years. Adecco SA jumped to a two-year high as the biggest provider of temporary workers posted income that exceeded projections. Transocean Ltd. (RIGN), the largest offshore-rig contractor, added 1.1 percent after posting a second-quarter profit.
Top 10 Oil Stocks To Buy Right Now: Nuverra Environmental Solutions Inc (NES)
Nuverra Environmental Solutions, Inc., formerly Heckmann Corporation, incorporated on May 29, 2007, provides environmental solutions to protect, enhance and advance environmental sustainability. Nuverra provides full-cycle environmental solutions to a national customer base consisting of two distinct end markets: Shale Solutions and Industrial Solutions.
The Company is focused on the removal, treatment, recycling, transportation and disposal of restricted solids, fluids and hydrocarbons for E&P customers. It also provides a one-stop-shop for energy recovery, re-refining and recycling of used motor oil and oily wastewater; plus a closed loop spent antifreeze program for retail, automotive and manufacturing customers. Nuverra specializes in providing environmentally compliant and sustainable solutions to a national footprint of customers.
Shale Solutions
Shale Solutions provides environmental solutions for unconventional oil and gas exploration and production, including the delivery, collection, treatment, recycle, and disposal of restricted environmental products used in the development of unconventional oil and natural gas fields. The Company operates in select shale areas in the United States, including the Marcellus/Utica, Eagle Ford, Bakken, Haynesville, Barnett, Permian, Mississippian Lime and Tuscaloosa Marine Shale areas. It serves customers seeking fresh water acquisition, temporary water transmission and storage, transportation, treatment or disposal of fresh water and complex water flows, such as flowback and produced brine water, in connection with shale oil and gas hydraulic fracturing drilling or hydrofracturing operations. The Company also transports fresh water for production and provides services for site preparation, water pit excavations and remediation.
Industrial Solutions
Industrial Solutions provides environmental and waste recycling solutions to its customers through collection and recycling services for waste prod! ucts, including UMO, which the Company processes and sells as RFO, oily water, spent antifreeze, used oil filters and parts washers, and provision of complementary environmental services for a diverse commercial and industrial customer base. Industrial Solutions operates a scalable network infrastructure of 34 processing facilities, approximately 385 tanker trucks, vacuum trucks and trailers and over 200 railcars. With a geographic presence in 19 states in the Western United States stretching from Washington to Texas, Industrial Solutions provides its services to a diverse range of more than 20,000 commercial and industrial customer locations.
Advisors' Opinion:- [By Tyler Crowe and Aimee Duffy]
If Heckmann changing its name wasn't confusing enough for investors, it appears as though Nuverra Environmental Solutions (NYSE: NES ) will be venturing into a new business. The company just�purchased�a greenfield disposal facility that it will use for solid and oil waste from drilling operations. While the potential revenue for the company doesn't really move the needle for the company, the move is more important for the new image that Nuverra wants to reflect to its customers.�
Top 10 Oil Stocks To Buy Right Now: Linn Energy LLC (LINE)
Linn Energy, LLC (LINN Energy) is an independent oil and natural gas company. The Company�� properties are located in the United States, primarily in the Mid-Continent, the Permian Basin, Michigan, California and the Williston Basin. Mid-Continent Deep includes the Texas Panhandle Deep Granite Wash formation and deep formations in Oklahoma and Kansas. Mid-Continent Shallow includes the Texas Panhandle Brown Dolomite formation and shallow formations in Oklahoma, Louisiana and Illinois. Permian Basin includes areas in West Texas and Southeast New Mexico. Michigan includes the Antrim Shale formation in the northern part of the state. California includes the Brea Olinda Field of the Los Angeles Basin. Williston Basin includes the Bakken formation in North Dakota. On December 15, 2011, the Company acquired certain oil and natural gas properties located primarily in the Granite Wash of Texas and Oklahoma from Plains Exploration & Production Company (Plains).
On November 1, 2011, and November 18, 2011, it completed two acquisitions of certain oil and natural gas properties located in the Permian Basin. On June 1, 2011, it acquired certain oil and natural gas properties in the Cleveland play, located in the Texas Panhandle, from Panther Energy Company, LLC and Red Willow Mid-Continent, LLC (collectively Panther). On May 2, 2011, and May 11, 2011, it completed two acquisitions of certain oil and natural gas properties located in the Williston Basin. On April 1, 2011, and April 5, 2011, the Company completed two acquisitions of certain oil and natural gas properties located in the Permian Basin. On March 31, 2011, it acquired certain oil and natural gas properties located in the Williston Basin from an affiliate of Concho Resources Inc. (Concho). During the year ended December 31, 2011, the Company completed other smaller acquisitions of oil and natural gas properties located in its various operating regions. As of December 31, 2011, the Company operated 7,759 or 69% of its 11,230 gross productiv! e wells.
Mid-Continent Deep
The Mid-Continent Deep region includes properties in the Deep Granite Wash formation in the Texas Panhandle, which produces at depths ranging from 10,000 feet to 16,000 feet, as well as properties in Oklahoma and Kansas, which produce at depths of more than 8,000 feet. Mid-Continent Deep proved reserves represented approximately 47% of total proved reserves, as of December 31, 2011, of which 49% were classified as proved developed reserves. The Company owns and operates a network of natural gas gathering systems consisting of approximately 285 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the Texas Panhandle.
Mid-Continent Shallow
The Mid-Continent Shallow region includes properties producing from the Brown Dolomite formation in the Texas Panhandle, which produces at depths of approximately 3,200 feet, as well as properties in Oklahoma, Louisiana and Illinois, which produce at depths of less than 8,000 feet. Mid-Continent Shallow proved reserves represented approximately 20% of total proved reserves, as of December 31, 2011, of which 70% were classified as proved developed reserves. The Company owns and operates a network of natural gas gathering systems consisting of approximately 665 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the Texas Panhandle.
Permian Basin
The Permian Basin is an oil and natural gas basins in the United States. The Company�� properties are located in West Texas and Southeast New Mexico and produce at depths ranging from 2,000 feet to 12,000 feet. Permian Basin proved reserves represented approximately 16% of total proved reserves, as of December 31, 2011, of which 56% were classified as proved developed reserves.
Michigan
The Michigan region includes properties producing from the Antrim Shale formation in the northern ! part of t! he state, which produces at depths ranging from 600 feet to 2,200 feet. Michigan proved reserves represented approximately 9% of total proved reserves, as of December 31, 2011, of which 90% were classified as proved developed reserves.
California
The California region consists of the Brea Olinda Field of the Los Angeles Basin. California proved reserves represented approximately 6% of total proved reserves, as of December 31, 2011, of which 93% were classified as proved developed reserves.
Williston Basin
The Williston Basin is one of the premier oil basins in the United States. The Company�� properties are located in North Dakota and produce at depths ranging from 9,000 feet to 12,000 feet. Williston Basin proved reserves represented approximately 2% of total proved reserves, as of December 31, 2011, of which 48% were classified as proved developed reserves.
Advisors' Opinion:- [By Robert Rapier]
For the full year, Memorial expects DCF of $129 to $133 million, which would provide distribution coverage of 110 to 120 percent. Because I believe natural gas prices will steadily creep higher over the next three to five years, MEMP could make an excellent portfolio addition with some upside appreciation potential. The one caveat is that it trades at a premium to competitors like BreitBurn and Linn Energy (Nasdaq: LINE). This is understandable in the case of Linn, which is dealing with an SEC issue, but I would take a good look at BreitBurn as a lower-cost alternative.
- [By Taylor Muckerman]
The latest victim
For a while now, talk has surrounded�LINN Energy's� (NASDAQ: LINE ) hedging strategy and the way it was handled from an accounting point of view. While a select group warned of potential misrepresentation, others seemed to overlook this fact in favor of a distribution that ranked near the top of its industry. These hedging strategies and their representation are now directly under the SEC's microscope, with LINN's distribution payments and acquisition of Berry Petroleum hanging in the balance. As a result, the past two days have been especially hard on investors, with the stock down over 31%.� - [By Tyler Crowe]
Conversely, producers of oil and natural gas will want to write a sell contract, or take the "short position" whenever they believe that the prices of oil and gas are about to drop. Probably one of the most visible companies participating in these kinds of contracts is LINN Energy (NASDAQ: LINE ) �As a master limited partnership looking to provide consistent payouts to its shareholders, it writes several hundred million dollars in futures contracts to shield against any major price fluxes that would damage the company's ability to pay out distributions.
- [By Matt DiLallo]
You can make a lot of money by following the advice of a billionaire. That's why I think you should follow what Leon Cooperman, the billionaire and founder of hedge fund Omega Advisors, has to say about two energy stocks. I've been following both companies for quite some time, and I agree: Both LINN Energy (NASDAQ: LINE ) and SandRidge Energy (NYSE: SD ) have the potential to make investors a lot of money.
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