After selling about $10.8 billion in assets throughout 2012, it looks as though Chesapeake Energy (NYSE: CHK ) is on track for more big sales in 2013. The company just announced this week that it plans to sell 98,000 acres in the Utica shale region of Ohio. Once the sale is completed, it will be the third large influx of capital this year, after the company inked $3.2 billion in joint ventures with Sinopec (NYSE: SHI ) and Total (NYSE: TOT ) this year.�
While the assets for sale are a more speculative play that has yet to be fully assessed, assets in the Utica could be a hot commodity. With a stronger liquids profile than its neighbor the Marcellus, midstream companies are investing big money to bring pipeline online in the region to increase takeaway capacity. In this video, Fool.com contributor Tyler Crowe looks at what this asset sale means to Chesapeake's presence in the Utica and who could be some potential buyers for this stake.
With each new sale and joint-venture deal, Chesapeake is slowly digging itself out of its massive debt hole and resembling a powerhouse in the energy space. With huge land holdings in some of the most promising shale plays in the United States, Chesapeake still has enormous potential. Let us help you better understand this U.S. energy giant by�checking out The Motley Fool's brand-new premium report on the company. Simply�click here now�to access your copy.
Top 5 Energy Stocks For 2015: Eagle Rock Energy Partners LP (EROC)
Eagle Rock Energy Partners, L.P. (Eagle Rock) is a limited partnership engaged in the business of gathering, compressing, treating, processing and transporting natural gas; fractionating and transporting natural gas liquids (NGLs); crude oil logistics and marketing; natural gas marketing and trading, known as Midstream Business, and developing and producing interests in oil and natural gas properties, known as Upstream Business. On May 3, 2011, the Company acquired CC Energy II, L.L.C and outstanding membership interests of Crow Creek Energy. On May 20, 2011, it sold the Wildhorse Gathering System in its East Texas and Other Midstream Segment.
Midstream Business
The Company�� Midstream Business is located in four natural gas producing regions: the Texas Panhandle; East Texas/Louisiana; South Texas, and the Gulf of Mexico. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production to the Company of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed. As of December 31, 2011, its Midstream Business consisted of Panhandle Segment and East Texas and Other Midstream Segment.
The Company�� Texas Panhandle Segment covers 10 counties in Texas and two counties in Oklahoma. Through the systems within this segment, the Company offers midstream wellhead-to-market services, including gathering, compressing, treating, processing and selling of natural gas, and fractionating and selling of NGLs. As of December 31, 2011, approximately 213 producers and 2,072 wells and central delivery points were connected to the systems in its Texas Panhandle Segment. The Texas Panhandle Segment averaged gathered volumes fo! r 2011 of approximately 155.1 million cubic feet of natural gas per day. As of December 2011, Chesapeake Energy and BP America Production represented 14% and 11%, respectively, of the total volumes of its Texas Panhandle Segment. The Texas Panhandle Segment consists of approximately 3,963 miles of natural gas gathering pipelines, ranging from two inches to 24 inches in diameter; seven natural gas processing plants with an aggregate capacity of 210 million cubic feet of natural gas per day; a propane fractionation facility with capacity of 1.0 million cubic feet of natural gas per day, and two condensate collection and stabilization facilities.
Eagle Rock�� systems in the East Panhandle (northern Wheeler, Hemphill and Roberts Counties, Texas) gather and process natural gas produced in the Morrow and Granite Wash reservoirs of the Anadarko basin. In the Panhandle Segment, natural gas is contracted at the wellhead primarily under percent-of proceeds (which includes percent-of-liquids) fixed recovery, percent-of-index and fee-based arrangements that range from one to five years in term. During the year endede December 31, 2011, it produced over 2,600 equity barrels per day of condensate in the Texas Panhandle Segment. During 2011, it stabilizes approximately 2,000 barrels per day combined at its Superdrip and Cargray Stabilizers.
The Company�� East Texas and Other Midstream Segment operates within the natural gas producing regions, such as East Texas/Louisiana, South Texas and the Gulf of Mexico. Through its Texas/Louisiana region, it offers producers natural gas gathering, treating, processing and transportation and NGL transportation across 21 counties in East Texas and seven parishes in West Louisiana. Its operations in the South Texas region primarily gather natural gas and recover NGLs and condensate from natural gas produced in the Frio, Vicksburg, Miocene, Canyon Sands and Wilcox formations in South Texas. Its operations in the Gulf of Mexico region are non-operated owne! rship int! erests in pipelines and onshore plants which are all located in southern Louisiana. The Gulf of Mexico region also provides producer services by arranging for the processing of producers��natural gas into third-party processing plants, known as Mezzanine Processing Services.
As of December 31, 2011, approximately 705 wells and central delivery points were connected to its systems in the East Texas and Other Midstream Segment. As of December 31, 2011, the East Texas and Other Midstream Segment provides gathering and/or marketing services to approximately 140 producers. During 2011, the East Texas and Other Midstream Segment averaged gathered volumes of approximately 319.9 million cubic feet of natural gas per day. As of December 31, 2011, Stone Energy Corporation and Anadarko Petroleum Company represented 18% and 9%, respectively, of the total volumes of its East Texas and Other Midstream Segment. Residue gas pipelines include Houston Pipeline Company, Natural Gas Pipeline Company, Tennessee Gas Pipeline, Crosstex Energy L.P. and Southern Natural Pipeline.
Upstream Business
The Company�� Upstream Business located in four regions within the United States, such as Southern Alabama, which includes the associated gathering, processing and treating assets; Mid-Continent, which includes areas in Oklahoma, Arkansas, Texas Panhandle and North Texas; Permian, which includes areas in West Texas, and East/South Texas/Mississippi assets. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed.
The Southern Alabama region includes the! Big Esca! mbia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama. These fields produce from either the Smackover or Norphlet formations at depths ranging from approximately 15,000 to 16,000 feet. The Big Escambia Creek field encompasses approximately 11,568 gross and 7,334 net Eagle Rock operated acres. It operates 18 productive wells with an average ownership of 60% working interest and 51% net revenue interest in the Big Escambia Creek field. The Fanny Church field is located two miles east of Big Escambia Creek. Its ownership includes approximately 1,284 gross and 999 net operated acres that include three productive operated wells with an average ownership of 86% working interest and 66% net revenue interest. The Flomaton field is adjacent to and partially underlies the Big Escambia Creek field. The field encompasses approximately 1,280 gross and 1,256 net Eagle Rock operated acres and produces from the Norphlet formation at depths from approximately 15,000 to 16,000 feet. It operates three productive wells with an approximate average 91% working interest and 78% net revenue interest. The Smackover and Norphlet reservoirs are sour, gas condensate reservoirs which produce gas and fluids containing a high percentage of hydrogen sulfide and carbon dioxide.
The Mid-Continent region consists of operated and non-operated properties across the Golden Trend Field, Cana Shale play, Verden Field, and other western Oklahoma fields located in the Anadarko Basin in Oklahoma, the Mansfield Field and other various fields in the Arkoma Basin in Arkansas and Oklahoma, various fields in the Texas Panhandle, and the Barnett Shale in north Texas. Productive depths range from approximately 2,500 feet in the Arkoma fields of western Arkansas to greater than 18,000 feet in the Springer formation in certain western Oklahoma fields. Its producing field is the Golden Trend field that extends across Grady, McClain and Garvin counties in Oklahoma. It has 14,621 net acres in the Cana Shale play exte! nding acr! oss Canadian, Blaine and Dewey counties, Oklahoma. The Cana Shale produces from horizontal wells drilled to vertical depths of 11,000 - 13,000 feet and extended with horizontal lateral lengths of approximately 5,000 feet. In the total Mid-Continent region, it operate 316 productive wells and own a working interest in an additional 1,054 non-operated productive wells. The average working interest in these productive operated and non-operated wells is 83% and 9%, respectively. The net production averaged approximately 53.2 million cubic feet of natural gas per day during 2011, of which approximately 77% was produced from wells it operated.
The Permian region contains numerous fields, including Block 27, Estes Block 34, H.S.A., Heiner, Monahans N., Payton, Running W., Ward S, and Ward-Estes N. located mainly in Ward, Pecos, and Crane Counties, Texas. These fields are located in the Central Basin Platform which extends from central Lea County in New Mexico to central Pecos County in Texas and encompasses hundreds of individual fields with multiple productive intervals from the Yates-Seven Rivers-Queen through the Ellenburger formations. The Ward County fields contains two major properties, the Louis Richter and the American National Life Ins. Co. leases, and encompasses approximately 10,285 gross and 10,215 net Eagle Rock acres. It operate multiple fields consisting of stacked multi-pay horizons that produce from depths of 2,300 feet (Yates) to 9,100 feet (Pennsylvanian). The Southern Unit is located in the Running W Waddell field and produces predominantly oil at depths from approximately 5,750 to 5,900 feet. It operates approximately 5,875 net acres in this area.
The East/South Texas/Mississippi region includes the Aker, Birch, Edgewood, Eustace, Fruitvale, Ginger and Wesson fields in East Texas, the Jourdanton field in South Texas, and the Chicora W, High Road, and Stafford Springs fields in Mississippi. The East Texas fields produce primarily from the Smackover Trend at depth! s from 12! ,000 to 12,700 feet and encompass approximately 18,991 gross and 15,872 net Eagle Rock acres. It operates 32 productive wells, which produce gas that contains between approximately 30% to 69% of impurities (hydrogen sulfide, nitrogen, and carbon dioxide). The Edgewood field also contains two productive gas wells in the Cotton Valley at depths of 11,500 to 11,600 feet which produce sweet natural gas. The East Texas production, with the exception of a single well, is delivered to the third party owned Eustace Plant for separation of condensate, removal of impurities, and extraction of natural gas liquids and sulfur for a combination of fees and percentage of proceeds.
In South Texas, it operates wells in the Jourdanton field in Atascosa County, Texas. It operates nine productive wells with 100% working interest and 88% net revenue interest. Its production from the field is primarily from the Edwards carbonates (7,300 to 7,400 feet). On December 31, 2011, the Company had under operation 290 gross (261 net) productive oil wells and 301 gross (251 net) productive natural gas wells. On December 31, 2011, Eagle Rock owned non-operated working interests in an additional 148 gross (18 net) productive oil wells and 1049 gross (72 net) productive natural gas wells.
The Company competes with DCP Midstream, LLC and Enbridge Energy Partners, L.P., Crosstex Energy, L.P., Energy Transfer Partners, LP and Enterprise Products Partners, L.P.
Advisors' Opinion:- [By Robert Rapier] Most MLP investors have two main concerns: the preservation of capital and reliable income — in that order. These two objectives are, of course, closely linked. An MLP that treats its investors to negative distribution surprises is likely to be an MLP that does a poor job of preserving capital. For example, Eagle Rock Energy Partners (Nasdaq: EROC) has lost 25 percent of its value since announcing a distribution cut in late October.
But how does an investor judge whether an MLP is at risk of a surprising distribution cut? As we discussed recently in The Unkindest Cut for MLPs, some classes of MLP are more susceptible to cuts than others. For variable distribution MLPs, it’s par for the course. Distributions go up, and they go down — depending on market conditions. MLPs focused on upstream oil and gas operations are also at greater risk of a distribution cut during periods of softening oil and gas prices.
- [By Seth Jayson]
Eagle Rock Energy Partners (Nasdaq: EROC ) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Eagle Rock Energy Partners whiffed on revenues and missed expectations on earnings per share. - [By Matt DiLallo]
Investors face quite the dilemma when choosing which way to play the explosive growth of oil and gas production. Some choose to invest in the upside of the commodities by investing directly in an oil and gas producer. Others want the security of midstream cash flows and instead choose to invest in the MLP sector. That means that investors seeking a little bit of exposure to both plays need to invest in two separate companies. Unless, of course, they've invested in�Eagle Rock Energy Partners� (NASDAQ: EROC ) .
- [By Matt DiLallo]
I recently took a brief look at one of the more unique MLPs, Eagle Rock Energy Partners (NASDAQ: EROC ) . What makes this company unique is that it's a blend of both traditional midstream MLP assets and oil and gas production assets. Today, I want to take a closer look at those oil and gas production assets, which I think provide investors with a lot of upside potential.
Top 5 Energy Stocks For 2015: Cabot Oil & Gas Corporation(COG)
Cabot Oil & Gas Corporation operates as an independent oil and gas company in the United States. The company engages in the development, exploitation, exploration, production, and marketing of natural gas, crude oil, and natural gas liquids. It holds reserves in north region comprising Appalachian and Rocky Mountains areas; and south region consisting of Anadarko basin with Texas and Louisiana areas. The company also transports, stores, gathers, and purchases natural gas for resale. As of December 31, 2010, it had proved reserves of approximately 2,761 billion cubic feet of natural gas equivalents. The company was founded in 1989 and is headquartered in Houston, Texas.
Advisors' Opinion:- [By Jayson Derrick]
Cabot Oil & Gas (NYSE: COG) revealed that it has achieved a gross production record in the Marcellus shale of 1.5 billion cubic feet a day. The company, appropriately, raised its 2013 production growth guidance range to a 50 percent to 55 percent rage, from a previous 44 percent to 54 percent range. 2014 production growth is seen unchanged in a 30 percent to 50 percent range. Shares gained 5.25 percent, closing at $38.32.
- [By Tony Daltorio]
They constitute some of the best investments in energy now. Notice how they dominate a list of the leading producers in the three most prolific oil basins over the last year:
Bakken: Continental Resources Inc. (NYSE: CLR), Whiting Petroleum Corp. (NYSE: WLL), and Hess Corp. (NYSE: HES). Permian Basin: Occidental Petroleum Corp. (NYSE: OXY), Pioneer Natural Resources (NYSE: PXD), and Apache Corp. (NYSE: APA). Eagle Ford: EOG Resources Inc. (NYSE: EOG), ConocoPhillips (NYSE: COP), Cabot Oil & Gas Corp. (NYSE: COG), and Chesapeake Energy Corp. (NYSE: CHK).Two stocks from this list that investors should focus on are EOG Resources and Cabot Oil & Gas.
- [By Matt DiLallo]
The other concern is that methane gas from a well could end up in drinking water. A few years ago, a well drilled by�Cabot Oil & Gas� (NYSE: COG ) �in Dimock, Pa., had been linked to being the root cause of methane gas found in water wells in that town. However, the industry has gone to great lengths to ensure the safety of the drilling of wells in an effort to completely mitigate these concerns. The industry continues to improve the well completion process, with safety being a very high priority for the industry.�
Top Cheap Companies For 2015: Hoku Corporation(HOKU)
Hoku Corporation operates as a solar energy products and services company primarily in the United States. It focuses on manufacturing polysilicon, a primary material used in the manufacture of photovoltaic (PV) modules; and designing, engineering, and installing turnkey PV systems and related services in Hawaii using solar modules purchased from third-party suppliers. The company was formerly known as Hoku Scientific, Inc. and changed its name to Hoku Corporation in March 2010. Hoku Corporation was incorporated in 2001 and is headquartered in Honolulu, Hawaii.
Top 5 Energy Stocks For 2015: 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 Ben Levisohn]
It’s the moment investors in Linn Energy (LINE) have been waiting for–the SEC’s decision to approve or block it merger with Berry Petroleum (BRY).
REUTERSFrom Linn Energy’s press release:
LINN Energy, LLC, LinnCo, LLC (LNCO) and Berry Petroleum Company (the “Companies”) announced today that the final Registration Statement on Form S-4 has been declared effective by the Securities and Exchange Commission (“SEC”), and the Companies have also filed definitive proxy materials with the SEC.
Raymond James analyst Pavel Molchanov explains the significance:
LINN Energy and Berry Petroleum announced that the SEC has declared their S-4 effective. At this point the companies are in the process of mailing out the proxy materials. LINN Energy and Berry Petroleum have scheduled a shareholder vote date of December 16, and the record date for the company�� shareholders is November 14….This is clearly positive news for both LINE and BRY shareholders. The SEC approval helps remove the cloud of doubt that has been hanging over the upstream MLP business model. Look for both stocks to rally on today�� news.
And indeed it has been. Linn Energy has gained 1.7% to $30.17, Linn Co. has edged up 0.5% to $31.85 and Berry Petroleum has risen 1.1% to $51.49.
- [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 Travis Hoium]
What: Both LinnCo (NASDAQ: LNCO ) and LINN Energy (NASDAQ: LINE ) jumped 10% today on a positive analyst report.
So what: Analysts at Bank of America Merrill Lynch released a report that said they don't think LINN Energy has inflated or distorted cash flow because of accounting practices. The company has been under pressure after Barron's and research firm Hedgeye Risk Management questioned the practice of capitalizing put contracts, which affect non-GAAP metrics and potentially the dividends the company pays. �
Top 5 Energy Stocks For 2015: National-Oilwell Inc.(NOV)
National Oilwell Varco, Inc. designs, constructs, manufactures, and sells systems, components, and products used in oil and gas drilling and production; provides oilfield services and supplies; and distributes products, and provides supply chain integration services to the upstream oil and gas industry worldwide. Its Rig Technology segment offers offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating, and assembly systems; rig instrumentation systems; coiled tubing equipment and pressure pumping units; well workover rigs; wireline winches; wireline trucks; cranes; and turret mooring systems and other products for floating production, storage and offloading vessels, and other offshore vessels and terminals. The company?s Petroleum Services & Supplies segment provides various consumable goods and services to drill, complete, remediate, and workover oil and gas wells and service pipelines, flowlines, and other oilfield tubular goods. It also manufacture s, rents, and sells products and equipment for drilling operations, including drill pipe, wired drill pipe, transfer pumps, solids control systems, drilling motors, drilling fluids, drill bits, reamers and other downhole tools, and mud pump consumables. In addition, this segment provides oilfield tubular services comprising the provision of inspection and internal coating services; equipment for drill pipe, line pipe, tubing, casing, and pipelines; and coiled tubing pipes and composite pipes. Its Distribution Services segment sells maintenance, repair and operating supplies, and spare parts to drill site and production locations. The company primarily serves drilling contractors, shipyards and other rig fabricators, well servicing companies, pressure pumping companies, oil and gas companies, supply stores, and pipe-running service providers. National Oilwell Varco, Inc. was founded in 1862 and is based in Houston, Texas.
Advisors' Opinion:- [By David Kerr]
As odd as it is to see an article pertaining to quarterly earnings on our site, I just couldn�� resist. National Oilwell Varco (NOV) has officially put up some pretty impressive numbers. On Oct. 25, 2013, the company reported that for the third quarter ending on Sept. 30, 2013, it earned a net income of $636 million ($1.49 per share). If we compare this to last quarter, which earned a net income of $531 million, we can see that in just one quarter NOV experienced almost a 20% increase in revenue. Even if we take away the $10 million in pre-tax transaction charges and the $102 million in pre-tax gains that are results from the settlement of an outstanding legal claim, net income has still increased almost 8%. Part of this is due to operating profit increasing 3% (to 15% of sales) for the quarter.
- [By Rick Munarriz]
National Oilwell Varco (NYSE: NOV ) , a maker of oil and gas drilling and oilfield services equipment, doubled its quarterly dividend to $0.26 a share.
- [By Shauna O'Brien]
Jefferies reported on Monday that it has lifted its price target on National-Oilwell Varco, Inc. (NOV).
The firm has reaffirmed a “Buy” rating on NOV, and has raised the company’s price target from $84 to $91. This price target suggests a 14% increase from the stock’s current price of $78.24.
Analyst Brad Handler noted that NOV’s weak margin will likely rebound in 2014 and the chances of a dividend increase are high.
Looking forward, the firm has lifted its order estimates for FY2013 from $10.8 billion to $11.3 billion. FY2014 earnings estimates have been raised from $6.40 to $6.50 per share and FY2015 estimates have been increased from $7.65 to $7.95 per share.
National-Oilwell Varco shares were up 76 cents, or 0.97% during pre-market trading Monday. The stock is up 14% YTD.
- [By Arjun Sreekumar]
National Oilwell Varco
Another potential winner is National Oilwell Varco (NYSE: NOV ) , the single largest supplier of rig equipment to the oil and gas industry. Through decades of smart acquisitions, it has grown to become the most dominant, low-cost provider of rig equipment for the world's largest drillers, commanding a whopping 60% market share. �
Top 5 Energy Stocks For 2015: El Paso Corporation(EP)
El Paso Corporation operates in the natural gas transmission, and exploration and production sectors of the energy industry primarily in the United States. It offers natural gas transmission services to a range of customers, including natural gas producers, marketers, and end-users, as well as other natural gas transmission, distribution, and electric generation companies through its interests in approximately 43,100 miles of interstate pipeline system. The company also operates approximately 240 billion cubic feet of storage capacity, and an LNG receiving terminal in Elba Island, Georgia. In addition, El Paso Corporation focuses on the exploration, acquisition, development, and production of natural gas, oil, and natural gas liquids in the United States, Brazil, and Egypt, as well as engages in midstream business. The company primarily sells its domestic natural gas and oil to third parties. As of December 31, 2010, it had proved natural gas and oil reserves of approximat ely 3.4 trillion cubic feet of natural gas equivalents. The company was founded in 1928 and is based in Houston, Texas.
Top 5 Energy Stocks For 2015: Transportadora de Gas del Sur SA (TGS)
Transportadora de Gas del Sur S.A. (TGS) is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (NGL). TGS�� pipeline system connects major gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. The Company also renders midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation, and maintenance services. The Company operates in three segments: natural gas transportation services through its pipeline system; NGL production and commercialization, and other services, which include midstream and telecommunication services.
During the year ended December 31, 2009, the Company�� gas transportation represented approximately 42% of total net revenues. During 2009, its NGL production and commercialization segment accounted for 50% of the total revenues of the Company. During 2009, its other services segment accounted for 8% of total revenues of the Company. Its other services segment consists of midstream and telecommunications services. Through midstream services, TGS provides integral solutions related to natural gas from wellhead up to the transportation systems. The services consists of gas gathering, compression and treatment, as well as construction, operation and maintenance of pipelines, which are generally rendered to natural gas and oil producers at wellhead. The customers��portfolio also includes distribution companies, industrial users, power plants and refineries.
During 2009, the Company provided a range of technical services to different customers. The services consisted of connections to the transportation system, engineering inspections, project management and professional technical counseling. Telecommunication services are provided through Telcosur S.A. (Telcosur), who renders services both as an independent c! arrier of carriers and to corporate clients within its area. Telcosur has a digital land radio connection system.
Advisors' Opinion:- [By Dividend]
Transportadora de Gas Del Sur S.A. (TGS) has a market capitalization of $308.26 million. The company employs 829 people, generates revenue of $466.44 million and has a net income of $43.33 million. Transportadora de Gas Del Sur�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $170.33 million. The EBITDA margin is 36.52 percent (the operating margin is 27.41 percent and the net profit margin 9.29 percent).
- [By Sofia Horta e Costa]
Telecom Italia SpA (TIT) lost 1.8 percent as Standard & Poor�� said it may downgrade the phone company�� debt to non-investment grade. TGS Nopec Geophysical Co. (TGS) tumbled the most in two years after reducing its revenue forecast. Celesio AG jumped to a three-year high on a report that McKesson Corp. may buy the German drug distributor.
- [By Corinne Gretler]
TGS (TGS) slumped 7.4 percent to 176.90 kroner as Norway�� largest surveyor of underwater oil-and-gas fields lowered its forecast for full-year revenue to $920 million to $1 billion because of lower-than-expected demand from industry. It had projected sales of $970 million to $1.05 billion.
Top 5 Energy Stocks For 2015: CVR Refining LP (CVRR)
CVR Refining, LP, incorporated on September 17, 2012, is an energy limited partnership with refining and related logistics assets that operates in the mid-continent region. As of January 8, 2013, the Company owned two of only seven refineries in the underserved Group 3 of the PADD II region of the United States. It owns and operates a 115,000 barrels per day (bpd) coking medium-sour crude oil refinery in Coffeyville, Kansas and a 70,000 bpd medium complexity crude oil refinery in Wynnewood, Oklahoma capable of processing 20,000 bpd of light sour crude oils (within its 70,000 bpd capacity). In addition, it also controls and operates supporting logistics assets, including approximately 350 miles of owned pipelines, over 125 owned crude oil transports, a network of strategically located crude oil gathering tank farms, and over six million barrels of owned and leased crude oil storage capacity. On December 15, 2011, the Company�� subsidiary Coffeyville Resources, LLC (Coffeyville Resources) acquired Wynnewood Energy Company, LLC, formerly Gary-Williams Energy Corporation.
The Company�� Coffeyville and Wynnewood refineries are located approximately 100 miles and 130 miles from the crude oil hub at Cushing, Oklahoma. As of January 8, 2013, the Company gathered approximately 50,000 bpd of price-advantaged crudes from its gathering area, which includes Kansas, Nebraska, Oklahoma, Missouri and Texas. The Company also has 35,000 bpd of contracted capacity on the Keystone and Spearhead pipelines that allows it to supply price-advantaged Canadian and Bakken crudes to its refineries. As of January 8, 2013, the Company had 145,000 bpd pipeline system that transports crude oil from its Broome Station tank farm to its Coffeyville refinery, as well as a total of 6 million barrels of owned and leased crude oil storage capacity, including approximately 6% of the total crude oil storage capacity at Cushing.
Advisors' Opinion:- [By Tyler Crowe]
For refiners, though, that spread in price led to very lucrative refining margins. As that spread has narrowed, so too has margins for refiners.
Refining Margins Q4 2012� Q2 2013 Valero (NYSE: VLO ) $12.27 $9.26 Phillips 66 (NYSE: PSX ) � $13.67 $9.88 HollyFrontier (NYSE: HFC ) $24.00 $20.28 CVR Refining (NYSE: CVRR ) $28.08 $20.30Source: Company Earnings releases
Top 5 Energy Stocks For 2015: Petrotech Oil & Gas Inc (PTOG.PK)
PetroTech Oil and Gas, Inc., formerly Unity Management Group, Inc., incorporated on April 10, 1998, operates and develops Enhanced Oil Recovery (EOR) opportunities within qualifying oil reservoirs in the United States using its Enhanced Oil Recovery method and technique. The company is also a construction and heavy equipment company. The Company is focussing on developing and acquisitions of technology in secondary oil recovery, oil and gas reporting software, trading software and Nitrogen and CO2 injection equipment. Enhanced oil recovery is also called improved oil recovery or tertiary recovery. The Company�� services include Work over and Installation Services, Heavy Equipment Services, Nitrogen, CO2 and Gas Mixture Treatments, Exhaust Gas Unit, Gas Assisted Gravity Drainage and Reservoir Development. During the year ended December 31, 2012, the Company acquired On Track Technology, Inc. On June 30, 2012, the Company acquired Metropolitan Computing Corp.
Work over and Installation Services
Drilling Vertical or Horizontal Well Supervision, Traditional Work over, Oilfield Work Over Rigs and Roustabout Services to be on location while recompletion, plugging or equipping of wells for in house leases and third party jobs as well. Where applicable Petrotech will utilize flexible Poly Urethane tubing for testing of wells and permanent installs for some shallow depths. The flexible tubing has a Paraffin�� and Asphalt Ines don�� stick to flexible tubing (as it does to steel tubing); and flexible tubing has an estimated 10 times longer life dependent upon the corrosiveness of production and by products, such as the water produced with hydrocarbons.
Heavy Equipment Services
Heavy Equipment Services includes heavy equipment, oilfield roustabout, crane work, water hauling, setting pumping units, separators, tanks, digging pitts and locations roads and heavy equipment services also includes h ighways for in house leases, third party oil companies and! l! ocal and government agencies.
Nitrogen, CO2 and Gas Mixture Treatments
The Company focuses in treating with Nitrogen, CO2 or a combination of the two; through two applications where applicable-Huff and Puff and Steady flooding. In cases, HoCyclic gas injection processes has been primarily restricted to the use of pure CO2 or CO2 that has been slightly contaminated.
Exhaust Gas Unit
The CO2/N2 gas mixture focuses to generated from a patented one-of-a-kind portable exhaust unit capable of producing 2.5 millions of cubic feet equivalent at 2000 psi. The exhaust unit manufacturing facility is capable of building over 100 million of daily of deliverability or 180,000 horse power of equipment per year.
Gas Assisted Gravity Drainage
Natural segregation of its gas mixture at miscibility pressure is a component in recreating a gas cap. Doubling of the primary oil recovery from a reservoir is expected with this EOR method and gas mixture. SPE paper #89357 documents GAGD recoveries averaging 63% of the OOIP.
Reservoir Development
Petrotech Oil and Gas Inc. focuses to use the technology in third dimension geophysics available, drilling and compositional reservoir modeling to devise the reservoir�� development plan. In some reservoirs has two horizontal wellbores; one each for the injection of gas and production of oil.
Top 5 Energy Stocks For 2015: Solar Power Inc (SOPW.PK)
Solar Power, Inc., incorporated on May 22, 2006, is a global solar energy facility (SEF) developer offering SEF development services. The Company offers an approach to design, engineer and construct photovoltaic (PV) solar systems for commercial and utility applications. In addition to developing SEFs using products manufactured by LDK Solar Co., Ltd. (LDK), its parent company, the Company also sells solar modules and balance of system components manufactured by third party vendors to other integrators in the United States, Asian, and European markets. In June 2012, the Company acquired 100% interest in Italy-based Solar Green Technologies (SGT) from LDK Solar Europe Holdings S.A., a wholly owned subsidiary of LDK Solar Co., Ltd.
In addition to designing, engineering and constructing SEFs, the Company also provides long-term operations and maintenance (O&M) services through its O&M program SPIGuardianTM. This service program provides a suite of services tha t commence upon a facility�� commissioning to provide performance monitoring, system reporting, preventative maintenance and full warranty support over the anticipated life of the SEF.
The Company competes with Sun Power Corporation, First Solar, SPG Solar, Sun Edison, Kyocera Corporation, Mitsubishi, Solar World AG, Sharp Corporation, Yiugli, Solar Fun and Suntech and Canadian Solar.
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