Canadian stocks rose for the eighth time in nine days, capping the benchmark index (SPTSX)�� third straight weekly gain, as energy producers and miners rallied amid higher commodity prices.
Trilogy Energy Corp. surged 8.3 percent to lead gas companies higher after a report said China Petrochemical Corp. plans to sell half its stake in two shale gas blocks in Canada. Centerra Gold Inc. jumped 4.2 percent to pace gains among gold miners. CGI Group Inc., the designer of the website for the new U.S. health-care exchanges, fell 0.8 percent amid blame for software snags on the portal.
The Standard & Poor��/TSX Composite Index rose 74.66 points, or 0.6 percent, to 13,399.42 at 4 p.m. in Toronto. The gauge rallied 2 percent in the past five days, the biggest weekly gain since July. It�� risen 4.8 percent in October, poised for its best month in two years.
��here�� been a nice uptick in some of the material names,��said Matt Skipp, chief investment officer with Sw8 Asset Management Inc. in Toronto. The firm manages about C$54 million ($52 million). ��eople are looking for places to put money, and Canada is hanging on the positive side at the moment.��
10 Best Performing Stocks To Watch For 2015: Newfield Exploration Co (NFX)
Newfield Exploration Company (Newfield), incorporated on December 5, 1988, is an independent energy company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. The Company�� domestic areas of operation include the Mid-Continent, the Rocky Mountains and onshore Texas. Internationally, it focuses on offshore oil developments in Malaysia and China. As of December 31, 2011, it was in the process of drilling 16 gross (9.6 net) exploitation wells and 24 gross (19.7 net) development wells domestically. As of December 31, 2011, internationally, it was drilling one gross (0.6 net) exploratory well in Malaysia. In May 2011, the Company acquired assets in the Uinta Basin of Utah.
Resource Plays
As of December 31, 2011, the Company owned an interest in approximately 825,000 net acres in the Rocky Mountains area. Its assets are oil. It is an operator in the state of Utah, consisting approximately 30% of the state�� total oil production. It has approximately 230,000 net acres in the Uinta Basin and its operations in the Basin can be divided into two areas: its legacy Monument Butte and its position in the Central Basin, located immediately north and adjacent to Monument Butte. It has approximately 1,800 oil wells in the Green River formation in its Monument Butte field. Its acquisition of acreage north of Monument Butte added approximately 65,000 net acres, including the Uteland Butte and Wasatch formations. During the year ended December 31, 2011, it had drilled approximately 20 wells in these new plays with encouraging results. As of December 31, 2011, its net production from the Uinta Basin was approximately 22,000 barrels of oil equivalent per day.
The Company has approximately 65,000 net acres under development on the Nesson Anticline of North Dakota and west of the Nesson. In addition, it has about 40,000 net acres in the mature Elm Coulee field, located in Richland County, Montana. As of December 31, 2011, it had! drilled 67 wells in North Dakota with production from the Bakken formation. Its acreage is also prospective for the Sanish/Three Forks formation. As of December 21, 2011, its net production was approximately 7,500 barrels of oil equivalent per day. It has approximately 340,000 net acres in the Southern Alberta Basin of northern Montana. Its activities in the Mid-Continent have been focused on two natural gas plays - the Arkoma Woodford and the Granite Wash. As of December 31, 2011, it had approximately 480,000 net acres in the Mid-Continent and its production was approximately 330 millions of cubic feet equivalent per day.
The Company has more than 300,000 net acres in Oklahoma�� Woodford play. Approximately 170,000 net acres are in the Arkoma Woodford Basin. As of December 31, 2011, its net daily production in the Arkoma Woodford was approximately 180 millions of cubic feet equivalent per day. As of December 31, 2011, it had more than 125,000 net acres in the Cana Woodford play, located in the Anadarko Basin. The Company has approximately 50,000 net acres in the Granite Wash, located in Oklahoma and the Texas Panhandle. As of December 31, 2011, its net production from the region was approximately 101 millions of cubic feet equivalent per day. Its producing field in the Granite Wash includes Stiles/Britt Ranch, where it operates and owns 17,000 net acres. During 2011, it ran three to four operated rigs in the Granite Wash. It has approximately 317,000 net acres in the Eagle Ford and Pearsall shales in the Maverick Basin, located in Maverick, Dimmit and Zavala counties, Texas. As of December 31, 2011, it completed a total of 54 wells in the basin and its production was approximately 3,800 barrels of oil equivalent per day. The acreage includes multiple geologic horizons, including the Georgetown, Glen Rose, Pearsall, Austin Chalk and the Eagle Ford.
Conventional Plays
The Company has operations in conventional plays onshore Texas, offshore Malaysia and China and! in the G! ulf of Mexico. As of December 31, 2011, it owned an interest in approximately 147,000 net acres in conventional onshore Texas plays with net production of approximately 88 millions of cubic feet equivalent per day. Its international activities are focused on offshore oil developments in Southeast Asia and China. It has production and active developments offshore Malaysia and the People�� Republic of China. As of February 21, 2012, its net production from Malaysia was at 29,000 barrels of oil equivalent per day. It has an interest in approximately 925,000 net acres offshore Malaysia and approximately 290,000 net acres offshore the People�� Republic of China.
As of December 31, 2011, the Company owned interests in 91 deepwater leases and approximately 275,000 net acres. As of December 31, 2011, its net production from the Gulf of Mexico was approximately 75 millions of cubic feet equivalent per day. In February 2012, production commenced from its deepwater Pyrenees development, with net daily production of approximately 3,300 barrels of oil equivalent per day.
Advisors' Opinion:- [By Ben Levisohn]
It’s Christmas, a time when we wish for peace on earth and goodwill towards everyone. So, with investors in a forgiving mood, it might seem tempting to buy energy exploration & production companies that have underperformed in 2013–you know, Forest Oil (FST), Newfield Exploration (NFX) and the like.
- [By Dimitra DeFotis]
Apartment Invest & Management (AIV)
Ameriprise (AMP)
Edison International (EIX)
Host Hotels & Resorts (HST)
Kimco Realty (KIM)
Kroger (KR)
Lincoln National (LNC)
Newfield Exploration (NFX)
Republic Services (RSG)
UnitedHealth (UNH)
Verizon (VZ)
Wells Fargo (WFC)
WellPoint (WLP)
Wyndham Worldwide (WYN)
Xcel Energy Utilities (XEL) - [By Ben Eisen and Saumya Vaishampayan]
Newfield Exploration Co. (NFX) �shares shed 4.1%, along with other energy stocks.
10 Best Gas Stocks To Invest In 2014: Rose Rock Midstream LP (RRMS)
Rose Rock Midstream, L.P., incorporated on August 5, 2011, owns, operates, develops and acquires a diversified portfolio of midstream energy assets. The Company is engaged in the business of crude oil gathering, transportation, storage, distribution and marketing in Colorado, Kansas, Minnesota, Montana, North Dakota, Oklahoma and Texas. It serves areas that are through its exposure to the Bakken Shale in North Dakota and Montana, the Denver-Julesburg Basin (DJ Basin) and the Niobrara Shale in the Rocky Mountain region, and the Granite Wash and the Mississippi Lime Play in the Mid-Continent region. The Company�� operations are conducted through, and the Company�� operating assets are owned by, its wholly-owned subsidiary, Rose Rock Midstream Operating, LLC, and its subsidiaries.
Cushing Storage
The Company owns and operates 28 crude oil storage tanks in Cushing with an aggregate storage capacity of approximately 7.0 million barrels and an additional 600,000 barrels of storage. The Company�� storage terminal has a combined capacity to deliver 480,000 barrels of crude oil per day, and has inbound connections with the White Cliffs Pipeline from Platteville, Colorado, the Great Salt Plains Pipeline, the Cimarron Pipeline from Boyer, Kansas, its Kansas and Oklahoma gathering system and two-way interconnections with all of the other storage terminals in Cushing.
Kansas and Oklahoma System
The Company owns and operates an approximately 640-mile crude oil gathering and transportation pipeline system and over 660,000 barrels of associated storage in Kansas and northern Oklahoma. This system gathers crude oil from throughout the region and delivers it to third-party pipelines and refineries and its Cushing terminal. During the years ended December 31, 2012, the Company�� transported an average of approximately 52,000 and 36,000 barrels per day, respectively, from multiple receipt points. The system has pipeline diameters ranging from 4 to 12 inches and! has 25 pump stations. This system also includes 18 truck unloading stations.
Bakken Shale Operations
The Company owns and operates a crude oil gathering, storage, transportation and marketing business in the Bakken Shale area in western North Dakota and eastern Montana. Using its fleet of trucks and two truck unloading facilities, the Company purchase crude oil at the wellhead, transport it through its trucks and third-party pipelines, including the Enbridge North Dakota System, and market it to customers. The Company owns tanks in Trenton and Stanley, North Dakota, with an aggregate storage capacity of 61,800 barrels that connect into the Enbridge North Dakota System. During the year ended December 31, 2012, the Company handled and marketed an average of approximately 7,100 barrels per day.
Platteville Facility
The Company owns and operates a modern, sixteen-lane crude oil truck unloading facility in Platteville, Colorado, which connects to the origination point of the White Cliffs Pipeline. Much of the crude oil production from the DJ Basin and the nearby Niobrara Shale must initially be transported by truck due to a shortage of gathering capacity. Throughput at the facility averaged 43,500 and 32,400 barrels per day for the years ended December 31, 2012. The facility includes 230,000 barrels of crude oil storage capacity. The Platteville facility also allows customer pipeline gathering systems to connect to the origination point of the White Cliffs Pipeline.
The Company competes with Enbridge Energy Partners, L.P., Magellan Midstream Partners, L.P., Plains All American Pipeline, L.P., Blueknight Energy Partners, L.P., Enterprise Products Partners L.P, MV Purchasing, LLC, Plains All American Pipeline, L.P., National Cooperative Refinery Association, Plains All American Pipeline, L.P. and Eighty Eight Oil LLC.
Advisors' Opinion:- [By Robert Rapier]
Rose Rock Midstream (NYSE: RRMS) isn’t a name we have discussed much here. RRMS is an MLP that owns oil-gathering, storage and transportation assets in Colorado, Kansas, Montana, North Dakota, Oklahoma and Texas. The MLP was formed by midstream energy giant SemGroup (NYSE: SEMG), which acts as the general partner. RRMS had its IPO in December 2011 with an initial EV of $1.2 billion and a minimum yield of 4.7 percent.
10 Best Gas Stocks To Invest In 2014: Laclede Group Inc (LG)
The Laclede Group, Inc. (Laclede Group), incorporated on October 18, 2000, is a utility holding company. The Company operates in two segments: Regulated Gas Utility and Gas Marketing. The Gas Utility segment includes the regulated operations of Laclede Gas Company (Laclede Gas or the Utility), Laclede Group's subsidiary and core business unit. Laclede Gas is a public utility engaged in the retail distribution and sale of natural gas. Laclede Gas is the natural gas distribution utility in Missouri, serving more than 1.13 million residential, commercial, and industrial customers. The Gas Marketing segment includes Laclede Energy Resources, Inc. (LER), a wholly owned subsidiary is engaged in the marketing of natural gas and related activities on a non-regulated basis. Effective September1, 2013, Laclede Group Inc through its newly formed subsidiary acquired Missouri Gas Energy, a provider of natural gas distribution services.
Gas Utility
The Utility focuses its gas supply portfolio around a number of natural gas suppliers with equity ownership or control of assets strategically situated to complement its regionally diverse firm transportation arrangements. During fiscal year ended September 30, 2013 (fiscal 2013), the Utility purchased natural gas from 35 different suppliers to meet current gas sales and storage injection requirements. Natural gas purchased by the Laclede Gas for delivery to its service area through the Enable Mississippi River Transmission LLC (MRT) system totaled 55.0 billion cubic feet (Bcf). Laclede Gase also holds firm transportation on several other interstate pipeline systems that provide access to gas supplies upstream of MRT. In addition to deliveries from MRT, 8.6 Bcf of gas was purchased on MO Gas, 13.4 Bcf on the Southern Star Central Gas Pipeline, Inc. (Southern Star Central), 0.03 Bcf on the Panhandle Eastern Pipe Line Company system, and 0.1 BCF on the Postrock system. Some of the Utility�� commercial and industrial customers purchased their own! gas with the Utility transporting 17.0 Bcf to them through the Utility�� distribution system.
The Utility has a contractual right to store 23.1 Bcf of gas in MRT�� storage facility located in Unionville, Louisiana, 16.3 Bcf of gas storage in Southern Star Central system storage facilities located in Kansas and Oklahoma, and 1.4 Bcf of firm storage on Panhandle Eastern Pipe Line Company�� system storage. In addition, the Utility supplements flowing pipeline gas with natural gas withdrawn from its own underground storage field located in St. Louis and St. Charles Counties in Missouri.
Gas Marketing
LER is engaged in the marketing of natural gas and providing energy services to both on-system utility transportation customers and customers outside of the Utility�� traditional service area. During fiscal year 2013, LER utilized 12 interstate pipelines and 93 suppliers to market natural gas to its customers primarily in the Midwest. LER served more than 205 retail customers and 100 wholesale customers. Through its retail operations, LER offers natural gas marketing services to large industrial customers, while its wholesale business consists of buying and selling natural gas to other marketers, producers, utilities, power generators, pipelines, and municipalities. LER also serves power plants that use natural gas to generate electricity.
OTHER
Laclede Pipeline Company, a wholly owned subsidiary, operates a propane pipeline under Federal Energy Regulatory Commission (FERC) jurisdiction. This pipeline connects the propane storage and vaporization facilities of the Utility to third-party propane supply terminal facilities located in Illinois, which allows the Utility to receive propane that is vaporized to supplement its natural gas supply and meet peak demands on its distribution system. Laclede Pipeline Company also provides transportation services to third parties. Other also includes Laclede Group�� subsidiaries that are engaged in,! among ot! her activities, oil production, real estate development, compression of natural gas, and financial investments in other enterprises. These operations are conducted through seven subsidiaries.
The Other category also includes the Utility�� non-regulated propane services business which involves providing propane-related services and storage to third parties and its affiliate, Laclede Pipeline Company. Beginning July 1, 2013, propane-related services are included within Gas Utility operations pursuant to the Utility's new rate case.
Advisors' Opinion:- [By Sarah Jones]
Lafarge SA (LG) rose 4.4 percent to 51.04 euros. The world�� biggest cement maker reiterated its full-year forecast as cold weather, stinted Algerian and Egyptian production and fewer working days constricted first-quarter sales.
- [By Ahmed A. Namatalla]
Egypt�� biggest publicly traded company agreed to pay about 7 billion Egyptian pounds ($1 billion) over five years to settle the tax dispute on the sale of its cement unit to Lafarge SA (LG) in 2007, Amsterdam-based parent OCI NV said yesterday. The payments will start in May and end in 2017. OCI NV shares had the biggest increase since the company�� Dutch public offering in January.
- [By Laura Brodbeck]
Earnings Releases Expected:�Nuance Communications, New Jersey Resources Corporation (NYSE: NJR), Laclede Group, Inc. (NYSE: LG)
Economic Releases Expected:�U.S. pending home sales, Italian trade balance, Swiss employment level
10 Best Gas Stocks To Invest In 2014: Sandridge Mississippian Trust II (SDR)
SandRidge Mississippian Trust II is a statutory trust formed to own overriding royalty interests to be conveyed to the trust by SandRidge Energy, Inc. (SandRidge) in 67 producing horizontal wells, including 13 wells, which are awaiting completion (the Producing Wells), in the Mississippian formation in northern Oklahoma and southern Kansas, and overriding royalty interests in 206 horizontal development wells (The Development Wells) to be drilled in the Mississippian formation (the Development Wells) on properties within an Area of Mutual Interest (the AMI). SandRidge is an independent oil and natural gas company engaged in the development and production activities related to the exploitation of its holdings in West Texas and the Mid-Continent area of Oklahoma and Kansas. The AMI, which is limited to the Mississippian formation, consists of approximately 81,200 gross acres (53,000 net acres) held by SandRidge. The Bank of New York Mellon Trust Company, N.A. is trustee (the Trustee), and The Corporation Trust Company is a Delaware Trustee (the Delaware Trustee).
The Mississippian formation is encountered at depths between approximately 4,000 feet and 7,000 feet and lies between the Pennsylvanian-aged Morrow formation and the Devonian-aged Woodford Shale formation. Effective as of January 1, 2012, the royalty interests was conveyed from SandRidge's interest in the Producing Wells and the Development Wells. The royalty interest in the Producing Wells (the PDP Royalty Interest) entitles the trust to receive 80% of the proceeds from the sale of production of oil and natural gas attributable to SandRidge's net revenue interest in the Producing Wells. The royalty interest in the Development Wells (the Development Royalty Interest) entitles the trust to receive 70% of the proceeds from the sale of oil and natural gas production attributable to SandRidge's net revenue interest in the Development Wells.
As of December 31, 2011, the total proved reserves estimated to be attributable to t! he trust were 26.1 million barrels of oil equivalent. This amount includes 10.2 million barrels of oil equivalent attributable to the PDP Royalty Interest and 15.9 million barrels of oil equivalent attributable to the Development Royalty Interest. The proved reserves consist of 46.8% oil and 53.2% natural gas. In addition, as of December 31, 2011, there were 9.8 million barrels of oil equivalent of probable reserves estimated to be attributable to the trust, all of which were attributable to the Development Royalty Interest. The probable reserves consist of 46.9% oil and 53.1% natural gas.
SandRidge will retain 20% of the proceeds from the sale of oil and natural gas attributable to its net revenue interest in the Producing Wells, as well as 30% of the proceeds from the sale of future production attributable to its net revenue interest in the Development Wells. SandRidge initially will own 48.2% of the trust units. SandRidge operates 79% of the Producing Wells. The completed Producing Wells and 121 other Mississippian wells outside of the AMI that have been completed by SandRidge have an average perforated length of approximately 4,200 feet. SandRidge Exploration and Production, LLC (SandRidge E&P), a wholly owned subsidiary of SandRidge, will grant to the trust a lien on its interests in the AMI.
The Underlying Properties are located in Noble, Kay, Alfalfa, Grant and Woods counties in northern Oklahoma and Harper, Comanche, Sumner and Barber counties in southern Kansas in the Mississippian formation, which is an expansive carbonate hydrocarbon system located on the Anadarko Shelf. The Mississippian formation can reach 1,000 feet in gross thickness and the targeted porosity zone is between 50 and 100 feet in thickness. As of December 31, 2011, there were approximately 43 horizontal rigs drilling in the formation, with 19 of those rigs drilling for SandRidge. As of December 31, 2011, SandRidge had approximately 1.5 million net acres leased in the Mississippian formation in north! ern Oklah! oma and Kansas.
Advisors' Opinion:- [By Jonathan Morgan]
Schroders Plc (SDR) gained 1.3 percent to 2,183 pence after Exane raised its recommendation on Europe�� biggest independent money manager to outperform, which is similar to a buy rating, from neutral. The brokerage said that the fund manager will benefit from its brand and its distribution network among retail and institutional clients.
- [By Adam Galas]
As pointed out by my colleague Matt DiLallo in this article comparing SandRidge Energy (NYSE: SD ) and SandRidge Mississippian Trust II (NYSE: SDR ) , SandRidge Energy's trusts were established as mere financing vehicles for the parent company to invest in its own drilling program. For example, SandRidge Energy has plans to invest $1.55 billion annually in its Mississippi lime assets through 2016 in order to grow production by 20%-25% annually (in spite of expected decline rates of 35% in 2014, 20% in 2015, and 15% in 2016).
- [By Matt DiLallo]
SandRidge Mississippian Trust I (NYSE: SDT ) and Trust II (NYSE: SDR )
These trusts were created by SandRidge Energy (NYSE: SD ) , with the first Mississippian Trust formed in 2010 and the second formed one year later. Both trusts own royalty interests in oil and gas properties targeting the Mississippian formation and have future upside as SandRidge drills wells as part of the areas of mutual interest. - [By Jim Royal]
Oscar Wilde once said that experience is the name we give to our mistakes. My investment in Sandridge Mississippian Trust II (NYSE: SDR ) has been the greatest experience of my Special Situations portfolio. But in investing, as in life, to be successful you must make the next right decision, rather than foolishly holding to a past commitment that has been proven wrong. So I've decided to sell my shares in this troubled royalty trust and move on to find a good investment. (I've got a good one here.)
10 Best Gas Stocks To Invest In 2014: Total SA (FP)
Total SA is a France-based integrated international oil and gas company. It is an integrated international oil and gas company and a chemicals manufacturer. Total engages in all aspects of the petroleum industry, including Upstream operations (oil exploration and production, together with activities related to natural gas), Refining & Chemicals (refining, petrochemicals, speciality chemicals, crude oil trading and shipping) and Marketing & Services (focused on the supply and sale of petroleum products, together with activities related to renewable energy). In April 12, 2013, it inaugurated the partnership with Veolia Environnement SA the Osilub plant. In July 2013, it sold its TIGF (Transport et Infrastructures Gaz France), gas transport and storage business. In September 2013, it announced the transfer to The National Gas Company of Trinidad &Tobago of all of its E&P assets in Trinidad through the sale of Total E&P Trinidad B.V and Elf Exploration Trinidad B.V. Advisors' Opinion:- [By Namitha Jagadeesh]
Telecom Italia (TIT) SpA gained 1.7 percent as Telefonica SA agreed to increase its stake in the phone operator. Nokia Oyj added 2.4 percent after a U.S. judge found that HTC Corp. violated two of its patents. Total (FP) SA climbed 2.6 percent after Barclays Plc raised its rating on the oil producer. Burckhardt Compression Holding AG slid 7.3 percent after saying fiscal first-half net income will decline from the year-earlier period.
- [By Sofia Horta e Costa]
Lloyds dropped 3.5 percent after the U.K. government sold a 3.2 billion-pound ($5.1 billion) stake in the lender. Continental and Galp Energia SGPS SA fell at least 2.5 percent as investors sold shares in the companies. Total SA (FP) retreated 1.3 percent following a report that Groupe Bruxelles Lambert SA may dispose of its 4 percent stake in the French oil producer.
10 Best Gas Stocks To Invest In 2014: 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 Aimee Duffy]
But this too is starting to shift. If you look at the most-recent IPOs on the New York Stock Exchange, you'll find many corners of the energy industry represented:
Tallgrass Energy Partners�-- Natural gas midstream, debuted May 14 KNOT Offshore Partners (NYSE: KNOP ) -- Shuttle tankers, debuted April 10 SunCoke Energy Partners (NYSE: SXCP ) -- Coal/coke making, debuted Jan. 18 CVR Refining (NYSE: CVRR ) -- Mid-continent refining, debuted Jan. 17There have also been a few MLP-related funds to hit the market this year, including Global X Junior MLP ETF�and Neuberger Berman MLP Income Fund.
- [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
10 Best Gas Stocks To Invest In 2014: 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]
Kinder’s timing is especially interesting considering that the report, from Hedgeye Risk Management, is set to be released tomorrow. Hedgeye’s report on Linn Energy (LINE) helped drive those shares down 31% this year.
- [By Matt DiLallo]
Resource players like SandRidge and Oasis aren't the only energy companies aggressively spending to grow. E&P MLP's like BreitBurn Energy Partners (NASDAQ: BBEP ) and LINN Energy (NASDAQ: LINE ) are also getting into the capital spending act. As you could see in the earlier chart, LINN spends the greatest portion of its cash flow to grow its production. Not only that but LINN is in the process of closing its deal for Berry Petroleum which is a resource player that has been spending heavily to grow production. One of the reasons LINN, as well as BreitBurn, has been investing heavily is to grow oil production in order to offset the effect of lower natural gas prices on margins.
- [By Matt DiLallo]
Transformational acquisition is closing soon
Earlier this year, LinnCo, in conjunction with LINN Energy (NASDAQ: LINE ) announced the game-changing deal for Berry Petroleum (NYSE: BRY ) . The $4.3 billion deal, which is being delayed slightly, is still expected to close in the third quarter. Once it does, the fundamentals of LINN and by extension LinnCo will improve dramatically. Not only that but both companies will be boosting their respective investor payouts as well as shifting those payouts to a monthly schedule.
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