US oil and gas companies have been strong for a while due to the boom in shale oil production, and one of our latest featured stocks is a key up-and-comer in the US oil production scene, suggests Mike Cintolo, editor of Cabot Top Ten Trader.
Diamondback Energy (FANG) went public in October 2012, and has been growing at a breakneck pace ever since. The company currently explores and is developing the oil-rich Wolfberry area of the Permian Basin in West Texas.
Diamondback Energy currently estimates its proved oil and natural gas reserves at 63.6 billion barrels of oil equivalent (BOE), but believes that figure could grow by another 393 million (BOE) as methods improve for extracting resources from shale oil fields.
Diamondback has been extremely aggressive with organic growth, expanding production by nearly 150% in fiscal 2013. Furthermore, the company expects production to grow by more than 100% again in fiscal 2014.
Diamondback expects this expansion to further lower its overall production costs, with lease operating expenses (LOE) seen falling $6.04 per BOE in the fourth quarter, versus $7.27 per BOE in the third.
Top 5 Machinery Companies For 2015: Western Gas Equity Partners LP (WGP)
Western Gas Equity Partners, LP, incorporated on September 11, 2007, was formed to own three types of partnership interests in Western Gas Partners, LP (WES). WES is a limited partnership formed by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. As of December 31, 2011, the Company had no independent operations. On January 13, 2012, WES acquired 100% interest of Mountain Gas Resources LLC (MGR). On August 1, 2012, WES acquired 24% interest of Chipeta Processing LLC (Chipeta).
WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil for Anadarko, as well as third-party producers and customers. The assets of WGP, through its partnership interests in WES, include thirteen gathering systems, seven natural gas treating facilities, ten natural gas processing facilities, two NGL pipelines, one interstate gas pipeline, one intrastate gas pipeline, and three separate interests in Fort Union, White Cliffs Pipeline, LLC (White Cliffs) and Rendezvous Gas Services, LLC (Rendezvous). These assets are located in East and West Texas, the Rocky Mountains (Colorado, Utah and Wyoming), and the Mid-Continent (Kansas and Oklahoma). WES also has facilities under construction in South Texas and northeast Colorado. During the year ended December 31, 2011, WES completed the construction of a cryogenic processing train at its Chipeta facility , which had a designed capacity of approximately 300 million cubic feet of natural gas per day and was placed into service in October 2012.Advisors' Opinion:
- [By Jonas Elmerraji]
The exact same setup is potentially giving traders a reason to jump into shares of $8.5 billion midstream gas company Western Gas Equity Partners (WGP). Just like Flotek, WGP is forming a textbook channel up. And this week, Western Gas is testing trendline support.
It's a little too early to call WGP's trendline buyable here. At some point, all trends eventually fail -- and when this one does, you don't want to be left holding the bag. A bounce this week will be a good indication that WGP can still catch a bid at this price level. When and if that happens, I'd recommend keeping a tight protective stop in place just below WGP's most recent swing low at $38.
While the 50-day moving average has been crossing paths with WGP quite a bit in the last month, I'd recommend ignoring it. The average hasn't acted as a meaningful support or resistance level to date. In the case of this particular name, it's just not technically relevant.
10 Best Oil Stocks To Own For 2014: Longreach Oil and Gas Ltd (LOI)Longreach Oil And Gas Limited (Longreach) is an exploration-stage company. The Company�� projects include Sidi Moktar Onshore, Foum Draa Offshore and Sidi Moussa Offshore, Tarfaya Onshore and Zag Onshore. Sidi Moktar Onshore is consists of three blocks (Sidi Moktar West, Sidi Moktar South and Sidi Moktar North) totalling 4,711 square kilometres, which covers the majority of the hydrocarbon basin of Essaouira, located in central onshore Morocco. Foum Draa Offshore and Sidi Moussa Offshore is located directly west of Agadir, the licences cover an area of approximately 12,714 square kilometers (3.14 million acres). Tarfaya Onshore has a total of 608 kilometers of two-dimensional (2D) seismic was shot, beyond the minimum work programme requirement of 500 kilometers. Zag Onshore is a 15,000 square kilometers aeromagnetic survey has been completed on the licence. Advisors' Opinion:
- [By kcpl]
Transocean has been facing customer drops as a result of prevailing stiff market conditions and over supply. The company announced that it had letters of intent (LOI) for four deepwater rigs to work in West Africa and the U.S. Gulf of Mexico, which were ultimately canceled due to the operators postponing drilling programs to 2015. This is a tough situation for Transocean.
10 Best Oil Stocks To Own For 2014: Energold Drilling Corp (EGDFF.PK)Energold Drilling Corp. provides, directly and through its subsidiaries, contract diamond drilling services for parties principally in Mexico, the Caribbean, Central America, South America, Africa and Asia. The Company, through its subsidiary, designs and manufactures specialty/customized drilling rigs and associated equipment for water well, mineral exploration and geotechnical drilling companies. It, through its subsidiary, also provides drilling and other services to the energy sector in Canada and the United States. It has five segments: Drilling Mexico, the Caribbean, and Central America; Drilling South America; Drilling Africa, Asia and Other; Drilling Canada (Corporate); Manufacturing, and Energy. On January 14, 2011 the Company acquired Dando Drilling International Ltd. In April 2013, the Company�� Dando International Drilling Ltd announced that it has established a wholly owned subsidiary, Dando Drilling Services Ltd. Advisors' Opinion:
- [By Itinerant]
Following a period of rampant growth in 2010 and 2011 Energold Drilling Corp (EGDFF.PK) has struggled to remain profitable throughout 2012 and into 2013. The general decline in the resource sector has left its mark on margins and contract volume. The company has maintained a robust balance sheet and can survive further hardship if necessary.
10 Best Oil Stocks To Own For 2014: Nabors Industries Ltd (NBI)
Nabors Industries Ltd. (Nabors), incorporated on December 11, 2001, is the land drilling contractor and land well-servicing and workover contractors in the United States and Canada. The Company markets approximately 474 land drilling rigs for oils and gas land drilling operations in the United States Lower 48 states, Alaska, Canada and over 20 other countries globally. The Company actively markets approximately 442 rigs for land well-servicing and workover work in the United States and approximately 106 rigs for land well-servicing and workover work in Canada. In 2012, the Company sold its remaining wholly-owned oil and gas business in Colombia and sold additional wholly owned assets in the United States. In April 2012, TransForce Inc. acquired through its subsidiary, I.E. Miller Services, Inc, certain assets of Peak USA Energy Services, Ltd., subsidiary of Nabors Industries Ltd. In December 2012, the Company sold its 49.7% ownership interest in NFR Energy LLC (NFR Energy).
The Company is a provider of offshore platform workover and drilling rigs, and actively markets 36 platform, 12 jackup and four barge rigs in the United States, including the Gulf of Mexico, and multiple international markets.The Company provides completion and production services, including hydraulic fracturing, cementing, nitrogen and acid pressures pumping services with over 805,000 hydraulic horsepower in United States and Canada. The Company offers a range of ancillary well-site services, including engineering, transportation and disposal, construction, maintenance, well logging, directional drilling, rigs instrumentation, data collection and other support services in select United States and international markets. The Company manufactures and lease or sell drives for a ranges of drilling applications, directional drilling systems, rig instrumentation and data collection equipment, pipeline handling equipment and rig reporting software. The Company has a 51% ownership interest in a joint venture in Saudi Arabia, w! hich owns and actively markets nine rigs in addition to the rigs the Company leases to the joint venture.
A land-based drilling rig generally consists of engines, a drawworks, a mast (or derrick), pumps to circulate drilling fluid under various pressures, blowout preventers, drill string and related equipment. Special-purpose drilling rigs used to perform workover services consist of a mobile carrier, which includes an engine, drawworks and a mast, together with other standard drilling accessories and specialized equipment for servicing wells. These rigs are specially designed for repairs and modifications of oil and gas wells, including standard drilling functions. Land-based drilling rigs are moved between well sites and among geographic areas using the Company's fleet of cranes, loaders and transport vehicles or those of third-party service providers.
Platform rigs provide offshore workover, drilling and re-entry services. The Company's platform rigs have drilling and/or well-servicing or workover equipment and machinery arranged in modular packages that are transported to, and assembled and installed on, fixed offshore platforms owned by the customer. Jackup rigs are mobile, self-elevating drilling and workover platforms equipped with legs that can be lowered to the ocean floor until a foundation is established to support the hull, which contains the drilling and/or workover equipment, jacking system, crew quarters, loading and unloading facilities, storage areas for bulk and liquid materials, helicopter landing deck and other related equipment. The Company also own two workover inland barge rigs. These barges are designed to perform plugging and abandonment, well-service or workover services in shallow inland, coastal or offshore waters.
The Company provides a range of wellsite solutions to oil and natural gases companies, consisting primarily of technical pumping services, including hydraulic fracturing, a process sometimes used in the completion of oil and g! as wells ! whereby water, sand and chemicals are injected under pressure into subsurface formations to stimulate gas and oil production, and down-hole surveying services. Other technical services include completion, production and rental tool services. In addition, the Company provides fluid logistics services, including those related to the transportation, storage and disposal of fluids that is used in the drilling, development and production of hydrocarbons.
The Company provides maintenance services on the mechanical apparatus used to pump or lift oils from producing wells. These services include, among other activities, repairing and replacing pumps, sucker rods and tubing. They also occasionally include drilling services. The Company provides the rigs, equipment and crews for these tasks, which are performed on both oil and natural gas wells, but which are more commonly required on oil wells. Producing oil and natural gas wells occasionally require repairs or modifications, called workovers. The Company can also provide other specialized services, including onsite temporary fluid storage; the supply, removal and disposal of specialized fluids used during certain completion and workover operations, and the removal and disposal of salt water that often accompanies the production of oil and natural gas.
Through various subsidiaries, the Company manufactures top drives and catwalks, which is installed on both onshore and offshore drilling rigs. The Company provides heavy equipment to move drilling rigs, water, other fluids and construction materials as well as the means to moves such equipment. The Company offers specialized drilling technologies, including patented steering systems and rigs instrumentation software systems, including ROCKITTM directional drilling system, which is used to provide data collection services to oil and gas exploration and service companies, and RIGWATCHTM software, which is computerized software and equipment that monitors a rig's real-time performance and da! ily repor! ting for drilling operations, making this data available through the Internet.
The Company competes with Helmerich and Payne, Inc., Patterson-UTI Energy, Inc., Basic Energy Services, Inc., Key Energy Services, Inc., Superior Energy Services, Inc., Forbes Energy Services Ltd., Halliburton, Baker Hughes, Weatherford International Ltd., Schlumberger Limited, FTS International Services LLC, C&J Energy Services, Inc. and RPC, Inc.Advisors' Opinion:
- [By Anora Mahmudova]
The Nasdaq Composite (COMP) �added 39.91 points, or 1%, to 4,161.46, recording the sixth consecutive session of gains, helped by a 6% rally in Netflix, Inc. Biotechnology and pharmaceutical companies also jumped. Both the Nasdaq Biotechnology index (NBI) � and the iShares Nasdaq Biotechnology ETF (IBB) � rose 3.2%.
- [By Anora Mahmudova]
The Nasdaq Composite (COMP) �dropped 129.79 points, or 3.1%, its worst one-day percentage decline since November 2011. The Nasdaq Biotech index (NBI) � as well as iShares Nasdaq Biotechnology ETF (IBB) � dropped 5.6%.
10 Best Oil Stocks To Own For 2014: Murphy Oil Corp (MUR)
Murphy Oil Corporation, incorporated on June 29, 1964, is a worldwide oil and gas exploration and production company with retail and wholesale gasoline marketing operations in the United States and refining and marketing operations in the United Kingdom. In August 2013, the Company announced that it has completed the spin-off of its United States retail marketing business into an independent public company called Murphy USA Inc.
Murphy's exploration and production activities are subdivided into five geographic segments, including the United States, Canada, Malaysia, the Republic of the Congo and all other countries. Murphy's refining and marketing activities are subdivided into segments for the United States and the United Kingdom.
Exploration and Production
During the year ended December 31, 2012, Murphy's principal exploration and production activities were conducted in the United States by wholly owned Murphy Exploration & Production Company - USA (Murphy Expro USA), in Malaysia, Republic of the Congo, Indonesia, Suriname, Australia, Brunei, the Kurdistan region of Iraq, Cameroon, Vietnam and Equatorial Guinea by wholly owned Murphy Exploration & Production Company - International (Murphy Expro International) and its subsidiaries, in Western Canada and offshore Eastern Canada by wholly owned Murphy Oil Company Ltd. (MOCL) and its subsidiaries, and in the U.K. North Sea and the Atlantic Margin by wholly owned Murphy Petroleum Limited.
Murphy's crude oil and natural gas liquids production in 2012 was in the United States, Canada, Malaysia, the Republic of the Congo and the United Kingdom; its natural gas was produced and sold in the United States, Canada, Malaysia and the United Kingdom. MOCL owns a 5% undivided interest in Syncrude Canada Ltd. in northern Alberta, one of the producers of synthetic crude oil. Murphy's worldwide crude oil, condensate and natural gas liquids production in 2012, averaged 112,591 barrels per day. The Company's worldwi! de sales volume of natural gas averaged 490 million cubic feet per day in 2012.
In the United States, Murphy primarily has production of oil and/or natural gas from fields in the deepwater Gulf of Mexico, in the Eagle Ford Shale area of South Texas and onshore in South Louisiana. The Company produced approximately 26,100 barrels of oil per day and 53 million cubic feet of natural gas per day in the U.S. in 2012. During 2012, approximately 54% of total U.S. hydrocarbon production was produced at fields in the Gulf of Mexico. The Company holds a 60% interest at Medusa in Mississippi Canyon Blocks 538/582, which produced total daily oil and natural gas of about 4,300 barrels and for million cubic feet, respectively, in 2012. At December 31, 2012, the Medusa field had total proved oil and natural gas reserves of approximately 9.2 million barrels and 9.4 billion cubic feet, respectively. Murphy has a 62.5% working interest in the Front Runner field in Green Canyon Blocks 338/339. Oil and natural gas production at Front Runner averaged about 3,900 barrels of oil per day and four million cubic feet per day in 2012. The Company also acquired additional working interests in the Thunder Hawk field in Mississippi Canyon Block 734 in 2012 and holds 62.5% of this field. In 2012 oil production from this field averaged 2,800 barrels per day and 1.7 million cubic feet per day and 3.2 million cubic feet per day due to a new well completed in 2012.
The Company is primarily concentrating drilling efforts in the areas of the Eagle Ford where oil is the primary hydrocarbon produced. Totals for 2012 oil and natural gas production in the Eagle Ford area were approximately 13,300 barrels per day and 13 MMCF per day, respectively. On a barrel of oil equivalent basis, Eagle Ford production accounted for 44% of total U.S. production volumes in 2012. At December 31, 2012, the Company's proved reserves in the Eagle Ford Shale area totaled 113.6 million barrels of oil and 108.7 billion cubic feet of natural! gas. Tot! al proved U.S. oil and natural gas reserves at December 31, 2012 were 142.6 million barrels and 209.7 billion cubic feet, respectively. The Company is developing the Dalmatian field located in DeSoto Canyon Blocks 4 and 48 in the Gulf of Mexico.
In Canada, the Company owns an interest in three non-operated assets - the Hibernia and Terra Nova fields offshore Newfoundland in the Jeanne d'Arc Basin and Syncrude Canada Ltd. in northern Alberta. In addition, the Company owns interests in one heavy oil area, two natural gas areas and light oil prospective acreage in the Western Canadian Sedimentary Basin (WCSB). Murphy has a 6.5% working interest in Hibernia, while at Terra Nova the Company's working interest is 10.475%. Oil production in 2012 was about 5,300 barrels of oil per day at Hibernia and 1,700 barrels per day at Terra Nova. Total proved oil reserves at December 31, 2012 at Hibernia and Terra Nova were approximately 10.6 million barrels and 5.9 million barrels, respectively.
Murphy owns a 5% undivided interest in Syncrude Canada Ltd., a joint venture located about 25 miles north of Fort McMurray, Alberta. Syncrude utilizes its assets, which include three coking units, to extract bitumen from oil sand deposits and to upgrade this bitumen into a synthetic crude oil. Production in 2012 was about 13,800 barrels of synthetic crude oil per day. Total proved reserves for Syncrude at year-end 2012 were 119.1 million barrels. Daily production in 2012 in the WCSB averaged about 7,500 barrels of mostly heavy oil and about 217 million cubic feet of natural gas. Through 2012, the Company has acquired approximately 144 thousand net acres of mineral rights in the Montney area, including Tupper and Tupper West.
In Malaysia, the Company has majority interests in six separate production sharing contracts (PSCs). The Company serves as the operator of all these areas other than the Kakap field. The production sharing contracts cover approximately 2.79 million gross acres. Murphy h! as an 85%! interest in discoveries made in two shallow-water blocks, SK 309 and SK 311, offshore Sarawak. About 7,400 barrels of oil per day were produced in 2012 at Blocks SK 309/311, with almost 75% of this at the West Patricia field and the remainder mostly associated with gas liquids produced at other Sarawak fields. Total net natural gas sales volume offshore Sarawak was about 174 million cubic feet per day during 2012 . Total proved reserves of oil and natural gas at December 31, 2012 for Blocks SK 309/311 were 10.3 million barrels and 284.7 billion cubic feet, respectively.
The Company made a discovery at the Kikeh field in deepwater Block K, offshore Sabah, Malaysia. Total gross acreage held by the Company in Block K as of December 31, 2012 was 80,000 acres. Production volumes at Kikeh averaged 44,900 barrels of oil per day during 2012. Total proved reserves booked in Block K as of year-end 2012 were 85.4 million barrels of oil and 72.9 billion cubic feet of natural gas.Total proved reserves booked in Block K in 2012, were 85.4 million barrels of oil and 72.9 billion cubic feet of natural gas. Total gross acreage held by the Company at year-end 2012 in Block H was 1.40 million acres. Murphy has a 75% interest in gas holding agreements for Kenarong and Pertang discoveries made in Block PM 311, located offshore peninsular Malaysia.
The Company had interests in Production Sharing Agreements (PSA) covering two offshore blocks in Republic of the Congo - Mer Profonde Sud (MPS) and Mer Profonde Nord (MPN) during 2012. These interests covered approximately 1.33 million gross acres with water depths ranging from 490 to 6,900 feet, and the Company operated both blocks. Total oil production in 2012 averaged 2,100 barrels per day at Azurite for the Company's 50% interest. Anticipated production in 2013 is 1,500 barrels per day.
The Company holds six exploration permits in Australia and serves as operator of four of them. Block NT/P80 in the Bonaparte Basin, offshore northwester! n Austral! ia, was acquired in June 2009 and covers approximately 1.20 million gross acres. In May 2012, Murphy was awarded permit WA-476-P in the Carnarvon Basin, offshore Western Australia. The Company holds 100% working interest in the permit which covers 177,000 gross acres. In August 2012, Murphy was awarded permit WA-481-P in the Perth Basin, offshore Western Australia. The permit covers approximately 4.30 million gross acres, with water depths ranging from 20 to 300 meters. The Company holds a 40% working interest. The work commitment calls for tw0- dimensional (2D) and three-dimensional (3D) seismic acquisition and processing, geophysical work and three exploration wells. In November 2012, Murphy acquired a 20% non-operated working interest in permit WA-408-P in the Browse Basin. This block is adjacent to AC/P36 and is in the midst of a two-well exploration campaign. The permit comprises approximately 417,000 gross acres.
The Company has interests in four exploration licenses in Indonesia and serves as operator of all these concessions. . Following contractually mandated acreage relinquishment in 2012, the block covers approximately 745 thousand gross acres. The Company has a 28.3% interest in the block which covers about 543 thousand gross acres after a required partial relinquishment of acreage during 2012. The permit calls for a 3D seismic program and three exploration wells. Murphy has a 100% interest in the block which covers 1.22 million gross acres. In November 2012, the Company signed a production sharing contract with Vietnam National Oil and Gas Group and PetroVietnam Exploration Production Company, whereby it acquired 65% interest and operatorship of Blocks 144 and 145. The blocks cover approximately 4.42 million gross acres and are located in the outer Phu Khanh Basin. In late 2012, the Company was granted Vietnam's government approval to acquire a 60% working interest and operatorship of Block 11-2/11.
The Company operates and holds a 50% interest in the block. The Ce! ntral Doh! uk block covers approximately 153 thousand gross acres and is located in the Dohuk area of the Kurdistan region in Iraq. The Company shot seismic in 2011 and drilled an unsuccessful exploration well in 2012.The Company acquired a 100% working interest and operatorship of Block 48 offshore Suriname. The block encompasses 794 thousand gross acres with water depths ranging from 1,000 to 3,000 meters. Murphy relinquished Block 37 in July 2012.
Murphy was granted government approval to acquire a 50% working interest and operatorship of the NTEM concession. The working interest was acquired from Sterling Cameroon Limited (Sterling) via a farm-out agreement of the existing production sharing contract. Sterling retained a 50% non-operated interest in the block. The NTEM block, situated in the Douala Basin offshore Cameroon, encompasses 573 thousand gross acres, with water depths ranging from 300 to 1,900 meters. In October 2012, Murphy signed an agreement with Perenco Cameroon to acquire a 50% interest in the Elombo production sharing contract, immediately adjacent to the NTEM concession. The Company received government approval to acquire the acreage in December 2012. Perenco retained a 50% operating interest in the block. The Elombo block, situated in the Douala Basin offshore Cameroon, between the shoreline and the NTEM block, encompasses 594 thousand gross acres with water depths ranging up to 1,100 meters.
In December 2012, Murphy signed a production sharing contract for block W offshore Equatorial Guinea. Murphy has a 45% working interest and has been designated the operator. The government is expected to ratify the contract early in 2013. The block is located offshore mainland Equatorial Guinea and encompasses 557 thousand gross acres with water depths ranging from 60 to 2,000 meters. The initial exploration period of five years is divided into two sub-periods, a sub-period of three years and a second sub-period of two years. The sub-period may be extended one year and with this! extensio! n is the obligation to drill one well. Murphy has produced oil and natural gas in the United Kingdom sector of the North Sea for many years. In 2012, Murphy entered into several contracts to sell all of its oil and gas properties in the United Kingdom.
Murphy's total proved undeveloped reserves at December 31, 2012 increased 42.0 million barrels of oil equivalent (MMBOE) from a year earlier. Approximately 44.0 MMBOE of proved undeveloped reserves were converted to proved developed reserves during 2012. During 2012, there were 26.6 million barrels of oil per day of positive revisions for proved undeveloped reserves. At December 31, 2012, proved reserves are included for several development projects that are ongoing, including natural gas developments at the Tupper West area in British Columbia and offshore Sarawak Malaysia, and an oil development at Kakap, offshore Sabah Malaysia. Total proved undeveloped reserves associated with various development projects at December 31, 2012 were approximately 219 million barrels of oil per day, which is 36% of the Company's total proved reserves.
Murphy Oil USA, Inc. (MOUSA), a wholly owned subsidiary of Murphy Oil Corporation and markets its refined products through a network of Company stations, unbranded wholesale customers and bulk products customers in a 30-state area, primarily in the Southern and Midwestern United States. Murphy's Company stations are located in 23 states and are primarily located in the parking lots of Walmart Supercenters using the brand name Murphy USA. The Company stations also include stand-alone locations using the Murphy Express brand. During 2012, Company stations sold over 3.8 billion gallons of motor fuel. At December 31, 2012, the Company marketed fuel and convenience merchandise through 1,165 Company stations. Of these Company stations, 1,015 are located on parking lots of Walmart Supercenters or other Walmart stores and 150 are stand-alone Murphy Express locations.
The Company owns land und! erlying 9! 08 of the Company stations on Walmart parking lots. No rent is payable to Walmart for the owned locations. For the remaining 104 Company stations located on Walmart property that are not owned, Murphy has master agreements that allow the Company to rent land from Walmart. The master agreements contain general terms applicable to all rental sites on Walmart property in the United States. In addition to the motor fuel sold at the Company's Company stations, its stores carry a broad selection of snacks, beverages, tobacco products, and other non-food merchandise. The Company's merchandise offerings include two private label products, an isotonic drink offered in several flavors and a private label energy drink. In 2012, the Company purchased more than 88% of its merchandise from a single vendor, McLane's Company, Inc., a wholly owned subsidiary of Berkshire Hathaway, Inc.
Murphy owns an interest in a crude oil pipeline that connects storage at the Louisiana Offshore Oil Port (LOOP) at Clovelly, Louisiana, to the formerly owned Meraux refinery. Murphy owns a 40.1% interest in its 22 miles of this pipeline from Clovelly to Alliance, Louisiana, and 100% of the remaining 24 miles from Alliance to Meraux. Murco Petroleum Limited (Murco), a wholly owned U.K. subsidiary, owns 100% interest in a refinery at Milford Haven, Pembrokeshire, Wales. The refinery is located on a 938 acre site owned by the Company; 430 acres are used by the refinery and the remainder is rented for agricultural use. The refinery consistently performed near nameplate capacity during 2012. Murphy has announced its intention to sell the Milford Haven refinery and United Kingdom marketing assets.Advisors' Opinion:
- [By Paul Ausick]
The sales big spender was Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) which posted 16 high bids, totaling just over $321 million. Chevron Corp. (NYSE: CVX) offered six high bids, totaling $106 million, followed by Murphy Oil Corp. (NYSE: MUR) with 16 high bids, totaling nearly $50 million, and Royal Dutch Shell PLC (NYSE: RDS-A) with four high bids, totaling more than $45 million.
- [By David Tristan Liu]
Murphy USA (MUSA) first caught my attention after Southeastern Asset Management acquired a massive stake ($668mm) in its former parent company Murphy Oil Corporation (MUR) in Q1 2013. One thing about Murphy Oil Corporation I noticed after an initial glance through their 10-K and annual report was its ownership of a valuable fuel and convenience retailer segment with high ROIC, valuable real estate, low CAPEX requirements, and relatively decent growth prospects that was under-followed and whose underlying value was concealed by the parent company's core production and exploration business.
10 Best Oil Stocks To Own For 2014: Kinder Morgan Management LLC (KMR)
Kinder Morgan Management, LLC is a limited partner in Kinder Morgan Energy Partners, L.P (KMP), and manages and controls its business and affairs pursuant to a delegation of control agreement. Kinder Morgan G.P., Inc., of which Kinder Morgan, Inc. indirectly owns all of the outstanding common equity, is the general partner of Kinder Morgan Energy Partners, L.P. (KMP). Kinder Morgan G.P., Inc., pursuant to a delegation of control agreement among the Company, Kinder Morgan G.P., Inc. and KMP, has delegated to the Company, to the fullest extent permitted under Delaware law and KMP�� limited partnership agreement, all of its rights and powers to manage and control the business and affairs of KMP, subject to the general partner�� right to approve specified actions.
KPM is a pipeline limited partnerships in the United States. KMP owns an investment in or operates approximately 28,000 miles of pipelines and 180 terminals. Its pipelines transport products, such as natural gas, crude oil, gasoline, and CO2, and its terminals store petroleum products and chemicals and handle materials like coal. Almost all of Kinder Morgan assets are owned by KMP, KMP operates in five business segments : Natural Gas Pipelines, Products Pipelines, CO2, Terminals and Kinder Morgan Canada.
Kinder Morgan is a transporter and marketer of carbon dioxide in North America. It delivers approximately 1.3 billion cubic feet per day of CO2 through about 1,300 miles of pipelines. It is an oil producer in Texas, producing over 55,000 barrels of oil per day at the SACROC Unit and the Yates Field in the Permian Basin. In addition to CO2 pipelines and oil producing fields, this business segment owns interests in and operates CO2 source fields, natural gas and gasoline processing plants, and a crude oil pipeline. Kinder Morgan owns and operates approximately 24,000 miles of gas pipelines in the Rocky Mountains, the Midwest and Texas. Through its Products Pipelines business unit, it transports over two million barre! ls per day of gasoline, jet fuel, diesel, natural gas liquids and other fuels through more than 8,000 miles of pipelines. The Company also has approximately 50 liquids terminals in this business segment that store fuels and offer blending services for ethanol and other products.
Kinder Morgan have more than 180 terminals that store petroleum products and chemicals, and handle bulk materials like coal, petroleum coke and steel products. Kinder Morgan operates a number of pipeline systems and terminal facilities in Canada including the Trans Mountain pipeline, the Express and Platte pipelines, the Cochin pipeline, the Puget Sound and the Trans Mountain Jet Fuel pipelines, the Westridge marine terminal, the Vancouver Wharves terminal in British Columbia and the North Forty terminal in Edmonton, Alberta.Advisors' Opinion:
- [By David Dittman]
Answer: If you don’t want to deal with K-1s at tax time, Kinder Morgan Inc (NYSE: KMI) is a suitable alternative, as is Kinder Morgan Management (NYSE: KMR), which pays its distribution in the form of Kinder Morgan Energy Partners units.
- [By Albert Alfonso]
(click to enlarge)
Kinder Morgan Energy Partners is part of the Kinder Morgan family of companies with a combined enterprise value of over $115B. Kinder Morgan, Inc (KMI) is Kinder Morgan Energy Partners' general partner and has incentive distribution rights and owns about 10% of the partnership. Another way to own Kinder Morgan Energy Partners is via Kinder Morgan Management (KMR), whose shares are pari passu with Kinder Morgan Energy Partners and has an equal distribution but pays its dividend in additional shares instead of cash. This in effects acts as a dividend reinvest program.
- [By Dimitra DeFotis]
Kinder Morgan’s corporate structure is convoluted.�Kinder Morgan� is the general partner, which reaps distributions from underlying businesses. It pays a 4.2% yield. �Kinder Morgan Energy Partners,�the main pipeline MLP enterprise, �pays a 6.5% yield in the form of a cash distribution like most MLPs. �Kinder Morgan Management�(KMR) was created to pay distributions in shares given the tax-and-accounting headaches of MLPs. But KMR still offers tax deferrals. Following an acquisition, Kinder also controls�El Paso Pipeline Partners�(EPB), whose yield is 5.7%. Kinder’s chief financial officer said that the enterprises could be combined at some point. Post from the industry’s biggest conference in May�here.
10 Best Oil Stocks To Own For 2014: LRR Energy LP (LRE)
LRR Energy, L.P (LRR Energy) is a limited partnership formed by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America. The Company�� properties are located in the Permian Basin region in West Texas and southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas and the Gulf Coast region in Texas. As of March 31, 2011, the Company�� total estimated proved reserves were approximately 30.3 million barrels of oil equivalent (MMBoe), of which approximately 84% were proved developed reserves. During the year ended December 31, 2010, approximately 55% of its pro forma revenues were from oil and natural gas liquids (NGLs) and approximately 37% of its total estimated proved reserves were oil and NGLs. As of March 31, 2011, the Company operated 93% of its proved reserves. Based on its pro forma average net production of 6,503 barrels of oil equivalent per day (Boe/d) for December 31, 2010, the Company�� total estimated proved reserves as of March 31, 2011 had a reserve-to-production ratio of approximately 12.8 years. In January 2013, the Company acquired oil and natural gas properties in the Mid-Continent region in Oklahoma from its sponsor, Lime Rock Resources. In April 2013, it announced that it closed its acquisition of oil and natural gas properties in the Mid-Continent region in Oklahoma.
The Company�� general partner, LRE GP, LLC, is controlled by Lime Rock Management LP. The Company�� general partner has sole responsibility for conducting its business and for managing its operations. The Company�� properties consist of mature, low-risk onshore oil and natural gas reservoirs with long-lived, predictable production profiles located across three diverse producing regions: the permian basin region in west texas and southeast new mexico, the mid-continent region in oklahoma and east texas, and the gulf coast region in texas. As of March 31, 2011, the Company�� estimated proved developed non-! producing reserves included 192 gross (158 net) recompletion, refracture stimulation and workover projects. In addition, as of March 31, 2011, the Company�� proved undeveloped reserves included 213 gross (140 net) identified drilling locations.
As of March 31, 2011, approximately 55% of the Company�� estimated proved reserves and approximately 44% of its pro forma average daily net production for the three months ended December 31, 2010, were located in the Permian Basin region. Approximately 60% of the Company�� estimated net proved reserves in the Permian Basin region are oil and NGLs. The Permian Basin is one of the oil and natural gas producing basins in the United States, extending over 100,000 square miles in West Texas and southeast New Mexico, and has produced over 24 billion barrels of oil. The Company owns an 83% average working interest across 665 gross (552 net) wells and operates approximately 92% of its properties in the Permian Basin. The Company�� estimated proved reserves for its Permian Basin properties as of March 31, 2011 totaled 16.6 MMBoe and had a standardized measure of $237.7 million, which represented 69% of the total standardized measure for all of its estimated proved reserves.
The Company�� properties in the Red Lake area is an oil-weighted field located in Eddy County, New Mexico. The Red Lake properties have produced approximately 4.9 MMBoe. The primary producing formations are the San Andres and Yeso at a depth of approximately 2,000 to 5,000 feet. The Company operates approximately 99% of its proved reserves in the Red Lake area, including 157 gross (144 net) producing wells in the field with an average working interest of 92%, and own a non-operated working interest in 10 gross (3 net) additional wells in the area with an average working interest of 31%. The Company�� properties in the field contained 9.6 MMBoe of estimated net proved reserves as of March 31, 2011, approximately 86% of which are oil and NGLs, and generated average n! et produc! tion of 1,410 Boe/d for December 31, 2010. These properties represented 32% of its total estimated proved reserves as of March 31, 2011 and 22% of the Company�� pro forma average net production for December 31, 2010. In addition, these properties had a standardized measure of $163.3 million as of March 31, 2011, which represented 48% of the total standardized measure for all of the Company�� estimated proved reserves.
The Company�� properties in the Pecos Slope area is a gas-weighted field located in Eddy, Chaves, Lea and Roosevelt Counties, New Mexico. The Company operates approximately 100% of its proved reserves in the Pecos Slope area, including 434 gross (382 net) producing wells in the field with an average working interest of 88%. The Company�� Willow Lake field is an oil-weighted field located in Eddy County, New Mexico. There are 41 gross (8 net) producing wells in this area with an average non-operated working interest of 19%. The Cowden Ranch area is an oil-weighted field located in Crane County, Texas. The Company operate s100% of its proved reserves in the Cowden Ranch area, including 8 gross (approximately 5 net) producing wells in the field with an average working interest of 71%. The Company�� properties in the Corbin and Vacuum have produced approximately 3.0 MMBoe. The Company operates 100% of its proved reserves in the Corbin and Vacuum areas, including 8 gross (8 net) producing wells with an average working interest of 100%.
As of December 31, 2010, approximately 33% of the Company�� estimated proved reserves and approximately 38% of its pro forma average daily net production for December 31, 2010 were located in the Mid-Continent region. The Company�� Potato Hills Area is an Arkoma Basin natural gas property located in Latimer and Pushmataha Counties in Southeast Oklahoma. The Company�� Reklaw properties have produced approximately 5.6 MMBoe. The Company operates 100% of its proved reserves in the Reklaw area, including 63 gross (61 net) pro! ducing we! lls in the field with an average working interest of 97%. Its properties in the Black Bayou-Doyle Creek area is a natural gas-weighted field located in Angelina, Cherokee and Nacogdoches Counties, Texas, in close proximity to the Reklaw area. The Company�� non-operated interest in 43 gross (approximately 12 net) producing wells in the field with an average non-operated working interest of 26%.
As of March 31, 2011, approximately 12% of the Company�� estimated proved reserves and approximately 18% of its pro forma average daily net production for December 31, 2010 were located in the Gulf Coast region. Approximately 31% of the Company�� estimated net proved reserves in the Gulf Coast region are oil and NGLs. The Company owns an 82% average working interest across 42 gross (35 net) wells and operates 100% of its properties in the Gulf Coast region. The Company�� property New Years Ridge area is a natural gas-weighted field located in DeWitt County, Texas. The Company�� George West-Stratton areas consist of natural gas-weighted fields located in Live Oak and Hidalgo Counties, Texas. The Company�� operates 100% of its proved reserves in the George West-Stratton areas, including 23 gross (17 net) producing wells in the George West-Stratton areas with an average working interest of 73%.Advisors' Opinion:
- [By Robert Rapier]
LRR Energy (NYSE: LRE) was another name I covered in the article Upstream Turbulence Yields Bargains. LRE is an upstream MLP focused on acquiring and developing oil and natural gas properties in the Permian Basin, the Mid-Continent region, and the Gulf Coast region in Texas. Total proved reserves at the end of 2012 were 31.7 million barrels of oil equivalent (BOE), of which 50 percent were liquids. The partnership is ~85 percent hedged through 2017 at average prices of $92.73/barrel for oil, $37.04/bbl for NGLs, and $5.06 per MMBtu for natural gas.
- [By CRWE]
LRR Energy, L.P. (NYSE:LRE) reported that its management will present at the National Association of Publicly Traded Partnerships��2012 Master Limited Partnership Investor Conference in Greenwich, CT on Thursday, May 24, at 9:00 a.m. Eastern time.