Getty Images They come slinking out of the shadows like disembodied spirits, trying to steal your life and all that goes with it. No, not ghosts, ghouls or vampires: We're talking about a more modern diabolical threat -- identity thieves looking to make off with your hard-earned cash. On this day of tricks and treats, we offer you a few tales of the unfortunate victims of such tricks -- and treat you to some advice about what to do if it happens to you. Double Trouble Credit card fraud affects around 10 percent of all Americans each year, according to the Federal Trade Commission, so odds are it will strike you at some point. Keeping an eagle eye on your credit card charges is key -- the sooner you alert your credit card issuer to fraudulent charges, the faster you can stop the crook. The good news is, credit card companies have become quite familiar with fraudsters' patterns now, and most are good about removing the charges quickly. Ghouls Go Shopping There's not much you can do to thwart a determined thief other than keep a close watch on your wallet. But carrying only one card around can at least make the theft a little less painful. It's also a good idea to photocopy all your cards, front and back, in case you need to contact your banks and credit card companies quickly. Bad News Bidders Phishing has become ubiquitous -- if you have an email account, it's likely you've been targeted -- and the tricksters are moving their scams to text messages now, too: Ferris Research says more than 4 million phishing texts were sent in 2012. There's one fail-safe way to avoid phishing scams that look like they come from your bank, credit card issuer, or popular sites like eBay (EBAY) and Paypal. Simply delete the message and type the company's web address directly into your browser. If the message is legitimate, eBay, Paypal, and many financial companies store it in an online "message center" in your profile that you can access from their sites. If you're really concerned, call the company to check. There are plenty of scammers out there, but you can keep scary situations from becoming true nightmares with a little knowledge and planning. Happy Halloween!
Thursday, October 31, 2013
Wednesday, October 30, 2013
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Top 5 Small Cap Companies To Watch In Right Now: Sify Technologies Limited(SIFY)
Sify Technologies Limited provides enterprise and consumer Internet services primarily in India. The company offers various corporate network/data services comprising e-commerce and network connectivity solutions, such as end-to-end services network, application, and security services; voice origination and termination services; co-location and managed hosting services; and system integration services for data centre build, hardware distribution, security solutions, and turnkey projects. It also provides application services, including SLEMS and Microsoft Exchange messaging platforms; I-test for online assessment and LiveWire, which enable management of training processes across the organization; document management system for the management of documents electronically; and Forum, a forward supply chain solution. In addition, the company operates e-Ports that offer browsing, chat, email, gaming, utility bill payment, travel ticketing, hotel booking, mobile recharge, Intern et telephony, and online share trading services; and portals, which provide news, views, reviews, interactions, and services in the areas of movies, sports, finance, food, videos, astrology, online games, shopping, and travel, as well as offers content offerings and broadband services. Further, it provides infrastructure management services, such as network management, datacenter and helpdesk outsourcing, desktop and storage outsourcing, IT security outsourcing, LAN and WAN outsourcing, database and telecom outsourcing, and application monitoring and management services to automotive, chemical, media, and financial enterprises; and virtualization design, integration, and deployment services for servers, storage, networks, and end user clients. Sify has approximately 1,278 e-Ports in 200 towns and cities; and serves 1,06,000 broadband subscribers through 1500 cable TV Operators. The company, formerly known as Sify Limited, was founded in 1995 and is based in Chennai, India.
Top 5 Small Cap Companies To Watch In Right Now: Voyager Oil & Gas Inc.(VOG)
Voyager Oil & Gas, Inc. engages in the exploration and production of oil and gas in the United States. It primarily focuses on oil shale resource prospects in Montana, North Dakota, Colorado, and Wyoming. As of May 17, 2011, the company controlled approximately 141,500 net acres in the five primary prospect areas comprising 28,000 net acres targeting the Bakken/Three Forks in North Dakota and Montana; 14,200 net acres targeting the Niobrara formation in Colorado and Wyoming; 800 net acres targeting a Red River prospect in Montana; 33,500 net acres in a joint venture targeting the Heath Shale formation in Musselshell, Petroleum, Garfield, and Fergus counties of Montana; and 65,000 net acres in a joint venture in the Tiger Ridge gas field in Blaine, Hill, and Chouteau counties of Montana. It supplies energy and fuel for industrial, commercial, and individual consumers. The company is based in Billings, Montana.
Hot Small Cap Stocks To Own Right Now: bebe stores inc.(BEBE)
bebe stores, inc. engages in the design, development, and production of women?s apparel and accessories. Its products include a range of separates, tops, dresses, active wear, and accessories in career, evening, casual, and active lifestyle categories. The company markets its products under the bebe, BEBE SPORT, bbsp, and 2b bebe brand names targeting 21 to 34-year-old woman. As of July 2, 2011, it operated 252 retail stores, and an online store at bebe.com in the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Japan, and Canada, as well as 60 international licensee operated stores in south east Asia, the United Arab Emirates, Israel, Russia, Mexico, and Turkey. The company was founded in 1976 and is headquartered in Brisbane, California.Advisors' Opinion:
- [By Eric Volkman]
bebe stores (NASDAQ: BEBE ) continues to outfit its shareholders in cash by maintaining its dividend policy. The company has declared a fresh quarterly distribution of $0.025 per share of its stock, payable on June 20 to shareholders of record as of June 6.��That amount matches the company's preceding disbursement, which was handed out in mid-March.
- [By Jeremy Bowman]
What: Shares of Bebe Stores (NASDAQ: BEBE ) were back in style today, gaining as much as 11% after receiving an upgrade from Janney Capital from Neutral to Buy.
- [By CRWE]
bebe stores, inc. (Nasdaq:BEBE) reported that its Board of Directors declared bebe�� quarterly cash dividend of $0.025 per share. The dividend is payable on December 4, 2012 to shareholders of record at the close of business on November 20, 2012
Top 5 Small Cap Companies To Watch In Right Now: Achillion Pharmaceuticals Inc.(ACHN)
Achillion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of treatments for infectious diseases. The company focuses on the development of antivirals for the treatment of chronic hepatitis C; and the development of antibacterials for the treatment of resistant bacterial infections. Its drug candidates for the treatment of chronic HCV include ACH-1625, a protease inhibitor, which is in phase IIa clinical trial for the treatment of chronic HCV; ACH-2684, a pangenotypic protease inhibitor, which is in phase I clinical trial for the treatment of chronic HCV infection; and NS5A inhibitors for the treatment of chronic HCV infection, including ACH-2928, which is to enter a phase I clinical trial, as well as various additional NS5A inhibitors in preclinical development. Its pipeline of product candidates also includes ACH-702 and ACH-2881 for drug resistant bacterial infections; elvucitabine for HIV infection; and AC H-1095 for HCV infection. The company was founded in 1998 and is based in New Haven, Connecticut.Advisors' Opinion:
- [By Lauren Pollock]
Among the companies with shares expected to actively trade in Monday’s session are Achillion Pharmaceuticals Inc.(ACHN), Active Network Inc.(ACTV) and Harvest Natural Resources Inc.(HNR)
- [By Sean Williams]
The latest hepatitis-C nightmare came from Achillion Pharmaceuticals (NASDAQ: ACHN ) which plunged 24% on the week after the FDA placed a clinical hold on its lead compound, sovaprevir (previously known as ACH-1625) because of a worrisome drug-to-drug interaction noted in early stage trials. According to Achillion's update, sovaprevir, when studied with atazanavir, was associated with elevated ALT enzymes in the liver, although no serious adverse events were documented. Even though the FDA is allowing Achillion to continue studying sovaprevir in its mid-stage trial with ACH-3102, it's just another setback for Achillion which is miles behind Gilead Sciences�and AbbVie�in terms of time it will take to bring a new hepatitis-C therapy to market.
- [By Sean Williams]
In terms of clinical updates, hepatitis-C-focused biotech Achillion Pharmaceuticals (NASDAQ: ACHN ) announced updated midstage results for its lead compound, ACH-3102, on Tuesday. In trials of genotype-1b treatment naive patients, ACH-3102 plus a ribavirin delivered a 75% success rate in end-of-treatment virologic response. The problem with these results is that not only is Achillion far behind its all-oral peers in terms of development, but its 75% success rate trailed that of Gilead Sciences' Sofosbuvir, which delivered 100% success rates in some of its late-stage trials featuring genotype-1 patients.
- [By Keith Speights]
2. Achillion Pharmaceuticals (NASDAQ: ACHN )
Achillion recently experienced a delay in the game that it had hoped to play. The FDA placed a clinical hold on hepatitis C drug sovaprevir after patients in a phase 1 drug-drug interaction study with the drug combined with ritonavir-boosted atazanavir were found to have elevated liver enzyme levels. Shares dropped 25% in one day as a result.
Top 5 Small Cap Companies To Watch In Right Now: ATA Inc.(ATAI)
ATA Inc., through its subsidiaries, provides computer-based testing services in the People?s Republic of China. It offers services for the creation and delivery of computer-based tests utilizing its test delivery platform, proprietary testing technologies, and testing services; and provides logistical support services relating to test administration. The company?s computer-based testing services are used for professional licensure and certification tests in various industries, including information technology (IT) services, banking, securities, teaching, and insurance. Its e-testing platform integrates various aspects of the test delivery process for computer-based tests ranging from test form compilation to test scoring, and results analysis. ATA also provides career-oriented educational services, such as single course programs, degree major course programs, and pre-occupational training programs focusing on preparing students to pass IT and other vocational certification tests; test preparation and training programs and services to test candidates preparing to take professional certification tests in securities, futures, banking, insurance and teaching industries; online test preparation and training platform for the securities and banking industries; and test preparation software for the teaching industry. In addition, the company offers HR select employee assessment solution, an online system that utilizes its proprietary software and an inventory of test titles to help employers improve the efficiency and accuracy of their employee recruitment process. As of March 31, 2010, it had contractual relationships with 1,988 ATA authorized test centers. The company serves Chinese governmental agencies, professional associations, IT vendors, and Chinese educational institutions, as well as individual test preparation services. ATA Inc. was founded in 1999 and is based in Beijing, the People?s Republic of China.
Tuesday, October 29, 2013
With shares of Bank of America (NYSE:BAC) trading around $13, is BAC an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:T = Trends for a Stock’s Movement
Bank of America is a financial institution, serving individual consumers, small and middle market businesses, corporations, and governments with a range of banking, investing, asset management, and other financial and risk management products and services. Through its banking and various nonbanking subsidiaries throughout the United States and in international markets, the company provides a range of banking and nonbanking financial services and products through five business segments: Consumer and Business Banking, Consumer Real Estate Services, Global Banking, Global Markets and Global Wealth & Investment Management, and Other.
Bank of America is a giant in the financial industry that is the backbone of most economies worldwide. The industry suffered in recent years but is now recovering and looks poised to provide the products and services consumers and companies need in order to see progress. A recent settlement scuffle with American International Group (NYSE:AIG) regarding a Countrywide matter may cause some distress to investors.T = Technicals on the Stock Chart are Mixed
Bank of America stock has flown higher the last couple of years after rebounding from a huge sell-off in 2011. The stock is now trading sideways as it digest gains from this powerful run. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Bank of America is trading slightly above its rising key averages which signal neutral to bullish price action in the near-term.
Taking a look at the implied volatility (red) and implied volatility skew levels of Bank of America options may help determine if investors are bullish, neutral, or bearish.
Implied Volatility (IV)
30-Day IV Percentile
90-Day IV Percentile
|Bank of America Options|| |
What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.
Put IV Skew
Call IV Skew
|July Options|| |
|August Options|| |
As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.
On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.E = Earnings Are Mixed Quarter-Over-Quarter
Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Bank of America’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Bank of America look like and more importantly, how did the markets like these numbers?
|Earnings Growth (Y-O-Y)|| |
|Revenue Growth (Y-O-Y)|| |
|Earnings Reaction|| |
Bank of America has seen mixed earnings and revenue figures over the last four quarters. From these numbers, the markets have not been excited about Bank of America’s recent earnings announcements.P = Weak Relative Performance Versus Peers and Sector
How has Bank of America stock done relative to its peers, JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Citigroup (NYSE:C), and sector?
Bank of America
|Year-to-Date Return|| |
Bank of America has been a weak relative performer, year-to-date.Conclusion
Bank of America is a bank and financial services giant that operates in a recovering financial industry, the backbone of the United States economy. The stock has been on a powerful move to higher prices, over the last couple of years, and is now trading sideways as it digests these gains. Over the last four quarters, investors in the company have not been too happy as earnings and revenue figures have been mixed. Relative to its peers and sector, Bank of America has been a weak year-to-date performer. WAIT AND SEE what Bank of America does in coming quarters.
Monday, October 28, 2013
With shares of Pandora Media (NYSE:P) trading at around $15.22, is P an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock's Movement
Pandora Media has made two highly strategic moves recently. It has allowed listeners to link to Pandora through their Facebook (NASDAQ:FB) accounts, and it has implemented a 40-hour limit of free listening per month. The former should increase exposure, and the latter should aid monetization. However, these moves still might not be enough to save Pandora.NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!
The stock has appreciated more than 65 percent year-to-date, but there are several red flags that investors seem to be ignoring. These red flags include a lack of profitability, fierce competition, and a subpar company culture.
Lack of Profitability
Pandora went public in 2011, but it launched in 2000. If a company is unable to deliver consistent profits after more than a decade, then there should be cause for concern. Of course, Pandora's popularity increased after it went public, which led to more users and paid subscribers, but providing excuses for a company isn't a wise investing strategy.
Management has been somewhat effective with increasing paid subscribers, and mobile ad revenue doubled last quarter. These are clear positives, but while revenue growth is always exciting, it doesn't mean much if costs – content acquisition costs being the biggest factor in this case – prevent consistent profits.
As of right now, Spotify is the biggest competitor. Pandora is bigger, but Spotify is growing faster. This has a lot to do with the "cool factor" among the 18-35 demographic.
According to Alexa.com, Pandora is ranked #282 in the world and #54 in the United States. In other words, only 281 websites in the world receive more traffic than Pandora. Spotfiy is ranked #1085 in the world and #519 in the United States.
Over the past three months for Pandora, pageviews-per-user has increased 4.7 percent, time-on-site has increased 4.0 percent, and the bounce rate (only one pageview per visit) has declined 2.0 percent. These are all impressive numbers. Over the past three months for Spotify, pageviews-per-user has increased 1.1 percent, time-on-site has increased 8.0 percent, and the bounce rate has declined 2.0 percent. These are also impressive numbers.
In this instance, the numbers don't reveal the whole truth. If you're only looking at traffic numbers over the past three months, then it would seem as though it's close to even. And if you're including overall ranking, then Pandora looks like the dominating force. However, Spotify was launched in 2008. Therefore, despite eight fewer years of operation, it's already a significant threat to Pandora.
As if Pandora didn't already have enough to worry about on the competitive front, Google Inc. (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL) are also looking to jump into the game. This is similar to playing a game of one-on-one basketball against a neighborhood foe and winning by a point or two, and then the game changes when Michael Jordan and Kobe Bryant show up. Ambitions might be high, but reality is going to play a serious role.
Google Play Music All Access is up and running, and it's supposedly coming to iOS within a matter of weeks. For $9.99 per month, subscribers have unlimited listening access to millions of songs, radio customization capability, a skipping feature, and more. For those who start the trial prior to June 30, the cost will only be $7.99 per month. Google also offers more content than Pandora and Spotify.
Pandora One offers no external ads and unlimited listening hours on all devices for only $3.99 per month (or $36 per year), and Spotify Unlimited offers unlimited music on desktops and laptops for $4.99 per month. Spotify also offers Spotify Premium, where listeners can enjoy ad-free music on any device for $9.99 per month. The latter option doesn't seem so appealing with Google entering the fray.
And let's not forget about Apple's iRadio. Apple has reached an agreement with Warner Music Group, and it's attempting to iron out a deal with Sony Music. There are many rumors that Apple is offering a much sweeter deal to Warner Music Group than Pandora. Apparently, this will come in the form of 10 percent of ad revenue opposed to the 4 percent of ad revenue Warner Music Group currently receives from Pandora.
According to Glassdoor.com, Pandora's employees rate their employer a 3.4 of 5. This is decent, but if you read the actual employee reviews on Glassdoor, you will notice a few recurring themes, which include "no long-term game plan," "needless spending," "insecurity," and "paranoia." For comparative purposes, Spotify employees have rated their employer a 4.7 out of 5.
The chart below compares basic fundamentals for Pandora, Google, and Apple.
|Operating Cash Flow||-2.28M||16.56B||55.26B|
Let's take a look at some more important numbers prior to forming an opinion on this stock.
T = Technicals Are Mixed
Pandora has performed exceptionally well over the past year and year-to-date, but yesterday’s drop was a memorable one.
|1 Month||Year-To-Date||1 Year||3 Year|
At $15.22, Pandora is still trading above its averages, but this might not last much longer.
E = Equity to Debt Ratio Is Strong
The debt-to-equity ratio for Pandora is much stronger than the industry average of 4.20.
E = Earnings Are Weak
While revenue has been impressive, any company that consistently loses money is a risky investment.
|Revenue ($) in millions||19||55||138||274||427|
|Diluted EPS ($)||NA||NA||-1.03||-0.19||-0.23|
Looking at the last quarter on a year-over-year basis, revenue improved but the loss widened.
|Quarter||Apr. 30, 2012||Jul. 31, 2012||Oct. 31, 2012||Jan. 31, 2013||Apr. 30, 2013|
|Revenue ($) in millions||80.78||101.27||120||125.09||125.51|
|Diluted EPS ($)||-0.12||-0.03||0.01||-0.09||-0.16|
Now let's take a look at the next page for the Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?
Pandora has paved the way for the industry. Therefore, in a perfect world, it should be rewarded. Unfortunately, this is far from a perfect world. Pandora is a company that cannot turn consistent profits, and with competition increasing, it's highly unlikely that this will change. A few profitable quarters are possible, but it would be difficult to see Pandora fighting off all threats over the long haul. Even if competition isn't factored into the equation, margins are poor, cash flow is weak, and nobody knows how the stock would perform in a bear market.
Sunday, October 27, 2013
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of hardwood flooring retailer Lumber Liquidators (NYSE: LL ) climbed 10% today after its quarterly results and guidance topped Wall Street expectations.
So what: The stock has soared over the past year on better-than-expected growth, and today's second-quarter results -- EPS spiked 70% on a 22% jump in revenue -- coupled with upbeat guidance for the full year only reinforces that trend. In fact, gross margin expanded 40 basis points to 41.3% while same-store sales increased 15%, giving analysts plenty of good vibes over its competitive position and ability to grow profitably.
Now what: Management now sees full-year EPS of $2.45 to $2.60 on revenue of $940 million to $963 million, up nicely from its prior view of $2.10 to $2.35 and $913 million to $942 million. "Our success in expanding gross margin allows us to reinvest across our industry-leading value proposition, and we see multi-year opportunities to expand operating margin while we continue to grow our store base," said CEO Robert Lynch. Of course, with the stock now up a whopping 160% over its 52-week lows and trading at a forward P/E of about 30, I'd wait for some of the excitement to fade before buying into those growth prospects.
To learn about two other retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.
Friday, October 25, 2013
The following video is from Thursday's Investor Beat, in which host Chris Hill, and analysts Jason Moser and Isaac Pino dissect the hardest-hitting investing stories of the day.
Yum! Brands' (NYSE: YUM ) second-quarter profits fall 16%. Amazon (NASDAQ: AMZN ) benefits from a rise in e-commerce. Costco's (NASDAQ: COST ) same-store sales in June rise 6%. And Wal-Mart (NYSE: WMT ) scraps plans for three new stores in Washington, DC. In this installment of Investor Beat, Motley Fool analysts Jason Moser and Isaac Pino discuss four stocks making moves today.
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.
The relevant video segment can be found between 2:30 and 5:41.
Thursday, October 24, 2013
Five years ago, in May 2007, I posted my first article on GuruFocus. It was called, ��hy Do We Sell Low and Buy High?��and it described some of the mistakes that we commit as investors.
We all know the depths that we went through since May 2007. For many people, fear was all they felt (and some unfortunately still do). Many investors committed the same mistakes (as well as others), and many people who have committed their hard-earned money without knowing the basics of investments have ended up frustrated, fearful and with unsatisfactory results.
I decided to use my first article and make it into a book. Hopefully the book will help to answer the question ��hy do we sell low and buy high?��and many other questions, as well as teach the reader about the basics of the stock market, its participants and provide checklists and insights that will enable the reader to build a framework to become a better investor.
I appreciate all the insights and wisdom that I have received reading many articles on GuruFocus and I am re-posting the article (which is now the first chapter of my book) as well as the second chapter. I hope you all enjoy.
Why do we sell low and buy high? Part 1
We��e often told that in order to be a successful investor we need to buy stock at a low price and sell it at a higher price. If we do that multiple times, we are destined to be rich. Why is it then that so many of us do the exact opposite?
Best Low Price Companies To Buy Right Now: Qualstar Corporation(QBAK)
Qualstar Corporation designs, develops, manufactures, and sells automated magnetic tape libraries used to store, retrieve, and manage electronic data primarily in network computing environments worldwide. Its tape libraries consists of cartridge tape drives, tape cartridges, and robotics to move the cartridges from their storage locations to the tape drives under software control. The tape libraries also provide data storage solutions for organizations requiring backup, recovery, and archival storage of critical electronic information. The company also offers ancillary products related to its tape libraries, such as tape media, tape magazines, cables, bar code labels, and fiber channel adapters. In addition, it designs, develops, and sells switching power supplies that are used to convert alternate current line voltage to direct current voltages for use in electronic equipment, such as telecommunications equipment, servers, routers, switches, lighting, and gaming devices. Qualstar Corporation sells its tape drive products primarily to value added resellers and original equipment manufacturers, as well as switching power supplies primarily to original equipment manufacturers, contract manufacturers, and distributors. The company was founded in 1984 and is headquartered in Simi Valley, California.
Best Low Price Companies To Buy Right Now: Target Energy Ltd(TEX.AX)
Target Energy Limited engages in the exploration, development, and production of oil and gas in the United States. It holds a 50% interest in the Buffalo project covering approximately 13,000 acres located in south Texas; a 60% interest in the Fairway project covering approximately 1500 acres situated in west Texas; and a 35% interest in East Chalkley Oil project in Cameron Parish, Louisiana. The company also holds oil and gas interests in Merta Gas Field in Wharton County, Texas; and the Wolfberry play in western Texas, as well as in St Martin Parish, Louisiana. Target Energy Limited was founded in 2006 and is based in West Perth, Australia.
Hot Tech Stocks To Own Right Now: Patni Computer Systems Limited(PTI)
Patni Computer Systems Limited, an information technology (IT) services company, provides a range of IT services through integrated onsite and offshore delivery locations. Its services include IT strategies development, system consulting and design, application development, application maintenance and support, packaged software implementation, quality assurance, infrastructure management, business process outsourcing, IT outsourcing, and OSS and BSS systems deployment services. The company offers IT services primarily to customers in insurance, manufacturing, retail, distribution, financial services, communications, media, and utilities industries. It also offers product engineering services, including engineering design and modeling, electronic design, embedded software development, and product lifecycle management for legacy products, as well as testing and migration services for new technologies to clients in electronics, automotive, medical electronics, industrial auto mation, office automation, handheld/mobile device manufacturing, and semiconductor manufacturing industries. The company operates in North America, Europe, India, and Japan, as well as in the rest of the Asia-Pacific region. Patni Computer Systems Limited was incorporated in 1978 and is headquartered in Mumbai, India.
Best Low Price Companies To Buy Right Now: Trifast(TRI.L)
Trifast plc, together with its subsidiaries, engages in the manufacture and distribution of industrial fasteners and associated components. Its fasteners include machine screws, self-tapping screws, thread forming screws, socket products, nuts, and washers, as well as fasteners for sheet metal, fasteners for plastic, security fasteners, thread-locking nuts, and micro-diameter fasteners. The company supplies its components in steel, stainless steel, aluminum, nylon, brass, titanium, and other corrosion resistant materials. In addition, its products comprise cables, clips, plastic parts, connectors, switches, springs, batteries, hinges, levers, handles, brackets, hooks, pins, keys, spacers, and stays. The company primarily serves the aerospace and defense, audio visual, automotive, marine, petrochemical, railway, information technology, sheet metal, medical, home appliances, electronic, electrical, plastic moulders, telecom, general industrial, and renewable energy sectors. It operates in the United Kingdom, Norway, Sweden, Hungary, southern Ireland, Holland, Poland, the United States, Mexico, Malaysia, China, Singapore, and Taiwan. Trifast plc was founded in 1973 and is headquartered in Uckfield, the United Kingdom.
Best Low Price Companies To Buy Right Now: TAL International Group Inc.(TAL)
TAL International Group, Inc. engages in the lease of intermodal containers and chassis. It operates in two segments, Equipment Leasing and Equipment Trading. The Equipment Leasing segment involves in the acquisition, lease, re-lease, and sale of various intermodal transportation equipment, such as dry freight containers, which are used for general cargo, including manufactured component parts, consumer staples, electronics, and apparel; refrigerated containers that are used for perishable items, such as fresh and frozen foods; and special containers, which are used for heavy and oversized cargo, such as marble slabs, building products, and machinery. It also leases chassis, which are used for the transportation of containers and tank containers that are used to transport bulk liquid products, such as chemicals, as well as finances port equipment, which includes container cranes, reach stackers, and other related equipment. The Equipment Trading segment purchases container s from shipping line customers and other sellers of containers, and resells these containers to container traders and users of containers for storage or one-way shipment. As of December 31, 2009, it had a fleet of 701,946 containers and chassis, including 31,137 containers under management for third parties, representing 1,139,523 twenty-foot equivalent units (TEU). The company was founded in 1963 and is headquartered in Purchase, New York.Advisors' Opinion:
- [By Seth Jayson]
Margins matter. The more TAL International Group (NYSE: TAL ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong TAL International Group's competitive position could be.
- [By ABN]
TAL International Group (TAL) is one of the world's largest lessors of intermodal freight containers for the shipping business with 17 offices in 11 countries and approximately 230 third-party container depot facilities in 40 countries. TAL's fleet consists of approximately 1,238,000 containers and 2,031,000 twenty-foot equivalent units (TEU).
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, freight container lessor TAL International (NYSE: TAL ) has earned a coveted five-star ranking.
Best Low Price Companies To Buy Right Now: Carlton Investments Ltd(CIN.AX)
Carlton Investments Limited engages in the acquisition, and long term holding of shares and units in entities listed on the Australian Stock Exchange. The company is based in Sydney, Australia.
Best Low Price Companies To Buy Right Now: Vangold Resources Ltd. (VAN.V)
Vangold Resources Ltd., a development stage company, engages in the identification, acquisition, and exploration of mineral properties. It primarily explores for gold, copper, silver, nickel, platinum, and cobalt ores. The company is also involved in the exploration, development, production, and marketing of crude oil and natural gas. It holds interests in mineral properties located in North America, Papua New Guinea, and Uganda; and holds oil and gas concessions in Armenia. The company was founded in 1978 and is headquartered in Vancouver, Canada.
Best Low Price Companies To Buy Right Now: Capstone Turbine Corporation(CPST)
Capstone Turbine Corporation develops, manufactures, markets, and services turbine generator sets and related parts for use in stationary distributed power generation applications. Its stationary distributed power generation applications include cogeneration combined heat and power (CHP), integrated (CHP), resource recovery, and secure power, as well as combined cooling, heat, and power; and its products are used as battery charging generators for hybrid electric vehicle applications. The company primarily offers microturbine units, subassemblies, and components. It also provides various accessories, including rotary gas compressors with digital controls, heat recovery modules for CHP applications, dual mode controllers that allow automatic transition between grid connect and stand-alone modes, batteries with digital controls for stand-alone/dual-mode operations, power servers for multipacked installations, and protocol converters for Internet access, as well as frames, ex haust ducting, and installation hardware. Further, it remanufactures microturbine engines; and provides after-market parts and services, scheduled and unscheduled maintenance, and factory and on-site training services. The company?s microturbines can be fueled by various sources, including natural gas, propane, sour gas, landfill or digester gas, kerosene, diesel, and biodiesel. It primarily sells its products directly to end users, as well as through distributors in North America, Asia, Australia, Europe, the Russian Federation, and South America. Capstone Turbine Corporation was founded in 1988 and is based in Chatsworth, California.Advisors' Opinion:
- [By Selena Maranjian]
Fisher reduced its stake in lots of companies, including Capstone Turbine (NASDAQ: CPST ) and Nokia (NYSE: NOK ) . Capstone is a smallish company, making low-emission microturbines used in power generation. Its top line has been growing by double digits over the past few years, and it's poised to profit from huge interest in shale oil, but it remains in the red. Still, it has recently announced a bunch of promising deals and some think the many folks short the stock will end up burned.
- [By Tyler Crowe]
What:�Shares of Capstone Turbine (NASDAQ: CPST ) skyrocketed 13.59% as the company announced that it had signed a major supplier deal with private real estate and investment firm Related Companies. Shares of Capstone haven't been this high in over a year.
- [By Dan Caplinger]
On Thursday, Capstone Turbine (NASDAQ: CPST ) will release its latest quarterly results. But lately, investors have already anticipated some huge results from the company, having bid the shares up by about 50% in just the past several weeks. Can Capstone deliver on what investors want to see?
- [By Dan Caplinger]
Beyond the fundamentals, though, news plays an important role in short-term stock movements. Outside the Dow, microturbine producer Capstone Turbine (NASDAQ: CPST ) soared 8.8% after receiving its second large order in the past week. After getting word of a purchase from real-estate and investment firm Related Companies on Tuesday, Capstone got an order today from Southern California Gas to buy three of its C65 uninterruptible power-source units for use at the gas company's data center. Given the relatively small size of the business, which sports sales of only about $122 million over the past year, orders like this have a material effect on Capstone and also draw the attention of other prospective buyers.
Tuesday, October 22, 2013
As they sift through the Washington mess, some money managers think it could be a blessing, at least for their investments.
With the government shutdown heading toward a second week, economists say it could hold back economic growth, business confidence and corporate earnings, but probably won�� cause a recession. Many money managers doubt the damage will be lasting. Any stock selloff, they say, would be a great buying opportunity.
��e are looking to take advantage of it if it drives turmoil in the markets,��said Bruce McCain, who helps oversee more than $20 billion as chief investment strategist at Key Private Bank, an arm of KeyCorp(KEY) in Cleveland.
Top 10 Oil Stocks To Invest In Right Now: Devon Energy Corporation(DVN)
Devon Energy Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada. It also involves in transporting oil, gas, and natural gas liquids (NGL); and processing natural gas. The company owns oil and gas properties in the mid-continent area of the central and southern United States; the Permian Basin in Texas and New Mexico; the Rocky Mountains area of the United States; and the onshore areas of the Gulf Coast, principally in south Texas and south Louisiana. It also owns oil and gas properties in the provinces of Alberta, British Columbia, and Saskatchewan, Canada. In addition, the company offers marketing and midstream services, including marketing of gas, crude oil, and NGL, as well as constructing and operating pipelines, storage and treating facilities, and natural gas processing plants. As of December 31, 2010, it had 2,042 million barrel of oil equivalent of proved developed reserves. The company sells its gas production to various customers, such as pipelines, utilities, gas marketing firms, industrial users, and local distribution companies; crude oil production to refiners, remarketers, and other companies; and NGL production to customers in petrochemical, refining, and heavy oil blending activities. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.Advisors' Opinion:
- [By Joel South and Taylor Muckerman]
To find long-term value in surging markets sometimes its best to dive into the discount bin. In the video below, energy analysts Joel South and Taylor Muckerman look into the lagging energy sector to find a rare gem in Devon Energy (NYSE: DVN ) . This exploration and production company is trading�significantly�under its net asset value as the market continues to punish energy producers who hold significant natural gas assets in addition to oil sands�acreage.�
- [By Matt DiLallo]
Looking ahead, we'll see similar activity centered on shale ventures, with the Utica potentially seeing the most activity. Chesapeake has already made it known that it would like to unload around 100,000 of its acres in the Utica. Meanwhile, Devon Energy (NYSE: DVN ) is looking to completely exit from the Utica. Devon has already packaged a portion of its Utica acreage, along with four other emerging plays, into a joint venture package with Sinopec. While these two energy giants are exiting the Utica, it still appears to be a top-tier play;�it's just not the oil-levered play those two were hoping it would become.
- [By David Smith]
In fact, were something of a shale drilling and production hall of fame to be created, two names would be de rigueur for immediate inclusion: McClendon and George Mitchell. The latter, through his Houston-based -- and now Devon-owned (NYSE: DVN ) -- company, Mitchell Energy, relentlessly propagated the notion that applying hydraulic fracturing to the massive layers of shale rock spread across the U.S. would yield a bounty of natural gas.
Top 10 Oil Stocks To Invest In Right Now: Grid Petroleum Corp (GRPR)
Hot Clean Energy Companies For 2014: Caiterra International Energy Corp (CTI)CaiTerra International Energy Corporation (Caiterra), formerly Cyterra Capital Corp., is a Canada-based company is engaged in the exploration and development of oil and gas properties. The Company�� project includes Faust, Amadou and Lac La Biche. On March 9, 2012, the Company completed its qualifying transaction with West Pacific Petroleum Inc. (WPP), pursuant to which the Company acquired all of WPP�� working interests in certain petroleum and natural gas leases and an oil sand lease in the Lac La Biche and Amadou Projects located in Alberta, Canada and certain other assets (the QT Oil and Gas Properties) from West Pacific Petroleum Inc. (WPP). On December 17, 2012 the Company acquired the Faust Property located just north of the Swan Hills oil field and south of the Town of Slave Lake.
Top 10 Oil Stocks To Invest In Right Now: Precision Drilling Corp (PDS)Precision Drilling Corporation (Precision) is a provider of contract drilling and completion and production services primarily to oil and natural gas exploration and production companies in Canada and the United States. The Company operates in two segments: Contract Drilling Services, and Completion and Production Services. In Canada, the Contract Drilling Services segment includes land drilling services, directional drilling services, procurement and distribution of oilfield supplies and the manufacture and refurbishment of drilling and service rig equipment, and the Completion and Production Services segment includes service rigs for well completion and workover services, snubbing services, camp and catering services, wastewater treatment services and the rental of oilfield surface equipment, tubulars, well control equipment and wellsite accommodations.
Top 10 Oil Stocks To Invest In Right Now: Halcon Resources Corp (HK)
Halcon Resources Corporation (Halcon Resources), incorporated on February 5, 2004, is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The Company has oil and natural gas reserves located primarily in Texas, North Dakota, Louisiana, Oklahoma and Montana. On August 1, 2012, the Company acquired GeoResources by merger. On December 6, 2012, the Company completed the acquisition of entities owning approximately 81,000 net acres prospective for the Bakken / Three Forks formations primarily located in Williams, Mountrail, McKenzie and Dunn Counties, North Dakota (the Williston Basin Assets), from Petro-Hunt, L.L.C. and Pillar Energy, LLC (the Petro-Hunt parties). As of December 31, 2012, the Company has working interests in approximately 128,000 net acres prospective for the Bakken / Three Forks formations in North Dakota and Montana.
The Company�� Woodbine / Eagle Ford acreage is prospective for the Woodbine, Eagle Ford and other formations, with targeted depths ranging anywhere from 7,000 feet to 10,400 feet. As of December 31, 2012, The Company has approximately 198,000 net acres leased or under contract primarily in Leon, Madison, Grimes, Brazos, and Polk Counties, Texas. The Company is the operator and has a 100% working interest in more than 12,000 net acres in Wichita and Wilbarger Counties, Texas that it is actively water flooding in shallow Cisco aged Pennsylvania sandstone and limestone reservoirs. As of December 31, 2012, the Company produced 484 million barrels of oil equivalent from approximately 700 active producing wells and approximately 230 active water injection wells.
The Company�� position in the La Copita Field covers 3,720 gross acres and 2,829 net acres in Starr County, Texas. As of December 31, 2012, the Company�� average net daily production was 623 barrels of oil equivalent per day. The Company operates 100% of this production a! nd its working interest ranges from 75% to 100%. The Company has various other oil and natural gas properties with varying working interests located across the United States, including the Austin Chalk Trend and Eagle Ford Shale in Texas, the Fitts-Allen Fields in Central Oklahoma, and various other areas across South Louisiana, Montana, North Dakota, New Mexico, and West Virginia.Advisors' Opinion:
- [By Matt DiLallo]
2. Halcon (NYSE: HK )
Since the company's transformational recapitalization by former�Petrohawk�CEO Floyd Wilson, Halcon has been rapidly expanding its assets and oil production. Last year saw the company add�the Bakken and the Eagle Ford to its portfolio, which played a big role in its ability to grow oil production by an astounding 173.2% year over year.�Expect more of the same in 2013, as the company looks to spend about $1.2 billion to drill its oily acres in its portfolio, with an emphasis on its acreage in the Bakken.
Top 10 Oil Stocks To Invest In Right Now: Petrotech Oil & Gas Inc (PTOG)
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 highways for in house leases, third party oil companies and loca! l 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.
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 10 Oil Stocks To Invest In Right Now: Markwest Energy Partners LP (MWE)
MarkWest Energy Partners, L.P. (MarkWest Energy) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. It provides services in the midstream sector of the natural gas industry. The Company also provides processing and fractionation services to crude oil refineries in the Corpus Christi, Texas area through its Javelina gas processing and fractionation facility. As of December 31, 2011, the Company operated in four segments: Southwest, Northeast, Liberty and Gulf Coast. Effective December 31, 2011, the Company acquired the remaining 49% interest in MarkWest Liberty Midstream. On February 1, 2011, the Company acquired Langley processing plant.
The Company owns a system in East Texas that consists of natural gas gathering pipelines, centralized compressor stations, a natural gas processing facility and an NGL pipeline. The East Texas system is located in Panola, Harrison and Rusk Counties and services the Carthage Field. Producing formations in Panola County consist of the Cotton Valley, Pettit, Travis Peak and Haynesville formations. During the year ended December 31, 2011, approximately 77% of its natural gas volumes in the East Texas System result from contracts with six producers. The Company sells substantially all of the purchased and retained NGLs produced at its East Texas processing facility to Targa Resources Partners, L.P. (Targa) under a long-term contract. Such sales represent approximately 19.4% of its consolidated revenue in 2011.
The Company owns a natural gas gathering system in the Woodford Shale play in the Arkoma Basin of southeast Oklahoma. The liquids-rich natural gas gathered in the Woodford system is processed through Centrahoma Processing LLC (Centrahoma), its equity investment, or other third-party processors. In addition, it owns the Foss Lake! natural gas gathering system and the Western Oklahoma natural gas processing complex, all located in Roger Mills, Beckham, Custer and Ellis Counties of western Oklahoma. The gathering portion consists of a pipeline system that is connected to natural gas wells and associated compression facilities. The Company also owns a gathering system in the Granite Wash formation in Wheeler County in the Texas panhandle that is connected to its Western Oklahoma processing complex. The Company completed the expansion of the Western Oklahoma natural gas processing plant in October 2011.
Approximately 70% of its Oklahoma volumes result from contracts with three producers in 2011. The Company sells substantially all of the NGLs produced in the Western Oklahoma processing complex to ONEOK Hydrocarbon L.P. (ONEOK) under a long-term contract. Such sales represent approximately 13.2% of its consolidated revenue in 2011. The Company owns a number of natural gas gathering systems located in Texas, Louisiana, Mississippi and New Mexico, including the Appleby gathering system in Nacogdoches County, Texas. It gathers a portion of the gas produced from fields adjacent to its gathering systems, including from wells targeting the Haynesville Shale. In addition, it owns four lateral pipelines in Texas and New Mexico.
The Company�� Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing plants, an NGL pipeline and the Siloam NGL fractionation plant. In addition, it has two caverns for storing propane at its Siloam facility and additional propane storage capacity under a long-term firm-capacity agreement with a third party. The Northeast segment operations include fractionation and marketing services on behalf of the Liberty segment. The Company owns and operates a crude oil pipeline in Michigan (Michigan Crude Pipeline) providing transportation service for three shippers.
The Company pr! ovides na! tural gas midstream services in southwestern Pennsylvania and northern West Virginia through MarkWest Liberty Midstream. It is a processor of natural gas in the Marcellus Shale, with gathering, processing, fractionation, storage and marketing operations.
Effective January 1, 2012, the Company and The Energy and Minerals Group (EMG) formed MarkWest Utica EMG, a joint venture focused on the development of natural gas processing and NGL fractionation, transportation and marketing infrastructure to serve producers' drilling programs in the Utica shale in eastern Ohio. During 2011, the Utica Segment did not have any operations.
Gulf Coast Segment
The Company owns and operates the Javelina processing facility, a natural gas processing facility in Corpus Christi, Texas that treats and processes off-gas from six local refineries operated by three different refinery customers. As of December 31, 2011, the Company owned a 40% interest in Centrahoma Processing LLC (Centrahoma), a joint venture with Cardinal Midstream, LLC (Cardinal). Centrahoma owns certain processing plants in the Arkoma Basin and Cardinal operates an additional processing plant that is not owned by Centrahoma but is located adjacent to and operates in conjunction with the Centrahoma plants.Advisors' Opinion:
- [By Ben Levisohn]
Ameren Corp. (AEE)
Arthur J. Gallagher (AJG)
E.I. DuPont de Nemours & Co. (DD)
Enterprise Products Partners LP (EPD)
General Mills (GIS)
H&R Block (HRB)
Hancock Holding (HBHC)
Kraft Foods Group (KRFT)
Magellan Midstream Partners LP (MMP)
MarkWest Energy Partners L P (MWE)
Microchip Technology (MCHP)
NextEra Energy (NEE)
Regency Centers (REG)
TELUS Corp. (TU)
West Corp. (WSTC)
Williams Companies (WMB)
- [By Matt DiLallo]
MarkWest Energy� (NYSE: MWE ) �has taken this as a challenge and will soon be the top infrastructure provider in the region. During the year it plans on bringing a 100,000 barrel per day fractionation facility on line with truck, rail, and pipeline access. This facility will also have access to fractionation facilities in the Marcellus Shale. This addition broadens a portfolio that already houses multiple facilities capable of refrigeration, cryogenic processing, and fractionation. As you can see from the following slide, the company has a number of projects under construction to meet the growing needs of producers in the region. �
- [By Matt DiLallo]
Moving Marcellus gas
In Summit's second deal it is purchasing the Mountaineer Midstream gas-gathering system in the Marcellus from MarkWest (NYSE: MWE ) �for�$210 million.�The newly constructed 40-mile system leads into MarkWest's Sherwood Processing Complex which is currently being expanded from 400 million cubic feet per day to 800 million cubic feet per day of processing capacity. The system Summit is acquiring is secured by a long-term, fee-based contract with Antero Resources. Again, the company is picking up an asset that has secured revenue while providing MarkWest with capital so it can grow its processing capacity.
- [By Matt DiLallo]
In Magnum Hunter's two core operating areas, the Williston Basin and the Appalachian Basin, it has felt this impact directly. The company has been forced to endure production shut-ins because critical midstream assets, like those now in service by MarkWest (NYSE: MWE ) , weren't yet available. Further, in order to access MarkWest's plants, Magnum Hunter has been building the pipeline infrastructure critical to connect its gas to these plants. As seen in the map below, Magnum Hunter's Eureka Hunter Pipeline is providing it with critical access to MarkWest's new Mobley plant:
Top 10 Oil Stocks To Invest In Right Now: Freedom Energy Holdings Inc (FDMF)
Freedom Energy Holdings, Inc. (FDMF), incorporated in June 2005, is a holding company with a focus on the identification of opportunities within the oil and energy sectors. KC-9000 is the Company�� heavy oil technology, to assist in the recovery of heavy oil. As of December 31, 2011, the Company research had developed and shown a new product SR-139 at breaking down asphalt shingles allowing the extraction and recovery of hydrocarbons.
KC-9000 is a micro-emulsion technology. KC 9000 is a micro-emulsion developed to assist in the recovery and extraction of heavy based hydrocarbons that are saturated with high metals and paraffin content. KC 9000 is used for tank cleaning processes. By injecting KC 9000 directly into the tank port holes, at the tank bottom, with the emulsifies turning into an easily extractable slurry.
Top 10 Oil Stocks To Invest In Right Now: Statoil ASA (STO)
Statoil ASA (Statoil), incorporated on September 18, 1972, is an integrated energy company primarily engaged in oil and gas exploration and production activities. As of December 31, 2011, the Company had business operations in 41 countries and territories. Effective from January 1, 2011, the Company�� segments were Development and Production Norway; Development and Production International; Marketing, Processing and Renewable Energy; Fuel & Retail, Other. As of 31 December 2011, the Company had proved reserves of 2,276 million barrels (mmbbl) and 3,150 billion cubic meters (bcm) (equivalent to 17,681 trillion cubic feet (tcf)) of natural gas, corresponding to aggregate proved reserves of 5,426 mmboe. In December 2011, the Company acquired Brigham Exploration Company. On April 14, 2011, Statoil's formation of a joint venture and sale of 40% of the Peregrino field off the coast of Brazil to the Sinochem Group was closed. With effect from January 2011, Statoil formed a joint venture with PTTEP of Thailand in its oil sands business and, as part of that transaction, sold PTTEP a 40% interest in the leases in Alberta, Canada. Statoil retains 60% ownership and operatorship of the oil sands project. In June 2012, the Company divested its 54% interest in Statoil Fuel & Retail ASA to Alimentation Couche-Tard.
Development and Production Norway
Development and Production Norway (DPN) consists of the Company�� field development and operational activities on the Norwegian continental shelf (NCS). Development and Production Norway is the operator of 44 developed fields on the NCS. Statoil's equity and entitlement production on the NCS was 1.316 mmboe per day in 2011, which was about 71% of Statoil's total production. Acting as operator, DPN is responsible for approximately 72% of all oil and gas production on the NCS. In 2011, its average daily production of oil and natural gas liquids (NGL) on the NCS was 693 mboe, while its average daily gas production on the NCS was 99.1 mmcm (3.5 b! illion cubic feet (bcf)). The Company has an ownership interests in exploration acreage throughout the licensed parts of the NCS, both within and outside its production areas. It participates in 227 licenses on the NCS and is the operator for 171 of them. As of 31 December 2011, Statoil had a total of 1,369 mmbbl of proved oil reserves and 444 bcm (15.7 tcf) of proved natural gas reserves on the NCS. Total entitlement liquids and gas production in 2011 amounted to 1,316 mmboe per day.
Statoil's NCS portfolio consists of licenses in the North Sea, the Norwegian Sea and the Barents Sea. It has organized its production operations into four business clusters: Operations South, Operations North Sea West, Operations North Sea East and Operations North. The Operations South and Operations North Sea West and East clusters cover its licenses in the North Sea. Operations North covers the Company�� licenses in the Norwegian Sea and in the Barents Sea, while partner-operated fields cover the entire NCS and are included internally in the Operations South business cluster. During 2011, it two Statoil-operated oil discoveries: the Aldous discovery (PL265) in the North Sea and the Skrugard discovery (PL532) in the Barents Sea. The Aldous Major South discovery in PL265 on the Utsira Height in the Sleipner area is situated 140 kilometers west of Stavanger and 35 kilometers south of the Grane field. The Skrugard discovery is located about 250 kilometers off the coast from the Melkoya LNG plant in Hammerfest.
As of December 31, 2011, the Company�� fields under development included the Gudrun, Valemon, Visund South, Hyme, Stjerne, Vigdis North-East, Skuld, Vilje South, Skarv, and Marulk. In 2011, the Company�� total entitlement oil and NGL production in Norway was 252 mmbbl, and gas production was 36.2 bcm (1,287 bcf). The main producing fields in the Operations South area are Statfjord, Snorre, Tordis, Vigdis, Sleipner and partner-operated fields. Operations North Sea East is a gas area tha! t also co! ntains quantities of oil. The area includes the Troll, Fram, Vega, Oseberg and Tune fields. The Company�� producing fields in the Operations North area are Asgard, Mikkel, Yttergryta, Heidrun, Kristin, Tyrihans, Norne, Urd, Alve, Njord, Snohvit and Morvin.
Development and Production International
Development and Production International (DPI) is responsible for the development and production of oil and gas outside the Norwegian continental shelf (NCS). In 2011, the segment was engaged in production in 12 countries: Canada, the United States, Brazil, Venezuela, Angola, Nigeria, Iran, Algeria, Libya, Azerbaijan, Russia and the United Kingdom. In 2011, DPI produced 28.9% of Statoil's total equity production of oil and gas. Statoil has exploration licenses in North America (Gulf of Mexico, Canada and Alaska), South America and sub-Saharan Africa (Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania), Middle East and North Africa (Libya and Iran) and Europe and Asia (the Faeroes, Greenland, the United Kingdom, Azerbaijan and Indonesia). The main sanctioned development projects in which DPI is involved are in the United States, Angola and Canada. The Brigham Exploration Company acquisition added production of approximately 21 mboe per day (as of December) to Statoil's production and gave access to 1,500 square kilometers (375,000 acres) in the Bakken and Three Forks formations in the Williston Basin.
The Company has exploration licenses in North America (Gulf of Mexico, Canada and Alaska), South America and sub-Saharan Africa (Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania), Middle East and North Africa (Libya and Iran), and Europe and Asia (the Faroes, Greenland, the United Kingdom, Azerbaijan and Indonesia). It completed 16 wells in 2011. Five were announced as discoveries: the Mukuvo and Lira discoveries in Angola, the Gavea and Peregrino South discovery in Brazil and the Logan discovery in Gulf of Mexico (GoM). Statoil acquired in! terests i! n six new licenses in Indonesia in 2011. Statoil has activities in the United States, with approximately 300 exploration leases in the GoM and 66 in Alaska. It is also an operator and partner in exploration licenses off the coast of Newfoundland in Canada. Statoil is operator and partner in exploration licenses off the coast of Newfoundland (11,138 square kilometers). It has exploration licenses in Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania. The Company has licenses in Libya, Iran, Faroes, Greenland, the United Kingdom, Azerbaijan and Indonesia. In 2011, Statoil's petroleum production outside Norway amounted to an average of 334 mboe per day of entitlement production and 534 mboe per day of equity production.
The Company has activities in the United States Gulf of Mexico, the Appalachian region, south-west Texas, the Williston Basin, off the East Coast of Canada and in the oil sands of Alberta, Canada. It also has a representative office in Mexico City. Offshore, the Company has production interests in Hibernia and Terra Nova, and interests in two development projects. Its development and production activities in South America and sub-Saharan Africa comprise the Peregrino operatorship in Brazil, the Petrocedeno project in Venezuela, the Agbami offshore field in Nigeria and four Angolan offshore blocks. Statoil's development and production in the Middle East and North Africa in 2011, primarily encompassed Algeria, Libya, Egypt, Iran and Iraq. The Company�� Development and Production in Europe and Asia primarily comprises Azerbaijan, Russia, United Kingdom and Ireland.
Marketing, Processing and Renewable Energy
Marketing, Processing and Renewable Energy (MPR) is responsible for the transportation, processing, manufacturing, marketing and trading of crude oil, natural gas, liquids and refined products, and for developing business opportunities in renewables. It runs two refineries, two gas processing plants, one methanol plant and three crude! oil term! inals. MPR is also responsible for marketing gas supplies originating from the Norwegian state's direct financial interest (SDFI). In total, it is responsible for marketing approximately 80% of all Norwegian gas exports. In 2011, Statoil sold 36.1 bcm (1.3 tcf) of natural gas from the Norwegian continental shelf (NCS) on its own behalf, in addition to approximately 33.5 bcm (1.2 tcf) of NCS gas on behalf of the Norwegian state. Statoil's total European gas sales, including third-party gas, amounted to 79.8 bcm (2.9 tcf) in 2011, of which 39.5 bcm (1.4 tcf) was gas sold on behalf of the Norwegian state. The Natural Gas business cluster is responsible for Statoil's marketing and trading of natural gas worldwide, for power and emissions trading and for overall gas supply planning. In 2011, the Company sold 36.1 bcm (1.3 tcf) of natural gas from the NCS on its own behalf, in addition to approximately 33.5 bcm (1.2 tcf) of NCS gas on behalf of the Norwegian state. Statoil's total European gas sales, including third-party gas, amounted to 79.8 bcm (2.9 tcf) in 2011, of which 39.5 bcm (1.4 tcf) was gas sold on behalf of the Norwegian state. In addition, it sold 5.5 bcm (0.2 tcf) of gas originating from its international positions, mainly in Azerbaijan and the United States, of which 2.7 bcm (0.1 tcf) was entitlement gas. As technical service provider (TSP), Statoil is responsible for the operation, maintenance and further development of the Karsto gas processing plant on behalf of the operator Gassco.
Statoil is the seller of crude oil, operating from sales offices in Stavanger, Oslo, London, Singapore, Stamford and Calgary and selling and trading crude oil, condensate, NGL and refined products. Statoil holds the lease for the South Riding Point crude oil terminal in the Bahamas, which includes, oil storage as well as loading and unloading facilities. It also operates the Mongstad terminal and has shared ownership with Petoro. The Company is a majority owner (79%) and operator of the Mongstad ref! inery in ! Norway, which has a crude oil and condensate distillation capacity of 220,000 barrels per day. It is the sole owner and operator of the Kalundborg refinery in Denmark, which has a crude oil and condensate distillation capacity of 118,000 barrels per day. In addition, it has rights to 10% of production capacity at the Shell-operated refinery in Pernis in the Netherlands, which has a crude oil distillation capacity of 400,000 barrels per day. The Company�� methanol operations consist of an 81.7% interest in the gas-based methanol plant at Tjeldbergodden, Norway, which has a design capacity of 0.95 million tons per year. It also operates the Oseberg Transportation System (36.2% interest), including the Sture crude oil terminal.
Technology, Projects and Drilling
Technology, Projects and Drilling (TPD) is responsible, as a global service provider to Statoil, for delivering projects and wells and for providing support through global expertise, standards and procurement. TPD is also responsible developing and implementing new technological solutions. Statoil's research and development portfolio is organized in seven programs covering the upstream building blocks. The research and development organization operates and develops laboratories and test facilities and has an academia program that addresses cooperation with universities and research institutes.
Global Strategy and Business Development
Global Strategy and Business Development (GSB) was established in 2011, with its main office in London. GSB sets the direction for Statoil and identifies, develops and delivers opportunities for global growth.Advisors' Opinion:
- [By Arjun Sreekumar]
The field, located about 250 miles southwest of New Orleans, is one of the biggest oil discoveries in the ultra-deepwater frontier of the Gulf of Mexico and is estimated to contain nearly 6 billion barrels of oil resource in place. Exxon and Statoil (NYSE: STO ) , the Norwegian oil and gas giant, each hold a 50% interest in the field.
- [By Arjun Sreekumar]
Not only have they ventured into U.S. tight oil and gas plays, but they've also embarked upon endeavors that have landed them in the deep waters off the coasts of Brazil and even in the harsh waters of the Arctic. Royal Dutch Shell�has announced plans to drill for oil off the coast of Alaska, while ExxonMobil and Statoil (NYSE: STO ) have discussed plans to explore for oil in the frigid Arctic waters near Russia.
- [By Sara Murphy]
HSBC recently conducted an analysis that looked at European oil majors' at-risk carbon reserves. The study found Norway's�Statoil (NYSE: STO ) �to be the worst affected, with approximately 17% of its market capitalization at risk. HSBC also calculated that 6% of�BP's� (NYSE: BP ) reserves are at risk, along with 5% of�Total's (NYSE: TOT ) and 2% of�Shell's� (NYSE: RDS-A ) .�
- [By Tyler Crowe]
Several of these countries already have significant control over prices in certain regions of the world. For example, both Gazprom and Norway's Statoil (NYSE: STO ) are responsible for 40% of Europe's natural gas market, all of which is sold on those lucrative oil-indexed contracts.
Top 10 Oil Stocks To Invest In Right Now: Enterprise Products Partners LP (EPD)
Enterprise Products Partners L.P. (Enterprise), incorporated on April 9, 1998, owns and operates natural gas liquids (NGLs) related businesses of Enterprise Products Company (EPCO). The Company is a North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and certain petrochemicals. Its midstream energy asset network links producers of natural gas, NGLs and crude oil from supply basins in the United States, Canada and the Gulf of Mexico with domestic consumers and international markets. Its midstream energy operations include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminals; crude oil gathering and transportation, storage and terminals; offshore production platforms; petrochemical and refined products transportation and services; and a marine transportation business that operates on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. Its assets include approximately 50,000 miles of onshore and offshore pipelines; 200 million barrels of storage capacity for NGLs, petrochemicals, refined products and crude oil; and 14 billion cubic feet of natural gas storage capacity. In addition, its asset portfolio includes 24 natural gas processing plants, 21 NGL and propylene fractionators, six offshore hub platforms located in the Gulf of Mexico, a butane isomerization complex, NGL import and export terminals, and octane isobutylene production facilities. The Company operates in five business segments: NGL Pipelines & Services; Onshore Natural Gas Pipelines & Services; Onshore Crude Oil Pipelines & Services; Offshore Pipelines & Services, and Petrochemical & Refined Products Services.
NGL Pipelines & Services
The Company�� NGL Pipelines & Services business segment includes its natural gas processing plants and related NGL marketing activities; approximately 16,700 miles of NGL pipel! ines; NGL and related product storage facilities; and 14 NGL fractionators. This segment also includes its import and export terminal operations. At the core of its natural gas processing business are 24 processing plants located across Colorado, Louisiana, Mississippi, New Mexico, Texas and Wyoming. Natural gas produced at the wellhead (especially in association with crude oil) contains varying amounts of NGLs. Once the mixed component NGLs are extracted by a natural gas processing plant, they are transported to a centralized fractionation facility for separation into purity NGL products. Once processed, this natural gas is available for sale through its natural gas marketing activities. Its NGL marketing activities generate revenues from the sale and delivery of NGLs it takes title to through its natural gas processing activities and open market and contract purchases from third parties. Its NGL marketing activities utilize a fleet of approximately 670 railcars, the majority of which are leased from third parties.
The Company�� NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing facilities, refineries and import terminals to fractionation plants and storage facilities; distribute and collect NGL products to and from fractionation plants, storage and terminal facilities, petrochemical plants, export facilities and refineries, and deliver propane to customers along the Dixie Pipeline and certain sections of the Mid-America Pipeline System. Revenues from its NGL pipeline transportation agreements are based upon a fixed fee per gallon of liquids transported multiplied by the volume delivered. Certain of its NGL pipelines offer firm capacity reservation services. It collects storage revenues under its NGL and related product storage contracts based on the number of days a customer has volumes in storage multiplied by a storage fee. In addition, it charges customers throughput fees based on volumes delivered into and subsequently withdrawn from storage. Its ! principal! NGL pipelines include Mid-America Pipeline System, South Texas NGL Pipeline System, Seminole Pipeline, Dixie Pipeline, Chaparral NGL System, Louisiana Pipeline System, Skelly-Belvieu Pipeline, Promix NGL Gathering System, Houston Ship Channel pipeline, Rio Grande Pipeline, Panola Pipeline and Lou-Tex NGL Pipeline. It operates its NGL pipelines with the exception of the Tri-States pipeline.
The Company�� NGL operations include import and export facilities located on the Houston Ship Channel in southeast Texas. It owns an import and export facility located on land it leases from Oiltanking Houston LP. Its import facility can offload NGLs from tanker vessels at rates up to 14,000 barrels per hour depending on the product. During the year ended December 31, 2012, its average combined NGL import and export volumes were 132 thousand barrels per day. In addition to its Houston Ship Channel import/export terminal, it owns a barge dock also located on the Houston Ship Channel, which can load or offload two barges of NGLs or other products simultaneously at rates up to 5,000 barrels per hour.
The Company owns or have interests in 14 NGL fractionators located in Texas and Louisiana. NGL fractionators separate mixed NGL streams into purity NGL products. The primary sources of mixed NGLs fractionated in the United States are domestic natural gas processing plants, crude oil refineries and imports of butane and propane mixtures. Mixed NGLs sourced from domestic natural gas processing plants and crude oil refineries are transported by NGL pipelines and by railcar and truck to NGL fractionation facilities.
The Company�� NGL fractionation facilities process mixed NGL streams for third party customers and support its NGL marketing activities. It earns revenues from NGL fractionation under fee-based arrangements, including a level of demand-based fees. At its Norco facility in Louisiana, it performs fractionation services for certain customers under percent-of-liquids co! ntracts. ! Its fee-based fractionation customers retain title to the NGLs, which it processes for them. Its NGL fractionators include Mont Belvieu fractionator, Shoup and Armstrong fractionator, Hobbs NGL fractionator, Norco NGL fractionator, Promix NGL fractionators and BRF fractionators.
Onshore Natural Gas Pipelines & Services
The Company�� Onshore Natural Gas Pipelines & Services business segment includes approximately 19,900 miles of onshore natural gas pipeline systems, which provide for the gathering and transportation of natural gas in Colorado, Louisiana, New Mexico, Texas and Wyoming. It leases salt dome natural gas storage facilities located in Texas and Louisiana and own a salt dome storage cavern in Texas, which are integral to its pipeline operations. This segment also includes its related natural gas marketing activities.
The Company�� onshore natural gas pipeline systems and storage facilities provide for the gathering and transportation of natural gas from producing regions, such as the San Juan, Barnett Shale, Permian, Piceance, Greater Green River, Haynesville Shale and Eagle Ford Shale supply basins in the western United States. In addition, these systems receive natural gas production from the Gulf of Mexico through coastal pipeline interconnects with offshore pipelines. Its onshore natural gas pipelines receive natural gas from producers, other pipelines or shippers at the wellhead or through system interconnects and redeliver the natural gas to processing facilities, local gas distribution companies, industrial or municipal customers, storage facilities or to other onshore pipelines.
Its onshore natural gas pipelines generates revenues from transportation agreements under which shippers are billed a fee per unit of volume transported multiplied by the volume gathered or delivered. Its onshore natural gas pipelines offer firm capacity reservation services whereby the shipper pays a contractually stated fee based on the level of through! put capac! ity reserved in its pipelines whether or not the shipper actually utilizes such capacity. Under its natural gas storage contracts, there are typically two components of revenues monthly demand payments, which are associated with a customer�� storage capacity reservation and paid regardless of actual usage, and storage fees per unit of volume stored at its facilities. The Company�� natural gas marketing activities generate revenues from the sale and delivery of natural gas obtained from third party well-head purchases, regional natural gas processing plants and the open market.
Onshore Crude Oil Pipelines & Services
The Company�� Onshore Crude Oil Pipelines & Services business segment includes approximately 5,100 miles of onshore crude oil pipelines, crude oil storage terminals located in Oklahoma and Texas, and its crude oil marketing activities. Its onshore crude oil pipeline systems gather and transport crude oil in New Mexico, Oklahoma and Texas to refineries, centralized storage terminals and connecting pipelines. Revenue from crude oil transportation is based upon a fixed fee per barrel transported multiplied by the volume delivered.
The Company owns crude oil terminal facilities in Cushing, Oklahoma and Midland, Texas, which are used to store crude oil volumes for it and its customers. Under its crude oil terminaling agreements, it charges customers for crude oil storage based on the number of days a customer has volumes in storage multiplied by a contractual storage fee. With respect to storage capacity reservation agreements, it collects a fee for reserving storage capacity for customers at its terminals. In addition, it charges its customers throughput (or pumpover) fees based on volumes withdrawn from its terminals. It provides fee-based trade documentation services whereby it documents the transfer of title for crude oil volumes transacted between buyers and sellers at its terminals. The Company�� crude oil marketing activities generate revenues! from the! sale and delivery of crude oil obtained from producers or on the open market.
Offshore Pipelines & Services
The Company�� Offshore Pipelines & Services business segment serves active drilling and development regions, including deepwater production fields, in the northern Gulf of Mexico offshore Texas, Louisiana, Mississippi and Alabama. This segment includes approximately 2,300 miles of offshore natural gas and crude oil pipelines and six offshore hub platforms. Its offshore Gulf of Mexico pipelines provide for the gathering and transportation of natural gas or crude oil. Revenue from its offshore pipelines is derived from fee-based agreements whereby the customer is charged a fee per unit of volume gathered or transported multiplied by the volume delivered. Poseidon Oil Pipeline Company, L.L.C. (Poseidon), in which it has a 36% equity method investment, purchases crude oil from producers and shippers at a receipt point (at a fixed or index-based price less a location differential) and then sells quantities of crude oil at onshore Louisiana locations (at the same fixed or index-based price, as applicable).
The Company�� offshore platforms are components of its pipeline operations. Platforms are used to interconnect the offshore pipeline network; provide means to perform pipeline maintenance; locate compression, separation and production handling equipment and similar assets, and conduct drilling operations during the initial development phase of an oil and natural gas property. Revenues from offshore platform services consist of demand fees and commodity charges. Revenue from commodity charges is based on a fixed-fee per unit of volume delivered to the platform multiplied by the total volume of each product delivered.
Petrochemical & Refined Products Services
The Company�� Petrochemical & Refined Products Services business segment consists of propylene fractionation plants, pipelines and related marketing activities; a butane isom! erization! facility and related pipeline system; octane enhancement and isobutylene production facilities; refined products pipelines, including its Products Pipeline System, and related marketing activities, and marine transportation and other services.
The Company�� propylene fractionation and related activities consist of seven propylene fractionation plants (six located in Mont Belvieu, Texas and a seventh in Baton Rouge, Louisiana), propylene pipeline systems aggregating approximately 680 miles in length and related petrochemical marketing activities. This business includes an export facility and associated above-ground polymer grade propylene storage spheres located in Seabrook, Texas. Results of operations for its polymer grade propylene plants are dependent upon toll processing arrangements and petrochemical marketing activities. The toll processing arrangements include a base-processing fee per gallon (or other unit of measurement). Its petrochemical marketing activities include the purchase and fractionation of refinery grade propylene obtained in the open market and generate revenues from the sale and delivery of products obtained through propylene fractionation. The revenues from its propylene pipelines are based upon a transportation fee per unit of volume multiplied by the volume delivered to the customer. As part of its petrochemical marketing activities, it has refinery grade propylene purchase and polymer grade propylene sales agreements. Its butane isomerization business includes three butamer reactor units and eight associated deisobutanizer units located in Mont Belvieu, Texas, which comprise the commercial isomerization facility in the United States.
The Company�� commercial isomerization units convert normal butane into mixed butane, which is fractionated into isobutane, isobutane and residual normal butane. The uses of isobutane are for the production of propylene oxide, isooctane, isobutylene and alkylate for motor gasoline. These processing arrangements inclu! de a base! -processing fee per gallon (or other unit of measurement). Its isomerization business also generates revenues from the sale of natural gasoline created as a by-product of the isomerization process. The Company owns and operates an octane enhancement production facility located in Mont Belvieu, Texas, which produces isooctane, isobutylene and methyl tertiary butyl ether (MTBE). The products produced by this facility are used in reformulated motor gasoline blends. The isobutane feedstocks consumed in the production of these products are supplied by its isomerization units. The Company owns a facility located on the Houston Ship Channel, which produces high purity isobutylene (HPIB). The feedstock for this plant is produced by its octane enhancement facility located at its Mont Belvieu complex. HPIB is used in the production of alkylated phenols used as antioxidants, lube oil additives, butyl rubber and resins.
Refined products pipelines and related activities consist of its Products Pipeline System, equity method investment in Centennial Pipeline LLC (Centennial) and refined products marketing activities. The Products Pipeline System transports refined products, and petrochemicals, such as ethylene and propylene and NGLs, such as propane and normal butane. These refined products are produced by refineries and include gasoline, diesel fuel, aviation fuel, kerosene, distillates and heating oil. Refined products also include blend stocks, such as raffinate and naphtha. Blend stocks are used to produce gasoline or as a feedstock for certain petrochemicals. The Centennial Pipeline intersects its Products Pipeline System near Creal Springs, Illinois, and loops the Products Pipeline System between Beaumont, Texas and south Illinois. In addition, it has refined products terminals located at Aberdeen, Mississippi and Boligee, Alabama adjacent to the Tombigbee River and on the Houston Ship Channel in Pasadena, Texas. Its related marketing activities generate revenues from the sale and delivery of refin! ed produc! ts obtained from third parties on the open market.
The Company�� marine transportation business consists of tow boats and tank barges, which are used to transport refined products, crude oil, asphalt, condensate, heavy fuel oil, liquefied petroleum gas and other petroleum products along inland and intracoastal the United States waterways. Its marine transportation assets service refinery and storage terminal customers along the Mississippi River, the intracoastal waterway between Texas and Florida and the Tennessee-Tombigbee Waterway system. It owns a shipyard and repair facility located in Houma, Louisiana and marine fleeting facilities in Bourg, Louisiana and Channelview, Texas. Other services consist of the distribution of lubrication oils and specialty chemicals and the bulk transportation of fuels by truck, in Oklahoma, Texas, New Mexico, Kansas and the Rocky Mountain region of the United States.Advisors' Opinion:
- [By Matt DiLallo]
As an asset class, upstream oil and gas MLPs are faced with more�difficulty�in maintaining steady cash flow from quarter to quarter. Midstream MLPs like Enterprise Products Partners (NYSE: EPD ) have a much easier task ��the majority of its cash flow is locked into fee-based contracts. In fact, 81% of Enterprise's gross operating margin is secured by long-term, fee-based contracts. Upstream MLPs try to replicate this income safety by hedging production for several years, but they are not always successful in locking in enough cash flow to cover the distribution from quarter to quarter.�
- [By Arjun Sreekumar]
One of the major reasons for this dramatic contraction in the WTI-Brent spread has been the decline in crude oil stockpiles at Cushing due to improved pipeline capacity. One of the most important projects in this respect is the Seaway pipeline, which ships crude from Cushing to Houston-area refineries. In January, the line's joint operators,�Enterprise Products Partners (NYSE: EPD ) and Enbridge,�boosted capacity along the Seaway system from 150,000 barrels per day to 280,000 barrels per day, which provided additional relief to the glut at Cushing.