Chesapeake Energy Corporation (CHK) reported on Friday that it now plans to spin off its Oilfield Services Business to its shareholders.
The company announced in February that it was seeking alternatives for its oilfield services business which is operated by CHK’s subsidiary Chesapeake Oilfield Operating. The spin off will be completed in tax free transaction that will eliminate $1.1 billion in debt from the company’s balance sheet. This is part of CHK’s plan to divest non-core businesses in order to focus on the highest rate of return businesses.
Looking forward, the company expects production to grow by 7%-10% in 2015 with the asset sales.
Hot Construction Material Companies To Buy For 2015: Enertopia Corp (ENRT)
Enertopia Corp (Enertopia), incorporated on November 24, 2004, is engaged in medicinal marijuana business. The Company is diverse in its pursuit of business opportunities in several sectors, including: Medicinal Marijuana, Oil and Gas, Solar PV (Photovoltaic), Solar Thermal (Hot Water), Energy Retrofits and Recovery, and Solar powered Filtered Drinking Water.
The Company no longer has any material oil and gas resources. The Company operates in two segments: renewable energy, and mining exploration and developments, which are managed separately based on fundamental differences in their operations nature.Advisors' Opinion:
- [By Peter Graham]
What�� the Catch With Lexaria Corp? According to various disclosures, a transaction or transactions of $1k has or will occur to mention Lexaria Corp in various investment newsletters. Last Friday, Lexaria Corp announced it had closed its Private Placement financing announced on March 5 for gross proceeds of $1,272,000 ��higher than the originally announced $960,000 figure due to ��verwhelming demand.��Lexaria Corp will issue 10,600,000 common shares at US$0.12 and 10,600,000 full warrants that expire on September 21, 2016 with an exercise price of US$0.25. However, the company may also accelerate the expiry date of the warrants if the stock price trades above CAD$0.40 cents for 20 consecutive days at any time after 6 months and one day has elapsed. Otherwise and in early March, Lexaria Corp reported that its board of directors had decided to make a strategic entry into the medical marijuana business by way of an ��mportant Joint Venture��with Enertopia Corp (OTCQB: ENRT). Under the terms of the Agreement, Lexaria Corp had agreed to pay Enertopia 1 million restricted common shares in return for Enertopia's participation plus 500,000 restricted common shares ENRT�� Chairman in return for his participation on the Lexaria Advisory Board. Following the issuance of these shares, Lexaria Corp will have a total of 18,431,452 shares issued and outstanding and 21,256,452 shares fully diluted. A quick look at Lexaria Corp�� financials reveals revenues of $160k (most recent reported quarter), $241k, $251k and $253k for the past four quarters along with net losses of $102k (most recent reported quarter), $126k, $58k and $48k. At the end of last January, Lexaria Corp had $66k in cash to cover $1,415k in current liabilities and $59k in other liabilities. So aside from the income statement, investors might want to look more closely at Lexaria Corp�� financing terms.
Top 10 Energy Stocks To Invest In 2014: Midstates Petroleum Company Inc (MPO)
Midstates Petroleum Company, Inc. is an independent exploration and production company. The Company�� areas of operation include Pine Prairie, South Bearhead Creek/Oretta, West Gordon and North Cowards Gully. Its Upper Gulf Coast Tertiary trend extends from south Texas to Mississippi across its operating areas in central Louisiana. As of December 31, 2011, it had accumulated approximately 77,100 net acres in the trend. As of December 31, 2011, its development operations are focused in the Wilcox interval of the trend. The Company�� business is conducted through Midstates Petroleum Company LLC, as a direct, wholly owned subsidiary. In September 2012, the Company and its subsidiary acquired all of Eagle Energy Production, LLC�� producing properties as well as their developed and undeveloped acreage primarily in the Mississippian Lime oil play in Oklahoma and Kansas.
As of December 31, 2011, it drilled 57 gross wells in the trend, approximately 93% of. During the year ended December 31, 2011, its average daily production were 7,499 barrels of oil equivalent per day. As of December 31, 2011, it had a total of 974 gross vertical drilling locations, including 115 related to acreage under option, in the trend. As of December 31, 2011, the Company�� properties included approximately 92 gross active producing wells, 95% of, which it operate, and in which it held an average working interest of approximately 99% across its 77,100 net acre leasehold. During March 31, 2012, the Company continued its drilling program, spudding 14 wells, of which nine are producing, three are being drilled and two are waiting to be completed. As of December 331, 2011, it averaged daily production is approximately 9,000 barrels of oil equivalent per day.
The Company�� properties in the Pine Prairie area represented 46% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 3,793 net barrels of oil equ! ivalent per day, consisting of 2,143 barrels of oil, 565 barrels of natural gas liquidations (NGLs) and 6,508 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 92.2% and 68.9%, respectively, on its acreage in Pine Prairie area. The Company has an additional 194 identified drilling locations in this area based primarily on 10-acre spacing.
South Bearhead Creek/Oretta
The Company�� properties in the South Bearhead Creek/Oretta area represented 20.3% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 4,367 net barrels of oil equivalent per day, consisting of 2,196 barrels of oil, 438 barrels of NGLs and 10,396 million cubic feet of natural gas per day. During 2011, these wells produced at an average daily rate of 2,413 net barrels of oil equivalent per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 100% and 78.5%, respectively, on its acreage in South Bearhead Creek/Oretta area. The Company has an additional 43 identified drilling locations in this area based primarily on 40-acre spacing.
The Company�� properties in the West Gordon area represented 21% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 1,002 net barrels of oil equivalent per day, consisting of 617 barrels of oil, 68 barrels of NGLs and 1,901 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 95.9% and 71.2%, respectively, on its acreage in West Gordon area. The Company has an additional 74 identified drilling locations in this area based primarily on 40-acre spacing.
North Cowards Gully
The Company�� properties in the North Cowards Gully area represented 11.5% of ! its total! proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 149 net barrels of oil equivalent per day consisting of 103 barrels of oil, 11 barrels of NGLs, and 211 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 94.3% and 71.2%, respectively, on its acreage in North Cowards Gully area. The Company has an additional 95 identified drilling locations in this area based primarily on 40-acre spacing.Advisors' Opinion:
- [By Roberto Pedone]
One energy player that's starting to move within range of triggering a major breakout trade is Midstates Petroleum (MPO), an independent exploration and production company focused on the application of modern drilling and completion techniques to oil-prone resources. This stock is off to a rough start in 2013, with shares off by 30%.
If you look at the chart for Midstates Petroleum, you'll notice that this stock has recently come out of a nasty downtrend that took shares from over $8 to its low of $4.26 a share. Shares of MPO have started to find some buying interest over the last month at $4.44, 4.26 and $4.48 a share, as the stock has held those levels on recent pullbacks. This could be signaling that a bottom is forming for MPO, since the downside volatility looks over. Shares of MPO are now rebounding strong off those support levels and are quickly moving within range of triggering a major breakout trade.
Traders should now look for long-biased trades in MPO if it manages to break out above some near-term overhead resistance levels at $4.82 a share and then once it takes out its 50-day moving average at $5.30 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 542,939 shares. If that breakout triggers soon, then MPO will set up to re-test or possibly take out its next major overhead resistance levels at $6 to its 200-day moving average of $6.54 a share.
Traders can look to buy MPO off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.48 or $4.26 a share. One can also buy MPO off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
- [By The Energy Report]
Onshore, my favorite play is the Utica Shale, in which my top plays are Gulfport Energy Corp. (GPOR) and Rex Energy Corp. (REXX). Both companies have highly economic acreage, solid balance sheets and industry-leading production growth. I also like Rex Energy for its likely production upside. Another one of my favorite plays is the Eagle Ford Shale, in which my top plays are Penn Virginia Corp. (PVA) and Sanchez Energy Corp. (SN). Both have core acreage in the region, improving operating results and experienced management. Another favorite name of mine is Midstates Petroleum Co. Inc. (MPO). The company has assets in three solid plays and a management team with a long successful track record. Those are my favorite names at this time.
Top 10 Energy Stocks To Invest In 2014: Phillips 66 (PSX)
Phillips 66 is a holding company. The Company is engaged in producing natural gas liquids (NGL) and petrochemicals. The Company operates in three segments: the Refining and Marketing (R&M) segment, the Midstream segment and the Chemicals segment. The Refining and Marketing (R&M) segment purchases, refines, markets and transports crude oil and petroleum products, mainly in the United States, Europe and Asia, and also engages in power generation activities. The Midstream segment gathers, processes, transports and markets natural gas, and fractionates and markets NGL, predominantly in the United States. The Chemicals segment manufactures and markets petrochemicals and plastics on a worldwide basis. The Company�� operations encompass 15 refineries with a gross crude oil capacity of 2.8 million barrels per day, 10,000 branded marketing outlets and 7.2 billion cubic feet per day of gross natural gas processing capacity.
The Company�� R&M segment primarily refines crude oil and other feedstocks into petroleum products (such as gasolines, distillates and aviation fuels); buys, sells and transports crude oil; and buys, transports, distributes and markets petroleum products. This segment also engages in power generation activities. R&M has operations in the United States, Europe and Asia.
The Company�� Bayway Refinery is located on the New York Harbor in Linden, New Jersey. The refinery produces a high percentage of transportation fuels, such as gasoline, diesel and jet fuel, as well as petrochemical feedstocks, residual fuel oil and home heating oil. Its Trainer Refinery is located on the Delaware River in Trainer, Pennsylvania. Refinery facilities include fluid catalytic cracking units, hydrodesulfurization units, a reformer and a hydrocracker. The Alliance Refinery is located on the Mississippi River in Belle Chasse, Louisiana. The single-train facility includes fluid catalytic cracking units, hydrodesulfurization units and a reformer and aromatics unit. Alli! ance produces a percentage of transportation fuels, such as gasoline, diesel and jet fuel. Other products include petrochemical feedstocks, home heating oil and anode petroleum coke.
The Lake Charles Refinery is located in Westlake, Louisiana. Its facilities include crude distillation, fluid catalytic cracker, hydrocracker, delayed coker and hydrodesulfurization units. The refinery produces a percentage of transportation fuels, such as gasoline, off-road diesel and jet fuel, along with home heating oil. It owns a 50% interest in Excel Paralubes, a joint venture which owns a hydrocracked lubricant base oil manufacturing plant located adjacent to the Lake Charles Refinery. The Sweeny Refinery is located in Old Ocean, Texas, approximately 65 miles southwest of Houston. Refinery facilities include fluid catalytic cracking, delayed coking, alkylation, a continuous regeneration reformer and hydrodesulfurization units. It produces a percentage of transportation fuels, such as gasoline, diesel and jet fuel. Other products include petrochemical feedstocks, home heating oil and coke.
The Company�� Merey Sweeny, L.P. (MSLP) owns a delayed coker and related facilities at the Sweeny Refinery. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. The Company owns 50% operating interest in Sweeny Cogeneration, a joint venture, which owns a simple cycle, cogeneration power plant located adjacent to the Sweeny Refinery. The plant generates electricity and provides process steam to the refinery, and it also provides merchant power into the Texas market.
The Company�� Wood River Refinery is located in Roxana, Illinois, about 15 miles northeast of St. Louis, Missouri, at the convergence of the Mississippi and Missouri rivers. Operations include three distilling units, two fluid catalytic cracking units, hydrocracking, coking, reforming, hydrotreating and sulfur recovery. The refinery produces a percentage of transportation fuels, such as gasoline,! diesel a! nd jet fuel. Other products include petrochemical feedstocks, asphalt and coke. Its Borger Refinery is located in Borger, Texas, in the Texas Panhandle, approximately 50 miles north of Amarillo. The refinery facilities consist of coking, fluid catalytic cracking, hydrodesulfurization and naphtha reforming, in addition to a 45,000-barrels-per-day NGL fractionation facility. It produces a percentage of transportation fuels, such as gasoline, diesel and jet fuel, as well as coke, NGL and solvents.
The Ponca City Refinery is located in Ponca City, Oklahoma. It is a high-conversion facility, which includes fluid catalytic cracking, delayed coking and hydrodesulfurization units. It produces a range of products, including gasoline, diesel, jet fuel, liquefied petroleum gas (LPG) and anode-grade petroleum coke. The Billings Refinery is located in Billings, Montana. Its facilities include fluid catalytic cracking and hydrodesulfurization units. The Ferndale Refinery is located on Puget Sound in Ferndale, Washington, approximately 20 miles south of the United States-Canada border. Facilities include a fluid catalytic cracker, an alkylation unit, a diesel hydrotreater and an S-Zorb unit. The Los Angeles Refinery consists of two linked facilities located about five miles apart in Carson and Wilmington, California. The San Francisco Refinery consists of two facilities linked by a 200-mile pipeline. The Santa Maria facility is located in Arroyo Grande, California, about 200 miles south of San Francisco.
As of December 31, 2011, the Company marketed gasoline, diesel and aviation fuel through approximately 8,250 marketer-owned or -supplied outlets in 49 states. At December 31, 2011, its wholesale operations utilized a network of marketers operating approximately 6,875 outlets that provided refined product offtake from its refineries. In addition to automotive gasoline and diesel, it produces and markets aviation gasoline, which is used by smaller piston engine aircrafts. As December 31, 2011,! aviation! gasoline and jet fuel were sold through dealers and independent marketers at approximately 875 Phillips 66-branded locations in the United States.
The Company manufactures and sells automotive, commercial and industrial lubricants, which are marketed worldwide under the Phillips 66, Conoco, 76 and Kendall brands, as well as other private label brands. It also manufactures Group II and import Group III base oils and market both globally under the respective brand names Pure Performance and Ultra-S. It manufactures and markets graphite and anode-grade petroleum cokes in the United States and Europe for use in the global steel and aluminum industries. It also manufacture and market polypropylene to North America under the COPYLENE brand name. Its ThruPlus Delayed Coker Technology, a process for upgrading heavy oil into higher value, light hydrocarbon liquids, was sold in June 2011. In October 2011, it sold Seaway Products Pipeline Company to DCP Midstream. In December 2011, the Company sold its 16.55% interest in Colonial Pipeline Company and its 50% interest in Seaway Crude Pipeline Company. The Company manufactures and sells a variety of specialty products, including pipeline flow improvers and anode material for high-power lithium-ion batteries. Its specialty products are marketed under the LiquidPower and CPreme brand names.
The Company owns four refineries outside the United States: the Humber Refinery, Whitegate Refinery, Melaka Refinery and Wilhelmshaven Refinery. The Humber Refinery is located on the east coast of England in North Lincolnshire, United Kingdom. It is an integrated refinery, which produces a high percentage of transportation fuels, such as gasoline and diesel. Humber�� facilities encompass fluid catalytic cracking, thermal cracking and coking. The refinery has two coking units with associated calcining plants, which upgrade the heaviest part of the crude barrel and imported feedstocks into light oil products and graphite and anode petroleum cokes.
Th! e Whitegate Refinery is located in Cork, Ireland. The refinery primarily produces transportation fuels, such as gasoline, diesel and fuel oil, which are distributed to the inland market, as well as being exported to Europe and the United States. It also operate a crude oil and products storage complex consisting of 7.5 million barrels of storage capacity and an offshore mooring buoy, located in Bantry Bay, about 80 miles southwest of the refinery in southern Cork County.
The Mineraloelraffinerie Oberrhein GmbH (MiRO) Refinery, located on the Rhine River in Karlsruhe in southwest Germany, is a joint venture in which it owns an 18.75% interest. Facilities include three crude unit trains, fluid catalytic cracking, petroleum coking and calcining, hydrodesulfurization units, reformers, isomerization and aromatics recovery units, ethyl tert-butyl ether (ETBE) and alkylation units. MiRO produces a percentage of transportation fuels, such as gasoline and diesel. Other products include petrochemical feedstocks, home heating oil, bitumen, and anode- and fuel-grade petroleum coke. The Wilhelmshaven Refinery is located in the northern state of Lower Saxony in Germany, and has a 260,000 barrels-per-day crude oil processing capacity.
As of December 31, 2011, the Company had approximately 1,430 marketing outlets in its European operations, of which approximately 900 were Company-owned and 330 were dealer-owned. It also held brand-licensing agreements with approximately 200 sites. Through its joint venture operations in Switzerland, it also has interests in 250 additional sites.
The Midstream segment purchases raw natural gas from producers, including ConocoPhillips, and gathers natural gas through pipeline gathering systems. Its Midstream segment is primarily conducted through its 50% investment in DCP Midstream. DCP Midstream also owns or operates 12 NGL fractionation plants, along with propane terminal facilities and NGL pipeline assets. It has a 25% inte! rest in R! ockies Express Pipeline LLC (REX).
The Chemicals segment consists of its 50% investment in CPChem. As of December 31, 2011, CPChem owned or had joint-venture interests in 38 manufacturing facilities. CPChem�� business is structured around two primary operating segments: Olefins & Polyolefins (O&P) and Specialties, Aromatics & Styrenics (SA&S). The O&P segment produces and markets ethylene, propylene, and other olefin products, which are primarily consumed within CPChem for the production of polyethylene, normal alpha olefins, polypropylene and polyethylene pipe. The SA&S segment manufactures and markets aromatics products, such as benzene, styrene, paraxylene and cyclohexane, as well as polystyrene and styrene-butadiene copolymers.Advisors' Opinion:
- [By Matt DiLallo]
A gushing of income growth
Oil and gas production company, ConocoPhillips (NYSE: COP ) , announced that it was providing investors with a 4.5% raise this week. The company's CEO, Ryan Lance, pointed out that "[a] compelling dividend is a key part of our offering to shareholders and this increase is aligned with our commitment to target consistent dividend growth over time." This is actually the first raise investors have seen in a while because the company has been in the process of a major three-year repositioning program in which it shed billions of dollars in assets, including its refining arm Phillips 66 (NYSE: PSX ) .
Top 10 Energy Stocks To Invest In 2014: New Source Energy Partners LP (NSLP)
New Source Energy Partners L.P., incorporated on October 2, 2012, is engaged in the acquiring oil and natural gas properties in the United States. The Company�� properties consist of non-operated working interests in the Misener-Hunton formation (the Hunton Formation), a conventional resource reservoir located in east-central Oklahoma. As of June 30, 2012, of which approximately 58% were classified as proved developed reserves and of which approximately 76.4% were comprised of oil and natural gas liquids. As of June 30, 2012, the Company had 89,116 gross (31,554 net) acres, of which 6,796 gross (2,323 net) acres were undeveloped. As of June 30, 2012, the Company had 127 gross (28.5 net) proved undeveloped drilling locations, of which 66 gross (20.7 net) were infill drilling locations. In June 2013, New Source Energy Partners LP announced that it has acquired additional oil and natural gas properties from New Source Energy Corporation. In November 2013, New Source Energy Partners LP acquired MCE LP.
The Company�� properties are located in the Golden Lane field within the Hunton Formation of east-central Oklahoma and consist of mature, legacy oil and natural gas reservoirs. The Company�� properties consist of non-operated working interests in producing and undeveloped leasehold acreage, including 215 gross (82.4 net) producing wells with working interests ranging from 21% to 87% (38.3% weighted average); and 127 gross (28.5 net) proved undeveloped drilling locations with working interests ranging from 1% to 84% (22.4% weighted average). As of June 30, 2012, the Company had 89,116 gross (31,554 net) acres in the Golden Lane field.Advisors' Opinion:
- [By Robert Rapier]
New Source Energy Partners (NYSE: NSLP) debuted in February 2013 as the year’s first initial public offering of an upstream master limited partnership, with an initial enterprise value (EV) of $186 million. The partnership is engaged in the development and production of liquids-rich conventional resource reservoirs in east-central Oklahoma.
- [By Lee Jackson]
New Source Energy Partner L.P. (NYSE: NSLP) is definitely a name for investors interested in yield. While the company faced some issues in the second quarter due to flooding in some of its drilling areas, production is back to normal and management is very positive for the remainder of 2013. Oppenheimer has a $23 price objective, while the consensus is at $24. Investors are paid a stellar 11% distribution.
- [By Robert Rapier] There were a half a dozen initial public offerings (IPOs) by master limited partnerships in the first half of the year, and all but one are now in the green while one has nearly doubled in value.
The first MLP IPO of 2013 debuted on Jan. 15. USA Compression Partners (NYSE: USAC), which I mentioned in last week’s issue, provides compression services for the oil and gas industry. Units have advanced 36 percent since the IPO, and at the current price yield 7.3 percent.
The day after the USA Compression Partners IPO, CVR Refining (NYSE: CVRR) made its debut. CVRR was spun off from CVR Energy (NYSE: CVI), and both companies remain majority-owned by Carl Icahn. CVR Refining’s primary assets are two refineries located in Kansas and Oklahoma with a combined processing capacity of approximately 185,000 barrels per day (bpd). These refineries are strategically located near the major Cushing, Oklahoma shipment and storage hub, with easy access to discounted feedstock from the nearby Permian basin, as well as the Bakken shale and Canadian oil sands.
But refiners have struggled with diminished margins in 2013 because of a much lower Brent-WTI differential. After the recently concluded second quarter, CVRR declared a distribution of $1.35 per unit, bringing its per-unit distributions for the first half of the year to $2.93. At the same time, CVR Refining lowered its annual distribution target to a range of $4.10 to $4.80 per unit. This was lower than the outlook issued in March, when it foresaw annual distributions of $5.50 to $6.50. CVRR units slid on the news, and are presently trading slightly below the $25 IPO price. The lower end of the revised forecast implies distributions of $1.17 per unit in the second half of the year, for a forward annualized yield of 10 percent based on the recent $23.50 unit price.
SunCoke Energy Partners (NYSE: SXCP) was the third IPO to debut during a very busy third week of January. SXCP is the first M
Top 10 Energy Stocks To Invest In 2014: Bonanza Creek Energy Inc (BCEI)
Bonanza Creek Energy, Inc., incorporated in December 2010, is an oil and natural gas company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The Company�� assets and operations were focused primarily in southern Arkansas (Mid-Continent region) and the Denver Julesburg (DJ) and North Park Basins in Colorado (Rocky Mountain region) during the year ended December 31, 2010. In addition, it owns and operates oil producing assets in the San Joaquin Basin (California region). It operated approximately 99.4% and held an average working interest of approximately 85.8% of its proved reserves as of December 31, 2010. As of December 31, 2010, its net proved reserves was 32,860 million barrels of oil equivalent (MBoe).
The Company�� proved reserves and its drilling locations in its Mid-Continent acreage are located in the Dorcheat Macedonia field and the McKamie Patton field. In the Dorcheat Macedonia field the Company averages a 83.3% working interest and 68.5% net revenue interest, and all of the Company�� acreage is held by production. It had approximately 78 gross (65.0 net) producing wells and its average net daily production during April 2011, was approximately 1,249 barrels of oil equivalent per day (Boe/d) from a proved reserves base of 15,247 million barrels of oil equivalent, of which about 64.5% was oil and natural gas liquids. As of April 30, 2011, the Company had drilled 13 gross (10.2 net) wells. Immediately northwest of the Dorcheat Macedonia field, it owns and operates the McKamie gas processing facility, which processes all of the gas from the field. It owns additional interests in the Mid-Continent region near the Dorcheat Macedonia field. These include interests in the McKamie-Patton, Atlanta and Beach Creek fields. Its estimated proved reserves in these fields as of December 31, 2010, were approximately 1,947.8 million barrels of oil equivalent, and average net daily production du! ring April 2011, was approximately 239 barrels of oil equivalent per day.
The McKamie processing facility is located in Lafayette County, Arkansas and is located to serve its production in the region. The Company�� facility has a processing capacity of 15 million cubic feet per day (MMcf/d) of natural gas and 30,000 gallons per day of natural gas liquids. The facility processes natural gas and natural gas liquids, fractionates liquids into three components for sale, and sells four products at the facility's tailgate: propane, butane, natural gasolines and natural gas. It also owns approximately 150 miles of natural gas gathering pipeline that serves the facility and surrounding field areas and 32 miles of right-of-way crossing Lafayette County that can be utilized to connect the facility to other gas fields or future sales outlets. Natural gas is sold at the tailgate of the facility into a CenterPoint pipeline connection. Fractionated natural gas liquids are held on site and trucked out by the buyer, Dufour Petroleum. The McKamie processing facility had an average net output of 749 barrels of oil equivalent per day based on the facility contracts in April, 2011.
The two main areas in which the Company operates in the Rocky Mountain region include the DJ Basin in Weld County, Colorado and the North Park Basin in Jackson County, Colorado. The DJ Basin is a structural basin centered in eastern Colorado that extends into southeast Wyoming, western Nebraska, and western Kansas. Its operations in the DJ Basin are in the oil window of the Niobrara and as of December 31, 2010, consisted of approximately 42,698 gross (29,742 net) total acres. The Company�� estimated proved reserves in the DJ Basin were 8,402 million barrels of oil equivalent at December 31, 2010. As of April 30, 2011, it had a total of 141 gross (133.6 net) producing wells and its net average daily production during April 2011, was approximately 1,124 barrels of oil equivalent per day. The Company�� working inter! est for a! ll producing wells averages is 94.8% and its net revenue interest was approximately 76.5% in 2010. The Codell sandstone and Niobrara oil shale are blanket deposits in the DJ Basin.
The Company controls 47,003 gross (39,030 net) acres in the North Park Basin in northern Jackson County, Colorado. The Basin is divided into three principal opportunities: the North and South McCallum units and the non-unit acreage. The Company operates the North and South McCallum fields. The McCallum field covers 10,277 gross (8,606 net) acres of federal land with the majority of the oil production coming from a waterflood in the Pierre B formation and the carbon dioxide production coming from naturally flowing Dakota wells. Oil production is trucked to the market while carbon dioxide production is sent to a Praxair plant for processing and delivery to the market. In the North Park Basin, its estimated proved reserves as of December 31, 2010, were approximately 696.1 million barrels of oil equivalent, of which 100% were oil. Its average net production during April 2011, was approximately 140 barrels of oil equivalent per day. All of the Company�� 47,003 gross (39,030 net) acres in the North Park Basin are prospective for the Niobrara oil shale.
In California the Company owns acreage in four fields: Kern River, Midway Sunset and Greeley, which the Company operates, and Sargent, which it does not. Its estimated proved reserves in California were 886 million barrels of oil equivalent at December 31, 2010. As of April 30, 2011, we had a total of 57 gross (48.7 net) producing wells and its average net daily production was approximately 218 barrels of oil equivalent per day. Its working interest for all producing wells averages 85.4% and its net revenue interest is approximately 71.9%. As of December 31, 2010, it had identified approximately 18 gross (13.6 net) PUD locations in California.Advisors' Opinion:
- [By Ben Levisohn]
Not all stocks are created equal, however, and the analysts expect some stocks to handily outperform others, and their top picks “are poised to deliver long-term, capital-efficient growth…while trading at attractive valuations that currently provide 20%+ upside to our price targets.” Their winners?�Oasis Petroleum (OAS),�Approach Resources (AREX),�Bonanza Creek Energy�(BCEI) and Gulfport Energy�(GPOR), all of which are rated Buy with Oasis also added to Goldman’s conviction list. Investors, however, should avoid �WPX Energy�(WPX), which the analysts rate a Sell. They explain why:
Top 10 Energy Stocks To Invest In 2014: Marathon Petroleum Corp (MPC)
Marathon Petroleum Corporation (MPC), incorporated on November 9, 2009, is a petroleum product refiners, transporters and marketers in the United States. The Company operates in three segments: Refining & Marketing, Speedway and Pipeline Transportation. Marathon Petroleum�� refining, marketing and transportation operations are concentrated in the Midwest, Gulf Coast and Southeast regions of the United States. MPC has two retail brands: Speedway and Marathon. Effective as of June 30, 2011, MPC was separated from Marathon Oil Corporation (Marathon Oil) and became an independent company in a spin-off transaction.
Refining & Marketing
The Company owned and operated six refineries in the Gulf Coast and Midwest regions of the United States with an aggregate crude oil refining capacity of approximately 1.2 million barrels per calendar day as of December 31, 2011. During 2011, its refineries processed 1,177 million barrels per day of crude oil and 181 mbpd of other charge and blend stocks. Its refineries include crude oil atmospheric and vacuum distillation, fluid catalytic cracking, catalytic reforming, desulfurization and sulfur recovery units. The refineries process a range of crude oils and produce numerous refined products, ranging from transportation fuels, such as reformulated gasolines, blend-grade gasolines intended for blending with fuel ethanol and ultra-low-sulfur diesel fuel, to heavy fuel oil and asphalt. Additionally, MPC manufacture aromatics, propane, propylene, cumene and sulfur.
The Company�� Garyville, Louisiana refinery is located along the Mississippi River in southeastern Louisiana between New Orleans and Baton Rouge. The Garyville refinery is configured to process heavy sour crude oil into products, such as gasoline, distillates, asphalt, polymer grade propylene, propane, isobutane, sulfur and fuel-grade coke. The Catlettsburg, Kentucky refinery is located in northeastern Kentucky on the western bank of the Big Sandy River, near the confluence! with the Ohio River. The Catlettsburg refinery processes sweet and sour crude oils into products such as gasoline, distillates, asphalt, cumene, petrochemicals, propane and propylene. The Robinson, Illinois refinery is located in southeastern Illinois. The Robinson refinery processes sweet and sour crude oils into products, such as multiple grades of gasoline, distillates, anode-grade coke, propane, butane and propylene.
MPC�� Detroit, Michigan refinery is located near Interstate 75 in southwest Detroit. It is the petroleum refinery operating in Michigan. The Detroit refinery processes light sweet and heavy sour crude oils, including Canadian crude oils, into products, such as gasoline, distillates, asphalt, slurry, propane, and propylene. Its Canton, Ohio refinery is located approximately 60 miles southeast of Cleveland, Ohio. The Canton refinery processes sweet and sour crude oils into products such as gasoline, distillates, asphalt, propane, slurry and roofing flux. Its Texas City, Texas refinery is located on the Texas Gulf Coast approximately 30 miles south of Houston, Texas. The refinery processes sweet crude oil into products such as gasoline, chemical grade propylene, propane, slurry and aromatics.
As of December 31, 2011, the Company owned and operated 62 light product and 21 asphalt terminals. In addition, it distributes through approximately 52 third-party light product and 12 third-party asphalt terminals in its market area. During 2011, marine transportation operations included 15 towboats, as well as 167 owned and 14 leased barges that transport refined products on the Ohio, Mississippi and Illinois rivers and their tributaries, as well as the Intercoastal Waterway. As of December 31, 2011, the Company leased or owned approximately 1,950 railcars of various sizes and capacities for movement and storage of refined products. In addition, it own 124 transport trucks for the movement of refined products.
The Company produces propane at all six of its! refineri! es. Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles. The Company is also a producer and marketer of feedstocks and specialty products. Product availability varies by refinery and includes propylene, cumene, dilute naphthalene oil, molten sulfur, toluene, benzene and xylene. Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles.
The Company sells transportation fuels and convenience products in the retail market in the Midwest, primarily through Speedway convenience stores. The Speedway segment sells gasoline and merchandise through convenience stores that the Companu owns and operates, primarily under the Speedway brand. Speedway-branded convenience stores offer a range of merchandise, such as prepared foods, beverages and non-food items, including a number of private-label items. As of December 31, 2011, Speedway had 1,371 convenience stores in seven states.
The Company transports crude oil and other feedstocks to our refineries and other locations, delivers refined products to wholesale and retail market areas and includes, among other transportation-related assets, a majority interest in LOOP LLC, which is the owner and operator of the United States deepwater oil port. It owns common carrier pipeline systems through Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL), both of which are wholly owned subsidiaries. These pipeline systems transport crude oil and refined products, primarily in the Midwest and Gulf Coast regions, to its refineries, its terminals and other pipeline systems. The Company�� MPL and ORPL wholly owned carrier systems consist of 1,707 miles of crude oil lines and 1,825 miles of refined product lines comprising 31 systems located in 11 states, as of Decem! ber 31, 2! 011. In addition, MPL leases and operates 217 miles of common carrier refined product pipelines.
The common carrier refined product pipelines include the owned and operated Cardinal Products Pipeline and the Wabash Pipeline. The Cardinal Products Pipeline delivers refined products from Kenova, West Virginia, to Columbus, Ohio. The Wabash Pipeline system delivers refined products from Robinson, Illinois, to various terminals in the area of Chicago, Illinois. Other refined product pipelines owned and operated by MPL extend from: Robinson, Illinois to Louisville, Kentucky; Robinson, Illinois to Lima, Ohio; Wood River, Illinois to Indianapolis, Indiana; Garyville, Louisiana to Zachary, Louisiana, and Texas City, Texas to Pasadena, Texas.
As of December 31, 2011, the Company had partial ownership interests in the pipeline companies that have approximately 110 miles of crude oil pipelines and 3,600 miles of refined products pipelines, including about 970 miles operated by MPL, which include Centennial Pipeline LLC (Centennial), Explorer Pipeline Company (Explorer), LOCAP LLC (LOCAP), LOOP LLC (LOOP), Muskegon Pipeline LLC (Muskegon) and Wolverine Pipe Line Company (Wolverine).
The Company holds a 50% interest in Centennial, which owns a refined products pipeline system connecting the Gulf Coast region with the Midwest market. The Company holds a 17% interest in Explorer, a refined products pipeline system extending from the Gulf Coast to the Midwest. It holds a 51% interest in LOOP, the owner and operator of the Louisiana Offshore Oil Port, which is a deepwater oil port capable of receiving crude oil from large crude carriers, located 18 miles off the coast of Louisiana, and a crude oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana. The Company holds a 60% interest in Muskegon, which owns a refined products pipeline extending from Griffith, Indiana to North Muskegon, Michigan. It hold a 6% interest in Wolverine, a refined prod! ucts pipe! line system extending from Chicago, Illinois to Toledo, Ohio.Advisors' Opinion:
- [By Seth Jayson]
Marathon Petroleum (NYSE: MPC ) is expected to report Q2 earnings on Aug. 1. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Marathon Petroleum's revenues will grow 14.1% and EPS will contract -21.7%.
- [By John Divine]
Petroleum refiner and marketer Marathon Petroleum (NYSE: MPC ) rounds out our list of sluggish performers, with losses of 3.5% Wednesday. It should be noted, however, that while it lost ground today, this stock has been tearing it up for a year now, and even after today it's up four of the past five days and has more than doubled in the past 52 weeks. Nothing material really caused the sell-off today, but with shares nearly three times as volatile as the broader market, today's slip shouldn't be regarded as anything too peculiar.
- [By Ben Levisohn]
Shares of Holly (HFC) have gained 1.9% to $43.29 at 10:43 a.m., shares of Marathon (MPC) have risen 1.8% to $68.41, and shares of Valero Energy (VLO) have ticked up 0.6% to $36.77. Tesoro (TSO) has dropped 0.8% to $45.21.
- [By Robert Rapier]
Two things PSXP has going for it are that it has no debt, and is likely to be able to grow future distributions. But there are other midstream MLPs that have little or no debt and are also in position to grow distributions, but with a higher yield than PSXP. Marathon Petroleum’s (NYSE: MPC) midstream affiliate MPLX (NYSE: MPLX) also has essentially no debt, but a slightly higher yield of 2.9 percent.
Top 10 Energy Stocks To Invest In 2014: Oil and Gas Development Co Ltd (OGDC)Oil and Gas Development Company Limited (OGDCL) is a Pakistan-based company engaged in the exploration and development of oil and gas resources, including production and sale of oil and gas and related activities. As the fiscal year ended June 30, 2012, the Company�� crude oil production was 37,615 barrels of oil per day, and 17 wells were spudded. As of June 30, 2011, the Company operated in 31 exploration blocks (22 blocks with 100% shares including an offshore block, and 12 blocks as operated joint ventures), including 3 offshore blocks. Its projects include Uch-II Development Project, KPD-TAY Integrated Development Project, Jhal Magsi Development Project, Sinjhoro Development Project and Nashpa/ Mela Development Project. Advisors' Opinion:
- [By Weiyi Lim]
Drinkall, whose $83 million Frontier Emerging Markets Portfolio (MFMIX) beat 99 percent of peers tracked by Bloomberg during the past 12 months with a 40 percent gain, said he favors Nigeria because of its economic growth prospects and Pakistan on the nation�� improving political stability. His fund held shares of Lagos-based Dangote Cement Plc (DANGCEM) and Islamabad-based Oil & Gas Development Co. (OGDC) as of April 30, Morgan Stanley�� website shows.