To some, it was only a matter of time before the decline in oil prices began to hit banking IRR (internal rate of return).
Following the WTI collapse and the subsequent selling in banks with energy exposure, Sterne Agee had a team dig into the sector further and pull out the oil segment most likely to be impacted. Aside from simply locating a company, the research outlet also analyzed the local economics surrounding declining production and tighter operating margins.
Best Long Term Companies To Watch For 2015: Southern Pacific Resource Corp (STPJF.PK)
Southern Pacific Resource Corp. (Southern Pacific) is engaged in the acquisition and development of heavy oil and bitumen producing properties, with a focus on thermal extraction in-situ oil sands projects in the Western Canadian sedimentary basin. Southern Pacific has two principal assets STP-McKay and STP-Senlac. The Company also holds additional oil sands leases in the McMurray and Peace River sub-basins in northeastern Alberta. The Company has 100% working interest in approximately 37,760 acres, of oil sands leases in McKay Block. Southern Pacific has its 100% working interest SAGD thermal heavy oil asset near Unity, Saskatchewan, STP-Senlac. In September 2013, the Company announced the closing of a disposition of non-core assets related to its Leismer property. Advisors' Opinion:- [By Stephan Dube]
Cold Lake's most notable producers:
Husky Energy (HUSK.PK), see article here.Pengrowth Energy Corporation (PGH), see article here.Southern Pacific Resource (STPJF.PK), see article here.Canadian Natural Resources (CNQ), see article here.Devon Energy (DVN), see article here.Imperial Oil (IMO), see article here.Baytex, see article here.Bonavista Energy (BNPUF.PK), see article here.Athabasca's most notable producers:
Best Energy Stocks For 2014: Kinder Morgan Management LLC (KMR)
Kinder Morgan Management, LLC is a limited partner in Kinder Morgan Energy Partners, L.P (KMP), and manages and controls its business and affairs pursuant to a delegation of control agreement. Kinder Morgan G.P., Inc., of which Kinder Morgan, Inc. indirectly owns all of the outstanding common equity, is the general partner of Kinder Morgan Energy Partners, L.P. (KMP). Kinder Morgan G.P., Inc., pursuant to a delegation of control agreement among the Company, Kinder Morgan G.P., Inc. and KMP, has delegated to the Company, to the fullest extent permitted under Delaware law and KMP�� limited partnership agreement, all of its rights and powers to manage and control the business and affairs of KMP, subject to the general partner�� right to approve specified actions.
KPM is a pipeline limited partnerships in the United States. KMP owns an investment in or operates approximately 28,000 miles of pipelines and 180 terminals. Its pipelines transport products, such as natural gas, crude oil, gasoline, and CO2, and its terminals store petroleum products and chemicals and handle materials like coal. Almost all of Kinder Morgan assets are owned by KMP, KMP operates in five business segments : Natural Gas Pipelines, Products Pipelines, CO2, Terminals and Kinder Morgan Canada.
Kinder Morgan is a transporter and marketer of carbon dioxide in North America. It delivers approximately 1.3 billion cubic feet per day of CO2 through about 1,300 miles of pipelines. It is an oil producer in Texas, producing over 55,000 barrels of oil per day at the SACROC Unit and the Yates Field in the Permian Basin. In addition to CO2 pipelines and oil producing fields, this business segment owns interests in and operates CO2 source fields, natural gas and gasoline processing plants, and a crude oil pipeline. Kinder Morgan owns and operates approximately 24,000 miles of gas pipelines in the Rocky Mountains, the Midwest and Texas. Through its Products Pipelines business unit, it transports over two million barre! ls per day of gasoline, jet fuel, diesel, natural gas liquids and other fuels through more than 8,000 miles of pipelines. The Company also has approximately 50 liquids terminals in this business segment that store fuels and offer blending services for ethanol and other products.
Kinder Morgan have more than 180 terminals that store petroleum products and chemicals, and handle bulk materials like coal, petroleum coke and steel products. Kinder Morgan operates a number of pipeline systems and terminal facilities in Canada including the Trans Mountain pipeline, the Express and Platte pipelines, the Cochin pipeline, the Puget Sound and the Trans Mountain Jet Fuel pipelines, the Westridge marine terminal, the Vancouver Wharves terminal in British Columbia and the North Forty terminal in Edmonton, Alberta.
Advisors' Opinion:- [By Igor Greenwald]
Let’s move beyond the headlines. On Sunday, KMI announced a deal to buy out�Kinder Morgan Energy Partners�(NYSE: KMP), its dividend-paying proxy�Kinder Morgan Management�(NYSE: KMR) and�El Paso Pipeline Partners�(NYSE: EPB) in mostly-equity deals at premiums ranging from 12% for KMP to 16.5% for KMR based on the Aug. 8 closing prices.
- [By Johanna Bennett]
The specific details are all in today�� WSJ story. But basically, Kinder Morgan, the parent company, will acquire Kinder Morgan Energy Partners (KMP), Kinder Morgan Management (KMR) and El Paso Pipeline Partners (EPB) in a series of transactions valued at $71 billion, including debt.
Best Energy Stocks For 2014: EP Energy Corp (EPE)
EP Energy Corporation, incorporated on August 8, 2013, is an independent exploration and production company. The Company is engaged in the acquisition and development of unconventional onshore oil and natural gas properties in the United States. The Company is focused on creating shareholder value through the development of its low-risk drilling inventory located in four core areas: the Eagle Ford Shale (South Texas), the Wolfcamp Shale (Permian Basin in West Texas), the Altamont field in the Uinta Basin in northeastern Utah and the Haynesville Shale (North Louisiana). In its core areas, it has identified approximately 5,200 drilling locations (including 916 drilling locations to which it has attributed proved undeveloped reserves as of September 30, 2013), of which approximately 96% are oil wells. As of September 30, 2013, it had proved reserves of 513 million barrels of oil equivalent (54% oil and 67% liquids) and for the three months ended September 30, 2013, it had average net daily production of 88,149 barrels of oil equivalent per day (45% oil and 54% liquids). During the year ending September 31, 2013, it sold certain of its natural gas properties, including CBM properties located in the Raton, Black Warrior and Arkoma basins, the majority of its Arklatex natural gas properties and its natural gas properties in South Texas. In May 2014, the Company acquired certain producing properties and undeveloped acreage directly offsetting existing Wolfcamp operating areas in Reagan and Crockett Counties in the Southern Midland Basin.
Eagle Ford Shale
The Eagle Ford Shale, located in South Texas, is the unconventional oil plays in the United States. The Eagle Ford formation in La Salle County has up to 125 feet of net thickness, making it some of the prolific acreage in the area. Due to its high carbonate content, the Eagle Ford is also brittle, and delivers high productivity when fractured, with initial 30-day oil equivalent production rates up to 1,100 barrels of oil equivalent! per day.. The Company as of september 30, 2013, has 97,689 net acres in the Eagle Ford, where it has identified 983 drilling locations. As of September 30, 2013, it had six rigs running and it plan to drill 126 wells in 2013 (of which 100 have been drilled through September 30, 2013), representing 58% of its total wells planned in 2013.
Wolfcamp Shale
The Wolfcamp Shale is located in the Permian Basin, which has produced more than 29 billion barrels of oil and 75 trillion cubic feet of gas over the past 90 years and is estimated by industry experts to contain recoverable oil and natural gas reserves exceeding what has already been produced. With oil production of over 880 one thousand barrels per day from over 80,000 wells during the six months ended June 30, 2013, the Permian Basin represented 51% of the crude oil produced in the State of Texas and approximately 17% of the crude oil and condensate produced onshore in the lower 48 United States. As of September 30, 2013, it had three rigs running and it plans to drill 65 wells in 2013 (of which 48 have been drilled through September 30, 2013), representing 30% of its total wells planned in 2013.
Altamont
The Altamont field is located in the Uinta Basin in northeastern Utah. Its operations are primarily focused on developing the Altamont Field Complex (comprised of the Altamont, Bluebell and Cedar Rim fields). It owns 170,523 net (315,272 gross) acres in Duchesne and Uinta Counties, making it the ease owner in the Altamont Field Complex. Its activity is mainly focused on the development of its vertical inventory on 160-acre spacing. The Company has identified an inventory of 1,135 drilling locations (781 vertical and 354 horizontal). The industry is piloting 80-acre vertical downspacing programs in the Wasatch and Green River formations and horizontal development programs in the multiple shale and tight sand intervals. As of September 30, 2013, it had two rigs running and it plans to drill 26 wells in ! 2013 (of w! hich 20 have been drilled through September 30, 2013), representing 12% of its total wells planned in 2013.
Haynesville Shale
Haynesville Shale is located in East Texas and Northern Louisiana. its operations are concentrated primarily in Desoto Parish, Louisiana in the Holly Field. This area is within the core of the Haynesville Shale with net thickness of 114 feet (210 feet gross), resulting in initial 30-day gas equivalent production rates up to 18 million cubic feet per day. As of September 30, 2013, it has identified 190 drilling locations.
Advisors' Opinion:- [By Matt Jarzemsky var popups = dojo.query(".socialByline .popC"); popups.forEach]
Rice Energy Inc.(RICE) has rallied 44% since its $1.1 billion January IPO through Thursday. RSP Permian Inc.(RSPP) has gained 42% since debuting the same month. This year�� other E&P IPO, EP Energy Corp.(EPE), is off 1.9% since it went public in January.
Best Energy Stocks For 2014: Hydrocarb Energy Corp (HECC)
Hydrocarb Energy Corp., formerly Duma Energy Corp., incorporated on April 12, 2005, is a natural resource exploration and production company engaged in the exploration, acquisition and development of oil and gas properties in the United States. The Company maintains an aggregate of approximately 395 gross (217 net) developed acres and approximately 6,120 gross (4,456 net) undeveloped acres, pursuant to leases or acquisitions. Of that acreage, it maintains approximately 176 gross (132 net) developed acres in Louisiana, 219 gross (85 net) developed acres in Texas, 4,614 gross (3,123 net) undeveloped acres in Illinois, 160 gross (150 net) undeveloped acres in Louisiana, and 1,346 gross (1,183 net) undeveloped acres in Texas. The interest holding properties of the Company include The Welder Lease (Barge Canal), Texas; South Delhi/Big Creek Field, Louisiana; The Holt Lease; The Strahan Lease; Janssen Lease, Texas; Koliba Lease, Texas, and Illinois. As of July 31, 2010, the Company had a total of six gross (five net) producing oil wells and one gas well. In December 2013, the Company announced that it has completed the acquisition of Hydrocarb Corporation.
The Welder Lease (Barge Canal), Texas
The Company owns a 100% working interest (90% after payout) and a 72.5% net revenue interest (65.25% after payout) in approximately 81 acres of an oil and gas lease (the Welder Lease). This lease is located in Calhoun County, Texas. Effective January 1, 2010, it acquired the remaining 10% working in the Welder Leases from Treydan Corporation and owned 100% of the working interest. As of July 31, 2010, two wells were producing gas and oil from the property. The wells were operated using a gas lift system. A third well was utilized for salt water disposal. The wells have additional proven non-producing zones behind pipe. The Company focuses to develop the proved developed non-producing (PDNP) zones as producing horizons deplete.
South Delhi/Big Creek Field, Louisiana
! On August 24, 2006, the Company entered into an assignment of oil and gas interests purchase agreement with Energy Program Accompany, LLC (the EPA Purchase Agreement). At the time of the acquisition, one of four wells on the Holt lease and the one well on the Strahan lease were producing assets. The lease consists of the Holt Lease, the Strahan Lease and the McKay Lease (no longer owned). The Company owns a 97% working interest and an 81.25% net revenue interest in approximately 136 acres in Franklin Parish, Louisiana (the Holt Lease). As of July 31, 2010, the Company produced oil from the Holt No.�� 10 and 22 wells. The Holt No. 4 and 24 wells were off-line pending workover or offset drilling. The Holt No. 15 well was utilized as a salt water disposal well. Pursuant to the EPA Purchase Agreement, we acquired a 100% working interest and an 81.25% net revenue interest in approximately 40 acres in Richland Parish, Louisiana (the Strahan Lease). As of July 31, 2010, it produced oil from the Strahan No. 1 well. As of July 31, 2010, the Janssen A-1 well produced between 250-300 mcf gas per day and approximately six barrels per day of condensate.
Koliba Lease, Texas
The Koliba Lease property is located near the Company�� Welder lease and has one shut-in oil/gas well. The well previously produced 30 one stock tank barrel (Bbls) oil per day plus water. The well is in close proximity to the Company�� Welder gas sales line and salt water disposal system. The Koliba No. 2 well was drilled June 2010 and found to be slightly down-dip from the No.1 well. The Company elected to plug the No. 2.
Illinois
During the fiscal year ended July 31, 2010, the Company entered into numerous oil and gas leases in Jefferson and other counties in Illinois. As of July 31, 2010, these leases total approximately 2,994 gross acres, pursuant to which the Company has a working interest of 100% and a net revenue interest of 87.5%. It has an additional 1,620 gross acres under lea! se in Ill! inois.
Advisors' Opinion:- [By Bryan Murphy]
The experts have spoken, and investors would do well to listen (and read between the lines). While Hydrocarb Energy Corp. (OTCBB:HECC) may not be poised to become the next Exxon Mobil Corporation (NYSE:XOM), it is poised to follow in the footsteps of Tullow Oil Plc (OTCMKTS:TUWOY) [long story - more on that below]. Perhaps more bullish than anything right now, however, is that other, independent observers are starting to take notice, and think HECC shares could be worth nearly three times as much as where they're trading now within the foreseeable future.
- [By Bryan Murphy]
It's the market's tacit way of saying it expects oil to rebound firmly in the foreseeable future, even if the professionals aren't explicitly saying it. With that being the case, true contrarian speculators - the ones who put their money where their mouth is - may want to consider small cap oil play Hydrocarb Energy Corp. (OTCBB:HECC) as a high-potential way of playing oil's recovery in 2015.
- [By Bryan Murphy]
It may seem trite (and a little dated) on the surface, but Warren Buffett's sage advice stands as tall today as it did the first time her ever said it.... "Be fearful when others are greedy, and be greedy when others are fearful." And, to say investors have been fearful of oil names like Kosmos Energy Ltd (NYSE:KOS), Africa Oil Corp. (CVE:AOI), and Hydrocarb Energy Corp. (OTCBB:HECC) of late would be an understatement. Not only have all three been pressured against a backdrop of plunging oil prices, HECC, KOS, and AOI have been doubly pressured because a big piece of what they do within their oil exploration exploits is done in Africa, where oil's recent volatility has been particularly disruptive. As Buffett� has accurately explained so many times in the past though, trends have a funny way of ending right around the time most investors are certain they'll never end.
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