5 Best Energy Stocks To Own Right Now

Thursdays have been the Nikkei’s (NIKKEIINDICES: ^NI225  ) bane over the past month. Japan’s leading stock index has plunged every Thursday for the last few weeks, starting with a 7% fall that began the index’s month-long streak of volatility and continuing today, when the Nikkei lost another 6.4%. The index has still outperformed many of the world’s indexes year to date, but today’s plunge offers more proof that investors are jittery over Japan’s rapid rise on the back of Prime Minister Shinzo Abe’s aggressive stimulus plan.

Should they be worried about a real drop, or is this another case of short-term traders selling into a self-fulfilled prophecy? Let’s take a look at why investors are panicking about Japan’s future and what it means for your investing strategy.

An up-and-down yen spurs an up-and-down market
Abe brought about stimulus in response to one of Japan’s worst economic problems of the last half-century: more than two decades of a stagnant economy and deflation. Weakening the yen against other leading currencies would be a boon for leading Japanese exporters looking for an edge against overseas competition. Manufacturers such as Komatsu (NASDAQOTH: KMTUY  ) have applauded the moves as they look to use a weak yen to grow profits. Komatsu alone projected 46% full-year profit growth this year thanks to the weak yen.

5 Best Energy Stocks To Own Right Now: Glencore Xstrata PLC (GLCNF.PK)

Glencore Xstrata Plc is a diversified natural resource company. The Company operates in three segments: Metals and Minerals, which includes copper, nickel, zinc/lead, alloys, alumina/aluminum and iron ore; Energy Products, which includes controlled and non-controlled coal mining and oil production operations and investments in strategic handling, storage and freight equipment and facilities, and Agricultural Products, which focuses on grains, oils/oilseeds, cotton and sugar. The Company’s operations consist of over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. The Company is a producer and marketer of over 90 commodities, such as mobile phones, bicycles, cutlery, plastics and electricity. Effective January 2, 2014, Post Holdings Inc acquired Agricore United Holdings Inc from Viterra Inc, a unit of Glencore Xstrata PLC, and the transaction also included Dakota Growers Pasta Company, Inc. Advisors’ Opinion:

  • [By Pendulum]

    Century Aluminum was founded in 1995 as a part of Glencore (GLCNF.PK). In 1996, Century Aluminum became a public company. As of December 31, 2012:

    "Glencore beneficially owned approximately 41.8% of our outstanding common stock and all of our outstanding Series A Convertible Preferred Stock. Through its ownership of common and preferred stock, Glencore has an overall 46.6% economic ownership of Century." (Source: Century Aluminum 2012 10-K)

5 Best Energy Stocks To Own Right Now: Vestas Wind Systems A/S (VWS)

Vestas Wind Systems A/S is a Denmark-based company active within the wind power industry. The Company operates within four business areas: Finance, Sales, Manufacturing & Global Sourcing, and Technology & Service Solutions. The Finance business area focuses on business support services. The Sales business area is divided into six geographical units: Americas, Asia Pacific & China, Central Europe, Mediterranean, Northern Europe and Offshore. The Manufacturing & Global Sourcing business area is engaged in the manufacturing of assembly, blades, components, controls and generators. The Technology & Service Solutions business area is responsible for the engineering solutions, platform and product management, as well as service engineering, among others. As of December 31, 2012, the Company operated globally through a network of subsidiaries located in Denmark, Germany, Italy, China, the United States, Spain, Estonia, Sweden and Norway. Advisors’ Opinion:

  • [By Pato Kehoe]

    Within the power infrastructure segment, GE is especially keen on advancing in clean-energy products, such as gas and wind turbines. Wind turbines have contributed significantly to generating a solid competitive advantage, even allowing the firm to surpass the Danish industry giant Vestas Wind Systems (VWS), thanks to superior customer care and manufacturing expertise. Hence, the road seems paved for continued success in this new industry sector, which is bound to continue growing as clean energy becomes more popular.

  • [By Tom Stoukas]

    Vestas Wind Systems A/S (VWS) surged 11 percent to 66.30 kroner, its highest price since February 2012. Credit Suisse Group AG raised the world’s biggest wind-turbine maker to neutral from underperform, citing benefits from cost cuts.

5 Best Energy Stocks To Own Right Now: Pacific Rubiales Energy Corp (PEGFF.PK)

Pacific Rubiales Energy Corp. (Pacific Rubiales) is a producerand seller of natural gas and heavy crude oil. The Company also purchases crude oil from third parties to be used as diluents and for trading purposes. The Company owns Meta Petroleum Corp. (Meta), an oil branch which operates the Rubiales/Piriri and Quifa oil fields in the Llanos Basin in association with Ecopetrol; and Pacific Stratus Energy Colombia Corp. (Pacific Stratus), which operates the wholly owned La Creciente gas field in the northern part of Colombia and other light and medium oil fields. In addition to its production assets, it has investment in oil pipelines in Colombia, including the Oleoducto de los Llanos S.A. Pipeline and the new Oleoducto Bicentenario de Colombia pipeline, under construction. In November 2013, Pacific Rubiales Energy Corp acquired Petrominerales Ltd. Advisors’ Opinion:

  • [By Value Digger]

    C&C Energia was acquired by Pacific Rubiales (PEGFF.PK) for $9.5 (including the shares for Platino Energy), three months later. Nobody else had ever written an online article about C&C Energia.

  • [By Value Digger]

    Apart from the momentum traders, the growth seekers have to check it out too. Manitok Energy is another growth company with a non-existent coverage from the online publications, although it has been growing by leaps and bounds during the last couple of years. I really enjoy uncovering such companies. In fact, by discovering under-followed growth companies with very attractive valuations is how I started my articles with SeekingAlpha one year ago. It was when I uncovered C&C Energia. I recommended this debt-free South American producer at ~$5.7 in August 2012. C&C Energia was bought out by Pacific Rubiales (PEGFF.PK) a couple of months later at $9.81. My article is here.

5 Best Energy Stocks To Own Right Now: Cliffs Natural Resources Inc.(CLF)

Cliffs Natural Resources Inc., a mining and natural resources company, produces iron ore pellets, lump and fines iron ore, and metallurgical coal products. The company operates six iron ore mines in Michigan, Minnesota, and eastern Canada; two iron ore mining complexes in Western Australia; five metallurgical coal mines located in West Virginia and Alabama; and one thermal coal mine located in West Virginia. It also owns a 45% economic interest in a coking and thermal coal mine located in Queensland, Australia; and a 30% interest in Amapa, a Brazilian iron ore project in Latin America, as well as chromite properties in Ontario, Canada. The company, formerly known as Cleveland-Cliffs Inc, was founded in 1847 and is headquartered in Cleveland, Ohio.

Advisors’ Opinion:

  • [By Rich Duprey]

    The Ontario government said it’s signed an agreement with Matawa First Nations laying out a framework for developing the province’s northern mineral resources. Although a minimal achievement, it’s an important one because a lack of cohesion among all the parties involved was key to Cliffs Natural Resources (NYSE: CLF  ) indefinitely suspending work on its $3.3 billion Ring of Fire chromite project last year.

  • [By Steven Russolillo]

    Companies like iron-ore miner Cliffs Natural Resources Inc.(CLF) and videogame maker GameStop have fallen more than 20% this year, and data from Markit shows that short sellers have managed to turn those steep declines into profits.

  • [By Ben Levisohn]

    Today’s been a lousy day for Cliffs Natural Resources (CLF).

    Reuters

    It’s shares have dropped 4.7% to $17.78 at 2:31 p.m. today, joining a selloff that has caused Rio Tinto (RIO) to fall 2.4% to $52.11, BHP Billiton (BHP) to decline 2.8% to $64.82 and Vale (VALE) to drop 3.2% to $12.62.

    The reason: China’s export data was tres terrible and commodity prices have dropped across the board–especially iron ore. And the one thing Cliffs Natural resources can’t afford is lower prices for iron ore.

    Axiom Capital’s Gordon Johnson and James Bardowski explain why:

    In summary, given our view on 2014 iron ore prices, we believe [Cliffs Natural Resources] will likely blow through its debt covenants in 2014, further cut its dividend, and likely need to do a very large dilutive equity deal (if the company is not able to execute these options, we see acute liquidity risk in the offing). While we recognize  [Cliffs Natural Resources] has recently replaced its senior management team (CEO/Chairman & CFO), providing a new, more risk-averse approach to allocating capital, given our view on iron ore prices (anchored by what we see as structurally slower growth in China), we view the issues plaguing the company currently as structural. While we see a turnaround as possible, $114 iron ore suggests bankruptcy is a growing reality, inspiring our report’s title “Living On A Prayer”.

    The sad thing is that it didn’t have to be this way, Johnson and Bardowski say. Cliffs Natural Resources once had a steady business selling iron to non-coastal companies but wanted to get in on the China play. So it purchased other mines, culminating in the acquisition of Consolidated Thompson. Now it’s paying for it.

    Shares of Cliffs Natural Resources have plunged 32% so far this year, while Rio Tinto has fallen 7.7%, BHP Billiton has dropped 4.9% and Vale has declined 17%.

  • [By Jayson Derrick]

    Cliffs Natural Resources (NYSE: CLF) has attempted to reach a good faith settlement with activist hedge fund Casablanca Capital by offering the fund two independent director seats at the board of directors. Casabalanca has other plans and is nominating six directors. Shares lost 2.43 percent, closing at $18.64.

5 Best Energy Stocks To Own Right Now: SandRidge Permian Trust (PER)

SandRidge Permian Trust (the Trust) is a trust formed by SandRidge Energy, Inc. (SandRidge) to own royalty interests in 509 developed oil and natural gas wells located in Andrews County, Texas (the Producing Wells), and 888 oil and natural gas development wells to be drilled (the Development Wells) within an Area of Mutual Interest (AMI). The AMI consists of the Grayburg/San Andres formation in the Permian Basin in Andrews County, Texas. As of December 31, 2010, SandRidge held approximately 16,700 gross acres (15,900 net acres) in the AMI.The Underlying Properties consist of the working interest owned by SandRidge in the Permian Basin in Andrews County, Texas arising under leases and farmout agreements related to properties from which the PDP Royalty Interest and the Development Royalty Interest will be conveyed.

The royalty interest in the Producing Wells (PDP Royalty Interest) entitles the trust to receive 80% of the proceeds from the sale of production of o il, natural gas and natural gas liquids attributable to SandRidge’s net revenue interest in the Producing Wells. The royalty interest in the Development Wells the (Development Royalty Interest) entitles the trust to receive 70% of the proceeds from the sale of oil, natural gas and natural gas liquids production attributable to SandRidge’s net revenue interest in the Development Wells. As of March 31, 2011, after giving effect to the conveyance of the PDP Royalty Interest and the Development Royalty Interest to the trus, the total reserves estimated to be attributable to the trust were 21.8 million barrels of oil equivalent (MMBoe). This amount includes 5.8 MMBoe attributable to the PDP Royalty Interest and 16.0 MMBoe attributable to the Development Royalty Interest. The reserves consist of 96% liquids (87% oil and 9% natural gas liquids) and 4% natural gas.

SandRidge is an independent oil and natural gas company concentrating on development and production activi ties related to the exploitation of its significant holdings! in West Texas and the Mid-Continent area of Oklahoma and Kansas. SandRidge operates all of the Producing Wells. SandRidge owns a majority working interest in substantially all of the locations, on which it focuses to drill the Development Wells, and focuses to operate such wells. SandRidge Exploration and Production, LLC (SandRidge E&P) is a wholly owned subsidiary of SandRidge.

The Underlying Properties are located in the greater Fuhrman-Mascho field area, a region in Andrews County, Texas that primarily produces oil from the Grayburg/San Andres formation within the Permian Basin. SandRidge operates three drilling rigs within the AMI and, as of March 31, 2011, had drilled 101 wells. Within the AMI, SandRidge operates 509 wells and has 888 proven undeveloped locations as of March 31, 2011. These 888 proven locations are a combination of 5-acre, 10-acre and 20-acre infill spacing locations. As of March 31, 2011, average daily production from the Underlying Prop erties was approximately 3,400 barrel of oil equivalent per day (Boe/d).

Permian Basin

The Permian Basin extends throughout southwest Texas and southeast New Mexico over an area approximately 250 miles wide and 300 miles long. It is an oil producing basin in the United States. As of December 31, 2010, SandRidge operated approximately 2,600 gross producing wells in the Permian Basin, with an average working interest of 94%. In March 2011, SandRidge’s average daily net production in the Permian Basin was approximately 29,600 Boe/d. SandRidge was operating 16 rigs in the basin as of March 31, 2011. SandRidge drilled 484 wells in this area during the year ended December 31, 2010.

Fuhrman-Mascho Field

The Fuhrman-Mascho field is located near the center of the Central Basin Platform in the Permian Basin. The field produces from the Grayburg/San Andres formation from average depths of approximately 4,000 to 5,000 feet. The Fuhrma n-Mascho field is a producing field in the Permian Basin and! it has p! roduced approximately 142 MMBoe as of December 31, 2010. During 2010, SandRidge operated eight drilling rigs in the area and has drilled 307 wells as of March 31, 2011.

Advisors’ Opinion:

  • [By Matt DiLallo]

    The problem here is that SandRidge has been dependent on asset sales and its running out of assets to sell. In addition to the Permian sale, SandRidge has now taken three royalty trusts public. One consisting of Permian Basin assets, SandRidge Permian Trust (NYSE: PER  ) and two consisting of Mississippian assets, SandRidge Mississippian Trust I (NYSE: SDT  ) and SandRidge Mississippian Trust II (NYSE: SDR  ) . While SandRidge still owns a portion of each trust, it likely will continue to sell off its ownership stake in each trust as well as other assets it still owns. At some point SandRidge will need to live within its oil and gas cash flows, otherwise, its not worth owning.