5 Best Gas Stocks To Buy Right Now

Yesterday, Jefferies’ started JPMorgan (JPM) and Bank of America (BAC) with Buy ratings and Citigroup (C) at Neutral. Now it’s Nomura’s turn, as the Japanese investment bank launches coverage of those banks and adds Goldman Sachs (GS) and Morgan Stanley (MS) to boot.

Reuters

Nomura’s Steven Chubak and Sharon Leung expect investors to be focused on three themes in 2014: capital requirements, the potential to increase return on equity and the ability to return capital to shareholders. They explain how that plays out for the big five:

Our analysis indicates that Citigroup and Bank of America are best prepared for a
tougher capital regime. Significant excess capital generation / payout potential and
higher “normalized” ROEs (i.e., returns on required capital) support our Buy ratings, and imply the potential for significant share upside [30% for Citigroup, 14% for Bank of America].

5 Best Gas Stocks To Buy Right Now: Chevron Corp (CHV)

Chevron Corporation (Chevron), incorporated on January 27, 1926, manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining activities, power generation and energy services. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas; transporting crude oil by international oil export pipelines; transporting, storage and marketing of natural gas, and a gas-to-liquids project. Downstream operations consist primarily of refining crude oil into petroleum products; marketing of crude oil and refined products; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car, and manufacturing and m arketing of commodity petrochemicals, plastics for industrial uses and fuel and lubricant additives.

Upstream

At December 31, 2012, Chevron owned or had under lease or similar agreements undeveloped and developed crude oil and natural gas properties worldwide. Upstream activities in the United States are concentrated in California, the Gulf of Mexico, Colorado, Louisiana, Michigan, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas, West Virginia and Wyoming. During the year ended December 31, 2012, average net oil-equivalent production in the United States was 655,000 barrels per day. In 2012, net daily production averaged 163,000 barrels of crude oil, 70 million cubic feet of natural gas and 4,000 barrels of natural gas liquids (NGLs). During 2012, net daily production for the Company’s combined interests in the Gulf of Mexico shelf and deepwater areas, and the onshore fields in the region, were 153,000 barrels of crude oil, 395 million cubic feet of natural gas and 16,000 barrels of NGL.

The! Company was engaged in various exploration and development activities in the deepwater Gulf of Mexico during 2012. As of December 31, 2012, it had a 50% working interest in Jack and a 51% working interest in St. Malo Field. During 2013, the Company had 42.9% non-operated working interest in the Tubular Bells Field; 20.3% non-operated working interest in the Caesar and Tonga area, and 15.6% non-operated working interest in the Mad Dog II Project. The Company activities in the mid-continental United States include operated and non-operated interests in properties primarily in Colorado, New Mexico, Oklahoma, Texas and Wyoming. The Company holds leases in the Marcellus Shale and Utica Shale, primarily located in southwestern Pennsylvania, Ohio, and West Virginia, and in the Antrim Shale in Michigan. Other Americas is consistd of Argentina, Brazil, Canada, Colombia, Suriname, Trinidad and Tobago, and Venezuela. Net oil-equivalent production from these countries averaged 230,000 barrels per day during 2012, including the Company’s share of synthetic oil production.

Chevron’s interests in oil sands projects and shale acreage in Alberta, shale acreage and an LNG project in British Columbia, exploration, development and production projects offshore in the Atlantic region, and exploration and discovered resource interests in the Beaufort Sea region of the Northwest Territories. Average net oil-equivalent production during 2012, was 69,000 barrels per day, consisted of 25,000 barrels of crude oil, four million cubic feet of natural gas and 43,000 barrels of synthetic oil from oil sands. During 2012, the Company held a 20% non-operated working interest in the Athabasca Oil Sands Project (AOSP). In February 2013, Chevron acquired a 50%-owned and operated interest in the Kitimat LNG project and proposed Pacific Trail Pipeline, and a 50% non-operated working interest in 644,000 total acres in the Horn River and Liard shale gas basins in Brit ish Colombia; 26.9% non-operated working interest in the Hib! ernia Fie! ld and a 23.6 non-operated working interest in the unitized Hibernia Southern Extension (HSE) offshore Atlantic Canada, and 26.6% non-operated working interest in the heavy-oil Hebron Field, also offshore Atlantic Canada.

In December 2012, Chevron relinquished its 29.2% non-operated working interest in Exploration License 2007/26, which includes Block 4 offshore West Greenland. The Company holds operated interests in four concessions in the Neuquen Basin. Working interests range from 18.8% to 100%. In 2012, the net oil-equivalent production averaged 22,000 barrels per day, consisted of 21,000 barrels of crude oil and four million cubic feet of natural gas. During 2012, two exploratory wells targeting shale gas and tight oil resources were drilled in the Vaca Muerta formation in the El Trapial concession. Chevron holds working interests in three deepwater fields in the Campos Basin: Frade (51.7%-owned and operated), Papa-Terra and Maromba (37.5% and 30% non-oper ated working interests, respectively). Net oil-equivalent production in 2012 averaged 6,000 barrels per day, consisted of 6,000 barrels of crude oil and two million cubic feet of natural gas.

In Africa, the Company is engaged in upstream activities in Angola, Chad, Democratic Republic of the Congo, Liberia, Morocco, Nigeria, Republic of the Congo, Sierra Leone and South Africa. Net oil-equivalent production in Africa averaged 451,000 barrels per day during 2012. In Asia, the Company is engaged in upstream activities in Azerbaijan, Bangladesh, Cambodia, China, Indonesia, Kazakhstan, the Kurdistan Region of Iraq, Myanmar, the Partitioned Zone located between Saudi Arabia and Kuwait, the Philippines, Russia, Thailand, and Vietnam. During 2012, net oil-equivalent production averaged 1,061,000 barrels per day. In Australia, the Company’s upstream efforts are concentrated off the northwest coast. During 2012, the average net oil-equivalent production from Australia was 99,000 barrels per day. In Europe, the Company is engag! ed in ups! tream activities in Bulgaria, Denmark, Lithuania, the Netherlands, Norway, Poland, Romania, Ukraine and the United Kingdom. Net oil-equivalent production in Europe averaged 114,000 barrels per day during 2012.

Downstream

The Company markets petroleum products under the principal brands of Chevron, Texaco and Caltex worldwide. In the United States, the Company markets under the Chevron and Texaco brands. During 2012, the Company supplied directly or through retailers and marketers approximately 8,060 Chevron- and Texaco-branded motor vehicle service stations, primarily in the southern and western states. Approximately 470 of these outlets are company-owned or -leased stations. Outside the United States, the Company supplied directly or through retailers and marketers approximately 8,700 branded service stations, including affiliates. In British Columbia, Canada, the Company markets under the Chevron brand. The Company markets in Latin America and the Caribbean using the Texaco brand. In the Asia-Pacific region, southern Africa, Egypt and Pakistan, the Company uses the Caltex brand. The Company also operates through affiliates under various brand names. In South Korea, the Company operates through its 50%-owned affiliate, GS Caltex, and in Australia through its 50%-owned affiliate, Caltex Australia Limited.

The Company owns a 50% interest in its Chevron Phillips Chemical Company LLC (CPChem) affiliate. During 2012, CPChem owned or had joint-venture interests in 36 manufacturing facilities and two research development centers worldwide. The Company’s Oronite brand lubricant and fuel additives business is a developer, manufacturer and marketer of performance additives for lubricating oils and fuels. The Company owns and operates facilities in Brazil, France, Japan, the Netherlands, Singapore and the United States and has interests in facilities in India and Mexico. Oronite lubricant additives are blended int o refined base oil to produce finished lubricant packages us! ed primar! ily in engine applications, such as passenger car, heavy-duty diesel, marine, locomotive and motorcycle engines.

Transportation

The Company owns and operates a network of crude oil, refined product, chemical, natural gas liquid and natural gas pipelines and other infrastructure assets in the United States. The Company also has direct and indirect interests in other the United States and international pipelines. All tankers in the Company’s controlled seagoing fleet were utilized during 2012. During 2012, the Company had 51 deep-sea vessels chartered on a voyage basis, or for a period of less than one year. The Company’s the United States-flagged fleet is engaged primarily in transporting refined products between the Gulf Coast and the East Coast and from California refineries to terminals on the West Coast and in Alaska and Hawaii. The foreign-flagged vessels are engaged primarily in transporting crude oil from the Middle East, Southeast Asia, t he Black Sea, South America, Mexico and West Africa to ports in the United States, Europe, Australia and Asia. The Company’s foreign-flagged vessels also transport refined products to and from various locations worldwide.

Other Businesses

During 2012, the Company completed the sale of its Kemmerer, Wyoming, surface coal mine and the sale of its 50% interest in Youngs Creek Mining Company, LLC, which was formed to develop a coal mine in northern Wyoming.Chevron also owns and operates the Questa molybdenum mine in New Mexico. During 2012, it had 160 million tons of proven and probable coal reserves in the United States, including reserves of low-sulfur coal. The Company’s Global Power Company manages interests in 11 power assets with a total operating capacity of more than 2,200 megawatts, primarily through joint ventures in the United States and Asia. Chevron Energy Solutions (CES) completed several public sector programs, including a microgrid a t the Santa Rita jail in Alameda County, and renewable and e! fficiency! programs for Huntington Beach City School District, South San Francisco Unified School District and Union City, all in California, plus Rootstown Local School District in Ohio. The Company’s energy technology organization supports Chevron’s upstream and downstream businesses by providing technology, services and competency development in earth sciences; reservoir and production engineering; drilling and completions; facilities engineering; manufacturing; process technology; catalysis; technical computing, and health, environment and safety disciplines.

Advisors’ Opinion:

  • [By Chris Ciovacco]

    The Energy Select Sector Spider provides exposure to a diversified basket of energy stocks, including Exxon (XOM), Chevron (CHV) and ConocoPhillips (COP). As the chart shows below, XLE has established a bullish weekly trend relative to the broader S&P 500 Index (SPY).

5 Best Gas Stocks To Buy Right Now: Oil and Natural Gas Corporation Ltd (ONGC)

Oil and Natural Gas Corporation Limited (ONGC) is an India-based company. The Company is mainly engaged in the oil exploration and production activities. The Company operates in two segments: Offshore and Onshore. Its subsidiaries include ONGC Videsh Limited (OVL), Mangalore Refinery & Petrochemicals Ltd., ONGC Nile Ganga BV, ONGC Narmada Limited, ONGC Amazon Alaknanda Limited, ONGC Campos Ltda, ONGC Nile Ganga (Cyprus) Ltd. and ONGC Nile Ganga (San Cristobal) B.V. Advisors’ Opinion:

  • [By Zahra Hankir]

    India’s (SENSEX) benchmark stock index fell for a fourth day, capping its biggest weekly loss in three months, as the rupee dropped to a six-week low. HDFC Bank Ltd. (HDFCB) dropped 1.9 percent, leading a gauge of banking shares to a fifth day of losses, the longest losing streak since July. Oil & Natural Gas Corp. (ONGC) slid to a three-week low, leading a slide in the S&P BSE India Oil & Gas Index.

  • [By Jonathan Burgos]

    India’s biggest energy companies rose after the government agreed to raise the price of natural gas. Reliance Industries Ltd., operator of the world’s biggest oil refining complex, climbed 3.1 percent to 855.2 rupees in Mumbai. Oil & Natural Gas Corp. (ONGC) added 1.7 percent to 325.70 rupees.

  • [By Lyubov Pronina]

    Reliance Industries Ltd. (RIL) and Oil & Natural Gas Corp. (ONGC), India’s biggest energy explorers, led Indian stocks higher as the nation’s cabinet agreed to lift the price of natural gas. The rupee posted the biggest quarterly drop since 2011.

5 Best Gas Stocks To Buy Right Now: RMP Energy Inc (OEXFF.PK)

RMP Energy Inc. (RMP) is a crude oil and natural gas company. The Company is engaged in the exploration for, development and production of natural gas, crude oil and natural gas liquids (NGLs) reserves within the provinces of Alberta and Saskatchewan, Canada. RMP conducts its operations in the Western Canadian Sedimentary Basin, primarily in the provinces of Alberta and Saskatchewan. The Company’s principal properties include Gilby, Pine Creek, Kaybob, Waskahigan, Ante Creek, Ricinus, Gordondale, Resthaven/Bilbo and Big Muddy. The Gilby property is located 110 kilometers southwest of Edmonton, Alberta. Kaybob property is located 250 kilometers northwest of Edmonton, Alberta and consisted of 31 producing and non-producing gas wells as of December 31, 2011. In November 2013, RMP Energy Inc closed the purchase of complementary Montney light oil assets located in its core areas of Ante Creek and Waskahigan in West Central Alberta. Advisors’ Opinion:

  • [By Value Digger]

    As peers, I selected Artek Exploration (ARKXF.PK), RMP Energy (OEXFF.PK), Synergy Resources (SYRG) and Magnum Hunter Resources (MHR). The first two firms trade also on the main Toronto board under the tickers RTK.TO and RMP.TO respectively. These peers comply with the following criteria:

5 Best Gas Stocks To Buy Right Now: Forbes Energy Services Ltd (FES)

Forbes Energy Services Ltd. (FES Ltd) is an independent oilfield services contractor that provides a range of well site services to oil and natural gas drilling and producing companies to help develop and enhance the production of oil and natural gas. These services include fluid hauling, fluid disposal, well maintenance, completion services, workovers and recompletions, plugging and abandonment, and tubing testing. FES Ltd operates in two segments: well servicing and fluid logistics and other. Its operations are concentrated in the onshore oil and natural gas producing regions of Texas, with additional locations in Mississippi, in Pennsylvania and, prior to the disposition of its Mexican assets in January 2012, which is discussed below, in Mexico. In January 2012, the Company sold its assets located in Mexico, as well as its equity interests in Forbes Energy Services Mexico Servicios de Personal, S. de R.L. de C.V. Advisors’ Opinion:

  • [By CRWE]

    Forbes Energy Services Ltd. (NASDAQ:FES), a leader in well servicing and fluid logistics management in the oilfield services industry, will participate in the GHS 100 Energy Conference being held June 25-26, 2012, at the Intercontinental Hotel in San Francisco.

5 Best Gas Stocks To Buy Right Now: Sanchez Energy Corp (SN)

Sanchez Energy Corporation, incorporated on August 22, 2011, is an independent exploration and production company. The Company is focused on the acquisition, exploration and development of unconventional oil and natural gas resources onshore along the United States Gulf Coast, primarily in the Eagle Ford Shale in South Texas. The Company also has a position in the Tuscaloosa Marine Shale in Mississippi and Louisiana. As of December 31, 2012, the Company had accumulated approximately 95,000 net leasehold acres in the oil and condensate, or black oil and volatile oil, windows of the Eagle Ford Shale in Gonzales, Zavala, Frio, Fayette, Lavaca, Atascosa, Webb and DeWitt Counties of South Texas. The Company’s Eagle Ford Shale acreage is consists of approximately 9,700 net acres in Gonzales County, Texas, which the Company refers to as its Palmetto area, approximately 28,400 net acres in Zavala and Frio Counties, Texas, which the Company refers to as its Maverick area, and appro ximately 57,100 net acres in Fayette, Lavac.

The Company owns all rights and depths on the majority of its Eagle Ford Shale acreage. The Company is evaluating other zones, which may present the Company with additional drilling locations. Several of the Company’s existing wells are either producing from or have logged pay in the Buda Limestone and the Austin Chalk formations.

Eagle Ford Shale

The Eagle Ford Shale is one of the unconventional shale trends in North America. In the Eagle Ford Shale, the Company has assembled approximately 95,000 net acres with an average working interest of approximately 87%. Using approximately 120 acre well-spacing for the Company’s Maverick and Marquis areas and approximately 80 acre well-spacing for its Palmetto area, the Company believes that there could be up to 973 gross (815 net) locations for potential future drilling on its acreage.

In the Company’s Palmetto area, the Company has app roximately 9,700 net acres in Gonzales County, Texas with an! average working interest of approximately 48%. The Company has participated in the drilling of 16 gross wells on its acreage that had an average initial 24-hour production rates between 502 and 3,139 barrels of oil equivalent per day . The Company has identified up to 237 gross (113 net) locations based on 80 acre well-spacing for potential future drilling in its Palmetto area. The Company is drilling a five-well pilot program from a single pad to test 40 acre well-spacing in its southern portion of the Palmetto area, and Ryder Scott has given the Company 80 acre well-spaced PUD locations in the same area in its December 31, 2012 reserve report.

In the Company’s Maverick area, the Company has approximately 28,400 net operated acres in Zavala and Frio Counties, Texas with an average working interests of approximately 87%. The Company has drilled ten gross horizontal wells that had a range of average initial 24-hour production rates between 214 and 931 barrels o f oil equivalent per day . The Company has also drilled four vertical wells that had average initial 24-hour rates between 94 and 264 barrels of oil equivalent per day . The Company tests the feasibility of a vertical well development program and compare horizontal and vertical completion economic returns. The Company has identified up to 264 gross (230 net) locations based on 120 acre well-spacing for potential future drilling on its Maverick acreage.

In the Company’s Marquis area, the Company has approximately 57,100 net operated acres, the majority of which are in southwest Fayette and northeast Lavaca Counties, Texas with a 100% working interest. The Company has drilled three horizontal wells that had a range of average initial 24-hour production rates between 1,114 and 1,369 barrels of oil equivalent per day . The Company has identified up to 472 gross and net locations based on 120 acre well-spacing for potential future drilling on its Marquis acreage. The Company is also drilling a 60 acre well-spacing test in the! western ! Prost area of its Marquis area.

Other

The Company has approximately 1,000 net acres in the Haynesville Shale in Natchitoches Parish, Louisiana, which are operated by Chesapeake Energy Corporation. The majority of the Company’s Haynesville leases are held by production, giving the Company and its partners the option to accelerate drilling should natural gas prices increase.

The Company competes with Chesapeake Energy Corporation, Marathon Oil Corporation, EOG Resources, Inc., Halcon Resources Corporation, Penn Virginia Corporation and Magnum Hunter Resources Corporation.

Advisors’ Opinion:

  • [By Ben Levisohn]

    Shares of Penn Virginia have gained 6.2% to $15.02 today at 3:03. p.m., while Sanchez Energy (SN) has risen 5.6% to $30.92, EQT Corp (EQT) has advanced 1.1% to $101.94 and EOG Resources (EOG) is up 1.7% at $180.99.

  • [By Tom Armistead]

    We’re attracted to opportunities like Sanchez Energy Corp. (SN) and Bellatrix Exploration Ltd. (TSX:BXE).

    Sanchez went public just a couple years ago. It had a decent-sized position in the Eagle Ford, which it has grown to over 125,000 acres—pretty sizeable for a small-cap. Sanchez was producing 600 barrels of oil equivalent per day (600 boe/d); now it’s over 12,000 boe/d and should be around 15,000-17,000 by the end of the year.

  • [By Josh Young]

    The above could have described Sanchez’s (SN) acquisition of Tuscaloosa Marine Shale (TMS) acreage, announced on August 8th, 2013. Sanchez bought a position in the TMS for approximately $2,000 per acre, giving Sanchez exposure to the play and providing a nice comp for Goodrich Petroleum (GDP), the leading public company in the TMS play. Goodrich had been trading at a lower implied value per TMS acre, net of the value of its other assets. Unsurprisingly, since then Goodrich has traded up substantially (incidentally, so has Sanchez):

  • [By Ben Levisohn]

    Penn Virginia has gained 6.9% to $7.15 at 11:56 p.m. today, while Sanchez Energy (SN) has advanced 5.2% to $29.10, Abraxas Petroleum (AXAS) has risen 2.4% to $2.97 and Gulfport Energy (GPOR) is up 1.3% at $67.31.