In the following video, Fool contributor Matt Thalman discusses which stock he likes moving forward in the coal industry.
Matt discusses Peabody (NYSE: BTU ) , CONSOL Energy (NYSE: CNX ) , Arch Coal (NYSE: ACI ) , and Alpha Natural Resources (NYSE: ANR ) , which one he likes best, and why he would stay away from the other three.
But while the whole industry is facing some serious problems moving forward, the stock Matt picks will be the one he says is best suited to deal with the industry’s issues and has put itself in a position that one could almost guarantee it doesn’t fail, no matter how bad things get for coal companies.
If you’re on the lookout for some currently intriguing energy plays, check out The Motley Fool’s “3 Stocks for $100 Oil.” For free access to this special report, simply click here now.
Hot Oil Companies To Buy For 2015: Enduro Royalty Trust (NDRO)
Enduro Royalty Trust (the Trust) is a statutory trust. On May 13, 2011, the Trust was formed by Enduro Resource Partners LLC (Enduro Sponsor) to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico (the Underlying Properties) held by Enduro Sponsor as of the date of the conveyance of the net profits interest to the trust. The business and affairs of the Trust will be managed by The Bank of New York Mellon Trust Company, N.A., as trustee (the Trustee). In addition, Wilmington Trust Company will act as Delaware trustee (the Delaware Trustee) of the Trust.
The Trust will enter into an administrative services agreement with Enduro pursuant to which Enduro will provide the Trust with certain accounting, bookkeeping, and informational services related to the Net Profits Interest. Enduro Sponsor is a privately-held li mited liability company engaged in the production and development of oil and natural gas from properties located in Texas, Louisiana and New Mexico.
- [By Rich Duprey]
Statutory trust Enduro Royalty Trust (NYSE: NDRO ) announced yesterday its July monthly distribution of $0.128817 per unit; it has paid a monthly dividend since November 2011. The distribution announced in May was $0.096825 per unit.
Hot Oil Companies To Buy For 2015: BG Group PLC (BRGYY.PK)
BG Group plc (BG Group), incorporated on December 30, 1998, is a natural gas company. The Company is engaged in the exploration, development and production of natural gas and oil. he Company operates in two business segments: Exploration and Production (E&P) and Liquefied Natural Gas (LNG). The Company manages its business on an integrated basis across the Americas, Europe, Africa, Central and South Asia, and Australia. The Company has interests in more than 20 countries on five continents.
Exploration and Production
E&P consists of exploration, development, production and marketing of hydrocarbons with a focus on natural gas. BG Group’s Upstream segment covers exploration and production activities for gas, oil and liquids, plus liquefaction operations associated with integrated LNG projects.
Liquefied Natural Gas
BG Group’s LNG activities combine liquefaction and regasification facilities with the purchasing, shippin g, marketing and sale of LNG. The Company has interest in liquefaction facilities in Egypt and Trinidad and Tobago. BG Group’s LNG Shipping & Marketing segment covers the purchasing, shipping, marketing and sale of LNG, as well as the Group’s interests and capacity in regasification facilities.
- [By Heather Ingrassia]
On Thursday, August 15, GasLog (GLOG) announced that it had ordered two new 174K cbm Tri-Fuel Diesel Electric LNG carriers from Samsung Heavy Industries. These carriers are expected to be delivered in 2016 which is the same year the company will begin seven-year charters with BG Group (BRGYY.PK) (BRGXF.PK).
Hot Oil Companies To Buy For 2015: Exxon Mobil Corporation(XOM)
Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. As of December 31, 2010, it operated 35,691 gross and 30,494 net operated wells. The company has operations in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. Exxon Mobil Corporation was founded in 1870 and is based in Irving, Texas.
- [By Bryan Murphy]
Right along the border between Namibia and Angola lies the Owambo Basin. On the Namibia side of the basis is a 5.3 million acre concession that’s sitting on an estimated 1.1 billion barrels of oil, with nearly 300 million barrels of that oil deemed recoverable. More, however, may be uncovered or determined to be recoverable with more seismic exploration. And to the extent that other oil companies being interested in exploring the area matters, Murphy Oil Corporation (NYSE:MUR) and Exxon Mobil Corporation (NYSE:XOM) are both revving up their E&P efforts in the region. Murphy Oil has a 50% working interest in the Azurite Field in the Congo, just north of Angola. And, Exxon Mobil is working on a $16 billion offshore project just off the coast of Angola. Point being, if the big boys are poking around, there must be something to it.
- [By Jesse Solomon]
Even the big guys like Exxon Mobil (XOM) and Chevron (CVX) could feel the pain, asserted Fadel Gheit, an energy analyst at Oppenheimer and Co. Those stocks have the potential to affect the broader market because of their mega market capitalizations. Some large energy producers, like ConocoPhillips, have already said they’re cutting back spending due to the drop in oil prices.
- [By WWW.DAILYFINANCE.COM]
We’re in the same shoes as the consumer, the cost of fuel is less for us.
“We’re in the same shoes as the consumer, the cost of fuel is less for us,” says Kevin Beyer, who owns Performance Fuels, a filling station and convenience store in Smithtown, New York. That means profits for Beyer and the nation’s 127,000 filling stations are rising. Before they sell gas to you, station owners buy gas on the wholesale market. When the wholesale price of gasoline falls quickly the difference between the cost of wholesale gasoline (including taxes) and the price at the pump gets wider, boosting profits for stations. The steeper the drop, the better. “It’s completely antithetical to what people believe,” says Tom Kloza, chief oil analyst at the Oil Price Information Service. That difference has stretched to 21.7 cents a gallon this year, the highest ever, according to an OPIS analysis of 16,000 U.S. stations. That compares to an average of 17.1 cents over the last five years. On a percentage basis, station profitability is at its highest since 2005. And profits on diesel sales are even higher. “They are off the charts,” Kloza says. Yes, that means you could be paying even less for gasoline than you are. But before you cry foul, you should know that after all the ups and downs in a year, gas stations do not make much money from selling gasoline. After credit card fees and other operating costs, net profit for gasoline sales averages 3 cents a gallon, according the National Association of Convenience Stores. Scraping By When gas prices soar, and drivers think they’re being gouged, stations are barely scraping by or even losing money. When the wholesale price is soaring, like it did in 2008, 2011 and 2012, station owners can’t increase the price at the pump as fast as their costs are going up or they risk losing customers to competitors. When the wholesale price is going down, like now, there isn’t the same pressure to lower the price. Drivers are so happy to se
Hot Oil Companies To Buy For 2015: FMC Technologies Inc. (FTI)
FMC Technologies, Inc. provides technology solutions for the energy industry worldwide. Its Subsea Technologies segment designs and manufactures subsea systems used in the offshore production of crude oil and natural gas; and multiphase meters used in production and surface well testing, reservoir monitoring, remote operation, fiscal allocation, process monitoring and control, and artificial lift optimization, as well as provides installation and workover tools, installation assistance, and field support for commissioning, intervention, and maintenance of subsea systems. This segment also provides remotely operated vehicle systems and remote manipulator systems, as well as offers support services for subsea control systems and other high-technology equipment for subsea exploration and production. This segment markets its products primarily through its own technical sales organization. The companys Surface Technologies segment offers surface wellheads for standard and cri tical service applications; fluid control products for use in well completion and stimulation activities; and fracturing flowback and wireline services for exploration companies in the oil and gas industry. Its Energy Infrastructure segment offers measurement systems for the custody transfer of crude oil, natural gas, and refined products; fluid loading and transfer systems to the oil and gas, petrochemical, and chemical industries; material handling solutions, such as bulk conveying systems to the power generation and mining industries; systems that separate production flows from wells into oil, gas, sand, and water; and direct drive systems for various energy-related applications. This segment also offers design, engineering, project management, maintenance, and aftermarket services for blending and transfer systems; and automation, control, and information technology for the oil and gas, and other industries. FMC Technologies, Inc. was founded in 2000 and is headquartere d in Houston, Texas.
- [By Dimitra DeFotis]
The market seems to be showing fatigue particularly with positive onshore oil service data points that may no longer seem incremental. Investors have become especially focused on potential issues and macro concerns. We believe this phase of enhanced risk perceptions will pass and still recommend owning selective stocks based on attractive valuations and healthy fundamentals. Of the 16 oilfield services companies having reported their quarters to date, the share price changes have at times been difficult to tie to specific results. … Five of the 12 companies who have beaten earnings expectations have seen their share prices drop on the day, including Basic Energy Services (BAS) (-9.0%), Baker Hughes (BHI) (-2.5%), National Oilwell Varco (NOV) (-1.5%), Oceaneering (OII) (-4.2%), and Schlumberger (SLB) (-2.0%). Other stocks beating expectations have traded higher as expected, including Cameron International (CAM) (+4.1%), FMC Technologies (FTI) (+3.1%), Mitcham In dustries (MIND) (+3.8%), Nabors Industries (NBR) (+1.2%), Patterson-UTI Energy (PTEN) (+1.8%), RPC (RES) (+8.4%), and Weatherford International (WFT) (+2.3%). Companies which have missed have universally seen their share prices decline, including Diamond Offshore Drilling (DO) (-4.3%), Gulfmark Offshore (GLF) (-0.1%), and Hercules Offshore (HERO) (-6.9%). Halliburton (HAL) was in line and flat on the day.
- [By Ben Levisohn]
While Schlumberger has a free-cash-flow yield of about 3.5%, Cameron International’s (CAM) and Dril-Quip’s (DRQ) are just over 3% and FMC Technologies‘ (FTI) is just under 3%. Halliburton (HAL) has a free-cash-flow yield of just over 1%.
Hot Oil Companies To Buy For 2015: Markwest Energy Partners LP (MWE)
MarkWest Energy Partners, L.P. (MarkWest Energy) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. It provides services in the midstream sector of the natural gas industry. The Company also provides processing and fractionation services to crude oil refineries in the Corpus Christi, Texas area through its Javelina gas processing and fractionation facility. As of December 31, 2011, the Company operated in four segments: Southwest, Northeast, Liberty and Gulf Coast. Effective December 31, 2011, the Company acquired the remaining 49% interest in MarkWest Liberty Midstream. On February 1, 2011, the Company acquired Langley processing plant.
The Company owns a system in East Texas that consists of natural gas gathering pipelines, centralized compressor stations, a natural gas processing facility and an NGL pipeline. The East Texas system is located in Panola, Harrison and Rusk Counties and services the Carthage Field. Producing formations in Panola County consist of the Cotton Valley, Pettit, Travis Peak and Haynesville formations. During the year ended December 31, 2011, approximately 77% of its natural gas volumes in the East Texas System result from contracts with six producers. The Company sells substantially all of the purchased and retained NGLs produced at its East Texas processing facility to Targa Resources Partners, L.P. (Targa) under a long-term contract. Such sales represent approximately 19.4% of its consolidated revenue in 2011.
The Company owns a natural gas gathering system in the Woodford Shale play in the Arkoma Basin of southeast Oklahoma. The liquids-rich natural gas gathered in the Woodford system is processed through Centrahoma Processing LLC (Centrahoma), its equity investment, or othe r third-party processors. In addition, it owns the Foss Lake! natural gas gathering system and the Western Oklahoma natural gas processing complex, all located in Roger Mills, Beckham, Custer and Ellis Counties of western Oklahoma. The gathering portion consists of a pipeline system that is connected to natural gas wells and associated compression facilities. The Company also owns a gathering system in the Granite Wash formation in Wheeler County in the Texas panhandle that is connected to its Western Oklahoma processing complex. The Company completed the expansion of the Western Oklahoma natural gas processing plant in October 2011.
Approximately 70% of its Oklahoma volumes result from contracts with three producers in 2011. The Company sells substantially all of the NGLs produced in the Western Oklahoma processing complex to ONEOK Hydrocarbon L.P. (ONEOK) under a long-term contract. Such sales represent approximately 13.2% of its consolidated revenue in 2011. The Company owns a number of natural gas gathering systems lo cated in Texas, Louisiana, Mississippi and New Mexico, including the Appleby gathering system in Nacogdoches County, Texas. It gathers a portion of the gas produced from fields adjacent to its gathering systems, including from wells targeting the Haynesville Shale. In addition, it owns four lateral pipelines in Texas and New Mexico.
The Company’s Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing plants, an NGL pipeline and the Siloam NGL fractionation plant. In addition, it has two caverns for storing propane at its Siloam facility and additional propane storage capacity under a long-term firm-capacity agreement with a third party. The Northeast segment operations include fractionation and marketing services on behalf of the Liberty segment. The Company owns and operates a crude oil pipeline in Michigan (Michigan Crude Pipeline) providing transportation service for three shippe rs.
The Company pr! ovides na! tural gas midstream services in southwestern Pennsylvania and northern West Virginia through MarkWest Liberty Midstream. It is a processor of natural gas in the Marcellus Shale, with gathering, processing, fractionation, storage and marketing operations.
Effective January 1, 2012, the Company and The Energy and Minerals Group (EMG) formed MarkWest Utica EMG, a joint venture focused on the development of natural gas processing and NGL fractionation, transportation and marketing infrastructure to serve producers’ drilling programs in the Utica shale in eastern Ohio. During 2011, the Utica Segment did not have any operations.
Gulf Coast Segment
The Company owns and operates the Javelina processing facility, a natural gas processing facility in Corpus Christi, Texas that treats and processes off-gas from six local refineries operated by three different refinery customers. As of December 31, 2011, the Company owned a 40% interest in Centrahoma Processing LLC (Centrahoma), a joint venture with Cardinal Midstream, LLC (Cardinal). Centrahoma owns certain processing plants in the Arkoma Basin and Cardinal operates an additional processing plant that is not owned by Centrahoma but is located adjacent to and operates in conjunction with the Centrahoma plants.
- [By David Dittman]
Question: Thoughts on MarkWest Energy Partners LP (NYSE: MWE)? I live in Western Pennsylvania, and MarkWest hass been laying pipeline everywhere.
Answer: The pullback since mid-March offers a good opportunity to buy MarkWest Energy under 66. Management recently boosted the quarterly distribution rate by 1.2 percent and increased the MLP’s revolving credit facility to $1.3 billion and extended its maturity by 18 months to March 2019.
- [By Callum Turcan]
The Utica Marcellus Texas Pipeline is being constructed by another joint venture, but this time between Kinder Morgan Energy Partners and MarkWest Energy Partners (NYSE: MWE ) . In order for NGL producers to want to use the new pipeline, they need to know someone at the end of the line will be able to buy and process their product. Kinder Morgan Energy Partners is nice enough to offer both the logistics and the processing capacity to allow America’s energy boom to happen.
Hot Oil Companies To Buy For 2015: Petrodorado Energy Ltd (PDQ)
Petrodorado Energy Ltd. (Petrodorado), formerly Cap-Link Ventures Ltd., is engaged in petroleum and natural gas exploration and development activities in Colombia, Peru and Paraguay. The Company’s oil and gas interests are in the pre-production stage other than for two blocks in Colombia. As of December 31, 2010, Petrodorado’s oil and gas assets produced net 15,922 barrels of oil, natural gas and natural gas liquids (NGLs). As of December 31, 2010, it had participation in nine oil and gas blocks. In Columbia, the Company had Moriche Block, CPO-5 Block, Buganviles Block, La Maye Block, Talora Block and Tacacho Block. In Peru, its block included Block 135 and Block 138. In Paraguay, Petrodorado had Pirity Block. On October 27, 2010, it acquired all outstanding interest of PetroSouth Energy Corporation. In February 2010, Petrodorado, completed its acquisition of a 55% interest of the Talora Block. In February 2010, it closed the purchase of Holywell Resources S.A. (Holywell) . Advisors’ Opinion:
- [By Ning Jia]
The average size of its stores is 7,300 square feet with the size of its stores ranging from approximately 6,000 to 8,000 square feet. Its stores carry a product offering of approximately 19,000 stock keeping units (SKUs), generally consisting of a custom mix of product based on the stores’ respective market. Its stores also have access to an additional assortment of 115,000 SKUs for same-day or next-day delivery from one of its 339 HUB stores or its network of 22 Parts Delivered Quickly (PDQ), facilities. Additionally, its customers have access to over 483,000 SKUs by ordering directly from one of its vendors for delivery to a particular store or other destination as chosen by the customer.