With shares of Citigroup (NYSE:C) trading around $48, is C an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Citigroup is a global diversified financial services holding company providing consumers, corporations, governments, and institutions with a broad range of financial products and services. It operates in two segments: Citicorp and Citi Holdings. The company’s products and services are: consumer banking and credit, corporate and investment banking, securities brokerage, wealth management, and transaction services to consumers, corporations, governments, and institutions worldwide.
Citigroup said on Friday that it discovered fraudulent loans in its Mexico subsidiary and that its employees may have been in on the crime. Writing down the loans will reduce the bank’s 2013 net income by $235 million, bringing the previously reported total to $13.91 billion, the bank said in a statement. Citigroup said it believes at this point that the incident was an isolated episode. The bad loans were made to Oceanografia SA de CV, a Mexican oil services company that is a contractor for the nation’s state-owned oil company, Pemex. Oceanografia is in the middle of a corruption probe in Mexico. Oceanografia borrowed from Citigroup’s Mexican unit, Banco Nacional de Mexico or Banamex, using expected payments from Pemex as collateral. Banamex discovered in a recent review that Oceanografia appeared to have falsified invoices to Pemex that were collateral for loans, Citigroup Chief Executive Michael Corbat said in a separate memo to employees. The bank wrote down about $400 million of loans backed by the bogus invoices.
Top 10 Oil Companies To Invest In 2014: Phillips 66 Partners LP (PSXP)
Phillips 66 Partners LP, incorporated on February 20, 2013, owns, operates, develops and acquires primarily fee-based crude oil, refined petroleum product and natural gas liquids (NGL) pipelines and terminals and other transportation and midstream assets. The Company’s initial assets consist of the three systems, which include Clifton Ridge crude system, Sweeny to Pasadena products system and Hartford Connector products system. A refined petroleum product pipeline, terminal and storage system extending from Phillips 66’s Sweeny refinery in Old Ocean, Texas, to its refined petroleum product terminal in Pasadena, Texas, and ultimately connecting to the Explorer and Colonial refined petroleum product pipeline systems and other third-party pipeline and terminal systems.
A crude oil pipeline, terminal and storage system located in Sulphur, Louisiana, that is the primary source for delivery of crude oil to Phillips 66’s Lake Charles refinery. A refined petrol eum product pipeline, terminal and storage system located in Hartford, Illinois, that distributes diesel and gasoline produced at the Wood River refinery (a refinery owned by a joint venture between Phillips 66 and Cenovus Energy Inc.) to third-party pipeline and terminal systems, including the Explorer refined petroleum product pipeline system.
- [By Grace L. Williams]
Pipeline MLP Phillips 66 (PSXP) made our list after COO J.T. Liberti bought 4,100 shares for $182,000. InsiderScore noted that Liberti also bought at the company’s IPO in July 2013, and writes: “Shares have doubled from their IPO price seven months ago and so Liberti’s move to add to his position on strength is an incremental positive.”
- [By Robert Rapier]
Investors in master limited partnerships (MLPs) tend to keep a close eye on interest rates, and for good reason. Yield-seeking investors are generally looking to minimize their risk to capital, and as interest rates rise other options may present themselves for generating yield at a lower risk. The cost of doing business may also rise for an MLP when interest rates are rising, cutting into the distributable cash flow (DCF). Thus, a low-yielding MLP may find itself especially vulnerable to a decline in price if interest rates rise.
One example I sometimes use to highlight the risk in a rising interest rate environment is the low-yielding MLP Phillips 66 Partners (NYSE: PSXP), which was one of the most highly-anticipated initial public offerings of 2013. PSXP owns some of the midstream logistics assets of its sponsor, the refiner Phillips 66 (NYSE: PSX). The IPO was initially intended to be 15 million shares at an indicated range of $19 to $21. According to the IPO prospectus the minimum yield was to be $0.85 per unit on an annualized basis, which translates into a 4.25 percent annual yield at the initial midrange IPO price. This yield is pretty typical for a midstream MLP.
Demand for PSXP units proved to be very strong, so the deal was upsized to 16.4 million shares and the price increased to $23 a unit. But demand outstripped even the expanded offering, and units opened on July 23, 2013 at nearly $29, and traded as high as $36 in subsequent days before finally settling down in a range of $30 to $31. Then in the fourth quarter PSXP units raced forward, exceeding $38 at one point and presently trading at $37.16.
Top 10 Oil Companies To Invest In 2014: Harvest Natural Resources Inc (HNR)
Harvest Natural Resources, Inc., incorporated on September 9, 1988, is a petroleum exploration and production company. The Company is engaged in the exploration, development and production of properties in geological basins with proven active hydrocarbon systems. The Company holds interest in the Bolivarian Republic of Venezuela (Venezuela). The Company’s Venezuelan interests are owned through Harvest-Vinccler Dutch Holding, B.V. Through HNR Energia, B.V. (HNR Energia), the Company indirectly owns 80% of Harvest Holding and its partner, Oil & Gas Technology Consultants (Netherlands) Cooperatie U.A., indirectly owns the remaining 20% interest of Harvest Holding. Harvest Holding owns, indirectly through wholly owned subsidiaries, a 40% of Petrodelta, S.A. (Petrodelta). The Company indirectly owns a net 32% interest in Petrodelta, and Venezolana de Inversiones y Construcciones Clerico, C.A. (Vinccler) indirectly owns 8%. Corporacion Venezolana del Petroleo S.A. (CVP) owns the remaining 60% of Petrodelta. Petroleos de Venezuela S.A. (PDVS) owns 100% of CVP. Harvest Holding has a direct controlling interest in Harvest Vinccler S.C.A. (Harvest Vinccler).
As of December 31, 2012, the Company’s operations were located at Venezuela, Republic of Indonesia, Republic of Gabon, Sultanate of Oman and People’s Republic of China. In Venezuela operations are through the Company’s Petrodelta. In Republic of Indonesia (Indonesia) the operations are mainly onshore in West Sulawesi in Indonesia through the Budong PSC. The Company owns a 64.51% interest in the Budong PSC. In Republic of Gabon (Gabon) operations are offshore of Gabon through the Dussafu PSC. The Company has a 66.667% interest in the Dussafu PSC. The Company is the operator. In Sultanate of Oman (Oman) the operations are onshore in Oman through the exploration and production sharing agreement (EPSA) Al Ghubar / Qarn Alam license (Block 64 EPSA). The Company has an 80% interest in Block 64 EPSA. The Company is the operator. In People’s Republic o! f China (China) the exploration acreage is offshore of China in the South China Sea through the Wab-21 Petroleum Contract (Wab-21). The Company has a 100% interest in the WAB-21 petroleum contract. The Company is the operator.
Petrodelta is engaged the exploration, production, gathering, transportation and storage of hydrocarbons from the Petrodelta Fields. As of December 31, 2012, there were 86 oil and natural gas producing wells and seven water injection wells in the Petrodelta Fields. As of December 31, 2012, there were 15 oil producing wells and four water injection wells in the Tucupita Field. As of December 31, 2012, there were 28 oil producing wells in the Temblador Field. At December 31, 2012, there were 17 oil producing wells and one water injection well in the El Salto field.
- [By Tess Stynes]
Harvest Natural Resources Inc.(HNR) agreed to sell all the company’s interest in Venezuela for $400 million in cash, as the energy company moves forward with its plans to sell itself. Shares were up 24% at $4.89 premarket.
- [By Lauren Pollock]
Among the companies with shares expected to actively trade in Monday’s session are Achillion Pharmaceuticals Inc.(ACHN), Active Network Inc.(ACTV) and Harvest Natural Resources Inc.(HNR)
- [By Paul Ausick]
Harvest Natural Resources Inc. (NYSE: HNR) is up 17.3% at $4.62. The independent oil & gas company received an upgrade today based on the belief that company can sell some of its foreign assets.
Top 10 Oil Companies To Invest In 2014: Devon Energy Corporation(DVN)
Devon Energy Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada. It also involves in transporting oil, gas, and natural gas liquids (NGL); and processing natural gas. The company owns oil and gas properties in the mid-continent area of the central and southern United States; the Permian Basin in Texas and New Mexico; the Rocky Mountains area of the United States; and the onshore areas of the Gulf Coast, principally in south Texas and south Louisiana. It also owns oil and gas properties in the provinces of Alberta, British Columbia, and Saskatchewan, Canada. In addition, the company offers marketing and midstream services, including marketing of gas, crude oil, and NGL, as well as constructing and operating pipelines, storage and treating facilities, and natural gas processing plants. As of December 31, 2010, it had 2,042 million barrel of oil equivalent of proved developed reserves. The company sells its gas production to various customers, such as pipelines, utilities, gas marketing firms, industrial users, and local distribution companies; crude oil production to refiners, remarketers, and other companies; and NGL production to customers in petrochemical, refining, and heavy oil blending activities. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.
- [By Marc Bastow]
Energy corporation Devon Energy (DVN) raised its quarterly dividend 9% to 24 cents per share, payable June 30 to shareholders of record as of June 13.
DVN Dividend Yield: 1.48%
- [By Ben Levisohn]
Shares of Penn Virginia have gained 8.5% to $14.01 at $3:08 p.m., putting it up 49% so far this year. Shares of EQT Corp. (EQT) have ticked up 0.2% to $100.23, while Devon Energy (DVN) has risen 0.5% to $64.54, EOG Resources (EOG) has advanced 0.6% to $179.84 and Gulfport Energy (GPOR) is up 0.1% at $64.87.
- [By John Kell]
Among the companies with shares expected to actively trade in Wednesday’s session are Zale Corp.(ZLC), Herbalife Ltd.(HLF) and Devon Energy Corp.(DVN)
Top 10 Oil Companies To Invest In 2014: Newfield Exploration Co (NFX)
Newfield Exploration Company (Newfield), incorporated on December 5, 1988, is an independent energy company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. The Company’s domestic areas of operation include the Mid-Continent, the Rocky Mountains and onshore Texas. Internationally, it focuses on offshore oil developments in Malaysia and China. As of December 31, 2011, it was in the process of drilling 16 gross (9.6 net) exploitation wells and 24 gross (19.7 net) development wells domestically. As of December 31, 2011, internationally, it was drilling one gross (0.6 net) exploratory well in Malaysia. In May 2011, the Company acquired assets in the Uinta Basin of Utah.
As of December 31, 2011, the Company owned an interest in approximately 825,000 net acres in the Rocky Mountains area. Its assets are oil. It is an operator in the state of Utah, consisting approximately 30% of t he state’s total oil production. It has approximately 230,000 net acres in the Uinta Basin and its operations in the Basin can be divided into two areas: its legacy Monument Butte and its position in the Central Basin, located immediately north and adjacent to Monument Butte. It has approximately 1,800 oil wells in the Green River formation in its Monument Butte field. Its acquisition of acreage north of Monument Butte added approximately 65,000 net acres, including the Uteland Butte and Wasatch formations. During the year ended December 31, 2011, it had drilled approximately 20 wells in these new plays with encouraging results. As of December 31, 2011, its net production from the Uinta Basin was approximately 22,000 barrels of oil equivalent per day.
The Company has approximately 65,000 net acres under development on the Nesson Anticline of North Dakota and west of the Nesson. In addition, it has about 40,000 net acres in the mature Elm Coulee field, located in Richland County, Montana. As of December 31, 2011, it had! drilled 67 wells in North Dakota with production from the Bakken formation. Its acreage is also prospective for the Sanish/Three Forks formation. As of December 21, 2011, its net production was approximately 7,500 barrels of oil equivalent per day. It has approximately 340,000 net acres in the Southern Alberta Basin of northern Montana. Its activities in the Mid-Continent have been focused on two natural gas plays – the Arkoma Woodford and the Granite Wash. As of December 31, 2011, it had approximately 480,000 net acres in the Mid-Continent and its production was approximately 330 millions of cubic feet equivalent per day.
The Company has more than 300,000 net acres in Oklahoma’s Woodford play. Approximately 170,000 net acres are in the Arkoma Woodford Basin. As of December 31, 2011, its net daily production in the Arkoma Woodford was approximately 180 millions of cubic feet equivalent per day. As of December 31, 2011, it had more than 125,000 net acres in t he Cana Woodford play, located in the Anadarko Basin. The Company has approximately 50,000 net acres in the Granite Wash, located in Oklahoma and the Texas Panhandle. As of December 31, 2011, its net production from the region was approximately 101 millions of cubic feet equivalent per day. Its producing field in the Granite Wash includes Stiles/Britt Ranch, where it operates and owns 17,000 net acres. During 2011, it ran three to four operated rigs in the Granite Wash. It has approximately 317,000 net acres in the Eagle Ford and Pearsall shales in the Maverick Basin, located in Maverick, Dimmit and Zavala counties, Texas. As of December 31, 2011, it completed a total of 54 wells in the basin and its production was approximately 3,800 barrels of oil equivalent per day. The acreage includes multiple geologic horizons, including the Georgetown, Glen Rose, Pearsall, Austin Chalk and the Eagle Ford.
The Company has operations in conve ntional plays onshore Texas, offshore Malaysia and China and! in the G! ulf of Mexico. As of December 31, 2011, it owned an interest in approximately 147,000 net acres in conventional onshore Texas plays with net production of approximately 88 millions of cubic feet equivalent per day. Its international activities are focused on offshore oil developments in Southeast Asia and China. It has production and active developments offshore Malaysia and the People’s Republic of China. As of February 21, 2012, its net production from Malaysia was at 29,000 barrels of oil equivalent per day. It has an interest in approximately 925,000 net acres offshore Malaysia and approximately 290,000 net acres offshore the People’s Republic of China.
As of December 31, 2011, the Company owned interests in 91 deepwater leases and approximately 275,000 net acres. As of December 31, 2011, its net production from the Gulf of Mexico was approximately 75 millions of cubic feet equivalent per day. In February 2012, production commenced from its deepwater Pyr enees development, with net daily production of approximately 3,300 barrels of oil equivalent per day.
- [By Victor Selva]
Competitors such as Sandridge Energy Inc. (SD), Penn Virginia Corp. (PVA), Newfield Exploration Co. (NFX) also have a negative ROE. An alternative could be Cabot Oil &Gas Corp. (COG), Range Resources Corp. (RRC), SM Energy Co. (SM), Pioneer Natural Resources Co. (PXD) or Whiting Petroleum Corp (WLL), Berry Petroleum Co. (BRY), but for investors searching for a higher ratio, Continental Resources Inc. (CLR) will be the best option.
- [By Ben Levisohn]
It’s Christmas, a time when we wish for peace on earth and goodwill towards everyone. So, with investors in a forgiving mood, it might seem tempting to buy energy exploration & production companies that have underperformed in 2013–you know, Forest Oil (FST), Newfield Exploration (NFX) and the like.
- [By Ben Levisohn]
The S&P 500 got a lift from Sysco (SYY), which gained 10% to $37.62 after purchasing a competitor, Davita HealthCare Partners (DVA), which rose 6.7% to $62.17, and Cabot Oil & Gas (COG), which reported stronger than expected production in the Marcellus region. Big losers include Newfield Exploration (NFX), which dropped 8% to $24.33 after offering disappointing production guidance, and Edwards Lifesciences (EW), which fell 5.4% to $62.73 after releasing disappointing earnings guidance.
- [By Ben Levisohn]
Newfield Exploration (NFX) has plunged today after the oil and gas explorer revealed its production targets for 2014 and beyond.
RTT News has the details on Newfield’s forecast:
Newfield Exploration Co. updated its “three-year plan” and provided additional information. Net production from continuing operations in 2014 is expected to range from 44 – 48 million BOE, or 10% – 20% higher than 2013 estimated net production from continuing operations of approximately 40 million BOE. Domestic liquids production in 2014 is expected to increase 30% over the previous year.
Jefferies’ Subash Chandra and Daniel Braziller offer their take on the announcement:
Company is tightening the previously announced production guidance range. New range is 44-48 mmboe and 48-55 mmboe in 2014 and 2015, respectively. Domestic liquids growth y/y in 2014 is expected at 30%, slightly below prior guidance for 38%. Lower liquids is likely the result of morecapital being deployed in the Cana and slower near-term growth in the Uinta due to refinery maintenance…
2013 production has so far come-in at the high-end of previous guidance, and a similar outcome is possible for 2014-2016. The stock is well positioned from here to outperform, as the market is likely assuming the midpoint of guidance will be achieved. Additionally, the 2013 reserve report is an upcoming catalyst – we believe NFX is an NAV story. On a $95 / $4 price deck, we estimate a 2013 P1 value of $23/shr.
Shares of Newfield have dropped 8% to $24.31 at 3:45 p.m., well below Exxon Mobil’s (XOM) 0.3% gain, Occidental Petroleum’s (OXY) 0.5% rise and Anadarko Petroleum’s (APC) 0.4% dip.
Top 10 Oil Companies To Invest In 2014: Lightstream Resources Ltd (LSTMF.PK)
Lightstream Resources Ltd, formerly PetroBakken Energy Ltd., is a Canada-based oil and gas exploration and production company. The Company’s principal operating areas include southeastern Saskatchewan where it targets the Bakken formation and conventional Mississippian reservoirs, central Alberta, where it is focused on the Cardium formation, and north-central Alberta, where it is engaged in exploring for light oil resource plays. In addition, the Company also has land holdings in the Horn River and Montney plays in northeast British Columbia. On December 31, 2012, Petrobank Energy and Resources Ltd. and PetroBakken Energy Ltd. announced the completion of the reorganization. The Reorganization resulted in a newly incorporated company PetroBakken Energy Ltd. (New PetroBakken). Advisors’ Opinion:
- [By MLP Trader]
Here are the current top five companies in the list:
Of the larger companies, one that remains obstinately near the top of the list is Lightstream . Lightstream trades at 40% of its book value and a whopping 13.4% yield.
Top 10 Oil Companies To Invest In 2014: Targa Resources Partners LP (NGLS)
Targa Resources Partners LP is a limited partnership formed by Targa Resources, Corp (Targa). The Company is a provider of midstream natural gas and natural gas liquid (NGL) services in the United States and is engaged in the business of gathering, compressing, treating, processing and selling natural gas and storing, fractionating, treating, transporting, terminaling and selling NGLs, NGL products, refined petroleum products and crude oil. It operates in two divisions: Natural Gas Gathering and Processing, which include Field Gathering and Processing and Coastal Gathering and Processing, and Logistics and Marketing, which includes Logistics Assets and Marketing and Distribution. On March 15, 2011, it acquired a refined petroleum products and crude oil storage and terminaling facility in Channelview, Texas. On September 30, 2011 it acquired refined petroleum products and crude oil storage and terminaling facilities in two separate transactions. On December 31, 2012, the Co mpany acquired Saddle Butte Pipeline, LLC.
Natural Gas Gathering and Processing Division
The Company’s natural gas gathering and processing division consists of gathering, compressing, dehydrating, treating, conditioning, processing, transporting and marketing natural gas. The gathering of natural gas consists of aggregating natural gas produced from various wells through small diameter gathering lines to processing plants. It sells its residue gas either directly to such end users or to marketers into intrastate or interstate pipelines. The Field Gathering and Processing segment gathers and processes natural gas from the Permian Basin in West Texas and Southeast New Mexico and the Fort Worth Basin, including the Barnett Shale, in North Texas. The natural gas it processes is supplied through its gathering systems which, in aggregate, consist of approximately 10,400 miles of natural gas pipelines. The segment’s processing plants include nine owne d and operated facilities. During the year ended December 31! , 2011, the Company processed an average of approximately 612 million cubic feet/day (MMcf/d) of natural gas and produced an average of approximately 74 million barrels per day (MBbl/d) of NGLs.
The Field Gathering and Processing segment’s operations consist of the Permian Business, Versado, SAOU and the North Texas System. The Permian Business consists of the Sand Hills gathering and processing system and the West Seminole and Puckett gathering systems in West Texas. These systems consist of approximately 1,400 miles of natural gas gathering pipelines. Versado consists of the Saunders, Eunice and Monument gas processing plants and related gathering systems in Southeastern New Mexico. Versado consists of approximately 3,200 miles of natural gas gathering pipelines. Covering portions of 10 counties and approximately 4,000 square miles in West Texas, SAOU includes approximately 1,667 miles of pipelines in the Permian Basin that gather natural gas to the Mertzon, Sterling, and Conger processing plants. SAOU has 31 compressor stations to inject low pressure gas into the high-pressure pipelines.
The North Texas System includes two interconnected gathering systems with approximately 4,200 miles of pipelines, covering portions of 15 counties and approximately 5,700 square miles, gathering wellhead natural gas for the Chico and Shackelford natural gas processing facilities. The Chico gathering system consists of approximately 2,100 miles of primarily low-pressure gathering pipelines. Wellhead natural gas is either gathered for the Chico plant located in Wise County, Texas, and then compressed for processing, or it is compressed in the field at numerous compressor stations and then moved through one of several gathering pipelines to the Chico plant. Its Coastal Gathering and Processing segment assets are located in the onshore region of the Louisiana Gulf Coast and the Gulf of Mexico. LOU consists of approximately 875 miles of gathering system pipelines, covering approximately 3,800 ! square mi! les in Southwest Louisiana. The gathering system is connected to numerous producing wells and/or central delivery points in the area between Lafayette and Lake Charles, Louisiana. The processing facilities include the Gillis and Acadia processing plants, both of which are cryogenic plants.
Logistics and Marketing Division
The Company includes the activities necessary to convert mixed NGLs into NGL products and provide certain value added services, such as the fractionation, storage, terminaling, transportation, distribution and marketing of NGLs, as well as certain natural gas supply and marketing activities in support of its other businesses. Its Logistics Assets Segment uses its platform of integrated assets to receive, fractionate, store, treat, transport and deliver NGLs typically under fee-based arrangements. Its logistics assets are connected to and supplied in part by its Natural Gas Gathering and Processing assets and are primarily located a t Mont Belvieu and Galena Park near Houston, Texas and in Lake Charles, Louisiana. Across the Logistics Assets segment, it owns or operates a total of 39 storage wells at its facilities with a net storage capacity of approximately 64 million barrels of oil (MMBbl), the usage of which may be limited by brine handling capacity, which is utilized to displace NGLs from storage. It operates its storage and terminaling facilities based on the needs and requirements of its customers. Its fractionation, storage and terminaling business is supported by approximately 940 miles of company owned pipelines to transport mixed NGLs and specification products.
The Company markets its own NGL production and also purchases component NGL products from other NGL producers and marketers for resale. During 2011, the Company’s distribution and marketing services business sold an average of approximately 273 MBbl/d of NGLs. Its wholesale propane marketing operations primarily sell pr opane and related logistics services to multi-state retailer! s, indepe! ndent retailers and other end-users. Its propane supply primarily originates from both its refinery/gas supply contracts and its other owned or managed logistics and marketing assets. In its refinery services business, the Company provide NGL balancing services through contractual arrangements with refiners to purchase and/or market propane and to supply butanes. It uses commercial transportation assets and contract for and use the storage, transportation and distribution assets included in its Logistics Assets segment to assist refinery customers in managing their NGL product demand and production schedules.
The Company’s NGL transportation and distribution infrastructure includes a range of assets supporting both third-party customers and the delivery requirements of its marketing and asset management business. It provides fee-based transportation services to refineries and petrochemical companies throughout the Gulf Coast area. As of December 31, 2011, its transportation assets include approximately 565 railcars that it lease and manage; approximately 74 owned and leased transport tractors and approximately 100 company owned tank trailers, and 18 company owned pressurized NGL barges.
The Company competes with Atlas Gas Pipeline Company, Copano Energy, L.L.C. (Copano), WTG Gas Processing, L.P. (WTG), DCP Midstream Partners LP (DCP), Devon Energy Corp (Devon), Enbridge Inc., GulfSouth Pipeline Company, LP, Hanlon Gas Processing, Ltd., J W Operating Company, Louisiana Intrastate Gas, Enterprise Products Partners L.P., DCP, ONEOK and BP p.l.c.
- [By Matthew Skelly]
The technology of fracturing (and the horizontal style of drilling), is changing America’s needs on the energy front. At the epicenter of this infrastructure build-out is Atlas Pipeline Partners (NYSE:APL), a midstream gathering and processing company that trades as a Master Limited Partnership, (MLP). Atlas Pipeline is essentially a middle man between the drillers and long-haul transportation pipelines. It gathers mixed volumes of natural gas and natural gas liquids (NGLs) such as ethane, propane, and butanes, etc. from the thousands of wells drilled by its drilling customers, back through pipelines to its processing plants, which will separate the gas from the NGLs. Both are then sold to long-haul transportation pipelines, which take the two products downstream to the next part of the energy supply chain.
- [By Dividends4Life]
This week a few companies answered the call and rewarded their shareholders with higher cash dividends:
Consolidated Edison Inc. (ED) engages in regulated electric, gas, and steam delivery businesses. January 16th the company increased its quarterly dividend 2.4% to $0.63 per share. The dividend is payable March 15, 2014, to stockholders of record on February 12, 2014. The yield based on the new payout is 4.7%.
Cousins Properties Incorporated (CUZ), a real estate investment trust (REIT), owns, develops, and manages real estate portfolio, as well as performs certain real estate-related services. January 16th the company increased its quarterly dividend 66.7% to $0.075 per share. The dividend is payable February 24, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.8%.
Wisconsin Energy Corporation (WEC) generates and distributes electric energy, as well as distributes natural gas. The company operates in two segments, Utility Energy and Non-Utility Energy. January 16th the company increased its quarterly dividend 2% to $0.3900 per share. The dividend is payable March 1, 2014, to stockholders of record on February 14, 2014. The yield based on the new payout is 3.8%.
BlackRock Inc. (BLK) is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. January 16th the company increased its quarterly dividend 14.9% to $1.93 per share. The dividend is payable March 24, 2014, to stockholders of record on March 7, 2014. The yield based on the new payout is 2.4%.
ONEOK Inc. (OKE) operates as a diversified energy company in the United States. January 15th the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable February 18, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.5%.
Omega Healthcare Investors Inc. (OHI) is a real es
- [By Marc Bastow]
Midstream natural and liquid gas services company Targa Resources Partners LP (NGLS) raised its quarterly dividend 2% to 74.75 cents per share, payable Feb. 14 to shareholders of record Jan. 27.
NGLS Dividend Yield: 5.93%
- [By Jim Jubak]
Having done about all it could to increase US crude exports, by granting export licenses to Canada (permitted under the current system), I think the Obama administration is likely to move to grant new export licenses to countries other than Canada in 2014. That policy change would turn US oil producers into a rare bright spot in an energy sector that is looking at stable or falling global oil prices in 2014. Stocks I’d take a look at are Pioneer Natural Resources (PXD), Concho Resources (CXO) and Targa Resources Partners (NGLS). Pioneer Natural Resources is a member of my Jubak Picks 50 long-term portfolio. Targa Resources Partners is a member of my Jubak’s Picks 12-18 month portfolio
Top 10 Oil Companies To Invest In 2014: NGL Energy Partners LP (NGL)
NGL Energy Partners LP is a limited partnership company formed to own and operate a vertically-integrated propane business. The Company operates in three segments: retail propane; wholesale supply and marketing; and midstream. Its retail propane business sells propane to end users consisting of residential, agricultural, commercial and industrial customers. The Company’s wholesale supply and marketing business supplies propane and other natural gas liquids and provides related storage to retailers, wholesalers and refiners. Its midstream business, which consists of its propane terminaling business, takes delivery of propane from pipelines or trucks at its propane terminals and transfers the propane to third-party transport trucks for delivery to retailers, wholesalers or other consumers. The Company’s general partner is NGL Energy Holdings LLC (the General Partner). On October 14, 2010, it executed a series of transactions (the Combination) with NGL Supply, Inc. (NGL S upply). In February 2012, the Company acquired all of the assets comprising the propane and distillate operations of North American Propane. In May 2012, the Company acquired Downeast Energy Corporation. The assets contributed by Downeast are located in Maine and New Hampshire. In November 2012, the Company acquired limited liability company membership interests in Pecos Gathering & Marketing LLC and its affiliated companies (Pecos). In July 2013, NGL Energy Partners LP announced the acquisition of the assets of Crescent Terminals, LLC. Effective July 8, 2013, NGL Energy Partners LP acquired High Roller Wells Big Lake SWD No 1 LP. In August 2013, NGL Energy Partners LP acquired the water disposal and hauling business of Oilfield Water Lines LP. In September 2013, NGL Energy Partners LP acquired the water disposal business of Coastal Plains Disposal #1, LLC owned by WinCo Development, LLC. In November 2013, the Company announced acquisition of all of the equity interests of G avilon, LLC.
The Co! mpany’s retail propane business consists of the retail marketing, sale and distribution of propane, including the sale and lease of propane tanks, equipment and supplies, to more than 56,000 residential, agricultural, commercial and industrial customers. It markets retail propane primarily in Georgia, Illinois, Indiana and Kansas through its customer service locations. The Company owns or leases 44 customer service locations and 37 satellite distribution locations, with aggregate above-ground propane storage capacity of approximately four million gallons. It also owns a fleet of bulk delivery trucks and service vehicles.
Wholesale Supply and Marketing
The Company’s wholesale supply and marketing business provides propane procurement, storage, transportation and supply services to customers, through assets owned by it and by third parties. Its wholesale supply and marketing business also obtains the majority of the propane supply for its retail p ropane business. The Company procures propane from refiners, gas processing plants, producers and other resellers for delivery to leased storage, common carrier pipelines, rail car terminals and direct to certain customers. It has the right to utilize 100% of the ConocoPhillips Blue Line pipeline, which runs from Borger, Texas, to its propane terminals in East St. Louis, Illinois and Jefferson City, Missouri. The Company leases approximately 67 million gallons of propane storage space in various locations to accommodate the supply requirements and contractual needs of its retail and wholesale customers.
The Company’s midstream business, which consists of its propane terminaling business, takes delivery of propane from a pipeline or truck at its propane terminals and transfers the propane to third party trucks for delivery to propane retailers, wholesalers or other customers. The Company’s midstream assets consist of its three propane t erminals in East St. Louis, Illinois; Jefferson City, Missou! ri, and S! t. Catharines, Ontario. The Company is a service provider at each of its terminals, which have a combined annual throughput in excess of 170 million gallons of propane.
- [By Robert Rapier]
But because SPH is more involved in the retail end of propane instead of the production/logistical side, it has been significantly outperformed by NGL Energy Partners (NYSE: NGL) and Ferrellgas Partners (NYSE: FGP). In short, the latter two are the ways to play higher propane prices, whereas SPH will see much less benefit from higher-priced propane.
- [By Robert Rapier]
The four propane-focused MLPs are AmeriGas Partners (NYSE: APU), Suburban Propane Partners (NYSE: SPH), NGL Energy Partners (NYSE: NGL), and Ferrellgas Partners (NYSE: FGP).
Top 10 Oil Companies To Invest In 2014: Willbros Group Inc (WG)
Willbros Group, Inc. (Willbros) is a full service engineering and construction company specializing in energy infrastructure serving the oil and gas and power industries. The Company’s services include engineering, procurement and construction (individually or as an integrated engineering, procurement and construction (EPC) offering), project management, maintenance and lifecycle extension services. As of December 31, 2011, the Company operated through three business segments: Upstream Oil & Gas, Downstream Oil & Gas and Utility Transmission and Distribution (Utility T&D), primarily in the United States, Canada and Oman. In January 2012, the Company changed its organization and includes three segments: Oil & Gas, Utility T&D and Canada. During 2011, the Company opened an office in the Houston Ship Channel. On October 11, 2011, the Company completed the sale of all assets and operations of InterCon Construction Inc., a non-strategic subsidiary within the Utility T&D segment .
Upstream Oil & Gas
The Company’s core services include the design, construction, and maintenance of hydrocarbon transportation systems. The Company provides a full range of services for the engineering, design, procurement and construction of processing, pumping, compression and metering facilities. It focuses on building these facilities in the North American oil and gas market.
The Company’s core services include the design, construction, and maintenance of hydrocarbon transportation systems. The Company provides a full range of services for the engineering, design, procurement and construction of processing, pumping, compression and metering facilities. It focuses on building these facilities in the North American oil and gas market.
The Company’s engineering services include project development, conceptual design, front-end engineering and feasibility studies; project engineering services; definitive design and d rafting services; project management, estimating, scheduling! and controls; turnkey EPC arrangements; field engineering and construction liaison services; material and services procurement; planning and management of integrity and maintenance programs, and topographic, hydrographic and engineering as-built surveying, including the establishment of rights-of-way for public utilities and industrial uses. These services are furnished to a number of oil, gas, and pipeline transportation clients on a stand-alone basis, as well as part of EPC contracts undertaken by the Company.
In addition to capital projects, the Company offers its upstream infrastructure construction facilities to its clients through its management and maintenance offerings. The Company operates its fabrication services in Tulsa, Oklahoma and Alberta, Canada.
Downstream Oil & Gas
The Company provides integrated, full-service specialty construction, turnaround, repair and maintenance services, including EPC services, to the downstre am energy infrastructure markets, which consists primarily of integrated oil companies, independent refineries, product terminals and petrochemical companies. The Company provides these services primarily in the United States. The Company’s principal services include construction, maintenance and turnaround services for downstream facilities, including revamp/reconditioning of fluid catalytic cracking (FCC) units; tank services for construction, maintenance or repair of petroleum storage tanks, typically located at pipeline terminals and refineries; multi-disciplinary engineering services to clients in the petroleum refining, chemicals and petrochemicals and oil and gas industries, and EPC services through program management and EPC project services. The Company’s construction, maintenance and turnaround services include refractory services, furnace re-tube and revamp projects, stainless and alloy welding services and heavy rigging and equipment setting.
The Company provides services to the above-ground storage tank i! ndustry. ! The Company’s capabilities include American Petroleum Institute (API) compliant tank maintenance and repair; floating roof seals; floating roof installations and repairs; secondary containment bottoms, cone roof and structure replacements, and new API compliant aboveground storage tanks. The Company provides these services as stand-alone or in combination, including EPC solutions.
The Company provides project management, engineering and material procurement services to the refining industries and government agencies, including chemical/process, mechanical, civil, structural, electrical, instrumentation/controls and environmental through its subsidiary, Wink Companies, LLC (Wink). The Company provides its engineering services through resources located at the project site or at its offices in Louisiana.
The Company provides a range of services in electric and natural gases transmission and distribution, including comprehensiv e maintenance and construction, repair and restoration of utility infrastructure. It maintains and constructs overhead and underground transmission lines. Overhead transmission services include the installation, maintenance and repair of transmission structures involving wood, concrete, steel pole and steel lattice tower configurations. Underground transmission services include the installation and maintenance of underground transmission cable and its associated duct, conduit and manhole systems. Electric power transmission also includes substation services, which includes the maintenance, construction, expansion, calibration and testing of electric power substations and components.
The Company maintains, construct and upgrade underground and overhead electric power distribution lines to household voltage levels. The Company’s services consists of electric power distribution systems, including primary and secondary voltage cables, wood and steel poles, transfor mers, switchgear, capacitors, underground duct, manhole syst! ems, resi! dential and commercial and electric meter installation.
The Company offers two complementary services to utilities and industrial companies for the restoration of electrical power cables and the condition assessment of electrical cable systems. It includes CableCURE and CableWISE. CableCURE is a process for the restoration of aged electric power cables. CableWISE is an online electrical system-condition assessment process that enables electric power utilities and a range of commercial and industrial facilities to evaluate the condition of cable systems, transformers and switchgear. The Company provides a spectrum of natural gas T and D services, from the maintenance and construction of large diameter transmission pipelines through the installation of residential natural gases service. The Company constructs, maintain and upgrade natural gases distribution pipelines. The Company’s services include trenching, transporting, welding or fusing and laying pipe, post- construction integrity testing, site restoration and meter setting.
The Company provides other specialty services to customers nationwide. These services include utility-line locating, stray voltage and gas leak detection and telecommunications.
The Company competes with Quanta Services, MasTec, Primoris, Associated Pipeline Contractors, Sheehan Pipeline Construction, U.S. Pipeline, Welded Construction, Henkels & McCoy, Michels Corporation, North American Energy Services, Flint Energy Services, Ledcor, Sunland, Dyess, Jomax, CH2M Hill, Gulf Interstate, Universal Pegasus, Trigon, Mustang Engineering, ENGlobal, AltairStrickland, JV Industrial Companies, Plant Performance Services, KBR, Chicago Bridge & Iron, Matrix Services, MYR Group, Pike Electric and Miller Pipeline.
- [By Jeremy Bowman]
What: Shares of Willbros Group (NYSE: WG ) were shining today, gaining as much as 16% after the energy services firm boosted its profit estimate for the current quarter.
Top 10 Oil Companies To Invest In 2014: Halliburton Company(HAL)
Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, completion tools and services, cementing services, and Boots & Coots. Its production enhancement services include stimulation and sand control services; completion tools and services comprise subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, intelligent completion systems, expandable liner hanger systems, sand control systems, well servicing tools, and reservoir performance services; cementing services consist of bonding the well and well casing, while isolating fluid zones and maximizing wellbore stability, and casing equipment; and Boots & Coots include well intervention services , pressure control, equipment rental tools and services, and pipeline and process services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and wellbore placement solutions that enable customers to model, measure, and optimize their well construction activities. Its services comprise fluid services, drilling services, drill bits, wireline and perforating services, testing and subsea services, software and asset solutions, and integrated project management and consulting services. The company serves independent, integrated, and national oil companies. Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.
- [By Lee Jackson]
Halliburton Co. (NYSE: HAL) is one of the top names across all the firms we cover on Wall Street. The company stands to benefit from continued robust levels of domestic drilling activity and a pick-up in international markets. Management believes the company can deliver earnings per share of $6 by 2016, double the level from 2012. Investors receive a 1.1% dividend. The consensus price estimate is posted at $65.17. Halliburton closed Thursday at $55.16.
- [By Dimitra DeFotis]
Adams’ partial list of potential losers:
BP (BP) : the highest profile potential loser. It owns 19.75% of Russian energy giant Rosneft, which accounted a third of BP’s production in the fourth quarter. Sanctions that inhibit oil and gas flows to Europe, or banking/capital flows, would “hit Rosneft and BP early and hard.” An offset: there could be an uptick in demand for a pipeline 30% owned and operated by BP because it transports Azerbaijan oil through Georgia and Turkey to the Mediterranean — a southern route avoiding Georgia and Ukraine. Chevron (CVX) pipeline investments could be stymied. It also signed a 50-year agreement to explore for and develop oil and gas in western Ukraine, involving up to $10 billion of investment. “A Russian takeover spikes that deal,” Adams says. Oilfield services companies Halliburton (HAL), Baker Hughes (BHI), and Weatherford International (WFT) all do business in Russia that could be prohibited if it is labeled a rogue nation.
The crisis in Ukraine and Russia’s tactics make U.S. assets look more secure and more valuable: some U.S. refiners that could export fuel, utility holding companies that could export liquefied natural gas, and related pipeline companies could see even more benefits, longer-term, from the North American fracking and horizontal drilling boom. But approval of the TransCanada (TRP) Keystone XL pipeline is a necessary piece of that equation, Adams writes.
Top 10 Oil Companies To Invest In 2014: Endeavour International Corp (END)
Endeavour International Corporation (Endeavour), incorporated on January 13, 2000, is an independent oil and gas company engaged in the exploration, development and acquisition of energy reserves in the United States and United Kingdom. The Company has three producing fields in the United Kingdom, including Alba, Bacchus and Bittern, as well as a number of development projects including Rochelle and Columbus. In the United States, the Company has production in the Haynesville and Marcellus, as well as two oil frontier plays in Colorado and Montana. As of December 31, 2012, Endeavour had proved reserves of 71,591 million cubic feet (MMcf) of natural gas and 13,739 thousands of barrels (Mbbls) of crude oil for a combined 25.7 million barrels of oil equivalent (MBOE).
The North Sea is a resource area where it has a development project, producing properties and additional exploration licenses. During 2012, Alba production volumes were impacted by water handling is sues. As of December 31, 2012, it held a 30% working interest in its Bacchus field asset, which is operated by Apache Corporation, who owns a 50% working interest. In April and July 2012, it achieved production from the first and second development wells, respectively, on the Bacchus field. The Company’s working interest in the Rochelle area is 44% and it is the operator of the field, which is comprised of Blocks 15/26b, 15/26c and 15/27. Its United States activity has targeted reserve and production growth in shale gas plays, including the Louisiana Haynesville and Pennsylvania Marcellus areas.
The Company is also targeting emerging oil-prone and liquids-rich plays, including the Montana Heath oil play and its new interests in the Colorado Niobrara area. The Company operates and controls the Marcellus assets while retaining a 50% position in its remaining producing Haynesville acreage. The Company has 19 Haynesville Units which held by production with an esti mated over 80 remaining gross locations to be developed, dep! ending on development well spacing. The Company has interests in approximately 88,900 net acres in the emerging Heath Shale oil play in Montana, primarily in Rosebud and Garfield Counties.
- [By Jake L’Ecuyer]
Leading and Lagging Sectors
Wednesday morning, the financial sector proved to be a source of strength for the market. Leading the sector was strength from SouFun Holdings (NYSE: SFUN) and E-House (China) Holdings (NYSE: EJ). In trading on Wednesday, energy shares were relative laggards, down on the day by about 0.67 percent. Among the energy stocks, Endeavour International (NYSE: END)was down more than 22 percent, while TransGlobe Energy (NASDAQ: TGA) tumbled around 6 percent.
- [By Paul Ausick]
Stocks on the Move: Alcoa Inc. (NYSE: AA) is up 9.1% at $9.38 after posting a new 52-week high of $9.63 earlier today. Endeavour International Corp. (NYSE: END) is down 14.3% at $6.05 after failing to get any appreciable results from its strategic review. E-commerce China Dangdang Inc. (NYSE: DANG) is down 13.4% at $10.05 after issuing a warning on third-quarter earnings.
- [By Paul Ausick]
Last February independent oil & gas company Endeavour International Corp. (NYSE: END) initiated a strategic review to help it “further enhance shareholder value.” The company needed the help. Its size works against it. At the time of its announcement, the company’s market cap was just around $225 million.
- [By Jon C. Ogg]
Endeavour International Corp. (NYSE: END) was downgraded to Hold from Buy at Canaccord Genuity.
Endo Health Solutions Inc. (NASDAQ: ENDP) was downgraded to Sell from an already cautious Neutral rating at Janney.