Top Energy Stocks To Own For 2015

The number of rigs drilling for oil and natural gas has long served as one of the most important metrics for gauging the health of the energy industry.

But recently, the usefulness of rig count data has been called into question. Specifically, commentators have noted a sizable disconnect between the number of active rigs in a play and production from that play. Let’s take a closer look at why this is and whether or not rig counts are as important as they used to be.

Improvements in drilling efficiency
The disconnect between rig counts and production can largely be explained by one major factor — drastic improvements in drilling efficiencies.

Since hydraulic fracturing and horizontal drilling methods gained widespread commercial acceptance several years ago, oil and gas producers have continued to report efficiency improvements as they optimize their techniques even further.

Pad drilling methods have become especially popular, since they allow operators to more efficiently drill multiple wells from the same pad. This has enabled numerous companies to dramatically reduce the number of days taken to drill and complete a well.

Top Energy Stocks To Own For 2015: Bri-Chem Corp (BRY)

Bri-Chem Corp. is a North American distributor, blender, and manufacturer of drilling fluids and steel pipe for the oil and gas industry in North America. The Company operates in three segments: Fluids, Steel Distribution and Steel Manufacturing. Its Fluids segment includes the sale of fluids and chemical additives to the resource and industrial markets. The Steel Distribution segment includes the sale of tubular steel products to the resource, industrial and construction industries. The Steel Manufacturing segment produces seamless steel pipe through a thermal expansion process for sale to steel pipe distributors in North America. On May 31, 2011, it acquired all membership interest in Bri-Chem Supply Corp, LLC (BSU) and Stryker Transportation Ltd. (Stryker). In September 2013, Bri-Chem Corp acquired the cement blending business assets of Sun Coast Materials Co. and certain additional transportation assets from its affiliate Acme Trucking, Inc. Advisors’ Opinion:

  • [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 Robert Rapier]

    We got numerous questions about Linn Energy (Nasdaq: LINE) in the chat. I commented on this in last week’s MLP Investing Insider, but it bears repeating here as there is obviously still a lot of interest. Igor’s answer to this question was “I expect the merger to close by year’s end, but I think Linn has some structural issues that go beyond [pending merger partner Berry Petroleum (NYSE: BRY)] with its debt load and past acquisition quality, so I’m steering clear. There are better upstream MLPs in our portfolios.”

Top Energy Stocks To Own For 2015: Athabasca Oil Corp (ATHOF.PK)

Athabasca Oil Corporation, formerly Athabasca Oil Sands Corp., is focused on the exploration and development of unconventional oil resource plays in Alberta, Canada. The Company is organized into two divisions: thermal oil and light oil. Thermal oil includes the Company’s assets, liabilities and operating results for the exploration, development and production of bitumen from sand and carbonate rock formations located in the Athabasca region of Northern Alberta. Light oil includes the Company’s assets, liabilities and operating results for the exploration, development and production of unconventional oil, natural gas and natural gas liquids located in various regions in the province of Alberta. Athabasca has accumulated more than 1.5 million (net) acres of oil sands leases in the Athabasca area of northern Alberta. The Company’s oil sands projects are Hangingstone (100%), Dover West Sands (100%), Dover West Carbonates (100%), Dover (40%), Birch (100%) and Grosmont (50%) . Advisors’ Opinion:

  • [By Stephan Dube]

    Athabasca’s most notable producers:

    Suncor Energy (SU) (Part 1), see article here.Suncor Energy (Part 2), see article here.Athabasca Oil (ATHOF.PK), see article here.Canadian Natural Resources, see article here.Imperial Oil, see article here.Cenovus Energy (CVE), see article here.MEG Energy (MEGEF.PK), see article here.Devon Energy, see article here.Royal Dutch Shell, see article here.Ivanhoe Energy (IVAN), see article here.Nexen (CNOOC) (CEO), see article here.

    An analysis of the current operations of the company will be examined with the objective to provide the most complete information available to potential investors before deciding to seize the opportunity that the 54,132 square miles of the Carbonate Triangle has to offer. Let’s start by introducing Athabasca, a famous and most prolific region in the Canadian oil sands as well as one of the largest reserve in the world.

Top Energy Stocks To Own For 2015: Boardwalk Pipeline Partners LP (BWP)

Boardwalk Pipeline Partners, LP is a limited partnership company. The Company owns and operates three interstate natural gas pipeline systems including integrated storage facilities. Its business is conducted by its primary subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines) and its subsidiaries, Gulf Crossing Pipeline Company LLC (Gulf Crossing), Gulf South Pipeline Company, LP (Gulf South) and Texas Gas Transmission, LLC (Texas Gas) (together, the operating subsidiaries), which consist of integrated natural gas pipeline and storage systems. During the year ended December 31, 2011, it formed Boardwalk Midstream, LP (Midstream), and its operating subsidiary, Boardwalk Field Services, LLC (Field Services), which is engaged in the natural gas gathering and processing business. In December 2011, Boardwalk HP Storage Company, LLC (HP Storage), a joint venture between Boardwalk Pipelines and Boardwalk Pipelines Holding Corp. (BPHC) acquired Petal Gas Storage, L.L.C. (Peta l), Hattiesburg Gas Storage Company (Hattiesburg). In December 2011, it acquired a 20% equity interest in HP Storage.

The Company’s pipeline systems originate in the Gulf Coast region, Oklahoma and Arkansas and extend north and east to the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio. It serves a mix of customers, including producers, local distribution companies (LDCs), marketers, electric power generators, direct industrial users and interstate and intrastate pipelines. The Company provides a portion of its pipeline transportation and storage services, through firm contracts, under which the Company’s customers pay monthly capacity reservation charges. Other charges are based on actual utilization of the capacity under firm contracts and contracts for interruptible services. During 2011, approximately 82% of its revenues were derived from capacity reservation charges under firm contracts; approximately 14% of its revenues were deriv ed from charges-based on actual utilization under firm contr! acts, and approximately 4% of its revenues were derived from interruptible transportation, interruptible storage, parking and lending (PAL) and other services. Its expansion projects include South Texas Eagle Ford Expansionand Marcellus Gathering System and HP Storage.

Pipeline and Storage Systems

The Company’s operating subsidiaries own and operate approximately 14,200 miles of pipelines, directly serving customers in twelve states and indirectly serving customers throughout the northeastern and southeastern United States through numerous interconnections with unaffiliated pipelines. In 2011, its pipeline systems transported approximately 2.7 trillion cubic feet of gas. Average daily throughput on its pipeline systems during 2011 was approximately 7.3 billion cubic feet. Its natural gas storage facilities are comprised of eleven underground storage fields located in four states with aggregate working gas capacity of approximately 167.0 billion cu bic feet. the Company operates the assets of HP Storage on behalf of the joint venture.

The principal sources of supply for our pipeline systems are regional supply hubs and market centers located in the Gulf Coast region, including offshore Louisiana, the Perryville, Louisiana area, the Henry Hub in Louisiana and the Carthage, Texas area. Its pipelines in the Carthage, Texas area provide access to natural gas supplies from the Bossier Sands, Barnett Shale, Haynesville Shale and other gas producing regions in eastern Texas and northern Louisiana. The Henry Hub serves as the designated delivery point for natural gas futures contracts traded on the New York Mercantile Exchange. Its pipeline systems also have access to unconventional mid-continent supplies, such as the Woodford Shale in southeastern Oklahoma and the Fayetteville Shale in Arkansas. The Company also accesses the Eagle Ford Shale in southern Texas; wellhead supplies in northern and southern Louisiana and Mississippi; and Canadian natural gas through an unaffil! iated pip! eline interconnect at Whitesville, Kentucky.

Gulf Crossing

The Company’s Gulf Crossing pipeline system originates near Sherman, Texas, and proceeds to the Perryville, Louisiana area. The market areas are in the Midwest, Northeast, Southeast and Florida through interconnections with Gulf South, Texas Gas and unaffiliated pipelines.

Gulf South

The Company’s Gulf South pipeline system is located along the Gulf Coast in the states of Texas, Louisiana, Mississippi, Alabama and Florida. The on-system markets directly served by the Gulf South system are generally located in eastern Texas, Louisiana, southern Mississippi, southern Alabama, and the Florida Panhandle. These markets include LDCs and municipalities located across the system, including New Orleans, Louisiana; Jackson, Mississippi; Mobile, Alabama; and Pensacola, Florida, and other end-users located across the system, including the Baton Rouge to New Orleans industrial corridor and Lake Charles, Louisiana. Gulf South also has indirect access to off-system markets through numerous interconnections with unaffiliated interstate and intrastate pipelines and storage facilities. These pipeline interconnections provide access to markets throughout the northeastern and southeastern United States.

Gulf South has two natural gas storage facilities. The gas storage facility located in Bistineau, Louisiana, has approximately 78 billion cubic feet of working gas storage capacity from which Gulf South offers firm and interruptible storage service, including no-notice service. Gulf South’s Jackson, Mississippi, gas storage facility has approximately five billion cubic feet of working gas storage capacity, which is used for operational purposes and is not offered for sale to the market.

Texas Gas

The Company’s Texas Gas pipeline system originates in Louisiana, East Texas and Arkansas and runs north and east through Louisiana, Arkansas, Mississippi, Tennessee, K! entucky, ! Indiana, and into Ohio, with smaller diameter lines extending into Illinois. Texas Gas directly serves LDCs, municipalities and power generators in its market area, which encompasses eight states in the South and Midwest and includes the Memphis, Tennessee; Louisville, Kentucky; Cincinnati and Dayton, Ohio, and Evansville and Indianapolis, Indiana metropolitan areas. Texas Gas also has indirect market access to the Northeast through interconnections with unaffiliated pipelines. Texas Gas owns nine natural gas storage fields, of which it owns the majority of the working and base gas. Texas Gas uses this gas to meet the operational requirements of its transportation and storage customers and the requirements of its no-notice service customers.

Field Services

In 2011, the Company formed its Field Services subsidiary and transferred to it approximately 100 miles of gathering and transmission pipeline. In 2012, the Company transferred to Field Services a n additional 240 miles of pipeline and two compressor stations. Field Services is developing gathering and processing capabilities in south Texas and Pennsylvania.

Advisors’ Opinion:

  • [By Paul Ausick]

    The big news in the master limited partnership (MLP) world last week was the announcement by Boardwalk Pipeline Partners LP (NYSE: BWP) that it was cutting its quarterly distribution by 80%. The company’s market value was cut in half, and the price of Boardwalk’s common units fell from above $24 to below $13. For the rest of the week, investors have been trying to figure out which midstream company will be next or, alternatively, which companies offer the best chance of prospering.

  • [By Robert Rapier]

    This is, fortunately, an update not on a current portfolio holding but rather one on Boardwalk Pipeline Partners (NYSE: BWP), the MLP we recommended selling in November at near $28 and ahead of a continuing decline that cost investors another 13 percent as of Friday.

  • [By Jake L’Ecuyer]

    Equities Trading DOWN
    Shares of Boardwalk Pipeline Partners LP (NYSE: BWP) were down 46.12 percent to $14.68 after the company reported weak Q4 results and slashed its quarterly distribution.

Top Energy Stocks To Own For 2015: Pacific Coast Oil Trust (ROYT)

Pacific Coast Oil Trust is a statutory trust formed by Pacific Coast Energy Company LP (PCEC) to own interests in the Underlying Properties. As of December 31, 2011, the Underlying Properties consisted of the proved developed reserves on the Underlying Properties, which it refers to as the Developed Properties, and all other development potential on the Underlying Properties, which it refers to as the Remaining Properties. The Underlying Properties are located in California in the Santa Maria and Los Angeles Basins. PCEC produces oil and natural gas from its Orcutt properties in the Santa Maria Basin. The production in the Orcutt oilfield is produced from formations utilizing conventional production methods.

PCEC is engaged in the production and development of oil and natural gas from properties located in California. As of December 31, 2011, PCEC held interests in approximately 276 gross (215 net) producing wells, and had proved reserves of approximately 34. 1 million barrels of oil equivalent. The Underlying Properties consist of producing and non-producing interests in oil units, wells and lands located onshore in California in the Santa Maria Basin, which contains PCEC’s Orcutt properties, and the Los Angeles Basin, which contains PCEC’s West Pico, East Coyote and Sawtelle properties. As of December 31, 2011, there were 37 producing wells and six waterflood injection wells in the West Pico Unit. West Pico also includes three wells held by the Stocker JV, a joint venture between PCEC and PXP.

Advisors’ Opinion:

  • [By Rich Duprey]

    Perpetual royalty trust Pacific Coast Oil Trust (NYSE: ROYT  ) announced yesterday its July distribution of $0.15721 per unit. The amount of the trust’s monthly distributions will fluctuate depending on the proceeds it receives from its owner, Pacific Coast Energy, as a result of actual production volumes, oil and gas prices, and development expenses.  The current distribution relates to net profits and overriding royalties generated during May 2013.

  • [By Jake L’Ecuyer]

    Pacific Coast Oil Trust (NYSE: ROYT) down, falling 7.13 percent to $16.70 after the company priced a public offering by Pacific Coast Energy Company LP and other selling unitholders of 13,500,000 trust units at a price of $17.10 per unit.

Top Energy Stocks To Own For 2015: 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.

Resource Plays

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.

Conventional Plays

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.

Advisors’ Opinion:

  • [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.

    Associated Press

    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 Energy Stocks To Own For 2015: Statoil ASA (STO)

Statoil ASA (Statoil), incorporated on September 18, 1972, is an integrated energy company primarily engaged in oil and gas exploration and production activities. As of December 31, 2011, the Company had business operations in 41 countries and territories. Effective from January 1, 2011, the Company’s segments were Development and Production Norway; Development and Production International; Marketing, Processing and Renewable Energy; Fuel & Retail, Other. As of 31 December 2011, the Company had proved reserves of 2,276 million barrels (mmbbl) and 3,150 billion cubic meters (bcm) (equivalent to 17,681 trillion cubic feet (tcf)) of natural gas, corresponding to aggregate proved reserves of 5,426 mmboe. In December 2011, the Company acquired Brigham Exploration Company. On April 14, 2011, Statoil’s formation of a joint venture and sale of 40% of the Peregrino field off the coast of Brazil to the Sinochem Group was closed. With effect from January 2011, Statoil formed a join t venture with PTTEP of Thailand in its oil sands business and, as part of that transaction, sold PTTEP a 40% interest in the leases in Alberta, Canada. Statoil retains 60% ownership and operatorship of the oil sands project. In June 2012, the Company divested its 54% interest in Statoil Fuel & Retail ASA to Alimentation Couche-Tard.

Development and Production Norway

Development and Production Norway (DPN) consists of the Company’s field development and operational activities on the Norwegian continental shelf (NCS). Development and Production Norway is the operator of 44 developed fields on the NCS. Statoil’s equity and entitlement production on the NCS was 1.316 mmboe per day in 2011, which was about 71% of Statoil’s total production. Acting as operator, DPN is responsible for approximately 72% of all oil and gas production on the NCS. In 2011, its average daily production of oil and natural gas liquids (NGL) on the NCS was 693 mboe, while its average daily gas production on the NCS was 99.1 mmcm (3.5 b! illion cubic feet (bcf)). The Company has an ownership interests in exploration acreage throughout the licensed parts of the NCS, both within and outside its production areas. It participates in 227 licenses on the NCS and is the operator for 171 of them. As of 31 December 2011, Statoil had a total of 1,369 mmbbl of proved oil reserves and 444 bcm (15.7 tcf) of proved natural gas reserves on the NCS. Total entitlement liquids and gas production in 2011 amounted to 1,316 mmboe per day.

Statoil’s NCS portfolio consists of licenses in the North Sea, the Norwegian Sea and the Barents Sea. It has organized its production operations into four business clusters: Operations South, Operations North Sea West, Operations North Sea East and Operations North. The Operations South and Operations North Sea West and East clusters cover its licenses in the North Sea. Operations North covers the Company’s licenses in the Norwegian Sea and in the Barents Sea, while partner-opera ted fields cover the entire NCS and are included internally in the Operations South business cluster. During 2011, it two Statoil-operated oil discoveries: the Aldous discovery (PL265) in the North Sea and the Skrugard discovery (PL532) in the Barents Sea. The Aldous Major South discovery in PL265 on the Utsira Height in the Sleipner area is situated 140 kilometers west of Stavanger and 35 kilometers south of the Grane field. The Skrugard discovery is located about 250 kilometers off the coast from the Melkoya LNG plant in Hammerfest.

As of December 31, 2011, the Company’s fields under development included the Gudrun, Valemon, Visund South, Hyme, Stjerne, Vigdis North-East, Skuld, Vilje South, Skarv, and Marulk. In 2011, the Company’s total entitlement oil and NGL production in Norway was 252 mmbbl, and gas production was 36.2 bcm (1,287 bcf). The main producing fields in the Operations South area are Statfjord, Snorre, Tordis, Vigdis, Sleipner and partner- operated fields. Operations North Sea East is a gas area tha! t also co! ntains quantities of oil. The area includes the Troll, Fram, Vega, Oseberg and Tune fields. The Company’s producing fields in the Operations North area are Asgard, Mikkel, Yttergryta, Heidrun, Kristin, Tyrihans, Norne, Urd, Alve, Njord, Snohvit and Morvin.

Development and Production International

Development and Production International (DPI) is responsible for the development and production of oil and gas outside the Norwegian continental shelf (NCS). In 2011, the segment was engaged in production in 12 countries: Canada, the United States, Brazil, Venezuela, Angola, Nigeria, Iran, Algeria, Libya, Azerbaijan, Russia and the United Kingdom. In 2011, DPI produced 28.9% of Statoil’s total equity production of oil and gas. Statoil has exploration licenses in North America (Gulf of Mexico, Canada and Alaska), South America and sub-Saharan Africa (Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania), Middle East and North Africa (Libya a nd Iran) and Europe and Asia (the Faeroes, Greenland, the United Kingdom, Azerbaijan and Indonesia). The main sanctioned development projects in which DPI is involved are in the United States, Angola and Canada. The Brigham Exploration Company acquisition added production of approximately 21 mboe per day (as of December) to Statoil’s production and gave access to 1,500 square kilometers (375,000 acres) in the Bakken and Three Forks formations in the Williston Basin.

The Company has exploration licenses in North America (Gulf of Mexico, Canada and Alaska), South America and sub-Saharan Africa (Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania), Middle East and North Africa (Libya and Iran), and Europe and Asia (the Faroes, Greenland, the United Kingdom, Azerbaijan and Indonesia). It completed 16 wells in 2011. Five were announced as discoveries: the Mukuvo and Lira discoveries in Angola, the Gavea and Peregrino South discovery in Brazil and the Logan discovery in Gulf of Mexico (GoM). Statoil acquired in! terests i! n six new licenses in Indonesia in 2011. Statoil has activities in the United States, with approximately 300 exploration leases in the GoM and 66 in Alaska. It is also an operator and partner in exploration licenses off the coast of Newfoundland in Canada. Statoil is operator and partner in exploration licenses off the coast of Newfoundland (11,138 square kilometers). It has exploration licenses in Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania. The Company has licenses in Libya, Iran, Faroes, Greenland, the United Kingdom, Azerbaijan and Indonesia. In 2011, Statoil’s petroleum production outside Norway amounted to an average of 334 mboe per day of entitlement production and 534 mboe per day of equity production.

The Company has activities in the United States Gulf of Mexico, the Appalachian region, south-west Texas, the Williston Basin, off the East Coast of Canada and in the oil sands of Alberta, Canada. It also has a representative office in Mexico City. Offshore, the Company has production interests in Hibernia and Terra Nova, and interests in two development projects. Its development and production activities in South America and sub-Saharan Africa comprise the Peregrino operatorship in Brazil, the Petrocedeno project in Venezuela, the Agbami offshore field in Nigeria and four Angolan offshore blocks. Statoil’s development and production in the Middle East and North Africa in 2011, primarily encompassed Algeria, Libya, Egypt, Iran and Iraq. The Company’s Development and Production in Europe and Asia primarily comprises Azerbaijan, Russia, United Kingdom and Ireland.

Marketing, Processing and Renewable Energy

Marketing, Processing and Renewable Energy (MPR) is responsible for the transportation, processing, manufacturing, marketing and trading of crude oil, natural gas, liquids and refined products, and for developing business opportunities in renewables. It runs two refineries, t wo gas processing plants, one methanol plant and three crude! oil term! inals. MPR is also responsible for marketing gas supplies originating from the Norwegian state’s direct financial interest (SDFI). In total, it is responsible for marketing approximately 80% of all Norwegian gas exports. In 2011, Statoil sold 36.1 bcm (1.3 tcf) of natural gas from the Norwegian continental shelf (NCS) on its own behalf, in addition to approximately 33.5 bcm (1.2 tcf) of NCS gas on behalf of the Norwegian state. Statoil’s total European gas sales, including third-party gas, amounted to 79.8 bcm (2.9 tcf) in 2011, of which 39.5 bcm (1.4 tcf) was gas sold on behalf of the Norwegian state. The Natural Gas business cluster is responsible for Statoil’s marketing and trading of natural gas worldwide, for power and emissions trading and for overall gas supply planning. In 2011, the Company sold 36.1 bcm (1.3 tcf) of natural gas from the NCS on its own behalf, in addition to approximately 33.5 bcm (1.2 tcf) of NCS gas on behalf of the Norwegian state. Statoil’s total European gas sales, including third-party gas, amounted to 79.8 bcm (2.9 tcf) in 2011, of which 39.5 bcm (1.4 tcf) was gas sold on behalf of the Norwegian state. In addition, it sold 5.5 bcm (0.2 tcf) of gas originating from its international positions, mainly in Azerbaijan and the United States, of which 2.7 bcm (0.1 tcf) was entitlement gas. As technical service provider (TSP), Statoil is responsible for the operation, maintenance and further development of the Karsto gas processing plant on behalf of the operator Gassco.

Statoil is the seller of crude oil, operating from sales offices in Stavanger, Oslo, London, Singapore, Stamford and Calgary and selling and trading crude oil, condensate, NGL and refined products. Statoil holds the lease for the South Riding Point crude oil terminal in the Bahamas, which includes, oil storage as well as loading and unloading facilities. It also operates the Mongstad terminal and has shared ownership with Petoro. The Compan y is a majority owner (79%) and operator of the Mongstad ref! inery in ! Norway, which has a crude oil and condensate distillation capacity of 220,000 barrels per day. It is the sole owner and operator of the Kalundborg refinery in Denmark, which has a crude oil and condensate distillation capacity of 118,000 barrels per day. In addition, it has rights to 10% of production capacity at the Shell-operated refinery in Pernis in the Netherlands, which has a crude oil distillation capacity of 400,000 barrels per day. The Company’s methanol operations consist of an 81.7% interest in the gas-based methanol plant at Tjeldbergodden, Norway, which has a design capacity of 0.95 million tons per year. It also operates the Oseberg Transportation System (36.2% interest), including the Sture crude oil terminal.

Technology, Projects and Drilling

Technology, Projects and Drilling (TPD) is responsible, as a global service provider to Statoil, for delivering projects and wells and for providing support through global expertise, standards and procurement. TPD is also responsible developing and implementing new technological solutions. Statoil’s research and development portfolio is organized in seven programs covering the upstream building blocks. The research and development organization operates and develops laboratories and test facilities and has an academia program that addresses cooperation with universities and research institutes.

Global Strategy and Business Development

Global Strategy and Business Development (GSB) was established in 2011, with its main office in London. GSB sets the direction for Statoil and identifies, develops and delivers opportunities for global growth.

Advisors’ Opinion:

  • [By Dominic Chopping]

    Norwegian oil and gas major Statoil ASA (STO) said Thursday it has made a gas discovery in the Kramsno prospect in the Barents Sea, but the exploration program around the Johan Castberg field has so far not delivered expected oil volumes.

  • [By Jim Jubak]

    On Friday, Statoil (STO) announced fourth quarter earnings a full 15% below Wall Street expectations. Production for the full 2013 year at Norway’s state-owned oil and natural gas company fell 3%.

Top Energy Stocks To Own For 2015: Enterprise Products Partners LP (EPD)

Enterprise Products Partners L.P. (Enterprise), incorporated on April 9, 1998, owns and operates natural gas liquids (NGLs) related businesses of Enterprise Products Company (EPCO). The Company is a North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and certain petrochemicals. Its midstream energy asset network links producers of natural gas, NGLs and crude oil from supply basins in the United States, Canada and the Gulf of Mexico with domestic consumers and international markets. Its midstream energy operations include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminals; crude oil gathering and transportation, storage and terminals; offshore production platforms; petrochemical and refined products transportation and services; and a marine transportation business that operates on the United States in land and Intracoastal Waterway systems and in the Gulf of Mexico. Its assets include approximately 50,000 miles of onshore and offshore pipelines; 200 million barrels of storage capacity for NGLs, petrochemicals, refined products and crude oil; and 14 billion cubic feet of natural gas storage capacity. In addition, its asset portfolio includes 24 natural gas processing plants, 21 NGL and propylene fractionators, six offshore hub platforms located in the Gulf of Mexico, a butane isomerization complex, NGL import and export terminals, and octane isobutylene production facilities. The Company operates in five business segments: NGL Pipelines & Services; Onshore Natural Gas Pipelines & Services; Onshore Crude Oil Pipelines & Services; Offshore Pipelines & Services, and Petrochemical & Refined Products Services.

NGL Pipelines & Services

The Company’s NGL Pipelines & Services business segment includes its natural gas processing plants and related NGL m arketing activities; approximately 16,700 miles of NGL pipel! ines; NGL and related product storage facilities; and 14 NGL fractionators. This segment also includes its import and export terminal operations. At the core of its natural gas processing business are 24 processing plants located across Colorado, Louisiana, Mississippi, New Mexico, Texas and Wyoming. Natural gas produced at the wellhead (especially in association with crude oil) contains varying amounts of NGLs. Once the mixed component NGLs are extracted by a natural gas processing plant, they are transported to a centralized fractionation facility for separation into purity NGL products. Once processed, this natural gas is available for sale through its natural gas marketing activities. Its NGL marketing activities generate revenues from the sale and delivery of NGLs it takes title to through its natural gas processing activities and open market and contract purchases from third parties. Its NGL marketing activities utilize a fleet of approximately 670 railcars, the majori ty of which are leased from third parties.

The Company’s NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing facilities, refineries and import terminals to fractionation plants and storage facilities; distribute and collect NGL products to and from fractionation plants, storage and terminal facilities, petrochemical plants, export facilities and refineries, and deliver propane to customers along the Dixie Pipeline and certain sections of the Mid-America Pipeline System. Revenues from its NGL pipeline transportation agreements are based upon a fixed fee per gallon of liquids transported multiplied by the volume delivered. Certain of its NGL pipelines offer firm capacity reservation services. It collects storage revenues under its NGL and related product storage contracts based on the number of days a customer has volumes in storage multiplied by a storage fee. In addition, it charges customers throughput fees based on volumes delivered into and subsequently withdrawn from storage. Its ! principal! NGL pipelines include Mid-America Pipeline System, South Texas NGL Pipeline System, Seminole Pipeline, Dixie Pipeline, Chaparral NGL System, Louisiana Pipeline System, Skelly-Belvieu Pipeline, Promix NGL Gathering System, Houston Ship Channel pipeline, Rio Grande Pipeline, Panola Pipeline and Lou-Tex NGL Pipeline. It operates its NGL pipelines with the exception of the Tri-States pipeline.

The Company’s NGL operations include import and export facilities located on the Houston Ship Channel in southeast Texas. It owns an import and export facility located on land it leases from Oiltanking Houston LP. Its import facility can offload NGLs from tanker vessels at rates up to 14,000 barrels per hour depending on the product. During the year ended December 31, 2012, its average combined NGL import and export volumes were 132 thousand barrels per day. In addition to its Houston Ship Channel import/export terminal, it owns a barge dock also located on the Houston Shi p Channel, which can load or offload two barges of NGLs or other products simultaneously at rates up to 5,000 barrels per hour.

The Company owns or have interests in 14 NGL fractionators located in Texas and Louisiana. NGL fractionators separate mixed NGL streams into purity NGL products. The primary sources of mixed NGLs fractionated in the United States are domestic natural gas processing plants, crude oil refineries and imports of butane and propane mixtures. Mixed NGLs sourced from domestic natural gas processing plants and crude oil refineries are transported by NGL pipelines and by railcar and truck to NGL fractionation facilities.

The Company’s NGL fractionation facilities process mixed NGL streams for third party customers and support its NGL marketing activities. It earns revenues from NGL fractionation under fee-based arrangements, including a level of demand-based fees. At its Norco facility in Louisiana, it performs fractionatio n services for certain customers under percent-of-liquids co! ntracts. ! Its fee-based fractionation customers retain title to the NGLs, which it processes for them. Its NGL fractionators include Mont Belvieu fractionator, Shoup and Armstrong fractionator, Hobbs NGL fractionator, Norco NGL fractionator, Promix NGL fractionators and BRF fractionators.

Onshore Natural Gas Pipelines & Services

The Company’s Onshore Natural Gas Pipelines & Services business segment includes approximately 19,900 miles of onshore natural gas pipeline systems, which provide for the gathering and transportation of natural gas in Colorado, Louisiana, New Mexico, Texas and Wyoming. It leases salt dome natural gas storage facilities located in Texas and Louisiana and own a salt dome storage cavern in Texas, which are integral to its pipeline operations. This segment also includes its related natural gas marketing activities.

The Company’s onshore natural gas pipeline systems and storage facilities provide for the gathering and tra nsportation of natural gas from producing regions, such as the San Juan, Barnett Shale, Permian, Piceance, Greater Green River, Haynesville Shale and Eagle Ford Shale supply basins in the western United States. In addition, these systems receive natural gas production from the Gulf of Mexico through coastal pipeline interconnects with offshore pipelines. Its onshore natural gas pipelines receive natural gas from producers, other pipelines or shippers at the wellhead or through system interconnects and redeliver the natural gas to processing facilities, local gas distribution companies, industrial or municipal customers, storage facilities or to other onshore pipelines.

Its onshore natural gas pipelines generates revenues from transportation agreements under which shippers are billed a fee per unit of volume transported multiplied by the volume gathered or delivered. Its onshore natural gas pipelines offer firm capacity reservation services whereby the shipper p ays a contractually stated fee based on the level of through! put capac! ity reserved in its pipelines whether or not the shipper actually utilizes such capacity. Under its natural gas storage contracts, there are typically two components of revenues monthly demand payments, which are associated with a customer’s storage capacity reservation and paid regardless of actual usage, and storage fees per unit of volume stored at its facilities. The Company’s natural gas marketing activities generate revenues from the sale and delivery of natural gas obtained from third party well-head purchases, regional natural gas processing plants and the open market.

Onshore Crude Oil Pipelines & Services

The Company’s Onshore Crude Oil Pipelines & Services business segment includes approximately 5,100 miles of onshore crude oil pipelines, crude oil storage terminals located in Oklahoma and Texas, and its crude oil marketing activities. Its onshore crude oil pipeline systems gather and transport crude oil in New Mexico, Oklahoma and Texas to refineries, centralized storage terminals and connecting pipelines. Revenue from crude oil transportation is based upon a fixed fee per barrel transported multiplied by the volume delivered.

The Company owns crude oil terminal facilities in Cushing, Oklahoma and Midland, Texas, which are used to store crude oil volumes for it and its customers. Under its crude oil terminaling agreements, it charges customers for crude oil storage based on the number of days a customer has volumes in storage multiplied by a contractual storage fee. With respect to storage capacity reservation agreements, it collects a fee for reserving storage capacity for customers at its terminals. In addition, it charges its customers throughput (or pumpover) fees based on volumes withdrawn from its terminals. It provides fee-based trade documentation services whereby it documents the transfer of title for crude oil volumes transacted between buyers and sellers at its terminals. The Company’s crude oil marketing activities generate revenues! from the! sale and delivery of crude oil obtained from producers or on the open market.

Offshore Pipelines & Services

The Company’s Offshore Pipelines & Services business segment serves active drilling and development regions, including deepwater production fields, in the northern Gulf of Mexico offshore Texas, Louisiana, Mississippi and Alabama. This segment includes approximately 2,300 miles of offshore natural gas and crude oil pipelines and six offshore hub platforms. Its offshore Gulf of Mexico pipelines provide for the gathering and transportation of natural gas or crude oil. Revenue from its offshore pipelines is derived from fee-based agreements whereby the customer is charged a fee per unit of volume gathered or transported multiplied by the volume delivered. Poseidon Oil Pipeline Company, L.L.C. (Poseidon), in which it has a 36% equity method investment, purchases crude oil from producers and shippers at a receipt point (at a fixed or index-base d price less a location differential) and then sells quantities of crude oil at onshore Louisiana locations (at the same fixed or index-based price, as applicable).

The Company’s offshore platforms are components of its pipeline operations. Platforms are used to interconnect the offshore pipeline network; provide means to perform pipeline maintenance; locate compression, separation and production handling equipment and similar assets, and conduct drilling operations during the initial development phase of an oil and natural gas property. Revenues from offshore platform services consist of demand fees and commodity charges. Revenue from commodity charges is based on a fixed-fee per unit of volume delivered to the platform multiplied by the total volume of each product delivered.

Petrochemical & Refined Products Services

The Company’s Petrochemical & Refined Products Services business segment consists of propylene fractionation plant s, pipelines and related marketing activities; a butane isom! erization! facility and related pipeline system; octane enhancement and isobutylene production facilities; refined products pipelines, including its Products Pipeline System, and related marketing activities, and marine transportation and other services.

The Company’s propylene fractionation and related activities consist of seven propylene fractionation plants (six located in Mont Belvieu, Texas and a seventh in Baton Rouge, Louisiana), propylene pipeline systems aggregating approximately 680 miles in length and related petrochemical marketing activities. This business includes an export facility and associated above-ground polymer grade propylene storage spheres located in Seabrook, Texas. Results of operations for its polymer grade propylene plants are dependent upon toll processing arrangements and petrochemical marketing activities. The toll processing arrangements include a base-processing fee per gallon (or other unit of measurement). Its petrochemical marketing activities include the purchase and fractionation of refinery grade propylene obtained in the open market and generate revenues from the sale and delivery of products obtained through propylene fractionation. The revenues from its propylene pipelines are based upon a transportation fee per unit of volume multiplied by the volume delivered to the customer. As part of its petrochemical marketing activities, it has refinery grade propylene purchase and polymer grade propylene sales agreements. Its butane isomerization business includes three butamer reactor units and eight associated deisobutanizer units located in Mont Belvieu, Texas, which comprise the commercial isomerization facility in the United States.

The Company’s commercial isomerization units convert normal butane into mixed butane, which is fractionated into isobutane, isobutane and residual normal butane. The uses of isobutane are for the production of propylene oxide, isooctane, isobutylene and alky late for motor gasoline. These processing arrangements inclu! de a base! -processing fee per gallon (or other unit of measurement). Its isomerization business also generates revenues from the sale of natural gasoline created as a by-product of the isomerization process. The Company owns and operates an octane enhancement production facility located in Mont Belvieu, Texas, which produces isooctane, isobutylene and methyl tertiary butyl ether (MTBE). The products produced by this facility are used in reformulated motor gasoline blends. The isobutane feedstocks consumed in the production of these products are supplied by its isomerization units. The Company owns a facility located on the Houston Ship Channel, which produces high purity isobutylene (HPIB). The feedstock for this plant is produced by its octane enhancement facility located at its Mont Belvieu complex. HPIB is used in the production of alkylated phenols used as antioxidants, lube oil additives, butyl rubber and resins.

Refined products pipelines and related activities cons ist of its Products Pipeline System, equity method investment in Centennial Pipeline LLC (Centennial) and refined products marketing activities. The Products Pipeline System transports refined products, and petrochemicals, such as ethylene and propylene and NGLs, such as propane and normal butane. These refined products are produced by refineries and include gasoline, diesel fuel, aviation fuel, kerosene, distillates and heating oil. Refined products also include blend stocks, such as raffinate and naphtha. Blend stocks are used to produce gasoline or as a feedstock for certain petrochemicals. The Centennial Pipeline intersects its Products Pipeline System near Creal Springs, Illinois, and loops the Products Pipeline System between Beaumont, Texas and south Illinois. In addition, it has refined products terminals located at Aberdeen, Mississippi and Boligee, Alabama adjacent to the Tombigbee River and on the Houston Ship Channel in Pasadena, Texas. Its related marketing acti vities generate revenues from the sale and delivery of refin! ed produc! ts obtained from third parties on the open market.

The Company’s marine transportation business consists of tow boats and tank barges, which are used to transport refined products, crude oil, asphalt, condensate, heavy fuel oil, liquefied petroleum gas and other petroleum products along inland and intracoastal the United States waterways. Its marine transportation assets service refinery and storage terminal customers along the Mississippi River, the intracoastal waterway between Texas and Florida and the Tennessee-Tombigbee Waterway system. It owns a shipyard and repair facility located in Houma, Louisiana and marine fleeting facilities in Bourg, Louisiana and Channelview, Texas. Other services consist of the distribution of lubrication oils and specialty chemicals and the bulk transportation of fuels by truck, in Oklahoma, Texas, New Mexico, Kansas and the Rocky Mountain region of the United States.

Advisors’ Opinion:

  • [By Paul Ausick]

    Large MLPs with geographically diversified operations will fare better because they can shift assets around and make sure that all their distribution-paying subsidiaries meet the payroll, so to speak. Here are the seven largest MLPs by market cap:

    Enterprise Product Partners LP (NYSE: EPD) – $61.23 billion Kinder Morgan Energy Partners LP (NYSE: KMP) – $35.13 billion Williams Partners LP (NYSE: WPZ) – $21.95 billion Plains All American Pipeline LP (NYSE: PAA) – $19.3 billion Energy Transfer Partners LP (NYSE: ETP) – $17.78 billion Magellan Midstream Partners LP (NYSE: MMP) – $15.52 billion Oneok Partners LP (NYSE: OKS) – $12.95 billion

    Size is not the only thing that matters, but size can help overcome some of the cash flow issues these MLPs face. The differentiating factor is a company’s distribution coverage ratio which is the cash the MLP has to distribute to its limited partners divided by its maintenance capex and interest on the company’s debt. Anything number larger than 1 is solid.

  • [By Editor , DividendChannel.com]

    ENB operates in the Oil & Gas Equipment & Services sector, among companies like Schlumberger (SLB), and Enterprise Products Partners L.P. (EPD).

  • [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 Robert Rapier]

    Enterprise Product Partners (NYSE: EPD) is the largest MLP, and recently announced its 37th consecutive quarterly cash distribution increase. EPD defines DCF as follows:

Top Energy Stocks To Own 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.

Advisors’ Opinion:

  • [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).

Top Energy Stocks To Own For 2015: Contango Oil & Gas Co (MCF)

Contango Oil & Gas Company (Contango) is an independent natural gas and oil company. The Company’s core business is to explore, develop, produce and acquire natural gas and oil properties onshore and offshore in the Gulf of Mexico in water-depths of less than 300 feet. Contango Operators, Inc. (COI), its wholly owned subsidiary, acts as operator on its properties.

Offshore Gulf of Mexico Activities

Contango, through its wholly-owned subsidiary, COI and its partially owned affiliate, Republic Exploration LLC (REX), conducts exploration activities in the Gulf of Mexico. COI drills, and operates its wells in the Gulf of Mexico, as well as attends lease sales and acquires leasehold acreage. As of August 24, 2012, the Company’s offshore production was approximately 83.5 million cubic feet equivalent per day, net to Contango, which consists of seven federal and five state of Louisiana wells in the shallow waters of the Gulf of Mexico. These 12 operate d wells produce through the four platforms: Eugene Island 24 Platform, Eugene Island 11 Platform, Ship Shoal 263 Platform, Vermilion 170 Platform and Other Activities.

This third-party owned and operated production platform at Eugene Island 24 was designed with a capacity of 100 million cubic feet per day and 3,000 barrels of oil per day. This platform services production from the Company’s Dutch #1, #2 and #3 federal wells. From this platform, the gas flows through an American Midstream pipeline into a third-party owned and operated on-shore processing facility at Burns Point, Louisiana, and the condensate flows through an ExxonMobil pipeline to on-shore markets and multiple refineries. As of August 24, 2012, it was producing approximately 22.5 million cubic feet equivalent per day, net to Contango, from this platform. The Company finished laying six inches auxiliary flowlines from the Dutch #1, #2, and #3 wells to its Eugene Island 11 Platform and is in the process of redirecting production from the Eugene Island 24! Platform to the Eugene Island 11 Platform.

The Company’s Company-owned and operated platform at Eugene Island 11 was designed with a capacity of 500 million cubic feet equivalent per day and 6,000 barrels of oil per day. These platforms service production from the Company’s five Mary Rose wells, which are all located in state of Louisiana waters, as well as its Dutch #4 and Dutch #5 wells, which are both located in federal waters. From these platforms, it can flow its gas to an American Midstream pipeline through its eight inches pipeline and from there to a third-party owned and operated on-shore processing facility at Burns Point, Louisiana. It can flow its condensate through an ExxonMobil pipeline to on-shore markets and multiple refineries.

The Company’s gas and condensate can flow to its Eugene Island 63 auxiliary platform through its 20 inches pipeline, which has been designed with a capacity of 330 million cubic feet equivalent per da y and 6,000 barrels of oil per day, and from there to third-party owned and operated on-shore processing facilities near Patterson, Louisiana, through an ANR pipeline. As of August 24, 2012, it was producing approximately 44.6 million cubic feet equivalent per day, net to Contango, from this platform.

The Company’s owned and operated platform at Ship Shoal 263 was designed with a capacity of 40 million cubic feet equivalent per day and 5,000 barrels of oil per day. This platform services natural gas and condensate production from our Nautilus well, which flows through the Transcontinental Gas Pipeline to onshore processing plants. As of August 24, 2012, it was producing approximately 3.0 million cubic feet equivalent per day, net to Contango, from this platform. As of June 30, 2012, the Company owed a 100% working interest and 80% net revenue interest in this well and platform.

The Company’s owned and operated platform at Vermilion 170 was desig ned with a capacity of 60 million cubic feet equivalent per ! day and 2! ,000 barrels of oil per day. This platform services natural gas and condensate production from its Swimmy well, which flows through the Sea Robin Pipeline to onshore processing plants. As of August 24, 2012, it was producing approximately 13.4 million cubic feet equivalent per day, net to Contango, from this platform.

On July 10, 2012, the Company spud its South Timbalier 75 prospect (Fang) with the Spartan 303 rig. It has a 100% working interest in this wildcat exploration prospect. On July 3, 2012, the Company spud its Ship Shoal 134 prospect (Eagle) with the Hercules 205 rig. The Company purchased the deep mineral rights on Ship Shoal 134 from an independent third-party. It has a 100% working interest in this wildcat exploration prospect. On December 21, 2011, the Company purchased an additional 3.66% working interest (2.67% net revenue interest) in Mary Rose #5 (previously Eloise North). The Company has a 47.05% working interest (38.1% net revenue int erest) in Dutch #5.

Offshore Properties

During the fiscal year ended June 30, 2012 (fiscal 2012), State Lease 19396 expired and was returned to the state of Louisiana. As of August 24, 2012, the interests owned by Contango through its affiliated entities in the Gulf of Mexico, which were capable of producing natural gas or oil included Eugene Island 10 #D-1, Eugene Island 10 #E-1, Eugene Island 10 #F-1, Eugene Island 10 #G-1, Eugene Island 10 #I-1, S-L 18640 #1, S-L 19266 #1, S-L 19266 #2, S-L 18860 #1, S-L 19266 #3 and S-L 19261, Ship Shoal 263, Vermilion 170 and West Delta 36. As of August 24, 2012, interests owned by Contango through its related entities in leases in the Gulf of Mexico included Eugene Island 11, East Breaks 369, South Timbalier 97, Ship Shoal 121, Ship Shoal 122, Brazos Area 543, Ship Shoal 134 and South Timbalier 75.

Onshore Exploration and Properties

As of August 24, 2012, the Company had invested in A lta Energy Canada Partnership (Alta Energy) to purchase over! 60,000 a! cres in the Kaybob Duvernay. Contango has a 2% interest in Alta Energy and a 5% interest in the Kaybob Duvernay project. On April 9, 2012, the Company announced that through its wholly owned subsidiary, Contaro Company, it had entered into a Limited Liability Company Agreement (the LLC Agreement) to form Exaro Energy III LLC (Exaro). The Company owns approximately a 45% interest in Exaro. Exaro has entered into an Earning and Development Agreement (the EDA Agreement) with Encana Oil & Gas (USA) Inc. (Encana) to provide funding to continue the development drilling program in a defined area of Encana’s Jonah field asset located in Sublette County, Wyoming.

As of June 30, 2012, the Exaro-Encana venture had three rigs drilling, has completed five wells and achieved first production. As of August 24, 2012, the Company had invested to lease approximately 25,000 acres in the Tuscaloosa Marine Shale (TMS), a shale play in central Louisiana and Mississippi.

Advisors’ Opinion:

  • [By Peter Krauth]

    But the dynamic is suddenly changing. This is a pricing game—a global one. You see, while North Americans currently enjoy natural gas at close to $3.40 per million cubic feet (Mcf), Europeans are paying three times as much, between $10 and $11 per Mcf.

Top Energy Stocks To Own For 2015: MRC Global Inc (MRC)

MRC Global Inc., formerly known as McJunkin Red Man Holding Corporation, incorporated on November 20, 2006, is a holding company. The Company is the distributor of pipe, valves and fittings (PVF) and related products and services to the energy industry. The Company offers a range of PVF and oilfield supplies encompassing a complete line of products from its global network of suppliers to its more than 12,000 customers. The Company operates in two segments: North American segment and International segment. Its North American segment includes over 180 branch locations, six distribution centers in the United States, one distribution center in Canada, 11 valve automation service centers and over 170 pipe yards located in the oil and natural gas regions in North America. Its International segment includes over 40 branch locations throughout Europe, Asia and Australasia with distribution centers in each of the United Kingdom, Singapore and Australia and 10 automation service cen ters in Europe and Asia. On June 9, 2011, it acquired Stainless Pipe and Fittings Australia Pty. Ltd. (MRC SPF). On July 22, 2011, it acquired Valve Systems and Controls (VSC). In January 2013, the Company’s subsidiary, McJunkin Red Man Corporation,acquired operating assets of Production Specialty Services, Inc. In July 2013, MRC Global Inc announced that it has completed the previously announced acquisition of the operating assets of Dan H. Brown, Inc., D/B/A Flow Control Products (Flow Control). In December 2013, MRC Global Inc acquired Flangefitt Stainless Ltd. Effective January 6, 2014, MRC Global Inc a unit of GS Capital Partners LP subsidiary of Goldman Sachs Group Inc’s Goldman Sachs & Co unit, acquired Stream AS.

The Company distributes products globally, including in PVF intensive, oil and natural gas exploration and production (E&P) areas, such as the Bakken, Barnett, Eagle Ford, Fayetteville, Haynesville, Marcellus, Niobrara and Utica shales in North America. Its Canadian subsidiary Midfield Supply ULC and its! subsidiaries (MRC Midfield), provides PVF products to oil and natural gas companies operating primarily in Western Canada, including the Western Canadian Sedimentary Basin, Alberta Oil Sands and heavy oil regions. It offers more than 150,000 stock keeping units (SKUs), including a range of PVF, oilfield supply, automation, instrumentation and other general and specialty industry supply products.

The Company is the majority owned subsidiary of PVF Holdings LLC. Its wholly owned subsidiary, McJunkin Red Man Corporation and its subsidiaries (MRC), are global distributors of pipe, valves, fittings and related products and services across each of the upstream (exploration, production and extraction of underground oil and gas), midstream (gathering and transmission of oil and gas, gas utilities, and the storage and distribution of oil and gas) and downstream (crude oil refining, petrochemical processing and general industrials) markets. The Company serves the global oil and natural gas industry, generating approximately 90% of its sales from supplying products and services to customers throughout the energy industry. Of its total sales, 62% of sales are comprised of valves, fittings and flanges and other industrial supply products and 38% are tubular products, mainly line pipe and oil country tubular goods (OCTG) as of September 30, 2011.

North American Operations

The Company distributes PVF products, primarily used in applications in the energy infrastructure sector, from its global network of suppliers. The products it distributes are used in the construction, maintenance, repair and overhaul of equipments. The products include Valves and Specialty Products, Line Pipe, OCTG, Carbon Steel Fittings and Flanges and Stainless Steel and Alloy Pipe and Fittings and others. The products under valves and specialty products include ball, butterfly, gate, globe, check, needle and plug valves, which are manufactured fro m cast steel, stainless/alloy steel, forged steel, carbon st! eel or ca! st and ductile iron. Specialty products include lined corrosion resistant piping systems, valve automation and top work components used for regulating flow and on/off service, and a range of steam and instrumentation products used in various process applications within its refinery, petrochemical and general industrial sectors.

Carbon line pipe is used in high-yield, high-stress, abrasive applications, such as the gathering and transmission of oil, natural gas and phosphates. Line pipe is part of its tubular product category. OCTG is part of its tubular product category, includes casing (used for production and to line the well bore) and tubing pipe (used to extract oil or natural gas from wells) and is either classified as carbon or alloy depending on the grade of material. Carbon steel fittings and flanges include carbon weld fittings, flanges and piping components used primarily to connect piping and valve systems for the transmission of various liquids and g ases. These products are used across all the industries in which it operates. Stainless steel and alloy pipe and fittings include stainless, alloy and corrosion resistant pipe, tubing, fittings and flanges. These are used in the chemical, refining and power generation industries, as well as across all of the sectors in which the Company operates. Alloy products are principally used in high-pressure, high-temperature and high-corrosion applications typically seen in process piping applications.

The products under other category include natural gas distribution products, oilfield supplies, and other industrial products, such as mill and safety and electrical supplies. Natural gas distribution products include risers, meters, polyethylene pipe and fittings and various other components and industrial supplies used primarily in the distribution of natural gas to residential and commercial customers. It offers a range of oilfield and industrial supplies and completion equipment, and products offered include high density polyet! hylene pi! pe and fittings, valves, well heads, pumping units and rods. In addition, it supplies a range of specialized production equipment, including meter runs, tanks and separators used in its upstream sector.

The Company provides its customers with a range of services, including multiple deliveries each day, zone store management, valve tagging and system interfaces that directly tie the customer into its information systems. Its information system, which provides for customer and supplier electronic integrations, information sharing and e-commerce applications, provides service to its customers. The Company sources the products it distributes from a global network of suppliers. The remainder of the products it distributes are sourced from manufacturer representatives, trading companies and, in some instances, other distributors.

The Company competes with Wilson Industries, Inc., National Oilwell Varco, Inc. and Ferguson Enterprises.

Internat ional Operations

The Company’s International segment represents its valve and stainless and alloy pipe, fitting and flange distribution business to the energy and general industrial sectors, across each of the downstream and upstream sectors, through its distribution operations located throughout Europe, Asia, Australasia and the Middle East. Through its over 40 branch and service facilities throughout Europe, Asia, Australasia and the Middle East, it distributes a complete line of valve and stainless and alloy pipe, fittings and flanges and specialty products. Its Valve products offered include ball, butterfly, gate, globe, check, needle and plug valves, which are manufactured from cast steel, stainless/alloy steel, forged steel, carbon steel or cast and ductile iron. Valves are used in oilfield and industrial applications to control direction, velocity and pressure of fluids and gases within transmission networks. Specialty products include lined corrosion r esistant piping systems, valve automation and top work compo! nents use! d for regulating flow and on/off service and a range of steam and instrumentation products used in various process applications within its offshore, refinery, petrochemical and general industrial sectors.

Stainless steel products are used in all sectors in which it operates, including oil and gas, mining and mineral processing, water treatment and desalination, and petrochemical. It provides its customers with a range of services, including multiple daily deliveries, zone stores management, valve tagging and system interfaces that directly tie the customer into its information systems.

The Company competes with Econosto.

Advisors’ Opinion:

  • [By Eric Volkman]

    MRC Global (NYSE: MRC  ) now officially has a new asset in its portfolio. The company announced it has finalized the acquisition of the operating assets of Flow Control Products. It describes the once privately held firm as “a leading provider of pneumatic, electric and electro-hydraulic valve automation packages and related field support to the Permian Basin energy industry, including production facilities, pipelines, and plant operations.” According to MRC Global, the company posted $28 million in revenues last year.

  • [By Monica Wolfe]

    MRC Global (MRC)

    Over the duration of the second quarter, Columbia Wanger upped their position in MRC Global by 258.43%. The fund purchased 1,809,000 shares of the company’s stock at an average price of $29.69. Since their increase, the price per share has dropped -18.9%.

Top Energy Stocks To Own For 2015: 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.

Top Energy Stocks To Own For 2015: Southern Pacific Resource Corp (STPJF.PK)

Southern Pacific Resource Corp. (Southern Pacific) is engaged in the acquisition and development of heavy oil and bitumen producing properties, with a focus on thermal extraction in-situ oil sands projects in the Western Canadian sedimentary basin. Southern Pacific has two principal assets STP-McKay and STP-Senlac. The Company also holds additional oil sands leases in the McMurray and Peace River sub-basins in northeastern Alberta. The Company has 100% working interest in approximately 37,760 acres, of oil sands leases in McKay Block. Southern Pacific has its 100% working interest SAGD thermal heavy oil asset near Unity, Saskatchewan, STP-Senlac. In September 2013, the Company announced the closing of a disposition of non-core assets related to its Leismer property. Advisors’ Opinion:

  • [By Stephan Dube]

    Cold Lake’s most notable producers:

    Husky Energy (HUSK.PK), see article here.Pengrowth Energy Corporation (PGH), see article here.Southern Pacific Resource (STPJF.PK), see article here.Canadian Natural Resources (CNQ), see article here.Devon Energy (DVN), see article here.Imperial Oil (IMO), see article here.Baytex, see article here.Bonavista Energy (BNPUF.PK), see article here.

    Athabasca’s most notable producers:

Top Energy Stocks To Own For 2015: Solar Thin Films Inc (SLTZ)

Solar Thin Films, Inc. is engaged in the business of designing, manufacturing and installation of thin-film amorphous silicon (a-Si) photovoltaic manufacturing equipment. The equipment is used in plants that produce photovoltaic thin-film a-Si solar panels or modules. The Company operates through its wholly owned subsidiary, Kraft Elektronikai Zrt (Kraft). Kraft is engaged in the design, development, manufacture, and installation of a-Si photovoltaic manufacturing equipment. The primary buyers of photovoltaic thin-film manufacturing equipment are businesses, as well as investment partnerships, engaged in the production of photovoltaic thin-film modules. In May 2010, the Company acquired Atlantis Solar LLC. In May 2013, Solar Thin Films Inc acquired Quality Resource Technologies Inc. In October 2013, Solar Thin Films Inc announced the sale of all of its ownership stake of Hungarian subsidiary, Kraft, R.t. (Kraft), to GJR Collectibles LLC.

Kraft has been providi ng equipment that is incorporated into a single manufacturing line capable of manufacturing a-Si solar modules that produce approximately 5megawatt (MW) of solar power annually. The Company focuses, directly and through joint ventures or alliances with other companies or governmental agencies, to sell equipment for and participate financially in solar power facilities using thin film a-Si solar modules or metallurgical and other crystalline solar modules as the power source to provide electricity to municipalities, businesses and consumers.

The Company competes with Applied Materials and Oerlikon.

Advisors’ Opinion:

  • [By Peter Graham]

    Small cap stocks Alliance Creative Group Inc (OTCMKTS: ACGX), Dale Jarrett Racing Adventure Inc (OTCMKTS: DJRT), Inscor Inc (OTCMKTS: IOGA) and Solar Thin Films Inc (OTCMKTS: SLTZ) have all been getting some attention lately in various investment newsletters and it should come as no surprise that two out of four of these stocks have been the subject of paid promotions – which tend to benefit traders. However, two out of four of these stocks also have pretty good financials for being small cap OTC stocks and that might make them attractive to investors with a long term time horizon. So which of these stocks might make traders some profits in the short term and investors some profits over the longer term? Here is a closer look to help you decide:

Top Energy Stocks To Own For 2015: Ceres Inc (CERE)

Ceres, Inc. (Ceres), incorporated in March 1996, is an agricultural biotechnology company selling seeds to produce renewable biomass feedstocks that can enable the large-scale replacement of petroleum and other fossil fuels. The Company’s large-scale commercial products are sweet sorghum varieties that can be used as a drop-in feedstock to extend the operating season of Brazilian sugarcane-to-ethanol mills. Its products include sweet sorghum, high biomass sorghum, switchgrass, miscanthus and row crops Its energy crops can also be used for the production of second-generation biofuels and bio-based chemicals, including cellulosic ethanol, butanol, jet fuel, diesel-like molecules and gasoline-like molecules, from non-food biomass. Baseload utility scale electric power can also be generated from the biomass feedstocks grown from its seeds. Ceres has started marketing sweet sorghum seeds in Brazil and has sold switchgrass and high biomass sorghum seeds in the United States u nder its brand, Blade Energy Crops (Blade). In January 2010, the Company incorporated a subsidiary, Ceres Sementes do Brasil Ltda.

The Company generates its revenues from government grants, research and development collaboration agreements and from product sales. Product sales primarily consists of sales of seeds. Collaborative research revenues consist of payments for research and development activities for specific projects. Government grant revenues consist of payments from government entities. Ceres markets its seeds and traits directly to ethanol mills, utilities, independent power producers, cellulosic biofuel companies, individual growers and grower cooperatives. It also works with technology providers and other market participants, such as equipment manufacturers and enzyme or fermentation technology companies. The Company markets its products to biorefineries and biopower facilities.

Ceres’s activities in cellulosic biofuels encompass a r ange of activities, including field trials, co-evolution agr! eements, and commercial sales. Its products have been tested in the conversion processes of EdeniQ, Inc., Choren USA LLC, Gruppo M&G, ICM, Inc., and UOP, LLC (a Honeywell company), among others. The Company has also conducted joint trials with, or sold seed to, AGCO Corporation, EdeniQ, Inc. and Hawai’i BioEnergy, LLC, among others. It has begun collaboration with Valero Services, Inc. to further evaluate feedstock supply strategies with energy crops. Ceres also works with refining technology companies to optimize feedstock for their refining processes. These collaborators include Novozymes North America, Inc. and ThermoChem Recovery International, Inc.

Drop-in Products

The Company’s products are drop-in solutions as they can be planted, harvested and processed using existing agricultural equipment with little or no modification and are being developed to be drop-in for all conversion technologies using sugarcane or biomass feedstocks, facilitat ing their rapid adoption. In collaboration with Boa Vista/Nova Fronteira, which is a joint venture of ethanol producers Grupo Sao Martinho, S.A. and Petrobras Biofuels, the Company has completed a commercial-scale trial on approximately 250 hectares of its sweet sorghum, which was planted and harvested using existing planting and harvesting equipment, fermented into ethanol without retrofitting or altering the existing mill and the remaining biomass combusted for electricity production, using existing boilers. It has also conducted smaller trials using its other energy crops with numerous industry participants engaged in cellulosic biofuels and biopower production. The Company’s products have been tested in the conversion processes of Amyris Biotechnologies, Inc., Choren USA LLC, EdeniQ, Inc., Gruppo M&G, ICM, Inc., Novozymes North America, Inc., ThermoChem Recovery International, Inc. and UOP, LLC (a Honeywell company), among others. DuPont Danisco Cellulosic Ethanol LLC (DDCE) also plans to validate the Company’s products in th! eir conve! rsion process.

Sweet Sorghum

Sweet sorghum is a type of sorghum that accumulates free sugars in its stalk. It is sown by seed, and requires less water and nitrogen fertilizer to grow to harvestable maturity. Sweet sorghum plants can be harvested in 90 to 140 days after sowing. Because sweet sorghum is an annual crop, multiple harvests or crop rotations may be possible during the season.

High Biomass Sorghum

High biomass sorghum is a type of sorghum, which is primarily developed for biomass yield. As such, high biomass sorghum is suited for the generation of renewable electric power and the creation of cellulosic biofuels. High biomass types are seed propagated, and requires less water and nitrogen fertilizer. As an annual crop, sorghum is harvested the year it is planted. This provides bioenergy facilities with a growing and flexible source of biomass, and a complementary feedstock to perennials, such as sugarcane or switch grass. The Company’s ES 5200 and ES 5201 products contains its Skyscraper trait. These hybrids, developed through its partnership with Texas A&M University, are designed for single-cut production systems.

Switchgrass

Switchgrass is a perennial grass indigenous to North America that offers high biomass yield potential. It requires less water and nitrogen fertilizer, and can grow under semi-arid conditions. Switchgrass is seed propagated. As a perennial, switchgrass is not harvested for sale during the first year when the crop is being established. A properly managed stand of switchgrass may persist for a decade. During the year ended December 31, 2010, it introduced three products: EG 1101, EG 1102 and EG 2101. These high-yielding varieties is developed through its partnership with The Samuel Roberts Noble Foundation.

Miscanthus

Miscanthus x giganteus is a tall perennial grass that grows well in cooler climates. It is veg etatively propagated. It has been used as an energy crop on ! a small s! cale across Europe. The Miscanthus genus includes several perennial species that has energy crops. The variety adopted in the United States and Europe, miscanthus x giganteus, is a sterile hybrid of M. sinensis and M. sacchariflorus. This miscanthus hybrid requires about the same water as corn, but up to two-thirds less nitrogen depending on crop management practices. As a perennial crop, miscanthus is not harvested for sale during the first year when the crop is being established. Ceres is also working on extending the region of adaptation. To these ends, the Company is collaborating with the Institute of Biological, Environmental, and Rural Sciences of Aberystwyth University in Wales, the United Kingdom.

The Company competes with Advanta India Limited, The Dow Chemical Company, Monsanto Company, Pioneer Hi-Bred (DuPont), KWS and Syngenta.

Advisors’ Opinion:

  • [By James E. Brumley]

    Despite the fact that markets are right around breakeven levels for Wednesday, there are relatively few stocks that are up today, and even fewer that are up on strong volume. For the NYSE, 54% of its listed equities are in the red this morning, and 58% of the total volume seen so far has been bearish volume. That’s what makes Ceres Inc. (NASDAQ:CERE) so interesting early Wednesday. As one of the few tickers that’s not only up, but up on higher volume, CERE is a standout worth a closer look. And, that closer look reveals something even more compelling about the way things are coming together for this small cap stock.

  • [By Maxx Chatsko]

    Shares of energy crop developer Ceres (NASDAQ: CERE  ) surged more than 100% from the opening bell Monday to early trading on Thursday. In fact, over one-third of the total outstanding shares traded hands on Thursday. Even with the move the company is trading for “only” $100 million. With some of the biggest names in industrial biotech on its side — such as Syngenta (NYSE: SYT  ) , Petrobras, Amyris, Valero, Novozymes, Gruppo M&G, and Mascoma, to name a few — this must be a good buy right? Not so fast.

  • [By Roberto Pedone]

    Another renewable energy player that looks ready to trigger a big breakout trade is Ceres (CERE), which sells seeds to produce renewable biomass feedstocks that can enable the large-scale replacement of petroleum and other fossil fuels. This stock has been hammered by the bears so far in 2013, with shares off sharply by 66%.

    If you take a look at the chart for Ceres, you’ll notice that this stock has just started to trend back above its 50-day moving average of $1.45 a share with heavy upside volume flows. Volume so far today has already registered over 1.15 million shares, which is well above its three-month average action of 670,538 shares. This spike back above its 50-day is now quickly pushing shares of CERE within range of triggering a big breakout trade.

    Traders should now look for long-biased trades in CERE if it manages to break out above some near-term overhead resistance levels at $1.67 to $1.68 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 670,538 shares. If that breakout hits soon, then CERE will set up to re-test or possibly take out its next major overhead resistance levels at $2 to $2.50 a share. Shares of CERE could even tag $3 if this breakout triggers with strong volume.

    Traders can look to buy CERE off any weakness to anticipate that breakout and simply use a stop that sits right below $1.40 a share. One could also buy CERE off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.