NEW YORK (AP) -- Oil was headed for its biggest gain in nearly a month as oil supplies rose less than expected in the U.S. and speculation built that the European Central Bank will cut interest rates.
Benchmark oil for June delivery rose $1.94 to $91.12 a barrel in Wednesday afternoon trading on the New York Mercantile Exchange.
Oil rose as expectations mounted among investors for a rate cut next week from the ECB following another weak business survey in Germany, Europe's biggest economy. The gains grew after the U.S. Energy Department said crude oil supplies rose by 900,000 barrels, or 0.2 percent, to 388.6 million barrels last week. Analysts expected an increase of 1.4 million barrels.
A big decline in gasoline supplies was also positive for oil prices, indicating that demand picked up somewhat, although it was still down 1.7 percent over the four weeks ended April 19.
At the pump, the national average for a gallon of gasoline held steady at $3.52. That's 33 cents cheaper than a year ago.
Best Gas Stocks To Own For 2015: MEG Energy Corp (MEGEF.PK)
MEG Energy Corp. is a Canada-based oil sands company focused on in situ development and production in the southern Athabasca oil sands region of Alberta. The Company has identified two steam assisted gravity drainage projects, the Christina Lake project and the Surmont project. The Company owns a 100% interest in over 900 sections of oil sands leases in the Athabasca region of northern Alberta and is primarily engaged in a steam assisted gravity drainage oil sands development at its 80 section Christina Lake Regional Project (Christina Lake Project). The development includes co-ownership of Access Pipeline, a dual pipeline to transport diluent north from the Edmonton area to the Athabasca oil sands area and a blend of bitumen and diluent south from the Christina Lake Project into the Edmonton area. 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.
Best Gas Stocks To Own For 2015: Markwest Energy Partners LP (MWE)
MarkWest Energy Partners, L.P. (MarkWest Energy) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. It provides services in the midstream sector of the natural gas industry. The Company also provides processing and fractionation services to crude oil refineries in the Corpus Christi, Texas area through its Javelina gas processing and fractionation facility. As of December 31, 2011, the Company operated in four segments: Southwest, Northeast, Liberty and Gulf Coast. Effective December 31, 2011, the Company acquired the remaining 49% interest in MarkWest Liberty Midstream. On February 1, 2011, the Company acquired Langley processing plant.
Southwest Segment
The Company owns a system in East Texas that consists of natural gas gathering pipelines, centralized compressor stations, a natural gas processing facility and an NGL pipeline. The East Texas system is located in Panola, Harrison and Rusk Counties and services the Carthage Field. Producing formations in Panola County consist of the Cotton Valley, Pettit, Travis Peak and Haynesville formations. During the year ended December 31, 2011, approximately 77% of its natural gas volumes in the East Texas System result from contracts with six producers. The Company sells substantially all of the purchased and retained NGLs produced at its East Texas processing facility to Targa Resources Partners, L.P. (Targa) under a long-term contract. Such sales represent approximately 19.4% of its consolidated revenue in 2011.
The Company owns a natural gas gathering system in the Woodford Shale play in the Arkoma Basin of southeast Oklahoma. The liquids-rich natural gas gathered in the Woodford system is processed through Centrahoma Processing LLC (Centrahoma), its equity investment, or other third-party processors. In addition, it owns the Foss Lake! natural gas gathering system and the Western Oklahoma natural gas processing complex, all located in Roger Mills, Beckham, Custer and Ellis Counties of western Oklahoma. The gathering portion consists of a pipeline system that is connected to natural gas wells and associated compression facilities. The Company also owns a gathering system in the Granite Wash formation in Wheeler County in the Texas panhandle that is connected to its Western Oklahoma processing complex. The Company completed the expansion of the Western Oklahoma natural gas processing plant in October 2011.
Approximately 70% of its Oklahoma volumes result from contracts with three producers in 2011. The Company sells substantially all of the NGLs produced in the Western Oklahoma processing complex to ONEOK Hydrocarbon L.P. (ONEOK) under a long-term contract. Such sales represent approximately 13.2% of its consolidated revenue in 2011. The Company owns a number of natural gas gathering systems located in Texas, Louisiana, Mississippi and New Mexico, including the Appleby gathering system in Nacogdoches County, Texas. It gathers a portion of the gas produced from fields adjacent to its gathering systems, including from wells targeting the Haynesville Shale. In addition, it owns four lateral pipelines in Texas and New Mexico.
Northeast Segment
The Company�� Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing plants, an NGL pipeline and the Siloam NGL fractionation plant. In addition, it has two caverns for storing propane at its Siloam facility and additional propane storage capacity under a long-term firm-capacity agreement with a third party. The Northeast segment operations include fractionation and marketing services on behalf of the Liberty segment. The Company owns and operates a crude oil pipeline in Michigan (Michigan Crude Pipeline) providing transportation service for three shippers.
Liberty Segment
The Company pr! ovides na! tural gas midstream services in southwestern Pennsylvania and northern West Virginia through MarkWest Liberty Midstream. It is a processor of natural gas in the Marcellus Shale, with gathering, processing, fractionation, storage and marketing operations.
Utica Segment
Effective January 1, 2012, the Company and The Energy and Minerals Group (EMG) formed MarkWest Utica EMG, a joint venture focused on the development of natural gas processing and NGL fractionation, transportation and marketing infrastructure to serve producers' drilling programs in the Utica shale in eastern Ohio. During 2011, the Utica Segment did not have any operations.
Gulf Coast Segment
The Company owns and operates the Javelina processing facility, a natural gas processing facility in Corpus Christi, Texas that treats and processes off-gas from six local refineries operated by three different refinery customers. As of December 31, 2011, the Company owned a 40% interest in Centrahoma Processing LLC (Centrahoma), a joint venture with Cardinal Midstream, LLC (Cardinal). Centrahoma owns certain processing plants in the Arkoma Basin and Cardinal operates an additional processing plant that is not owned by Centrahoma but is located adjacent to and operates in conjunction with the Centrahoma plants.
Advisors' Opinion:- [By Ben Levisohn]
Abbvie (ABBV)
Ameren Corp. (AEE)
Arthur J. Gallagher (AJG)
E.I. DuPont de Nemours & Co. (DD)
ENSCO (ESV)
Enterprise Products Partners LP (EPD)
General Mills (GIS)
H&R Block (HRB)
Hancock Holding (HBHC)
Kraft Foods Group (KRFT)
Lorillard (LO)
Magellan Midstream Partners LP (MMP)
MarkWest Energy Partners L P (MWE)
McDonald’s (MCD)
Microchip Technology (MCHP)
NextEra Energy (NEE)
Regency Centers (REG)
TELUS Corp. (TU)
West Corp. (WSTC)
Williams Companies (WMB)
Top Heal Care Companies To Invest In 2015: Murphy Oil Corp (MUR)
Murphy Oil Corporation, incorporated on June 29, 1964, is a worldwide oil and gas exploration and production company with retail and wholesale gasoline marketing operations in the United States and refining and marketing operations in the United Kingdom. In August 2013, the Company announced that it has completed the spin-off of its United States retail marketing business into an independent public company called Murphy USA Inc.
Murphy's exploration and production activities are subdivided into five geographic segments, including the United States, Canada, Malaysia, the Republic of the Congo and all other countries. Murphy's refining and marketing activities are subdivided into segments for the United States and the United Kingdom.
Exploration and Production
During the year ended December 31, 2012, Murphy's principal exploration and production activities were conducted in the United States by wholly owned Murphy Exploration & Production Company - USA (Murphy Expro USA), in Malaysia, Republic of the Congo, Indonesia, Suriname, Australia, Brunei, the Kurdistan region of Iraq, Cameroon, Vietnam and Equatorial Guinea by wholly owned Murphy Exploration & Production Company - International (Murphy Expro International) and its subsidiaries, in Western Canada and offshore Eastern Canada by wholly owned Murphy Oil Company Ltd. (MOCL) and its subsidiaries, and in the U.K. North Sea and the Atlantic Margin by wholly owned Murphy Petroleum Limited.
Murphy's crude oil and natural gas liquids production in 2012 was in the United States, Canada, Malaysia, the Republic of the Congo and the United Kingdom; its natural gas was produced and sold in the United States, Canada, Malaysia and the United Kingdom. MOCL owns a 5% undivided interest in Syncrude Canada Ltd. in northern Alberta, one of the producers of synthetic crude oil. Murphy's worldwide crude oil, condensate and natural gas liquids production in 2012, averaged 112,591 barrels per day. The Company's worldwi! de sales volume of natural gas averaged 490 million cubic feet per day in 2012.
In the United States, Murphy primarily has production of oil and/or natural gas from fields in the deepwater Gulf of Mexico, in the Eagle Ford Shale area of South Texas and onshore in South Louisiana. The Company produced approximately 26,100 barrels of oil per day and 53 million cubic feet of natural gas per day in the U.S. in 2012. During 2012, approximately 54% of total U.S. hydrocarbon production was produced at fields in the Gulf of Mexico. The Company holds a 60% interest at Medusa in Mississippi Canyon Blocks 538/582, which produced total daily oil and natural gas of about 4,300 barrels and for million cubic feet, respectively, in 2012. At December 31, 2012, the Medusa field had total proved oil and natural gas reserves of approximately 9.2 million barrels and 9.4 billion cubic feet, respectively. Murphy has a 62.5% working interest in the Front Runner field in Green Canyon Blocks 338/339. Oil and natural gas production at Front Runner averaged about 3,900 barrels of oil per day and four million cubic feet per day in 2012. The Company also acquired additional working interests in the Thunder Hawk field in Mississippi Canyon Block 734 in 2012 and holds 62.5% of this field. In 2012 oil production from this field averaged 2,800 barrels per day and 1.7 million cubic feet per day and 3.2 million cubic feet per day due to a new well completed in 2012.
The Company is primarily concentrating drilling efforts in the areas of the Eagle Ford where oil is the primary hydrocarbon produced. Totals for 2012 oil and natural gas production in the Eagle Ford area were approximately 13,300 barrels per day and 13 MMCF per day, respectively. On a barrel of oil equivalent basis, Eagle Ford production accounted for 44% of total U.S. production volumes in 2012. At December 31, 2012, the Company's proved reserves in the Eagle Ford Shale area totaled 113.6 million barrels of oil and 108.7 billion cubic feet of natural! gas. Tot! al proved U.S. oil and natural gas reserves at December 31, 2012 were 142.6 million barrels and 209.7 billion cubic feet, respectively. The Company is developing the Dalmatian field located in DeSoto Canyon Blocks 4 and 48 in the Gulf of Mexico.
In Canada, the Company owns an interest in three non-operated assets - the Hibernia and Terra Nova fields offshore Newfoundland in the Jeanne d'Arc Basin and Syncrude Canada Ltd. in northern Alberta. In addition, the Company owns interests in one heavy oil area, two natural gas areas and light oil prospective acreage in the Western Canadian Sedimentary Basin (WCSB). Murphy has a 6.5% working interest in Hibernia, while at Terra Nova the Company's working interest is 10.475%. Oil production in 2012 was about 5,300 barrels of oil per day at Hibernia and 1,700 barrels per day at Terra Nova. Total proved oil reserves at December 31, 2012 at Hibernia and Terra Nova were approximately 10.6 million barrels and 5.9 million barrels, respectively.
Murphy owns a 5% undivided interest in Syncrude Canada Ltd., a joint venture located about 25 miles north of Fort McMurray, Alberta. Syncrude utilizes its assets, which include three coking units, to extract bitumen from oil sand deposits and to upgrade this bitumen into a synthetic crude oil. Production in 2012 was about 13,800 barrels of synthetic crude oil per day. Total proved reserves for Syncrude at year-end 2012 were 119.1 million barrels. Daily production in 2012 in the WCSB averaged about 7,500 barrels of mostly heavy oil and about 217 million cubic feet of natural gas. Through 2012, the Company has acquired approximately 144 thousand net acres of mineral rights in the Montney area, including Tupper and Tupper West.
In Malaysia, the Company has majority interests in six separate production sharing contracts (PSCs). The Company serves as the operator of all these areas other than the Kakap field. The production sharing contracts cover approximately 2.79 million gross acres. Murphy h! as an 85%! interest in discoveries made in two shallow-water blocks, SK 309 and SK 311, offshore Sarawak. About 7,400 barrels of oil per day were produced in 2012 at Blocks SK 309/311, with almost 75% of this at the West Patricia field and the remainder mostly associated with gas liquids produced at other Sarawak fields. Total net natural gas sales volume offshore Sarawak was about 174 million cubic feet per day during 2012 . Total proved reserves of oil and natural gas at December 31, 2012 for Blocks SK 309/311 were 10.3 million barrels and 284.7 billion cubic feet, respectively.
The Company made a discovery at the Kikeh field in deepwater Block K, offshore Sabah, Malaysia. Total gross acreage held by the Company in Block K as of December 31, 2012 was 80,000 acres. Production volumes at Kikeh averaged 44,900 barrels of oil per day during 2012. Total proved reserves booked in Block K as of year-end 2012 were 85.4 million barrels of oil and 72.9 billion cubic feet of natural gas.Total proved reserves booked in Block K in 2012, were 85.4 million barrels of oil and 72.9 billion cubic feet of natural gas. Total gross acreage held by the Company at year-end 2012 in Block H was 1.40 million acres. Murphy has a 75% interest in gas holding agreements for Kenarong and Pertang discoveries made in Block PM 311, located offshore peninsular Malaysia.
The Company had interests in Production Sharing Agreements (PSA) covering two offshore blocks in Republic of the Congo - Mer Profonde Sud (MPS) and Mer Profonde Nord (MPN) during 2012. These interests covered approximately 1.33 million gross acres with water depths ranging from 490 to 6,900 feet, and the Company operated both blocks. Total oil production in 2012 averaged 2,100 barrels per day at Azurite for the Company's 50% interest. Anticipated production in 2013 is 1,500 barrels per day.
The Company holds six exploration permits in Australia and serves as operator of four of them. Block NT/P80 in the Bonaparte Basin, offshore northwester! n Austral! ia, was acquired in June 2009 and covers approximately 1.20 million gross acres. In May 2012, Murphy was awarded permit WA-476-P in the Carnarvon Basin, offshore Western Australia. The Company holds 100% working interest in the permit which covers 177,000 gross acres. In August 2012, Murphy was awarded permit WA-481-P in the Perth Basin, offshore Western Australia. The permit covers approximately 4.30 million gross acres, with water depths ranging from 20 to 300 meters. The Company holds a 40% working interest. The work commitment calls for tw0- dimensional (2D) and three-dimensional (3D) seismic acquisition and processing, geophysical work and three exploration wells. In November 2012, Murphy acquired a 20% non-operated working interest in permit WA-408-P in the Browse Basin. This block is adjacent to AC/P36 and is in the midst of a two-well exploration campaign. The permit comprises approximately 417,000 gross acres.
The Company has interests in four exploration licenses in Indonesia and serves as operator of all these concessions. . Following contractually mandated acreage relinquishment in 2012, the block covers approximately 745 thousand gross acres. The Company has a 28.3% interest in the block which covers about 543 thousand gross acres after a required partial relinquishment of acreage during 2012. The permit calls for a 3D seismic program and three exploration wells. Murphy has a 100% interest in the block which covers 1.22 million gross acres. In November 2012, the Company signed a production sharing contract with Vietnam National Oil and Gas Group and PetroVietnam Exploration Production Company, whereby it acquired 65% interest and operatorship of Blocks 144 and 145. The blocks cover approximately 4.42 million gross acres and are located in the outer Phu Khanh Basin. In late 2012, the Company was granted Vietnam's government approval to acquire a 60% working interest and operatorship of Block 11-2/11.
The Company operates and holds a 50% interest in the block. The Ce! ntral Doh! uk block covers approximately 153 thousand gross acres and is located in the Dohuk area of the Kurdistan region in Iraq. The Company shot seismic in 2011 and drilled an unsuccessful exploration well in 2012.The Company acquired a 100% working interest and operatorship of Block 48 offshore Suriname. The block encompasses 794 thousand gross acres with water depths ranging from 1,000 to 3,000 meters. Murphy relinquished Block 37 in July 2012.
Murphy was granted government approval to acquire a 50% working interest and operatorship of the NTEM concession. The working interest was acquired from Sterling Cameroon Limited (Sterling) via a farm-out agreement of the existing production sharing contract. Sterling retained a 50% non-operated interest in the block. The NTEM block, situated in the Douala Basin offshore Cameroon, encompasses 573 thousand gross acres, with water depths ranging from 300 to 1,900 meters. In October 2012, Murphy signed an agreement with Perenco Cameroon to acquire a 50% interest in the Elombo production sharing contract, immediately adjacent to the NTEM concession. The Company received government approval to acquire the acreage in December 2012. Perenco retained a 50% operating interest in the block. The Elombo block, situated in the Douala Basin offshore Cameroon, between the shoreline and the NTEM block, encompasses 594 thousand gross acres with water depths ranging up to 1,100 meters.
In December 2012, Murphy signed a production sharing contract for block W offshore Equatorial Guinea. Murphy has a 45% working interest and has been designated the operator. The government is expected to ratify the contract early in 2013. The block is located offshore mainland Equatorial Guinea and encompasses 557 thousand gross acres with water depths ranging from 60 to 2,000 meters. The initial exploration period of five years is divided into two sub-periods, a sub-period of three years and a second sub-period of two years. The sub-period may be extended one year and with this! extensio! n is the obligation to drill one well. Murphy has produced oil and natural gas in the United Kingdom sector of the North Sea for many years. In 2012, Murphy entered into several contracts to sell all of its oil and gas properties in the United Kingdom.
Murphy's total proved undeveloped reserves at December 31, 2012 increased 42.0 million barrels of oil equivalent (MMBOE) from a year earlier. Approximately 44.0 MMBOE of proved undeveloped reserves were converted to proved developed reserves during 2012. During 2012, there were 26.6 million barrels of oil per day of positive revisions for proved undeveloped reserves. At December 31, 2012, proved reserves are included for several development projects that are ongoing, including natural gas developments at the Tupper West area in British Columbia and offshore Sarawak Malaysia, and an oil development at Kakap, offshore Sabah Malaysia. Total proved undeveloped reserves associated with various development projects at December 31, 2012 were approximately 219 million barrels of oil per day, which is 36% of the Company's total proved reserves.
Murphy Oil USA, Inc. (MOUSA), a wholly owned subsidiary of Murphy Oil Corporation and markets its refined products through a network of Company stations, unbranded wholesale customers and bulk products customers in a 30-state area, primarily in the Southern and Midwestern United States. Murphy's Company stations are located in 23 states and are primarily located in the parking lots of Walmart Supercenters using the brand name Murphy USA. The Company stations also include stand-alone locations using the Murphy Express brand. During 2012, Company stations sold over 3.8 billion gallons of motor fuel. At December 31, 2012, the Company marketed fuel and convenience merchandise through 1,165 Company stations. Of these Company stations, 1,015 are located on parking lots of Walmart Supercenters or other Walmart stores and 150 are stand-alone Murphy Express locations.
The Company owns land und! erlying 9! 08 of the Company stations on Walmart parking lots. No rent is payable to Walmart for the owned locations. For the remaining 104 Company stations located on Walmart property that are not owned, Murphy has master agreements that allow the Company to rent land from Walmart. The master agreements contain general terms applicable to all rental sites on Walmart property in the United States. In addition to the motor fuel sold at the Company's Company stations, its stores carry a broad selection of snacks, beverages, tobacco products, and other non-food merchandise. The Company's merchandise offerings include two private label products, an isotonic drink offered in several flavors and a private label energy drink. In 2012, the Company purchased more than 88% of its merchandise from a single vendor, McLane's Company, Inc., a wholly owned subsidiary of Berkshire Hathaway, Inc.
Murphy owns an interest in a crude oil pipeline that connects storage at the Louisiana Offshore Oil Port (LOOP) at Clovelly, Louisiana, to the formerly owned Meraux refinery. Murphy owns a 40.1% interest in its 22 miles of this pipeline from Clovelly to Alliance, Louisiana, and 100% of the remaining 24 miles from Alliance to Meraux. Murco Petroleum Limited (Murco), a wholly owned U.K. subsidiary, owns 100% interest in a refinery at Milford Haven, Pembrokeshire, Wales. The refinery is located on a 938 acre site owned by the Company; 430 acres are used by the refinery and the remainder is rented for agricultural use. The refinery consistently performed near nameplate capacity during 2012. Murphy has announced its intention to sell the Milford Haven refinery and United Kingdom marketing assets.
Advisors' Opinion:- [By Claudia Assis]
Other top gainers included Newfield Exploration Co. (NFX) , with shares up 2.1%, and Murphy Oil Corp. (MUR) , up 1.4%.
- [By Geoff Gannon]
For example, I happened to be looking at Murphy Oil (MUR) recently. There are a lot of questions you could ask about the company. Some are answered in a few seconds. For example, their financial condition is strong. It takes two seconds to see this. So you just see it and move on.
- [By David Tristan Liu]
Murphy USA (MUSA) first caught my attention after Southeastern Asset Management acquired a massive stake ($668mm) in its former parent company Murphy Oil Corporation (MUR) in Q1 2013. One thing about Murphy Oil Corporation I noticed after an initial glance through their 10-K and annual report was its ownership of a valuable fuel and convenience retailer segment with high ROIC, valuable real estate, low CAPEX requirements, and relatively decent growth prospects that was under-followed and whose underlying value was concealed by the parent company's core production and exploration business.
- [By The Value Investor]
Shareholders in Murphy Oil (MUR) have to check their broker statements today. After the spin-off of its former retail marketing business is complete, shareholders now hold shares in both the former Murphy Oil as well as in the newly formed Murphy USA.
Best Gas Stocks To Own For 2015: UGI Corporation (UGI)
UGI Corporation distributes, stores, transports, and markets energy products and related services in the United States and internationally. It distributes propane to approximately 2.3 million residential, commercial/industrial, motor fuel, agricultural, and wholesale customers in 50 states through 2,100 propane distribution locations; and sells, installs, and services propane appliances, including heating systems. The company also distributes liquid petroleum gas (LPG) to residential, commercial, industrial, agricultural, and automobile fuel customers for space and water heating, cooking, process heat, forklifts, transportation, construction work, manufacturing, crop drying, power generation, and irrigation; and provides logistic and storage services to third-party LPG distributors. In addition, it distributes natural gas to approximately 600,000 customers primarily in the portions of 46 eastern and central Pennsylvania counties through its distribution system of 12,000 mi les of gas mains; and supplies electricity to approximately 60,000 customers in northeastern Pennsylvania through 2,100 miles of transmission and distribution lines, and 13 transmission substations. Further, the company is involved in the retail sale of natural gas, liquid fuels, and electricity to approximately 18,000 commercial and industrial customers at approximately 43,000 locations. Additionally, it operates electric generation facilities, which include solar and landfill gas facilities; a natural gas liquefaction, storage, and vaporization facility; propane storage and propane-air mixing stations; and rail transshipment terminals. The company also manages natural gas pipeline and storage contracts; and develops, owns, and operates pipelines, gathering infrastructure, and gas storage facilities. In addition, it provides heating, ventilation, air conditioning, refrigeration, and electrical contracting services. The company was founded in 1882 and is based in King of Pru ssia, Pennsylvania.
Advisors' Opinion:- [By Rich Smith]
AmeriGas Propane, the general partner of AmeriGas Partners (NYSE: APU ) and subsidiary of propane distributor UGI (NYSE: UGI ) , announced Monday that it has promoted its treasurer, Hugh J. Gallagher, to the position of company vice president for finance, and chief financial officer.
- [By Laura Brodbeck]
Monday
Earnings Releases Expected: UGI Corporation (NYSE: UGI), Yum! Brands, Inc. (NYSE: YUM), First Bancorp. (NYSE: FBP) Economic Releases Expected: �Indian services PMI, Spanish services PMI, Italian services PMI, German services PMI, eurozone services PMI, British services PMI, German CPI, US ISM non-manufacturing PMITuesday
- [By Laura Brodbeck]
Monday
Earnings Releases Expected: Tyson Foods, Inc. (NYSE: TSN), UGI Corporation (NYSE: UGI), Salesforce.com Inc (NYSE: CRM Economic Releases Expected: Hong Kong unemployment rate, eurozone current account, Spanish current accountTuesday
Best Gas Stocks To Own For 2015: Legacy Oil + Gas Inc (LEGPF.PK)
Legacy Oil + Gas Inc. (Legacy) is engaged in exploration, exploitation and development drilling for oil and natural gas reserves. Legacy's wholly owned subsidiary, Legacy Oil & Gas ND, Inc., holds properties and operates in the State of North Dakota. Its Southeast Saskatchewan properties are located in an area ranging from approximately 130 to 290 kilometers southeast of the city of Regina, Saskatchewan. Legacy has an average working interest of approximately 75% in 24,576 gross (18,647 net) acres of undeveloped land at Taylorton. It has an average working interest of approximately 70% in 32,959 gross (22,938 net) acres of undeveloped land in the Viewfield Bakken play with properties at Stoughton, Heward and Star Valley. On January 1, 2011, it amalgamated with its wholly owned subsidiaries Legacy VRI Ltd. and Legacy TV Ltd. In April 2013, it closed the acquisition of Villanova Oil Corp. (Villanova) and the acquisition of light oil assets. Advisors' Opinion:- [By Value Digger]
To open up new Cardium opportunities, Manitok is also expanding to the Southern Alberta Foothills, where it plans to drill the first well of the farm-in with Legacy Oil & Gas (LEGPF.PK) before year end. Legacy Oil has a 99% average working interest in the Farm-in Lands prior to Manitok earning. Manitok will pay 100% of the cost to drill, complete and equip one horizontal Cardium oil well in order to earn 70% of Legacy's working interest, in a small block of land within the Farm-in Lands. If Manitok drills, completes and equips 3 horizontal Cardium oil wells at 100% of the cost, it will earn the entire 70% of working interest in Legacy's Farm-in Lands.
Best Gas Stocks To Own For 2015: Cenovus Energy Inc (CVE)
Cenovus Energy, Inc. (Cenovus), incorporated on January 1, 2011, is a Canadian integrated oil company. The Company�� operations include oil sands projects in northern Alberta, which use specialized methods to drill and pump the oil to the surface. It also has natural gas and oil production in Alberta and Saskatchewan. It operates in four segments: oil sands, conventional, refining and marketing, and corporate and eliminations. The Company has 50% ownership with Phillips 66 in two United States refineries, which includes Wood River (Illinois) and Borger (Texas) refineries. It has two producing steam-assisted gravity drainage (SAGD) projects in the oil sands-Foster Creek and Christina Lake, as well as several emerging projects which are in various stages of development. Foster Creek and Christina Lake are 50%-owned by ConocoPhillips. It also produces heavy oil from the mobile Wabiskaw formation at its 100%-owned Pelican Lake operation in the Greater Pelican Region, about 300 kilometers north of Edmonton.
Its reserves and production are located in Canada, primarily within the provinces of Alberta and Saskatchewan. As of December 31, 2012, it had a land base of approximately seven million net acres and Company Interest Before Royalties proved reserves of approximately 1,717 million barrels of bitumen, 184 million barrels of heavy crude oil, 115 million barrels of light and medium crude oil and NGLs and 955 billion cubic feet of natural gas. It also had Company Interest Before Royalties probable reserves of approximately 676 million barrels of bitumen, 105 million barrels of heavy crude oil, 56 million barrels of light and medium crude oil and natural gas liquefied (NGLs) and 338 billion cubic feet of natural gas as of December 31, 2012.
Oil Sands
The Oil sands segment includes the development and production of Cenovus�� bitumen assets at Foster Creek, Christina Lake and Narrows Lake, as well as heavy oil assets at Pelican Lake. This segment also includes the Atha! basca natural gas assets and projects in the early stages of development, such as Grand Rapids and Telephone Lake. Certain of the Company�� operated oil sands properties, notably Foster Creek, Christina Lake and Narrows Lake, are jointly owned with ConocoPhillips. As of December 31, 2012, it had bitumen rights of approximately 1,469,000 gross acres (1,097,000 net acres) within the Athabasca and Cold Lake areas, as well as the exclusive rights to lease an additional 478,000 net acres areas on the Cold Lake Air Weapons Range on its behalf and/or its assignee�� behalf.
As of December 31, 2012, there were 56 wells producing. It operates an 80 megawatt natural gas-fired cogeneration facility in conjunction with the SAGD operation at Foster Creek. The steam and power generated by the facility is presently being used within the SAGD operation and the excess power generated is being sold into the Alberta Power Pool. It has 50% interest in Christina Lake, an oil sands property in northeast Alberta that uses SAGD technology and produces from the McMurray formation. During 2011, the Company drilled three wells at Christina Lake using its Wedge WellTM technology. As of December 31, 2012, there were six producing wells.
The Company holds 50% interest in Narrows Lake, an oil sands property within the Christina Lake Region in northeast Alberta. The project includes gross production capacity of 130,000 barrels per day (bbls/d) of bitumen to be developed in up to three phases, with the first phase expected to have production capacity of approximately 45,000 barrels per day of bitumen. Using a pattern, horizontal well polymer flood, it produces heavy crude oil from the Cretaceous Wabiskaw formation at its Pelican Lake property, which is located within the Greater Pelican Region in northeast Alberta. During 2012, it drilled 76 heavy oil wells. The Company holds a 38% non-operated interest in 110 kilometers, 20-inch diameter crude oil pipeline, which connects the Pelican Lake area to a pipelin! e that tr! ansports crude oil from northern Alberta to crude oil markets.
The Company�� new resource play assets include oil sands properties. Its Grand Rapids property is located in the Greater Pelican Region in northeast Alberta, where deposits of bitumen have been identified in the Cretaceous Grand Rapids formation. Its Telephone Lake property is located in the Borealis Region in northeast Alberta. The Steepbank and East McMurray properties are also located in the Borealis Region, southwest of Telephone Lake. It produces natural gas from the Cold Lake Air Weapons Range and several surrounding landholdings located in northeast Alberta and hold surface access and natural gas rights for exploration, development and transportation from areas. The majority of its natural gas production in the area is processed through wholly owned and operated compression facilities.
Conventional
Conventional segment includes the development and production of conventional crude oil, NGLs and natural gas in Alberta and Saskatchewan. It includes the carbon dioxide enhanced oil recovery project at Weyburn and emerging tight oil opportunities. As of December 31, 2012, it had an established land position of approximately 4.9 million gross acres, of which approximately 3.2 million gross acres are developed. The mineral rights on approximately 59% of its net landholdings are owned in fee title by Cenovus. It leases Crown lands in some areas in Alberta, mainly in the Early Cretaceous geological formations, primarily in the Suffield and Wainwright areas.
The Company holds interests in multiple zones in the Suffield, Brooks North, Langevin, Drumheller, and Wainwright areas in southern Alberta with a mix of medium and heavy crude oil production. Development in these areas focuses on infill drilling, optimization of existing wells and other specialized oil recovery methods. It operates water handling facilities to manage oil production. In the unitized portion of the Weyburn crude oil field ! in southe! ast Saskatchewan, it has 62% working interest. The Weyburn unit produces light and medium sour crude oil from the Mississippian Midale formation and covers 78 sections of land. As of December 31, 2012, approximately 90% of the approved CO2 flood pattern development at the Weyburn unit was completed. It holds interests in multiple zones in the Suffield, Brooks North, Langevin and Drumheller areas in southern Alberta.
Refining and Marketing
Refining and marketing segment is focused on the refining of crude oil products into petroleum and chemical products at two refineries located in the United States. The refineries are jointly owned with and operated by Phillips 66. This segment also markets Cenovus�� crude oil and natural gas, as well as third-party purchases and sales of product that provide operational flexibility for transportation commitments, product type, delivery points and customer diversification.
Through WRB Refining LP (WRB), the Company has 50% ownership interest in both the Wood River and Borger Refineries located in Roxana, Illinois and Borger, Texas respectively. ConocoPhillips is the operator and manager of WRB. As of December 31, 2012, the Wood River refinery had a processing capacity of approximately 306,000 barrels per day of crude oil, including approximately 110,000 barrels per day of heavy crude oil. It processes light low-sulphur and heavy high-sulphur crude oil that it receives from North American crude oil pipelines to produce gasoline, diesel and jet fuel, petrochemical feedstocks and asphalt. As December 31, 2012, the Borger Refinery had a processing capacity of approximately 146,000 barrels per day of crude oil, including approximately 35,000 barrels per day of heavy crude oil, and approximately 45,000 barrels per day of NGLs. It processes crude oil and NGLs that it receives from North American pipeline systems to produce gasoline, diesel and jet fuel along with NGLs and solvents.
The Company's Marketing group is focused ! on enhanc! ing the netback price of its production. It manages the transportation and marketing of crude oil for its upstream operations. It also manages the marketing of its natural gas, which is primarily sold to industrials, other producers and energy marketing companies.
Corporate and Eliminations
The segment includes inter-segment eliminations that relate to transactions that have been recorded at transfer prices based on current market prices, as well as unrealized intersegment profits in inventory. The Corporate and Eliminations segment also includes Cenovus costs for general and administrative and financing activities.
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.
- [By Arjun Sreekumar]
Faced with growing uncertainty, some operators are even scaling back investments and reducing cash flow guidance. Talisman Energy (NYSE: TLM ) , Canada's sixth-largest independent oil producer, cut its capital budget forecast for the year by 25%, while Cenovus Energy (NYSE: CVE ) in December lowered its cash flow forecast for the year by 16% to as low as C$3.1 billion. And Canadian Natural Resources (NYSE: CNQ ) said that it plans to reduce spending on thermal sands production.
Best Gas Stocks To Own For 2015: Surge Energy Inc (ZPTAF.PK)
Surge Energy Inc. is an oil focused exploration and production (E&P) company. The Company has projects in Southern Saskatchewan/the Williston Basin, SE Alberta and Valhalla/Nipisi. In January 2014, Surge Energy Inc. announced the SE Saskatchewan light oil acquisition. Advisors' Opinion:- [By Value Digger]
In late January 2013, I wrote an article about Surge Energy (ZPTAF.PK), an oil-weighted intermediate producer with operations in Canada and US. It was when the price dropped below $4. Actually, I recommended Surge Energy back then at $3.7, for the reasons mentioned here.
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