Robert Zimmerman

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3 Companies Driving Over OPEC's Wallet

By Robert Zimmerman - May 18, 2013 | Tickers: CLNE, F, WPRT

Fellow Fool Matt DiLallo recently pointed out that in order for the US to be independent of OPEC oil, our domestic demand for oil needs to decline. Increased domestic oil production obviously helps, but the numbers bear out that we need to do more with less oil to achieve energy independence. Higher mileage cars and natural gas burning vehicles could do wonders for US energy self-sufficiency. Fortunately, there are three more »
US Natural Gas Exports Won't Save Europe

By Robert Zimmerman - May 12, 2013 | Tickers: APC, CQP, LNG, HAL, WGP, WES

Kirk Spano, columnist and founder of Bluemound Asset Management, LLC, recently opined that US natural gas exports were critical for the long-term stability of Europe. Specifically, he declared, “Without more self sufficiency long term and stable energy supplies intermediate term, Europe could be doomed to decades of instability. Which is where the U.S. comes in.“

“Doomed to decades of instability?” Oh please. As Michael Greenstone, professor of environmental economics more »
3 Companies Drilling OPEC's Coffin

By Robert Zimmerman - May 9, 2013 | Tickers: NE, SDRL, RIG

Note: A previous version of this article incorrectly referred to Noble Corp as Noble Energy. The error has been corrected below.

Oil exploration and production in the Gulf of Mexico continues its upward momentum in all aspects. By some estimates, the Gulf could yield 2.5 BOE/day. Given that the US imports about 4 million BOE/day from OPEC countries, Gulf of Mexico oil could seriously hurt OPEC imports more »
3 Companies Making Putin Pout

By Robert Zimmerman - May 7, 2013 | Tickers: APC, GLOG, NBL

The Russian economy depends on its energy exports. While President Vladimir Putin publicly claims his country “only” derives 50% of its revenues from oil and natural gas exports, others put that number as high as 80%. Additionally, by some estimates, Russia needs its Ural oil to sell at $150/bbl to finance an ambitious plan of domestic spending. Right now, Ural oil sells for around $112/bbl.

Beyond the money more »
Will Natural Gas Blow Up the Middle East?

By Robert Zimmerman - May 3, 2013 | Tickers: DGRLY, DKL, DK, NBL, WOPEY

As if the Middle East doesn't already have enough friction, another hissyfit seems to be evolving there. Off the coast of Israel, several natural gas fields have been discovered with enough gas to make Israel an energy exporter. Instead of relying on Egypt for a significant portion of its gas needs, Israel could tell the Muslim Brotherhood what to do with their gas and go it alone.

What’s more »
Natural Gas as a Vehicle Fuel -- Is a New Day Finally Dawning?

By Robert Zimmerman - May 1, 2013 | Tickers: CLNE, TA, TANN

It’s cheap, clean and American. No worries about politically unstable or unfriendly countries. There’s enough to last for decades. Natural gas offers the US a terrific fuel for uses beyond heating and power generation.

In particular, the holy grail for the natural gas industry has been transportation. According to the US Energy Information Authority, natural gas use as a vehicle fuel increased over the past five years, yet more »
Is Now the Time for Westport Innovations?

By Robert Zimmerman - April 29, 2013 | Tickers: CMI, WPRT

TravelCenters of America recently made a potentially game-changing announcement: it teamed up with Royal Dutch Shell to construct a nationwide network of natural gas refueling stations for road trucks. For Westport Innovations (NASDAQ: WPRT), this announcement is welcome news.

The not so little engine that can
Westport designs natural gas burning engines for a variety of vehicles. The actual large-scale production is done by the likes of Cummins (NYSE: CMI more »)
Natural Gas Exports: Who Might Win?

By Robert Zimmerman - April 28, 2013 | Tickers: CQP, LNG, GLOG, LNCO, LINE

The Deloitte Center for Energy Solutions analyzed the impact of American natural gas exports. According to its report, Deloitte believes exporting 6 billion cubic feet a day will cause natural gas prices to increase 15 cents per million BTUs, or 3.75%. For exporters, this spells opportunity. By the time gas is liquefied, exported, and then regassified, it costs about $9/mmBTU. Despite these costs, exporting gas could produce more »
2 Refiners Not Bothered by the EPA and 1 That Is

By Robert Zimmerman - April 22, 2013 | Tickers: CLMT, DKL, DK, VLO

Last month, the EPA released new requirements regarding the sulfur content of gasoline. Predictable peals of protest followed with claims that the new regulations would cost the refinery business upwards of $10 billion. Valero Energy (NYSE: VLO) immediately criticized the move, claiming it would have to spend $300 to $400 million to comply. Maybe that’s why Valero CEO William Klesse sold 50,000 shares in late March.

Two other more »
3 Dividend Payers I'm Watching Now

By Robert Zimmerman - April 17, 2013 | Tickers: CLMT, LNCO, LINE, SDRL

As earnings season begins, it’s time once again to review investments. Certainly, one should not live and die on one earnings report. However, it behooves investors to mind their holdings. These three companies pay big dividends and show up on my radar screen.

Deep sea drilling with modern rigs?
2012 saw a record high new oil finds in deepwater (over 4000 ft). A case can be made for offshore more »
3 Dividend Payers I'm Watching Now

By Robert Zimmerman - April 17, 2013 | Tickers: CLMT, LNCO, LINE, SDRL

As earnings season begins, it’s time once again to review investments. Certainly, one should not live and die on one earnings report. However, it behooves investors to mind their holdings. These three companies pay big dividends and show up on my radar screen.

Deep sea drilling with modern rigs?
2012 saw a record high new oil finds in deepwater (over 4000 ft). A case can be made for offshore more »
3 Dividend Payers I'm Watching Now

By Robert Zimmerman - April 15, 2013 | Tickers: CLMT, LNCO, LINE, SDRL

As earnings season begins, it’s time once again to review investments. Certainly, one should not live and die on one earnings report. However, it behooves investors to mind their holdings. These three companies pay big dividends and show up on my radar screen.

Deep sea drilling with modern rigs?
2012 saw a record high new oil finds in deepwater (over 4000 ft). A case can be made for offshore more »
3 Energy Stocks I'm Watching Now

By Robert Zimmerman - April 15, 2013 | Tickers: COG, ETP, SD

The next quarterly earnings season has begun and with it the perils and profits of capitalism come to the fore. With the advent of their earnings reports, here are three companies I’m watching closely.

Great returns but a high multiple
No question, Cabot Oil and Gas (NYSE: COG) delivered for its investors over the past 24 months. The stock rose from $20/sh to almost $70/sh. Results for more »
3 Energy Stocks I'm Watching Now

By Robert Zimmerman - April 15, 2013 | Tickers: COG, ETP, SD

The next quarterly earnings season has begun and with it the perils and profits of capitalism come to the fore. With the advent of their earnings reports, here are three companies I’m watching closely.

Great returns but a high multiple
No question, Cabot Oil and Gas (NYSE: COG) delivered for its investors over the past 24 months. The stock rose from $20/sh to almost $70/sh. Results for more »
3 Energy Stocks I'm Watching Now

By Robert Zimmerman - April 13, 2013 | Tickers: COG, ETP, SD

The next quarterly earnings season has begun and with it the perils and profits of capitalism come to the fore. With the advent of their earnings reports, here are three companies I’m watching closely.

Great returns but a high multiple
No question, Cabot Oil and Gas (NYSE: COG) delivered for its investors over the past 24 months. The stock rose from $20/sh to almost $70/sh. Results for more »
2 Companies with Insider Selling and 1 with Buying

By Robert Zimmerman - April 10, 2013 | Tickers: DKL, DK, KOG, SD

The buying and selling of stock by corporate executives can be an important glimpse into the financial health and future of that company. While not the sole reason to buy or sell a stock, significant insider trading shouldn’t be ignored--just ask your local US Senator. Let’s look at three different energy companies with significant insider trading.

Insider selling as revenues rise

Kodiak Oil and Gas (NYSE: KOG) rewarded more »
3 Companies Helping Ship Oil by Rail

By Robert Zimmerman - April 6, 2013 | Tickers: ARII, KSU, WAB

Bringing oil out of the Bakken shale oil play limits its availability to US and Canadian refineries. Simply stated, oil production boomed too fast for existing pipelines to handle. To ship oil out of the Midwest and to coastal refineries, oil producers have turned to rail as a transportation alternative. Although more expensive than pipeline, rail gets oil where it’s wanted. The future looks good for increased oil transport more »
3 Phillips 66 Partners, Good Investments in Their Own Right?

By Robert Zimmerman - April 3, 2013 | Tickers: EEP, MMP, PSX, NGLS

Phillips 66 (NYSE: PSX) recently announced deals with three companies to increase the supply of North American crude oil to Phillips’ refineries. This will boost Phillips profits since North American crude is roughly $15/bbl cheaper than Brent crude that Phillips buys for its East Coast refineries. While these deals are important to Phillips, they have their own respectable businesses, too. Let’s take a look at them.

Pipes and more »
3 Low Cost Natural Gas Producers Poised to Benefit From Higher Gas Prices

By Robert Zimmerman - March 28, 2013 | Tickers: EQT, EQM, RRC, UPL

Natural gas prices slowly increased this year, driven by a colder winter and other consumer demands. This reverses the 2012 trend of declining prices. Not surprisingly, drilling activity declined with natural gas prices and then increased as prices rose. With natural gas prices coming off historic lows, which gas producers will benefit first? My bet, the ones paying the lowest production costs. Let’s look at three examples.

Small player more »
New Life for These 3 Natural Gas Producers?

By Robert Zimmerman - March 25, 2013 | Tickers: COG, CHK, EQT

Natural gas prices climbed recently and with them, the stock prices of natural gas producers. In fact, natural gas prices have been steadily climbing for months. Even better, the future foretells more natural gas consumption. As highlighted in the chart below, the US Energy Information Administration projects growing gas consumption by electric utilities. Growing exports to Mexico will further boost demand. In fact, three new natural gas pipelines between Mexico more »

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