Oil production has been in the spotlight recently. There has been an influx of produced wells, and oil prices have slowly risen to $92 per barrel. Investors should be looking for oil and gas companies to add to their portfolios. Here are three to consider.
Hess Corporation (NYSE: HES)
Hess recently posted its first quarter earnings report, with strong gains beating analyst expectations. Hess has a strong position in the more »
Now is a great time to examine the recent developments in the legal problems for ExxonMobil (NYSE: XOM) and the implications for the company. Specifically, I will discuss the company's legal problems in the states of Maryland and New Hampshire. I will also examine the company's transformation from producing natural gas to producing more oil and liquids.
In two separate but related reports, Bloomberg News documented the continuing rise of North American oil production to the detriment of OPEC. One report detailed how OPEC as an organization may not survive the next decade unless it finds new markets for its oil. The report also revealed the significant price advantage American refiners have using West Texas Intermediate crude instead of Brent Sea crude. In a video aired on more »
Billionaire Steve Cohen’s SAC Capital Advisors has reported a position of 4.1 million shares in Energy XXI Limited (NASDAQ: EXXI), a $2.5 billion market cap oil and gas exploration and production company. This stake gives SAV ownership of 5.1% of the company’s outstanding shares, and is up from 1.1 million shares at the end of September (see more stock picks from Cohen and SAC more »
Studies show that stocks bought by insiders tend to beat the market, though the effect is generally very small. The best results come from consensus insider purchases. According to academic studies stocks bought by multiple insiders outperformed the market by 7 percentage points per year on the average over a 25 year period (learn more about studies on consensus insider purchases). We think that these results are the way they more »
On the last day of 2012, several insiders, including the CEO, CFO, Chief Accounting Officer and three Senior Vice Presidents of Denbury Resources (NYSE: DNR)purchased shares of the company. They purchased 6,755 shares combined at the average price of $16.12 per share, with the total transaction value of nearly $110,000. Should investors consider this insider purchase as a bullish signal about Denbury?
CO2 EOR Focus
Denbury more »
After being upgraded by analysts, this oil and natural gas independent exploration and production company has seen its CEO sell a great deal of his own stock in the market. That oil/gas company is Oasis Petroleum (NYSE: OAS). In the middle of Nov. 14, it was upgraded from neutral rating to buy with a $40 target price by SunTrust. In three days from Nov. 26-28, Thomas Nusz, the company more »
What can we expect from the energy sector during a second Obama administration?
The president has promised to-
- Boost American energy production
- Develop clean energy technologies
- Control our own energy
Is it possible for him to succeed? The energy sector believes it is and that it will benefit the economy overall.
Both political parties and the Obama administration are committed to addressing the nation’s rising gasoline prices and boosting more »
I have been taking a hard look at Exxon’s (NYSE: XOM) quarterly filing of estimated third quarter results. Overall, Q3 2012 results have been less than in Q3 2011. However, the report did point to a few key overarching trends that are indicative of the energy industry. Below are the four major takeaways from the energy industry that I grasped from Exxon’s filing.
Declining Upstream Profits
The upstream more »
The world’s leading oil and gas firm, Exxon Mobil (NYSE: XOM), is looking to acquire Canadian Celtic Explorations for $2.92 billion. After the acquisition, Exxon will add 650,000 acres of unconventional fuel assets located in British Columbia and Alberta to its portfolio. The deal will increase Exxon’s natural gas and liquids production by 72 million cf/d and 4,000 b/d, respectively.
It will also more »
ExxonMobil (NYSE: XOM) announced the purchase of a small cap Canadian exploration and production company as the oil giant looks to increase exposure to various shale plays in western Canada. This deal underscores the renewed interest in oil and gas development in North America by the major integrated oil companies.
ExxonMobil is offering $24.50 CAD per share for Celtic Exploration, which is headquartered in Calgary and more »
ExxonMobil (NYSE: XOM) has become the "Energizer Bunny" of energy stocks - it just keeps growing and growing and growing. The company's share price keeps going up and up, even as it announces another big deal that will boost production and revenue seemingly every other day. But how much longer can it maintain this kind of growth?
Debt Keeps Growing and Growing and Growing
Like a lot of companies that more »
Despite the upward-moving market, new M&A and IPO announcements are scarce, causing investors to worry if the new highs are sustainable. Was the run-up legitimate, or was it induced by Bernanke? Energy companies worry less about this question, as they are in their own little world – because in the oil and gas space, deals are alive and well.
Volatile natural gas and oil prices have kept both upstream and more »
Marathon Oil (NYSE: MRO) is cutting back on its oil and gas development program in the onshore United States as the company reacts to lower cash flow from falling commodity prices while drilling and completion costs continue to stay at stubbornly high levels.
Eagle Ford Shale
Marathon Oil's largest onshore operation in the United States is in South Texas, where the company is developing the Eagle Ford Shale. The more »
When oil prices fluctuate with the vicissitudes of the market, talking heads will note that a drop in oil prices is a sign that the economy is bad; but when those prices recover you will also hear that the rise in oil prices will hurt the economy. Violent fluctuations in price are often speculation about the direction of global growth, but long-term oil prices eventually form an equilibrium. Overreactions to more »
Earnings season for the energy sector for the second quarter of 2012 is set to start in a few weeks and as usual these reports, along with the associated management commentary, will provide information on the current drilling cycle in North America. Here are some issues and trends that should be monitored by those investors that are active in this sector.
One important topic for investors in the more »
Just the other day I was opining on the cash generating prowess of Linn Energy (NASDAQ: LINE) which I’ve owned and followed for years. I’ve always liked their unique business model of buying older oil and gas assets and turning them into cash flowing directly to shareholders in the form of quarterly distributions thanks to their MLP like corporate structure. Within a few short hours of finishing up more »
I don’t know if it’s the fact that I’m paying nearly $4 a gallon to fill up my car of late or because I live in the heart of the Marcellus Shale, but I’ve been on a kick to make sure I have ample exposure to energy in my portfolio. While I look at new positions I don’t want to overlook the positions I currently more »
Given the increase in oil prices over the last few years, you would expect there to be a lot of bullishness around oil exploration companies. This only makes sense, as higher oil prices drive more exploration and in theory, more profits. I've recently identified, three smaller oil exploration companies that look attractive. However, since most investors will pick one company to represent an industry, I wanted to see which company looks the best. Let's compare our three contenders, and see who comes out the winner.
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