Conoco-Phillips (COP) has had a long and profitable history, more than tripling in value in the last ten years. These gains came despite the fact that the prior CEO made a few unwise acquisitions, especially a sizable stake in the Russian firm, Lukoil, which it has since sold.
Incidentally, that stake in Lukoil was the reason we cut this stock from our portfolio a few years back. The new CEO (since last June) is aware of these mistakes and is unlikely to repeat them.
The company is no longer an "integrated" oil firm, after spinning off its retail sales network (gas stations) a few months ago.
Conoco continues to tune-up its operations after the spin-off, disposing of non-core or underperforming assets as the opportunities present themselves. Q1 revenues were down 8.9%, but only 2.9% excluding gains on asset dispositions, which were much higher last year.
Top Consumer Service Stocks To Invest In 2015: Enbridge Energy Partners LP (EEP)
Enbridge Energy Partners, L.P. (the Partnership) owns and operates crude oil and liquid petroleum transportation and storage assets, and natural gas gathering, treating, processing, transportation and marketing assets in the United States. The Company was formed by its Enbridge Energy Company, Inc. (General Partner), to own and operate the Lakehead system, which is the United States portion of a crude oil and liquid petroleum pipeline system extending from western Canada through the upper and lower Great Lakes region of the United States to eastern Canada. A subsidiary of Enbridge Inc. (Enbridge), owns the Canadian portion of the Mainline system. Enbridge, which is based in Calgary, Alberta, Canada is a provider of energy transportation, distribution and related services in North America and internationally. Enbridge is the ultimate parent of its General Partner. As of December 31, 2011, its portfolio of assets included the approximately 6,500 miles of crude oil gathering and transportation lines and 32 million barrels of crude oil storage and terminaling capacity; natural gas gathering and transportation lines totaling approximately 11,500 miles; nine natural gas treating and 25 natural gas processing facilities with an aggregate capacity of approximately 3,255 million cubic feet per day, including plants; trucks, trailers and railcars for transporting natural gas liquids (NGLs), crude oil and carbon dioxide, and marketing assets, which provide natural gas supply, transmission, storage and sales services. The Company conducts its business through three business segments: Liquids, Natural Gas and Marketing.
Liquids Segment
The Company�� Lakehead system consists of crude oil and liquid petroleum common carrier pipelines and terminal assets in the Great Lakes and Midwest regions of the United States. The Mainline system serves refining centers in the Great Lakes and Midwest regions of the United States and the Province of Ontario, Canada. Its Lakehead system spans a distance ! of approximately 1,900 miles, and consists of approximately 5,100 miles of pipe with diameters ranging from 12 inches to 48 inches, and is transporter of crude oil and liquid petroleum from Western Canada to the United States. In addition, the system has 61 pump station locations with a total of approximately 900,000 installed horsepower and 72 crude oil storage tanks with capacity of approximately 13.9 million barrels. The Mainline system operates in a segregation, or batch mode, allowing the transport in excess of 50 crude oil commodities, including light, medium and heavy crude oil, condensate and NGLs.
The Company�� Mid-Continent system is located within PADD II and is consisted of its Ozark pipeline and storage terminals at Cushing and El Dorado, Kansas. Its Mid-Continent system includes over 430 miles of crude oil pipelines and 17.3 million barrels of crude oil storage capacity. Its Ozark pipeline transports crude oil from Cushing to Wood River where it delivers to ConocoPhillips��Wood River refinery and interconnects with the Woodpat Pipeline and the Wood River Pipeline. The storage terminals consist of 91 individual storage tanks ranging in size from 58,000 to 575,000 barrels. Of the 17.3 million barrels of storage capacity on its Mid-Continent system, the Cushing terminal accounts for 16.1 million barrels. A portion of the storage facilities are used for operational purposes, while it contracts the remainder of the facilities with various crude oil market participants for their term storage requirements. Contract fees include fixed monthly capacity fees, as well as utilization fees, which it charges for injecting crude oil into and withdrawing crude oil from the storage facilities.
The Company�� Mid-Continent system operates under month-to-month transportation arrangements and both long-term and short-term storage arrangements with its shippers. Its North Dakota system is a crude oil gathering and interstate transportation system servicing the Williston basin in! North Da! kota and Montana, which includes the Bakken and Three Forks formations. The crude oil gathering pipelines of its North Dakota system collect crude oil from points near producing wells in approximately 22 oil fields in North Dakota and Montana. Its North Dakota system is made at Clearbrook to its Lakehead system and to a third-party pipeline system. As of December 31, 2011, its North Dakota system included approximately 240 miles of crude oil gathering lines connected to a transportation line, which is approximately 730 miles long, with a capacity of approximately 210,000 barrels per day. Its North Dakota system also has 21 pump stations, one delivery station and 11 storage facilities with an aggregate working storage capacity of approximately 870,000 barrels. During the year ended December 31, 2011, it added 25,000 barrels per day of capacity from Berthold, North Dakota to the international border near Lignite, North Dakota.
Natural Gas Segment
The Company owns and operates natural gas gathering, treating, processing and transportation systems, as well as trucking, rail and liquids marketing operations. It purchases and gathers natural gas from the wellhead and delivers it to plants for treating and/or processing and to intrastate or interstate pipelines for transmission to wholesale customers, such as power plants, industrial customers and local distribution companies. As of December 31, 2011, it had nine active treating plants and 25 active processing plants, including two hydrocarbon dewpoint control facilities (HCDP) plants. Its treating facilities have a combined capacity, which approximates 1,240 million cubic feet per day while the combined capacity of its processing facilities approximates 2,015 million cubic feet per day, including 350 million cubic feet per day provided by the HCDP plants.
The Company�� natural gas business consists of East Texas system, Anadarko system and North Texas system. East Texas system includes approximately 3,900 miles of nat! ural gas ! gathering and transportation pipelines, eight natural gas treating plants and five natural gas processing plants, including two HCDP plants. Anadarko system consists of approximately 2,900 miles of natural gas gathering and transportation pipelines in southwest Oklahoma and the Texas panhandle, one natural gas treating plant and 11 natural gas processing plants. North Texas system includes approximately 4,700 miles of natural gas gathering pipelines and nine natural gas processing plants located in the Fort Worth basin. Its East Texas system is located in the East Texas basin. Natural gas on its North Texas system is produced in the Barnett shale area within the Fort Worth basin conglomerate. Its Anadarko system is located within the Anadarko basin.
As of December 31, 2011, the Company�� Elk City system includes one carbon dioxide treating plant and three cryogenic processing plants with a total capacity of 370 million cubic feet per day, and a NGL production capability of 20,000 barrels per day. It also includes its trucking and NGL marketing operations in its Natural Gas segment. These operations include the transportation of NGLs, crude oil and other products by truck and railcar from wellheads and treating, processing and fractionation facilities to wholesale customers, such as distributors, refiners and chemical facilities. In addition, its trucking and NGL marketing operations resells these products. Its services are provided using trucks, trailers and rail cars, pipeline capacity, fractionation agreements, product treating and handling equipment. Its trucking operations transport NGLs, condensate and crude oil from its processing facilities and from third party producers to its United States Gulf Coast customers. As of December 31, 2011, its fleet consisted of approximately 220 trucks and 375 trailers. Its trucking and NGL marketing operations are wholesale customers, such as refineries and propane distributors. Its trucking and NGL marketing operations also market products to whol! esale cus! tomers, such as petrochemical plants.
Marketing Segment
The Company�� Marketing segment transacts with various counterparties to provide natural gas supply, transportation, balancing, storage and sales services. Its Marketing business uses third-party storage capacity to balance supply and demand factors within its portfolio. Its Marketing business pays third-party storage facilities and pipelines for the right to store gas for various periods of time. These contracts may be denoted as firm storage, interruptible storage or parking and lending services. Its Marketing business leases third-party pipeline capacity downstream from its Natural Gas assets under firm transportation contracts. This capacity is leased for various lengths of time and at rates.
Advisors' Opinion:- [By Daniel Gibbs]
One investment vehicle that any investor interested in income should be familiar with is the master limited partnership, or MLP, as they�are some of the best income investments available today. Most master limited partnerships are in the business of owning and operating oil and gas pipelines such as Kinder Morgan Energy Partners (NYSE: KMP ) or Enbridge Energy Partners (NYSE: EEP ) . However, there are some MLPs that actually operate oil and gas wells such as Breitburn Energy Partners (NASDAQ: BBEP ) and Mid-Con Energy Partners (NASDAQ: MCEP ) . In this article, we will discuss how these investments work and why they deserve a place in your income portfolio.
- [By Robert Rapier]
Next week�� issue will tackle the three remaining questions: one on MLP equivalents in Canada and Australia, one on Enbridge Energy Partners (NYSE: EEP) �and TC Pipelines (NYSE: TCP), and a third query on Access Midstream Partners (NYSE: ACMP), Crestwood Midstream Partners (NYSE: CMLP) and Mid-Con Energy Partners (Nasdaq: MCEP).
- [By Sean Williams]
Now compare this with an extremely popular and much larger midstream company in Enbridge Energy Partners (NYSE: EEP ) . The payouts between the two companies are actually quite similar, with Enbridge yielding 6.7% and Boardwalk yielding 6.6%. However, profit margins are considerably higher for Boardwalk, and its annual dividend growth history is certainly more appealing. Enbridge shareholders have seen their payout grow by an average of 2.4% per year since 2006 while Boardwalk, even excluding its very first payout, which would skew the results, grew its yield by an average of 5.8% per year. Furthermore, trailing-12-month operating cash flow as a percentage debt is higher for Boardwalk as compared with Enbridge, signaling the stability of its debt relative to its cash-generating capabilities. I have absolutely nothing against Enbridge Energy Partners, but Boardwalk is statistically the better-looking midstream MLP!
- [By Callum Turcan]
Add in one more
The purpose of the Front Range pipeline is to connect the DJ Basin to Texas, but it only goes part of the way. To get the NGL all the way there, Enterprise Products Partners, Anadarko, Phillips 66, Spectra (through DCP), and Enbridge Energy Partners (NYSE: EEP ) are working together to build the Texas Express pipeline.
10 Best Gas Stocks To Buy Right Now: WPX Energy Inc (WPX)
WPX Energy, Inc. (WPX Energy), incorporated on April 19, 2011, is an independent natural gas and oil exploration and production company engaged in the exploitation and development of long-life unconventional properties. The Company focuses on exploiting its natural gas reserve base and related NGLs in the Piceance Basin of the Rocky Mountain region, and on developing its positions in the Bakken Shale oil play in North Dakota and the Marcellus Shale natural gas play in Pennsylvania. Its other areas of domestic operations include the Powder River Basin in Wyoming and the San Juan Basin in the southwestern United States. In addition, it owns a 69% controlling ownership interest in Apco Oil and Gas International, Inc. (Apco), which holds oil and gas concessions in Argentina and Colombia. As of December 31, 2010, it had proved reserves of 4,473 Bcfe, 59% of which were proved developed reserves. Average daily production as of March 31, 2011 was 1,251 MMcfe/d.
Bakken Shale
The Company acquired 89,420 net acres in the Williston Basin in North Dakota that is prospective for oil in the Bakken Shale. It acquired all of this acreage in December 2010 through the acquisition of Dakota-3 E&P Company LLC. As of December 31, 2010, it had three rigs operating on the Bakken Shale acreage. Since acquiring this acreage, the Company has drilled 10 operated wells on the Bakken Shale properties; nine Middle Bakken formation wells and one Three Forks formation well. Six of these wells have been completed and connected to sales with initial 30 day production rates ranging from 750 Boe/d to 1,100 Boe/d.
Marcellus Shale
The Company�� 99,301 net acres in the Marcellus Shale were acquired through two key transactions and additional leasing activities. In July 2010, the Company acquired 42,000 net acres in Susquehanna County in northeastern Pennsylvania. As of December 31, 2010, the Company had five rigs operating in the Marcellus Shale.
Advisors' Opinion:- [By Ben Levisohn]
Bank, perceived beneficiaries of tapering, had a big day Friday, helping to boost the S&P 500. JPMorgan Chase (JPM), for instance, rose 4,5% to $53.86, while Goldman Sachs (GS) rose 2.2% to $163.17. This week’s big winners included the Gap (GPS), which gained 13% to $41.43 after beating same-store-sales forecasts, and Transocean (RIG), which rose 12% to $53.45 after beating earnings predictions on Nov. 6. The S&P 500′s biggest loser this week: WPX Energy (WPX), which plunged 15% after its earnings were hit by lower natural gas prices.
- [By Ben Levisohn]
Not all stocks are created equal, however, and the analysts expect some stocks to handily outperform others, and their top picks “are poised to deliver long-term, capital-efficient growth…while trading at attractive valuations that currently provide 20%+ upside to our price targets.” Their winners?�Oasis Petroleum (OAS),�Approach Resources (AREX),�Bonanza Creek Energy�(BCEI) and Gulfport Energy�(GPOR), all of which are rated Buy with Oasis also added to Goldman’s conviction list. Investors, however, should avoid �WPX Energy�(WPX), which the analysts rate a Sell. They explain why:
- [By Claudia Assis]
Among advancers, WPX Energy Inc. (WPX) rose 3.2%.
- [By Tyler Crowe]
Several investors wrote off natural gas plays after spot prices bottomed out last year, but the subsequent rise in gas prices hasn't seemed to change the opinion of many investors. It's a shame, because they could be missing out on some great companies that could make big returns in the future. One company that comes to mind is WPX Energy (NYSE: WPX ) , which just announced that its most recent well in the Piceance Basin of Colorado sported an impressive 100-day output of 1 billion cubic feet of gas.�
10 Best Gas Stocks To Buy Right Now: New Western Energy Corp (NWTR)
New Western Energy Corporation, incorporated on September 25, 2008, is an oil and gas and mineral exploration and production company with current projects located in Oklahoma, Kansas and Texas. The Company�� principal business is in the acquisition, exploration and development of, and production from oil, gas and mineral properties. The Company�� project includes Oklahoma Project, Texas Project, Kansas Project and Pennsylvania project. As of December 31, 2011, the Company�� total estimated unproved reserves were approximately 1,495,757 barrels of oil reserves. On January 2, 2012, the Company acquired of 100% interest in Royal Texan.
Oklahoma Project
This project comprises of two leases Glass and Phillips. The Glass Lease is located in Roger County, Oklahoma. The Glass leasehold property contains approximately 120 acres. The Phillips Lease is located in Rogers County, Oklahoma. The Phillips leasehold property contains approximately 150 acres. The Company�� oil leases located in Oklahoma were originally obtained from one lessor RC Oil Co.
Texas Project
This project comprises of three leases Swenson, Reves and McLellan. On January 27, 2011, the Company�� subsidiary New Western Texas acquired a 50% working interest in 160 acres of oil and gas leases in Jones County, Texas, known as the Swenson Lease. On August 8, 2011, the Company�� subsidiary New Western Texas was assigned from a third party a Paid Up Oil and Gas Lease agreement with Michael L. McLellan and Paula McLellan (Lessors), which provided us a 50% working interest in approximately 160 acres of land for the purpose of exploring for developing, producing and marketing oil and gas, along with all hydrocarbon and non-hydrocarbon substances produced.
Kansas Project
On December 20, 2011, entered into an assignment of oil and gas lease with an independent third party for an oil and gas property in Kansas referred to as Chautauqua Lease, whereby the assignor gra! nted the rights to the Company to carry on geographical and other exploratory work, including core drilling, and the drilling, and operating for producing, and marketing all of the oil, gas, including all associated hydrocarbons. As of December 31, 2011, the Company has not started any oil and gas exploration on Chautauqua Lease.
Pennsylvania project
The property is approximately 23 acres and is located on a glacial aged kame terrace. The terrace sands, gravels and finer sediments were deposited in response to blockage by glacial ice. Pennsylvania's Marcellus Shale natural gas producers operate approximately 50,000 wells and deliver more than 158 billion cubic feet of natural gas.
Advisors' Opinion:- [By Peter Graham] New Western Energy Corp (OTCMKTS: NWTR) May Have Enough Cash for Now
Small cap New Western Energy Corp is an independent energy company engaged in the acquisition, development, production, and exploration of oil, gas and minerals primarily in North America. On Friday, New Western Energy Corp fell 16% to $0.189 for a market cap of $13.02 million plus NWTR is down 37% over the past year and down 10% since February 2012 according to Google Finance.
10 Best Gas Stocks To Buy Right Now: Western Gas Equity Partners LP (WGP)
Western Gas Equity Partners, LP, incorporated on September 11, 2007, was formed to own three types of partnership interests in Western Gas Partners, LP (WES). WES is a limited partnership formed by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. As of December 31, 2011, the Company had no independent operations. On January 13, 2012, WES acquired 100% interest of Mountain Gas Resources LLC (MGR). On August 1, 2012, WES acquired 24% interest of Chipeta Processing LLC (Chipeta).
WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil for Anadarko, as well as third-party producers and customers. The assets of WGP, through its partnership interests in WES, include thirteen gathering systems, seven natural gas treating facilities, ten natural gas processing facilities, two NGL pipelines, one interstate gas pipeline, one intrastate gas pipeline, and three separate interests in Fort Union, White Cliffs Pipeline, LLC (White Cliffs) and Rendezvous Gas Services, LLC (Rendezvous). These assets are located in East and West Texas, the Rocky Mountains (Colorado, Utah and Wyoming), and the Mid-Continent (Kansas and Oklahoma). WES also has facilities under construction in South Texas and northeast Colorado. During the year ended December 31, 2011, WES completed the construction of a cryogenic processing train at its Chipeta facility , which had a designed capacity of approximately 300 million cubic feet of natural gas per day and was placed into service in October 2012.
Advisors' Opinion:- [By Jonas Elmerraji]
The exact same setup is potentially giving traders a reason to jump into shares of $8.5 billion midstream gas company Western Gas Equity Partners (WGP). Just like Flotek, WGP is forming a textbook channel up. And this week, Western Gas is testing trendline support.
It's a little too early to call WGP's trendline buyable here. At some point, all trends eventually fail -- and when this one does, you don't want to be left holding the bag. A bounce this week will be a good indication that WGP can still catch a bid at this price level. When and if that happens, I'd recommend keeping a tight protective stop in place just below WGP's most recent swing low at $38.
While the 50-day moving average has been crossing paths with WGP quite a bit in the last month, I'd recommend ignoring it. The average hasn't acted as a meaningful support or resistance level to date. In the case of this particular name, it's just not technically relevant.
10 Best Gas Stocks To Buy Right Now: Sandridge Mississippian Trust II (SDR)
SandRidge Mississippian Trust II is a statutory trust formed to own overriding royalty interests to be conveyed to the trust by SandRidge Energy, Inc. (SandRidge) in 67 producing horizontal wells, including 13 wells, which are awaiting completion (the Producing Wells), in the Mississippian formation in northern Oklahoma and southern Kansas, and overriding royalty interests in 206 horizontal development wells (The Development Wells) to be drilled in the Mississippian formation (the Development Wells) on properties within an Area of Mutual Interest (the AMI). SandRidge is an independent oil and natural gas company engaged in the development and production activities related to the exploitation of its holdings in West Texas and the Mid-Continent area of Oklahoma and Kansas. The AMI, which is limited to the Mississippian formation, consists of approximately 81,200 gross acres (53,000 net acres) held by SandRidge. The Bank of New York Mellon Trust Company, N.A. is trustee (the Trustee), and The Corporation Trust Company is a Delaware Trustee (the Delaware Trustee).
The Mississippian formation is encountered at depths between approximately 4,000 feet and 7,000 feet and lies between the Pennsylvanian-aged Morrow formation and the Devonian-aged Woodford Shale formation. Effective as of January 1, 2012, the royalty interests was conveyed from SandRidge's interest in the Producing Wells and the Development Wells. The royalty interest in the Producing Wells (the PDP Royalty Interest) entitles the trust to receive 80% of the proceeds from the sale of production of oil and natural gas attributable to SandRidge's net revenue interest in the Producing Wells. The royalty interest in the Development Wells (the Development Royalty Interest) entitles the trust to receive 70% of the proceeds from the sale of oil and natural gas production attributable to SandRidge's net revenue interest in the Development Wells.
As of December 31, 2011, the total proved reserves estimated to be attributable to t! he trust were 26.1 million barrels of oil equivalent. This amount includes 10.2 million barrels of oil equivalent attributable to the PDP Royalty Interest and 15.9 million barrels of oil equivalent attributable to the Development Royalty Interest. The proved reserves consist of 46.8% oil and 53.2% natural gas. In addition, as of December 31, 2011, there were 9.8 million barrels of oil equivalent of probable reserves estimated to be attributable to the trust, all of which were attributable to the Development Royalty Interest. The probable reserves consist of 46.9% oil and 53.1% natural gas.
SandRidge will retain 20% of the proceeds from the sale of oil and natural gas attributable to its net revenue interest in the Producing Wells, as well as 30% of the proceeds from the sale of future production attributable to its net revenue interest in the Development Wells. SandRidge initially will own 48.2% of the trust units. SandRidge operates 79% of the Producing Wells. The completed Producing Wells and 121 other Mississippian wells outside of the AMI that have been completed by SandRidge have an average perforated length of approximately 4,200 feet. SandRidge Exploration and Production, LLC (SandRidge E&P), a wholly owned subsidiary of SandRidge, will grant to the trust a lien on its interests in the AMI.
The Underlying Properties are located in Noble, Kay, Alfalfa, Grant and Woods counties in northern Oklahoma and Harper, Comanche, Sumner and Barber counties in southern Kansas in the Mississippian formation, which is an expansive carbonate hydrocarbon system located on the Anadarko Shelf. The Mississippian formation can reach 1,000 feet in gross thickness and the targeted porosity zone is between 50 and 100 feet in thickness. As of December 31, 2011, there were approximately 43 horizontal rigs drilling in the formation, with 19 of those rigs drilling for SandRidge. As of December 31, 2011, SandRidge had approximately 1.5 million net acres leased in the Mississippian formation in north! ern Oklah! oma and Kansas.
Advisors' Opinion:- [By Jonathan Morgan]
Schroders Plc (SDR) gained 1.3 percent to 2,183 pence after Exane raised its recommendation on Europe�� biggest independent money manager to outperform, which is similar to a buy rating, from neutral. The brokerage said that the fund manager will benefit from its brand and its distribution network among retail and institutional clients.
- [By Adam Galas]
As pointed out by my colleague Matt DiLallo in this article comparing SandRidge Energy (NYSE: SD ) and SandRidge Mississippian Trust II (NYSE: SDR ) , SandRidge Energy's trusts were established as mere financing vehicles for the parent company to invest in its own drilling program. For example, SandRidge Energy has plans to invest $1.55 billion annually in its Mississippi lime assets through 2016 in order to grow production by 20%-25% annually (in spite of expected decline rates of 35% in 2014, 20% in 2015, and 15% in 2016).
- [By Dan Caplinger]
SandRidge has made a huge bet on the Mississippian Lime shale play, especially after selling off its Permian Basin assets late last year. Unfortunately, that bet hasn't paid off well for shareholders, as the company saw its spun-off royalty trusts SandRidge Mississippian Trust I (NYSE: SDT ) and SandRidge Mississippian Trust II (NYSE: SDR ) fail to meet their projections for distribution amounts during the first quarter. The main problem has been that wells in the Mississippian Lime have produced more natural gas than expected, and even with a slight rebound in gas prices, it still doesn't produce adequate margins compared to oil and natural-gas liquids.
- [By Jim Royal]
Oscar Wilde once said that experience is the name we give to our mistakes. My investment in Sandridge Mississippian Trust II (NYSE: SDR ) has been the greatest experience of my Special Situations portfolio. But in investing, as in life, to be successful you must make the next right decision, rather than foolishly holding to a past commitment that has been proven wrong. So I've decided to sell my shares in this troubled royalty trust and move on to find a good investment. (I've got a good one here.)
10 Best Gas Stocks To Buy Right Now: LinnCo LLC (LNCO)
Linn Co, LLC (Linn Co) sole purpose is to own LINN Energy, LLC (LINN) units. LINN is independent oil and natural gas company. LINN is focused on the development and acquisition of oil and natural gas properties, which include various producing basins within the United States. LINN�� properties are located in eight operating regions, which include Mid-Continent, which includes properties in Oklahoma, Louisiana and the eastern portion of the Texas Panhandle; Hugoton Basin, which includes properties located primarily in Kansas and the Shallow Texas Panhandle; Green River Basin, which includes properties located in southwest Wyoming; Permian Basin, which includes areas in west Texas and southeast New Mexico; Michigan/Illinois, which includes the Antrim Shale formation in the northern part of Michigan and oil properties in southern Illinois; California, which includes the Brea Olinda Field of the Los Angeles Basin; Williston/Powder River Basin, which includes the Bakken formation in North Dakota and the Powder River Basin in Wyoming, and East Texas, which includes properties located in east Texas. On March 30, 2012, the Company acquired certain oil and natural gas properties (Properties) located primarily in the Hugoton Basin of Southwestern Kansas from BP America Production Company (BP). On May 1, 2012, LINN completed the acquisition of certain oil and natural gas properties located in east Texas. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry's interest.
During the year ended December 31, 2011, LINN drilled a total of 294 gross wells. As of June 1, 2012, LINN had interests in approximately 15,000 gross productive wells (approximately 71% operated) and approximately 1.8 million net acres across seven regions in the United States.
Advisors' Opinion:- [By Matt DiLallo]
Investors in LINN Energy (NASDAQ: LINE ) have been rattled lately as bears have been bashing the company's units. To top it off, those units were hit again last week as rumors began to surface that the complex deal with its affiliate LinnCo (NASDAQ: LNCO ) to buy�Berry Petroleum (NYSE: BRY ) was being delayed. The big concern is that the deal might fall apart, which would be a major blow to the company.
10 Best Gas Stocks To Buy Right Now: Nabors Industries Ltd (NBI)
Nabors Industries Ltd. (Nabors), incorporated on December 11, 2001, is the land drilling contractor and land well-servicing and workover contractors in the United States and Canada. The Company markets approximately 474 land drilling rigs for oils and gas land drilling operations in the United States Lower 48 states, Alaska, Canada and over 20 other countries globally. The Company actively markets approximately 442 rigs for land well-servicing and workover work in the United States and approximately 106 rigs for land well-servicing and workover work in Canada. In 2012, the Company sold its remaining wholly-owned oil and gas business in Colombia and sold additional wholly owned assets in the United States. In April 2012, TransForce Inc. acquired through its subsidiary, I.E. Miller Services, Inc, certain assets of Peak USA Energy Services, Ltd., subsidiary of Nabors Industries Ltd. In December 2012, the Company sold its 49.7% ownership interest in NFR Energy LLC (NFR Energy).
The Company is a provider of offshore platform workover and drilling rigs, and actively markets 36 platform, 12 jackup and four barge rigs in the United States, including the Gulf of Mexico, and multiple international markets.The Company provides completion and production services, including hydraulic fracturing, cementing, nitrogen and acid pressures pumping services with over 805,000 hydraulic horsepower in United States and Canada. The Company offers a range of ancillary well-site services, including engineering, transportation and disposal, construction, maintenance, well logging, directional drilling, rigs instrumentation, data collection and other support services in select United States and international markets. The Company manufactures and lease or sell drives for a ranges of drilling applications, directional drilling systems, rig instrumentation and data collection equipment, pipeline handling equipment and rig reporting software. The Company has a 51% ownership interest in a joint venture in Saudi Arabia, w! hich owns and actively markets nine rigs in addition to the rigs the Company leases to the joint venture.
A land-based drilling rig generally consists of engines, a drawworks, a mast (or derrick), pumps to circulate drilling fluid under various pressures, blowout preventers, drill string and related equipment. Special-purpose drilling rigs used to perform workover services consist of a mobile carrier, which includes an engine, drawworks and a mast, together with other standard drilling accessories and specialized equipment for servicing wells. These rigs are specially designed for repairs and modifications of oil and gas wells, including standard drilling functions. Land-based drilling rigs are moved between well sites and among geographic areas using the Company's fleet of cranes, loaders and transport vehicles or those of third-party service providers.
Platform rigs provide offshore workover, drilling and re-entry services. The Company's platform rigs have drilling and/or well-servicing or workover equipment and machinery arranged in modular packages that are transported to, and assembled and installed on, fixed offshore platforms owned by the customer. Jackup rigs are mobile, self-elevating drilling and workover platforms equipped with legs that can be lowered to the ocean floor until a foundation is established to support the hull, which contains the drilling and/or workover equipment, jacking system, crew quarters, loading and unloading facilities, storage areas for bulk and liquid materials, helicopter landing deck and other related equipment. The Company also own two workover inland barge rigs. These barges are designed to perform plugging and abandonment, well-service or workover services in shallow inland, coastal or offshore waters.
The Company provides a range of wellsite solutions to oil and natural gases companies, consisting primarily of technical pumping services, including hydraulic fracturing, a process sometimes used in the completion of oil and g! as wells ! whereby water, sand and chemicals are injected under pressure into subsurface formations to stimulate gas and oil production, and down-hole surveying services. Other technical services include completion, production and rental tool services. In addition, the Company provides fluid logistics services, including those related to the transportation, storage and disposal of fluids that is used in the drilling, development and production of hydrocarbons.
The Company provides maintenance services on the mechanical apparatus used to pump or lift oils from producing wells. These services include, among other activities, repairing and replacing pumps, sucker rods and tubing. They also occasionally include drilling services. The Company provides the rigs, equipment and crews for these tasks, which are performed on both oil and natural gas wells, but which are more commonly required on oil wells. Producing oil and natural gas wells occasionally require repairs or modifications, called workovers. The Company can also provide other specialized services, including onsite temporary fluid storage; the supply, removal and disposal of specialized fluids used during certain completion and workover operations, and the removal and disposal of salt water that often accompanies the production of oil and natural gas.
Through various subsidiaries, the Company manufactures top drives and catwalks, which is installed on both onshore and offshore drilling rigs. The Company provides heavy equipment to move drilling rigs, water, other fluids and construction materials as well as the means to moves such equipment. The Company offers specialized drilling technologies, including patented steering systems and rigs instrumentation software systems, including ROCKITTM directional drilling system, which is used to provide data collection services to oil and gas exploration and service companies, and RIGWATCHTM software, which is computerized software and equipment that monitors a rig's real-time performance and da! ily repor! ting for drilling operations, making this data available through the Internet.
The Company competes with Helmerich and Payne, Inc., Patterson-UTI Energy, Inc., Basic Energy Services, Inc., Key Energy Services, Inc., Superior Energy Services, Inc., Forbes Energy Services Ltd., Halliburton, Baker Hughes, Weatherford International Ltd., Schlumberger Limited, FTS International Services LLC, C&J Energy Services, Inc. and RPC, Inc.
Advisors' Opinion:- [By Anora Mahmudova]
The Nasdaq Composite (COMP) �dropped 129.79 points, or 3.1%, its worst one-day percentage decline since November 2011. The Nasdaq Biotech index (NBI) � as well as iShares Nasdaq Biotechnology ETF (IBB) � dropped 5.6%.
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