Monday, July 21, 2014

All Hail Whiting Petroleum, the New King of the Bakken

This article was originally published by TheStreet on July 14, 2014. 
NEW YORK (TheStreet) --  Whiting Petroleum (WLL_) plans to buy peer Kodiak Oil & Gas(KOG_), which will make it the king of the prolific Bakken Shale formation.
The acquisition will boost Whiting's production and reserves, which is why the company believes the deal will have a positive impact on cash flow, earnings and production per share starting next year.
The deal shows Whiting's resolve to play a central role in the rise of the Bakken formation as North America's leading shale field in terms of barrels-per-well.
Kodiak Oil and Gas, like Whiting, is a Rocky Mountain-focused exploration and production company. The deal is valued at $6 billion.

Buy Apache: Turnaround Of The Year With 2 Major Catalysts

This article was originally published by Seeking Alpha on July 14, 2014


Summary: Apache could be a successful turnaround story of the year. Apache is transitioning into a North America onshore focused E&P company on the back of massive divestitures.

There are two major catalysts that investors should watch out for, in the near term. Last year, investors cheered when Apache (NYSE:APA) sold a significant portion of its operations in Egypt. This year, the exploration and production company's stock could rally again as it gears up to sell its LNG assets.

In a recent interview, Barclays' analyst Thomas Driscoll has said that investors should watch out for Apache in 2014-15 as the oil giant's turnaround story unfolds.

Apache has been working on a massive restructuring program, which includes asset sales, in order to cut down its debt and increase its focus on the lucrative North American onshore operations.

The Transition

In the early 1990s, Apache began international expansion by entering Egypt and Australia. By 2009, Apache was getting 34% of its output from North American onshore operations. Nearly 19% came from the Gulf of Mexico while the rest, 47%, came from Egypt, North Sea, Australia and Argentina. Back then, Apache decided that it is going to become a North American onshore focused exploration and production company, reducing its exposure towards international markets as well as deepwater resources. And this is exactly what it has done.

In the previous quarter, Apache got 62% of its production (pro forma basis) from its North American onshore business, just 2% from the Gulf of Mexico and …. read full article at Seeking Alpha 

Continental Resources and EOG Are the Big Winners of the Shale Boom

This article was originally published by TheStreet on July 10, 2014. 
NEW YORK (TheStreet) -- The U.S. is on track to become the biggest oil producer on the planet, surpassing Russia and Saudi Arabia thanks to the shale revolution.
Oil majors Exxon Mobil (XOM_) and Chevron (CVX_) have failed to capitalize on the shale boom, playing second fiddle to their relatively smaller exploration and production peers Devon Energy (DVN_), Chesapeake Energy (CHK_), Continental Resources (CLR_) and EOG Resources (EOG_).
But despite playing a major role in the shale boom, natural gas-focused Devon and Chesapeake and oil-focused Continental and EOG aren't profiting equally. Right now Continental and EOG are the winners.

Friday, July 18, 2014

Boeing Could Keep Flying High For The Next 20 Years

This article was originally published by Seeking Alpha on July 10, 2014


Summary: Boeing sees continued growth in the industry over the next two decades.The single-aisle market and strong demand from the Asia Pacific region are the two main factors fueling this growth. Yesterday, Boeing announced a massive new order from Emirates Airline. How does it stand against its biggest competitor, Airbus?

Boeing (NYSE:BA) is firing on all cylinders as it gears up for the Farnborough International Airshow. Yesterday, the company said that it has won a massive order from Emirates for 150 aircraft. Today, it came forward with a rosy outlook that could continue to fuel its growth over the next twenty years.

Long Term Outlook

Earlier today, Boeing said that it sees the demand of more than 36,000 new airplanes over the next two decades, that's 4.2% higher than its previous estimate. The company has valued these panes at $5.2 trillion.

This growth will be driven by the strong demand from the single-aisle market, thanks to the rise of the low-cost carriers. The company projects that more than 25,000 new airplanes will be needed in the single-aisle and 8,600 in the twin-aisle market.

[image 1]

Boeing said that a significant portion of this growth, more than 36%, will be driven by customers from Asia-Pacific, including China. The country, which will be responsible of 40% of the orders from Asia pacific, is on track to become the largest aviation market, surpassing the U.S.


[Image 2]

New Orders

The positive outlook bodes well for Boeing's long-range, twin-engine aircraft, such as … read full article at Seeking Alpha.

Is Greenbrier's Stunning Oil-by-Railroad Rally Over Yet, or Can It Roll On?

This article was originally published by TheStreet on July 8, 2014 
NEW YORK (TheStreet) -- Shares of Greenbrier (GBX_), one of the biggest providers of transportation equipment and services to the North American railroad industry, have doubled this year. The stock was trading Tuesday at $65.45 as of 10:15 a.m.
But can the shares go any higher?

Google, Facebook Battle Over Exploding Online Video Ad Revenue

This article was originally published by TheStreet on July 7, 2014
NEW YORK (TheStreet) -- The online video advertisement market is growing fast -- and two of the biggest players in the digital ad marketplace, Google (GOOG_) (GOOGL_) and Facebook(FB_), want to be at the center of it all.
Last month, Google acquired the eight-year old video ad technology company mDialog for an undisclosed price. A few weeks later, on Wednesday, Facebook announced the acquisition of a seven-year old video-ad company LiveRail.
Both companies are trying to capitalize on the rise of the online video ad industry which could post higher growth rates than the traditional television ad market, according to Paul Ritter, chief research officer at Interactive Media Strategies.

Friday, July 11, 2014

Exxon Mobil Goes Where Few Oil Giants Tread

This article was originally published by TheStreet on July 3, 2014

By Sarfaraz A. Khan
 
NEW YORK (TheStreet) -- The U.S. oil behemoth Exxon Mobil (XOM_) revealed Wednesday that it has decided to invest more than $1 billion in its refinery in Antwerp, Belgium, even as others flee the continent's ailing refining sector.
 
That is because America's biggest oil company is eyeing a European revival several years down the road.

Don't Sell Cheniere Energy at Its All-Time High, Just Wait for It

This article  was originally published by TheStreet on July 1, 2014
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- Cheniere Energy (LNG_) is on fire. In the last 24 hours, the company has announced two major contracts for its planned Corpus Christi liquefied natural gas, or LNG, export terminal. And more deals could be on their way.
Yesterday, Cheniere said that it signed a 20-year agreement with Australia's Woodside Petroleum (WOPEY_) to supply natural gas. Today, Cheniere said that it entered into another 20-year sale and purchase agreement with Indonesia's state-owned Pertamina to supply 760,000 tons per year of LNG.

Facebook: LiveRail Acquisition Is A Small Part Of A Bigger Trend

This article was originally published by Seeking Alpha on July 3, 2014


By Sarfaraz A. Khan.
 
Summary: Facebook has recently announced the acquisition of LiveRail for reportedly between $400mn and $500Mn.LiveRail is one of the biggest players in the online video space that offers its unique real time bidding platform ecosystem. This is part of a bigger trend fueled by the growth in advertising spending on online videos, as pointed out by online video research analyst Paul Ritter.
 
On Wednesday, Facebook announced that it has decided to acquire a seven-year-old video-ad company LiveRail in an effort to increase its foothold in the video ad business. Facebook did not disclose the terms of the deal but according to TechCrunch, the start-up came with a price tag of between $400 million and $500 million.
 
LiveRail calls itself the "leading monetization platform for publishers." The company helps its clients in selling their video ad inventory. Some of its leading customers include Univision, Major League Baseball (mlb.com), PBS, Condé Nast Digital, CBS Interactive and ABC Family.
 
Overall, the company has hundreds of customers and delivers more than 7 billion video ads per month. According to ComScore, in May 2014, LiveRail's video ads reached out to 37.2% of Americans, making LiveRail the third biggest player in the industry, ahead of AOL and Google and behind BrightRoll and Specific Media.
 
LiveRail's biggest strength is its real time bidding platform ecosystem through, which it selects the best-priced ads for marketers from the video ad inventory of its publishers. The company also offers …. Read full article at Seeking Alpha