Saturday, November 22, 2014

How to Tell If Cimarex Energy is a Gusher Waiting to Erupt

This article was originally published by TheStreet on October 23, 2014
By Sarfaraz A. Khan. Research Asst: Daniel L.
NEW YORK (TheStreet) -- Oil and gas producer Cimarex Energy (XEC)  is gearing up to report its third quarter results on Nov. 4 and savvy investors may want to take a pass on the stock -- for now.

Cimarex is an exploration and production company that gets around three-quarters of its production from the prolific Permian Basin in West Texas. However, unlike other Permian Basin oil producers, such as, Energen (EGN) , Diamondback Energy (FANG) and Pioneer Natural Resources (PXD) , Cimarex is heavily weighted toward natural gas. Roughly half of Cimarex's total production output comes from natural gas, while oil and natural gas liquids comprise the rest.

Wednesday, November 19, 2014

Energen Hedges Bet In Difficult Oil Pricing Environment

This article was originally published by TheStreet on October 22, 2014. 

By Sarfaraz A. Khan. Research Asst: Daniel L. 

NEW YORK (TheStreet) -- Energen  (EGN)  will likely miss Wall Street's cash flow and oil production estimates when it reports its third quarter results next week, but investors shouldn't be concerned. That's because the Alabama-based energy company is actually better positioned to defend itself against slumping oil prices than its competitors and has plans for growth.

MarkWest Energy Ready to Deliver Double-Digit Distribution Growth

This article was originally published by TheStreet on October 21, 2014.
By Sarfaraz A. Khan. Research Asst. Daniel L. 
NEW YORK (TheStreet) -- MarkWest Energy Partners (MWE) , a master limited partnership engaged in gathering, processing and transportation of natural gas and natural-gas liquids, has reduced its exposure to commodity prices to the lowest levels ever.
Oil prices have fallen by more than 10% in the past four weeks, hitting the stock market, particularly the energy sector.
"MarkWest has been similarly impacted," Joshua Hallenbeck, the company's vice president of finance and treasurer, wrote in an email.

EQT Midstream Is Poised to Deliver Double-Digit Distribution Growth

This article was originally published by TheStreet on October 17, 2014
NEW YORK (TheStreet) -- EQT Midstream Partners (EQM) , a master limited partnership created by EQT Corporation (EQT) , is positioning to post the highest distribution growth rate as compared to other gathering and processing MLPs covered by Goldman Sachs, thanks to organic growth and dropdown of assets from its parent, said Goldman Sachs reports prepared by analysts, including Jerren Holder.
The partnership's units have dropped by 12.8% since the beginning of September, which, Holder said, is due to profit taking by some investors and reallocation of funds by others, rather than any negative news. EQT Midstream will report earnings on Thursday.

Why Cheniere Energy Is Insulated From the Oil Price Slump

This article was originally published by TheStreet on October 17, 2014
NEW YORK (TheStreet) -- Cheniere Energy (LNG) , the first U.S. company to receive regulatory approval for export of liquefied natural gas to countries that do not have a free trade agreement with the U.S., is largely protected from tumbling oil prices. Yet its stock has suffered along with other energy shares in response to weakening oil prices.

Dominion Resources Sees Future Tied to Foreign Liquified Gas Buyers

This article was originally published by TheStreet on Oct. 16, 2014
NEW YORK (TheStreet) -- Dominion Resources (D)  is working to sell more liquefied natural gas to foreign buyers as a way of expanding into the export business.
The Virginia-based power and energy company is competing against several U.S. companies that want to expand exports, including Cheniere Energy (LNG) . So it's in Dominion's interest to increase exports by signing long-term agreements with buyers to use the LNG facility it's building in the Maryland even if those buyers later resell some or all of that product. Those foreign buyers include Japan's Tokyo Gas (TKGSY) and India's GAIL (GAILF) .

Thursday, November 6, 2014

Buy Magnum Hunter Stock When There’s Blood In the Streets

This article was originally published by TheStreet on Oct. 14, 2014
NEW YORK (TheStreet) -- Magnum Hunter Resources  (MHR) , an independent oil and gas company, has seen its stock fall by over 45% since January to around $4 a share due, in part, to concerns about the company's liquidity. But this could be a buying opportunity for patient investors.
Magnum Hunter plans to spend $400 million in capital expenditures this year, a large amount for a company with a market capitalization of less than $1 billion and debt levels that by one metric were 16 times greater than the industry's average.

Linn Energy Investors Face Exposure to Deteriorating Oil Prices, Analysts Warn

This article was originally published by TheStreet on Oct. 13. 2014.
By Sarfaraz A. Khan
NEW YORK (TheStreet) -- Linn Energy (LINE) is the largest oil and gas producer that's structured to resemble a master limited partnership, or MLP. But it has meaningful exposure to commodity price risks, unlike a vast majority of other MLPs. With the dropping price of oil, that could be a problem for the stock.
According to a research report emailed to TheStreet by Goldman Sachs spokesperson Leslie Shribman, most MLPs that operate in oil and gas transportation, gathering and processing have a fee-based business as well as hedged positions when there is commodity exposure. Thanks to these two factors, such companies will be insulated against commodity price declines, said the report, prepared by the investment bank's energy analysts. But Linn is not one of those companies. 

Energy XXI's Horror Show Can Have A Happy Ending

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

Summary: Energy XXI has struggled to post any meaningful growth over the last couple of years. The company’s shares have fallen by more than 60% this year. However, the company is gearing up for a revival in the near term. So far, the company’s turnaround story appears to be on track.

Energy XXI (NASDAQ:EXXI) is a small oil-focused exploration and production company operating mainly in the shallow waters of the U.S. Gulf of Mexico Shelf that has struggled to post any meaningful growth over the last several years; but it could be a turnaround story in the making.

Horror Show

Energy XXI's shares have plummeted this year, falling by more than 60% since January, partly due to the weakness in oil prices that has hit offshore oil producers. Additionally, Jim Cramer has recently said that this is the worst stock he has ever been associated with. "They've got to be in there doing something good soon," Cramer said, "it is a horror show."

During FY2012, Energy XXI increased its oil production to more than 30,000 barrels a day from less than 15,000 barrels a day in FY2010. This triple-digit growth was partly due to the massive $1 billion acquisition of oil-weighted Gulf of Mexico shallow water properties from Exxon Mobil (NYSE:XOM) in late 2010 that were already producing at an average of 20,000 barrels of oil equivalents a day.

Since then, the company has not reported any meaningful growth. During FY2014, the company's oil production increased from more than 28,000 … read full article at Seeking Alpha
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Saturday, October 25, 2014

Cenovus Energy Still Producing Despite Deteriorating Oil Prices

This article was originally published by TheStreet on Oct. 03
NEW YORK (TheStreet) -- Global oil prices may be going downhill but investors won't see a slowdown in Cenovus Energy's  (CVE)  production growth.
Cenovus Energy, of Calgary, is one of the four largest Canadian oil and gas producers, which includes Suncor Energy (SU) , Husky Energy (HUSKF) and Imperial Oil (IMO) . Cenovus focuses on producing oil sands, a naturally occurring mixture of sand, water and an extremely viscous oil called bitumen, that are abundantly found in Canada.