Tag Archives: Joel South

The Weight of China Is Too Much for These Companies

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

It was a long and arduous day for materials producers’ stocks yesterday. Many of them fell more than 5% after news that China‘s GDP growth landed short of the world’s hopes. Accounting for around 40% of all metal demand, China shares the demand podium with no one. This was made crystal clear even after announcing 7.7% growth.

Investors in commodity producers must have cringed after checking their portfolios once the closing bell tolled the end of trading Tuesday in the U.S. Some key players on the global level had begun sliding before yesterday’s added push. Are materials stocks worth a look now? Well, that all depends on your outlook for several of the materials that are critical components of global growth. For our analysts’ take, check out the video below.

Cliffs Natural Resources has grown from a domestic iron ore producer into an international player in both the iron ore and metallurgical coal markets. It has also underwhelmed investors lately, especially after its dramatic 76% dividend cut in February. However, it could now be looked at as a possible value play due to several factors that are likely to remain advantageous for Cliffs’ management. For details on these advantages and more, click here now to check out The Motley Fool’s premium research report on the company.

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From: http://www.dailyfinance.com/2013/04/17/the-weight-of-china-is-too-much-for-these-companie/

Will Oil Stay Below $100 Per Barrel?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Reaching levels not seen since July 2012, Brent crude oil, the international benchmark, plunged below $100 per barrel. The $100 level is where OPEC has publicly stated it would like the price to remain, so its members might have to curtail production if it wishes for the supply and demand dynamic to maintain that price.

Here in the United States, oil producers are watching the price very closely as many need oil to stay above $80-$90 per barrel to remain profitable. If prices fall any further we could see the crude oil market suffer the same fate as natural gas did in 2012, when producers cut back noticeably. If this happens, equipment and service companies more reliant than their peers on North America could suffer.

If you’re on the lookout for some currently intriguing energy plays, check out The Motley Fool’s “3 Stocks for $100 Oil.” For FREE access to this special report, simply click here now.

The article Will Oil Stay Below $100 Per Barrel? originally appeared on Fool.com.


Joel South has no position in any stocks mentioned. Taylor Muckerman owns shares of Halliburton. The Motley Fool recommends Halliburton. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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From: http://www.dailyfinance.com/2013/04/17/will-oil-stay-below-100-per-barrel/

Earth-Shaking News About Natural Gas Fracking

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Increased seismic activity in North America and Europe near corridors of hydraulic fracturing has had some worried about the dangers that fracking could be causing. Arkansas even went as far as shutting down fracking in a portion of the state during 2011, after tremors were felt. However, a recent study out of the United Kingdom hopes to dispel some of those worries. 

The following video provides an overview of the study’s findings and touches on the opinions of a 20-year ExxonMobil veteran-turned-Tufts-professor on the issue. His view is that the benefits of fracking far outweigh the risks, especially when considering the consequences of higher natural gas prices that could result in a pullback of natural gas production.

Fracking can also have affects on the price of oil, potentially helping keep it below future expectations. However, if you’re on the lookout for some currently intriguing energy plays for a higher priced oil environment, check out The Motley Fool’s “3 Stocks for $100 Oil.” For free access to this special report, simply click here now.

The article Earth-Shaking News About Natural Gas Fracking originally appeared on Fool.com.


Joel South, Taylor Muckerman, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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From: http://www.dailyfinance.com/2013/04/14/414-1003am-post-earth-shaking-news-about-natural-g/

ExxonMobil's $40 Billion Mistake

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

ExxonMobil was recently downgraded by Morgan Stanley. But with a company like Exxon that has a long history of a rock-solid balance sheet, excellent reserve replacement, and the ability to return enormous amounts of money to shareholders, what is holding back the world’s largest oil company? In this video, Motley Fool energy analysts Joel South and Taylor Muckerman discuss Exxon’s 2009 acquisition of XTO Energy, and tell investors how overpaying in an acquisition continues to hurt investors.

There are many different ways to play the energy sector, and The Motley Fool‘s analysts have uncovered an under-the-radar company that’s dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: “
The Only Energy Stock You’ll Ever Need
.” Don’t miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does.
Click here to access your report — it’s totally free.

The article ExxonMobil’s $40 Billion Mistake originally appeared on Fool.com.


Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Chevron. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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From: http://www.dailyfinance.com/2013/04/13/exxonmobils-40-billion-mistake/

Tension Brewing at the Top of This Energy Giant

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

In the case of Occidental Petroleum , the company just doesn’t seem to be trading at a share price worthy of the sum of its parts. An article in Barron’s stated that the company’s individual parts could be worth up to $125 per share while the company currently trades around $84. How has the price arrived at this supposedly depressed level? Well, it has traded down 8% since last April versus the S&P 500 , which is up over 16% during that same time frame.

At odds about the company’s future
The board at Occidental, led by its former CEO, is currently seeking a potential replacement for Stephen Chazen because of the path the company has trended down recently. What’s fascinating about this is that 10 board members’ statuses are up for shareholder vote in the near future. This will be the perfect forum for the shareholders to decide the direction that the company takes. They can side with the board by keeping them all or voice their approval of Chazen by showing one or more the boardroom door.

Looking for another company with boardroom and CEO issues?
Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company’s management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you’re invited to check out The Motley Fool’s brand-new premium report on the company. Simply click here now to access your copy.

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From: http://www.dailyfinance.com/2013/04/12/tension-brewing-at-the-top-of-this-energy-giant/

A New Deal Between Coal and Utility Heavyweights

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

After a rough year in 2012, coal companies hope that they could bounce back a bit this year. In the latest deal between utilities and the coal industry, Duke Energy has agreed to purchase between 1.7 million and 1.9 million short tons of coal from Peabody Energy .

Currently, Peabody Energy is the lowest-cost producer of coal in the United States, which should be a critical fact now that natural gas prices are above $4 per MMBtu. It is well-diversified geographically and is the leading player in the cheapest basins in the U.S.

If you are an investor looking for another coal company that could capitalize from rising natural gas prices, turn to CONSOL Energy . This is a company that owns the largest export facility on the East Coast and has turned the majority of its attention toward natural gas production, a move that is likely to provide a nice hedge against any continued domestic coal weakness. 

The domestic market isn’t the only place these coal companies are trying to sell. Exports are becoming a much bigger part of the domestic coal landscape, and Peabody Energy has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don’t miss out on this invaluable resource — simply click here now to claim your copy today.

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Source: FULL ARTICLE at DailyFinance

Another Reason the U.S. Should Export Natural Gas

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

Unconventional natural gas production has created a large surplus of the commodity in North America, dropping prices from $12 per MMBtu in the summer of 2008 to under $2 per MMBtu last summer. 

With international natural gas prices up to four times more expensive than domestic prices, significant profits can be had if the United States exports its surplus natural gas to these high-priced markets. However, opponents of exporting liquefied natural gas, or LNG, are quick to point out that cheap natural gas could be used to make the United States‘ manufacturing sector more competitive.

In the following video, Motley Fool energy analyst Joel South discusses a recent Energy Information Administration survey showing that U.S. manufacturing is increasing energy efficiency. With energy intensity dropping, is the country better off exporting the excess natural gas? A recent Deloitte study estimates the price increase due to exporting LNG would be insignificant, and since natural gas is a regionally priced commodity, the areas that would experience slight pricing pressure would be around shipping terminals, where gas is traditionally more inexpensive.

There are many different ways to play the energy sector, and The Motley Fool‘s analysts have uncovered an under-the-radar company that’s dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: “The Only Energy Stock You’ll Ever Need.” Don’t miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report — it’s totally free.

The article Another Reason the U.S. Should Export Natural Gas originally appeared on Fool.com.


Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Will GE Eventually Become an Energy Company?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Early Monday morning, General Electric announced that it would be acquiring Lufkin Industries for around $3.3 billion. This acquisition continues the trend that we have seen start with GE in 2007; since that time, it has spent $11 billion to purchase companies in the energy space.

Nothing artificial about what Lufkin brings to GE
What GE is getting with Lufkin Industries is a company that is heavily involved in artificial lift. This service has proven vital to the oil and natural gas industry due to its ability to increase well efficiency once pressure inside the well has dropped. Estimates are that 95% of wells worldwide utilize some form of artificial lift, so this segment could provide a nice boost to GE‘s business as global drilling continues to pick up.

Artificial lift is a critical service and is just one part of Halliburton’s portfolio
Domestic oil and gas service companies have taken a hit in the recent past due to a slowdown in the natural gas drilling boom of the last couple of years. As this market looks to rebound, investors would be wise to consider Halliburton, one of the top companies in the business and one of those most in tune with the domestic market. To access The Motley Fool’s new premium research report on this industry stalwart, simply click here now and learn everything you need to know about how Halliburton is positioning itself both at home and abroad.

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Source: FULL ARTICLE at DailyFinance

1 Metal Most Companies Can't Live Without

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Results from the first quarter of 2013 are about to be unleashed on the market following the first major release of the season. Early this morning Alcoa displayed 15% growth over the same quarter in 2012 thanks in large part to the aerospace and automotive industries. After taking significant measures in 2012 to cut its cost structure, there are high hopes that margins will expand throughout the year.

With companies like Ford posting the highest March sales figures in six years, demand for aluminum could continue to creep higher. Along with this rise in demand, pricing pressures should recede a bit now that China has pulled back slightly on production, and considering that end users’ inventories are starting to shrink. 

Materials industries are traditionally known for their high barriers to entry, and the aluminum industry is no exception. Controlling about 15% of global production in this highly consolidated industry, Alcoa is in prime position to take advantage of growth that some expect will lead to total industry revenue approaching $160 billion by 2017. Based on this prospect and several other company-specific factors, Alcoa is certainly worth a closer look. For a Foolish investment perspective on this global giant simply click here now to get started.

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Source: FULL ARTICLE at DailyFinance

Energy Investors: What to Watch During Earnings

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

In the video below, Motley Fool energy analysts Joel South and Taylor Muckerman take a look at the biggest stories facing energy investors this earnings season. Joel discusses the overall sluggishness of the energy sector compared to the S&P, with refiners being far and away the exception, as several mid-con refiners showed massive outperformance over the past year, due to an abundance of cheap crude feedstocks.

Check out the video below for a few metrics energy investors should keep their eyes on over the next month as refiners and Bakken explorers and producers show what they have accomplished during the first quarter of 2013. 

Kodiak Oil & Gas is one such E&P with a dynamic growth story — it offers great opportunities, but with those opportunities come great risks. Before you hitch your horse to this carriage, let us help you with your due diligence. To find out whether Kodiak is currently a buy or a sell, you’re invited to check out The Motley Fool‘s premium research report on the company, which comes with a full year of updates and analysis as key news breaks. To get started simply click here now.

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Source: FULL ARTICLE at DailyFinance

Expectations for Energy Services During Earnings Season

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

With 2012 representing what many thought was a low point in the energy services sector, energy investors have been hopeful that 2013 would signal a rebound. Now, however, two of the giants in this space are reporting opposing outlooks, with Schlumberger saying that it isn’t seeing as strong of an uptick as it had hoped, while Halliburton isn’t as bearish in its outlook. How will this earnings season pan out for these energy services giants and their investors? In this video, Motley Fool energy analysts Taylor Muckerman and Joel South address some broader trends in the energy services sector, and tell investors which companies will be affected.

Domestic oil and gas service companies have taken a hit in the recent past due to a slowdown in the natural gas drilling boom of the last couple of years. As this market looks to rebound, investors would be wise to consider Halliburton, one of the top companies in the business and one of those most in tune with the domestic market. To access The Motley Fool‘s new premium research report on this industry stalwart, simply click here now and learn everything you need to know about how Halliburton is positioning itself both at home and abroad.

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Source: FULL ARTICLE at DailyFinance

Should Investors Be Getting Into Energy or Mining Right Now?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Commodity prices have not been kind to investors, nor to those companies mining the commodities, since about the middle of 2012. With the potential for a bottom, now could be a great time to open a mining position for the long term. This could be especially true if a bottom in copper and gold prices is combined with an equalizing balance between supply and demand. According to Motley Fool analyst Taylor Muckerman, Freeport-McMoRan might be worth a glance.

As for natural gas producers, a lot of them struggled through 2012 due to the pricing collapse that caught many of them off guard. The low-cost producers were able to barely scrape by, so they should be worth a look now that the price of natural gas has climbed above $4 per million British thermal units. Motley Fool analyst Joel South happens to like Chesapeake Energy and Devon Energy in this space.

Diversification could be the key to unlocking Freeport’s potential
After putting together a blockbuster deal to expand into the oil and natural gas industry, Freeport-McMoRan will have plenty on its plate as it tries to adapt to the new industry, as expanding into oil and gas carries plenty of inherent volatility. Freeport had a profitable copper business; on top of this foray into a new industry it still has to contend with mining industry bellwether BHP Billiton. To help investors determine if Freeport-McMoRan is a buy or a sell, The Motley Fool has compiled a premium research report on the company. Simply click here now to access your copy today.

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Source: FULL ARTICLE at DailyFinance

The Clean-Energy Source of the Future

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

It’s been a long time coming for both natural gas and solar as viable sources of energy in the United States. Both have been struggling with a lack of consumer and industrial buy-in, but both could be right around the corner. Is either one standing out at the moment?

The debate is on
In the following video, Motley Fool analysts Joel South and Taylor Muckerman each weigh in on how natural gas and solar have been performing lately and which companies are taking the lead. Both options have made progress recently, with Clean Energy Fuels building out its “America’s Natural Gas Highway” initiative and SunPower producing more efficient solar panels.

Has Clean Energy Fuels solved the “chicken-or-the-egg” debate?
The movement toward alternative energy is gaining momentum. One potential opportunity in this field is Clean Energy Fuels, which focuses its natural gas efforts primarily on trucking and fleets. It’s poised to make a big impact on an essential industry. Learn everything you need to know about Clean Energy Fuels in The Motley Fool‘s premium research report on the company. Just click here now to claim your copy today.

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Source: FULL ARTICLE at DailyFinance

These Pipeline Companies Are Great, but Which Is the Best?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

When it comes to the midstream segment, it’s clear that some companies are in place to succeed. Demand far outstrips supply, so those that are well diversified with future plans are likely to take the lion’s share of the growth. For Motley Fool analyst Taylor Muckerman, the one company that stands out is Kinder Morgan Energy Partners . While it’s expensive compared with its peers, its portfolio of assets is second to none, especially when supplemented with capital expenditures. 

If that company doesn’t fit your investing style, analyst Joel South offers his take on Boardwalk Pipeline Partners . This natural gas-focused operator offers a tremendous distribution yield above 7% and is diversified into the mid-continent and Utica shale regions. Those interested in high distribution yields would be well served by taking a deeper dive here.

A different vehicle to play the midstream segment
It’s easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and it’s one that investors should commit to memory because of its sheer size — it’s the fourth largest energy company in the U.S. — not to mention its enormous potential for profits. In The Motley Fool’s premium research report on Kinder Morgan, we break down the company’s growing opportunity — as well as the risks to watch out for — to uncover whether it’s a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor’s resource.

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Source: FULL ARTICLE at DailyFinance

The EPA Could Be Costing You at the Pump

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

Gasoline prices could be moving higher, if the EPA restricts the sulfur content in gasoline in addition to its push for increased ethanol requirements despite flat to declining demand for gas. 

The proposed mandates could slightly increase gas prices in the near term, but the biggest worry is the effect the increased expenses will have on the traditionally tight-margin refining industry. The American Petroleum Institute estimates a $2.4 billion yearly expense for the refining sector, which could force some refiners to close their doors and, in effect, restrict supply and raise fuel costs. Check out the following video for more information.

There are many different ways to play the energy sector, and The Motley Fool’s analysts have uncovered an under-the-radar company that’s dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations and is poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: “The Only Energy Stock You’ll Ever Need.” Don’t miss out on this limited-time offer and your opportunity to discover this company before the market does. Click here to access your report — it’s totally free.

The article The EPA Could Be Costing You at the Pump originally appeared on Fool.com.


Joel South, Taylor Muckerman, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Are We in a Natural Gas Bull Market?

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

After hitting record lows last year, natural gas prices are finally moving higher, with storage volume levels 32% lower compared with the same time last year. Natural gas production also continues to be curtailed, with drilling rigs receding 36% year over year. 

Gas prices are currently hovering around $4 per MMbtu, more than double the price from last April. Does this mean we’re now in the throes of a natural gas bull market? Check out the following video for more information in addition to a few recommendations on ways investors can profit from the rise in gas prices.

There are many different ways to play the energy sector, and The Motley Fool’s analysts have uncovered an under-the-radar company that’s dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations and is poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: “The Only Energy Stock You’ll Ever Need.” Don’t miss out on this limited-time offer and your opportunity to discover this company before the market does. Click here to access your report — it’s totally free.

The article Are We in a Natural Gas Bull Market? originally appeared on Fool.com.


Joel South owns shares of Devon Energy. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Ultra Petroleum, owns shares of Devon Energy and Ultra Petroleum, and has options on Ultra Petroleum. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Venezuela Could Be Driving Up Gasoline Prices in the U.S.

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Americans have been hearing a lot about the rapid increase in oil production within our borders. However, the lack of this connection to the price of gasoline at the pump has many of them questioning the dislocation. With supply increasing and domestic demand decreasing, shouldn’t the price be reduced to a point of equilibrium? It’s basic economics, right?

Unfortunately, we aren’t the only consumers of gasoline
If the United States were isolated in a vacuum, my answer would be a resounding yes. Unfortunately, that simply isn’t the case. Exports have been growing at an alarming rate for gasoline used in automobiles. Since 2000, Mexico has been the dominant purchaser, but as of November 2011 Venezuela has been opening its ports at an alarming rate. 

Recent Venezuelan activity
From November 2011 until January of this year, it has gone from importing next to zero gasoline from the U.S. to accounting for 20% of our total exports now. What has this meant for American drivers? Tune in below to find out.

Natural gas as a vehicle fuel could help alleviate some pain at the pump
The movement toward alternative energy is gaining momentum. One potential opportunity in this field is Clean Energy Fuels, which focuses its natural gas efforts primarily on trucking and fleets. It’s poised to make a big impact on an essential industry. Learn everything you need to know about Clean Energy Fuels in The Motley Fool’s premium research report on the company. Just click here now to claim your copy today.

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Source: FULL ARTICLE at DailyFinance

Which MLPs Should Investors Choose From the Herd?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

With such a broad range of MLPs out there right now, investors have many options. Distributions from these companies are vital to shareholders’ total returns. This key fact is why the stability of the long-term, fee-based contracts of the midstream MLPs are a great place for investors to focus.

Heightened visibility
Take this long-term revenue stream and compare it to that of MLPs that produce oil and natural gas, and its clear that distribution growth and stability should be much more reliable at a midstream company like Kinder Morgan Energy Partners . Risk is also reduced because expected production from wells is not always guaranteed. 

If KMP doesn’t fit your investment profile, perhaps its general partner will
It’s easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory due to its sheer size – it’s the third-largest energy company in the U.S. – not to mention its enormous potential for profits. In The Motley Fool’s premium research report on Kinder Morgan, we break down the company’s growing opportunity – as well as the risks to watch out for – in order to uncover whether it’s a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor’s resource.

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Source: FULL ARTICLE at DailyFinance

2 Miners Dwarf Several States in Coal Production

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Coal from the Appalachian region has really fallen out of favor in the United States. So much so that Wyoming mines accounted for nine out of the 10 top producing mines in 2012. This should come as no surprise to coal investors since the Powder River Basin is the most economically sensible coal to produce right now as compared to natural gas. CONSOL Energy , which produces coal in Appalachia, is a perfect example of what producers in that region have been forced to do — it has dedicated the bulk of its 2013 capital expenditures to natural gas production.

The two top mines are operated by Peabody Energy and Arch Coal , and together these mines accounted for 20% of total U.S. production. Why is this so important for these coal miners as they struggle to compete with natural gas? Tune in below. 

The coal industry in the United States has been in a state of flux since the arrival of a cheaper alternative for energy production: natural gas. Exports are becoming a much bigger part of the domestic coal landscape, and Peabody Energy has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don’t miss out on this invaluable resource — simply click here now to claim your copy today.

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Source: FULL ARTICLE at DailyFinance

Big Oil Wants to Develop Its Own Maritime Fleet

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Due to the costs of gathering natural gas from the ocean‘s depths and transporting it to processing centers on land, big oil companies are starting to develop facilities that will perform these actions out at sea. Royal Dutch Shell was the first to announce that it had begun construction back in October 2012, but its larger rival ExxonMobil is not to be outdone.

Partnering with Exxon will be BHP Billiton . Together, these two companies hope to begin processing millions of tons of liquids, LNG, and condensate by 2020 at the earliest. With that long time horizon, both companies are hoping that such a large investment will still be worth it.

Could this be bad news for pipeline companies with an offshore presence?
The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market and resulting in record low prices for natural gas. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To help investors decide whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool’s brand new premium research report on the company.

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Source: FULL ARTICLE at DailyFinance