Tag Archives: Joel South

1 Energy Stock Coming Out the Big Winner in Q1

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

In the following video, Motley Fool energy analysts Joel South and Taylor Muckerman discuss Core Laboratories‘ excellent performance so far this year. The company’s strong Q4 earnings led them to kick off Q1 this year with a powerful start, and Core Labs is also showing both record profits and record free cash flow at the moment. Joel tells us, however, why this isn’t a value play at its current valuation and gives us the story behind Core Labs‘ recent success.

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 1 Energy Stock Coming Out the Big Winner in Q1 originally appeared on Fool.com.


Joel South and Taylor Muckerman have no position in any stocks mentioned, and neither does The Motley Fool. 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

Refiners Keep Rewarding Shareholders

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

Between the huge increase in heavy oil coming in from Canada and the new wave of shale oil production in the U.S., American oil refiners have access to a huge amount of cheap feedstock, which means great margins and powerhouse performances for investors. So many refiners had an incredible year in 2012, and in this video, Motley Fool energy analysts Joel South and Taylor Muckerman tell us that the ride isn’t over. Joel gives us some of the top performers over the past year in this space and discusses whether investors can expect these ideal conditions to continue.

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 Refiners Keep Rewarding Shareholders originally appeared on Fool.com.


Joel South and Taylor Muckerman have no position in any stocks mentioned, and neither does The Motley Fool. 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

Strong Quarter for Natural Gas

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

Late-season cold weather has helped to reduce the levels of natural gas in storage, and this combined with receding production has brought natural gas prices up by 16% in the past month, which is a huge win for natural gas producers and their investors. In this video, Motley Fool energy analysts Joel South and Taylor Muckerman give investors the names of a few low-cost natural gas producers that are poised to lock in some of the best returns in the industry from these climbing natural 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 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 Strong Quarter for Natural Gas originally appeared on Fool.com.


Joel South and Taylor Muckerman have no position in any stocks mentioned. The Motley Fool recommends Range Resources. It recommends and owns shares of Ultra Petroleum and has the following options: long Jan. 2014 $30 calls, long Jan. 2014 $40 calls, and long Jan. 2014 $50 calls. 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

Exxon's Pipeline Spill Could Cost Investors

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

ExxonMobil‘s recent oil spill from its Pegasus crude pipeline in Mayflower, Ark., could cost investors in a number of industries. The White House Council on Environmental Quality is expected to release new standards this spring that could make LNG exportations and pipeline project approval more difficult, and with an estimated 12,000 barrels of oil flooding neighborhoods in Arkansas, the federal government will take a closer look at possible environmental regulations.

TransCanda‘s Keystone XL pipeline will be the first big project that could feel the ramifications from this recent spill. However, investors in Canadian oil-sands producers, such as Suncor Energy , could also be affected as the discount in Western Canadian Select crude benchmark could widen to WTI prices. With $38 billion in North American pipeline projects expected this year, a more stringent approval process will add significant headwinds to the energy midstream space.

For more details, check out the following video.

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 Exxon’s Pipeline Spill Could Cost Investors 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

What Did Chesapeake Tell Investors Today?

By Taylor Muckerman and Joel South, The Motley Fool

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April 1 had been earmarked on every Chesapeake Energy investor’s calendar as the day that co-founder and CEO Aubrey McClendon would be stepping down. That day is finally here, and a replacement is nowhere to be found.

Instead, the company has set up a three-member “Office of Chairman” team to continue running the company while moving forward with the ongoing search. This team consists of the current CFO, COO, and non-executive chairman. The news about the CEO-by-committee setup wasn’t the only assurance that the company offered to sate investors.

Capital spending will also be a focal point this year, as the company fully expects to stay within its stated $6 billion plans. This is critical because cash flow from operations simply hasn’t been able to keep pace with spending over the last several years. Find out more in the video below with Motley Fool analysts Joel South and Taylor Muckerman.

Need a closer look at the company Aubrey McClendon is leaving behind?
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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Source: FULL ARTICLE at DailyFinance

Do You Fear Inflation? Invest Here!

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

The Federal Reserve has been loose with its policies and has established the current zero-interest rate policy that could extend for the next several years. In this environment, investors have been clamoring for dividend investments to make up for their lack of investment income. 

All the while, inflation has been kept well below historical norms. Why not reap the benefits of high yields while hedging against inflation, should it revert to the mean? Some of the best bets are high-dividend energy companies that are globally diversified oil and natural gas producers such as Royal Dutch Shell . Check out the following video for some of Motley Fool analyst Taylor Muckerman‘s top picks.

The gold standard for a weakened dollar
Goldcorp is one of the leading players in the gold-mining market. For the past several years, investors have been the beneficiaries of several successful acquisitions and strong organic growth. Goldcorp’s low-cost production of one of the most sought-after metals in the world continues to make this stock an attractive choice for long-term investors. To learn everything you need to know about this mining specialist, you’re invited to check out The Motley Fool‘s premium research report on the company, which comes with a full year of ongoing updates and analysis to keep you informed as key news breaks. Click here now to claim your copy today.

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Source: FULL ARTICLE at DailyFinance

1 Discounted Natural Gas Company to Own

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

After hitting 10-year lows last summer, natural gas prices are slowly starting to rise. However, a number of natural gas-heavy E&Ps are still trading significantly below their net asset value. While gas prices are far from their 2007 levels, low-cost producers are able to eke out profits with gas prices at or above $4 per thousand cubic feet.

However, some of the best deals are found in gas companies significantly increasing liquids production. In this video, energy analyst Joel South points out two deeply discounted companies and determines which one is the best investment for your portfolio.

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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Source: FULL ARTICLE at DailyFinance

1 Key Area to Invest in for Years of Success

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Big name oil companies are spending at record levels to continue building natural gas and oil reserves. A significant portion of this spending is targeted at the offshore markets. While drillers have been obvious beneficiaries, the subsea market could produce the top earners. 

What are we looking at in-house?
Two Motley Fool favorites stand a legitimate chance at doubling their business over the next five years. FMC Technologies has been signing contracts right and left in 2013, and Oceaneering International specializes in the niche business of remotely operated vehicles capable of withstanding the harsh environments far below sea level.

While competition is building, FMC Technologies should be able to maintain its market-leading position. It reports its results for the first quarter of 2013 on April 24th. If results are in line with, or beat, high expectations, the stock might not be this cheap for a long time. 

Want exposure to the equipment that rides the waves?
National Oilwell Varco is perhaps the safest investment in the energy sector due to its industry-dominating market share. This company is poised to profit in a big way; its customers are both increasing the number of new drilling rigs and updating aging fleets of offshore rigs. To help determine if it could be a good fit for your portfolio, you’re invited to check out The Motley Fool’s premium research report featuring in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor’s resource, simply click here now to claim your copy.

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Source: FULL ARTICLE at DailyFinance

Battle of the Oil Giants

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

When it comes to looking for oil exposure in your portfolio, many investors new to the energy space immediately turn to the biggest names, such as ExxonMobil and Chevron , to make a safe, stable foray into the energy sector. In the following video, Motley Fool energy analyst Joel South breaks down the numbers and tells investors which of these two giants has performed the best historically and which might be the better play today.

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 Battle of the Oil Giants originally appeared on Fool.com.


Joel South and Taylor Muckerman have no position in any stocks mentioned. The Motley Fool recommends Chevron. 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

Which Miner Has Attracted Hedge Fund Investors?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Big news about acquisitions drew the investing world’s attention to Freeport-McMoRan as the fourth quarter of last year came to a close. In one fell swoop, Freeport announced nearly $20 billion of activity when it decided to purchase natural gas and oil producers Plains Exploration & Production and McMoRan Exploration 

This added diversity is expected to supplement Freeport’s portfolio by the second quarter of this year. Changing from a company deriving 100% of its revenue from mining, it will now operate with a split between mining (74%) and its newly purchased oil and natural gas business (26%). For other reasons why Freeport is a top pick, tune into the video below with Motley Fool analysts Joel South and Taylor Muckerman.

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. FCX has a profitable copper business, and 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

Hedge Funds Like This Energy Company

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Investors that might be interested in the purchasing habits of the so-called professionals can glean some insight by examining 13-F filings. Now, while 13-Fs typically are released a bit later than the activities they record, they can offer a nice starting point for research.

During the fourth quarter of 2012, it appears that energy companies were not the belles of the ball. Anadarko Petroleum was really the only widely purchased energy company, almost comparable to the popular companies in the technology and banking sectors. In the following video, Motley Fool analyst Taylor Muckerman breaks down why he thinks this company was the chosen one from the energy space.

But which one has Warren Buffett been purchasing lately?
National Oilwell Varco is perhaps the safest investment in the energy sector due to its industry-dominating market share. This company is poised to profit in a big way; its customers are both increasing the number of new drilling rigs and updating aging fleets of offshore rigs. To help determine if it could be a good fit for your portfolio, you’re invited to check out The Motley Fool‘s premium research report featuring in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor’s resource, simply click here now to claim your copy.

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Source: FULL ARTICLE at DailyFinance

British Demand Adds to the Natural Gas Export Debate

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

As the debate rages on regarding whether or not the United States should export natural gas, Cheniere Energy continues to move forward with its deal-making for LNG exports out of its Sabine Pass facility. Being the first mover in this space has afforded the company a tremendous advantage now that the chemical industry is asking for tighter regulation of the exportation process. 

The company has had its first four trains booked for some time now, and the fifth train, which has yet to be approved, is nearing its capacity. The newest 20-year contract is for $5.5 billion with the United Kingdom-based utility Centrica. If this train is allowed to export LNG, it would bring the contracted total to 12.75 million tons per year to be exported between all trains. Look for Cheniere to continue touching new 52-week highs if positive news like this keeps flowing in. 

One company that would be more than happy to see LNG exports ramp up
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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Source: FULL ARTICLE at DailyFinance

Chevron and Shell Are Sharks in the Gulf of Mexico

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

After the BP disaster in the Gulf of Mexico, the White House put a moratorium on drilling in the area until it could address the problem more fully. Since that time, growth has slowly accelerated and has now surpassed those early 2010 levels. This area could certainly take the lead from the other members of the “Golden Triangle” triumvirate — Brazil and West Africa.

Is this the next catalyst?
With recent news that the Department of the Interior will auction off some 38 million acres of federal waters, even higher expectations could be reached than what had already been envisioned. Major oil companies including Chevron , ExxonMobil, and Royal Dutch Shell are planning to spend big money here. But without the guarantee of returns on these investments, where can investors turn their attention to gain from these capital expenditures? Tune in to the following video, as Motley Fool analysts Taylor Muckerman and Joel South share their insight.

Could Seadrill begin to expand its presence in the Gulf?
If you’re an energy investor looking for exciting opportunities, you should look into one of the more exciting plays in the space: Seadrill. To learn more about the strengths and weaknesses of this company, as well as what to expect from Seadrill going forward, be sure to check out this brand-new premium report put together by one of our top Stock Advisor analysts. Click here to get started.

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Source: FULL ARTICLE at DailyFinance

Will "King Coal" Benefit From Rising Natural Gas Prices?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

There’s been nowhere for coal companies to hide ever since the price of natural gas fell off a cliff as 2012 approached. Coal companies have been waiting for an inflection point and are hoping it’s finally arrived, as natural gas prices close in on $4 per million BTU.

At this price, coal in both the Powder River and Illinois basins should now be economically viable for utilities to use. Peabody Energy is a leading producer in both regions, so any continuation in natural gas’ price momentum will add to coal’s resurgent competitiveness. 

Why focus solely on the North American market? That’s a question Peabody asked itself a while back, and it’s clear they couldn’t come up with a reason. Record exports from the U.S. in 2012 helped buoy the company’s financial performance, and if it can combine a growing Asian market with increased U.S. demand, investors could finally start to be rewarded.

The Fool’s Taylor Muckerman has more in the following video.

Exports and low-cost domestic production will determine Peabody’s fate
The coal industry in the United States has been in a state of flux since the drop in natural gas prices. 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 written a special new premium report detailing 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.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Taylor Muckerman and Joel South“, contentId: “cms.26132”, contentTickers: “NYSE:BTU, NYSE:KMP, NASDAQ:JRCC”, …read more
Source: FULL ARTICLE at DailyFinance

Warren Buffett Is Not the Only Winner Here

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

U.S. Gulf Coast refiners, in addition to Canadian oil sands producers, stand to benefit if the southern portion of TransCanada‘s Keystone XL pipeline gains approval. While the debate continues, railway companies continue to profit.

In 2009 Berkshire Hathaway  purchased the remaining outstanding shares of Burlington Northern Sante Fe for $26 billion (total purchase price of $44 billion), adding one of the United States‘ largest railroad companies to its portfolio. BNSF continues to take advantage of crude pipeline bottlenecks by moving oil from wellheads to refineries, and this trend will continue with the company expecting a 40% boost in crude shipments in 2013. 

The growth has been phenomenal with crude-by-rail shipments soaring over 250% in 2012, moving close to 170 million barrels of oil. Berkshire’s BNSF is not the only company in on the action. Check out the video below for other players profiting from the sharp rise in rail transportation.  

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 Warren Buffett Is Not the Only Winner Here 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 Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. 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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Will Natural Gas Production Rise Along With Prices?

By Taylor Muckerman and Joel South, The Motley Fool

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March has been a tremendous month for natural gas prices. Up almost 30% since the beginning of the month, it’s time to start wondering if producers will begin to turn the rigs back on that were idled during 2012. Natural gas rig counts in the United States have decreased by 232 from a year ago according to the Baker Hughes  rig count, which the company produced on March 15. 

Are expectations being reached?
Earlier this week Schlumberger guided for a weaker than expected first quarter based on a slower uptick in rig utilization than it had predicted. That dragged the energy services sector down for a couple of days, but Motley Fool analyst Taylor Muckerman feels strongly about Halliburton‘s fracking expertise and exposure to the North American market. If natural gas’ selling price continues to rise, then this could be the lowest you see Halliburton trading for quite some time.

What else does Halliburton have going for it?
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

Natural Gas Prices Surging: Invest Here?

By Joel South and Taylor Muckerman, The Motley Fool

Filed under:

Natural gas prices are trading up around 30% this month, with April futures nipping at the $4-per-million-BTU mark not seen since the end of 2011. The late winter weather helped lower the weekly storage level by 18.5% year over year, but should we expect prices to move back toward $3 per million BTU once seasonal spring weather sets in?

Not likely. With record low gas prices in 2012, natural gas producers started withdrawing capital away from drilling natural gas wells and shutting down or overhauling rigs to tackle oil liquids plays. Total natural gas land rigs have been diminishing sharply since October, with March’s total gas rig count down 34.9% year over year, according to Baker Hughes.

With both small and large gas players moving capital away from dry gas wells for the past year and a half, gas prices should increase for two reasons. The first is entry time to recommit to drilling gas wells. It takes an incredible amount time to deal with labor, rig, and lease holding contracts. According to Ultra Petroleum Chairman and CEO Mike Watford, once capital is removed, gas prices become sticky, since companies are hesitant to recommit money and secure new contracts and get new drilling permits until natural gas prices are high enough to support re-entry for the long term.

Second, outside the view of low-cost natural gas producers, most E&P companies are focusing production on oil plays, and with crude prices ensuring healthy profits, no incentive remains for new entrants into the U.S. natural gas market. Natural gas insiders and analysts believe prices will stabilize between $4 and $5 dollars in North America for the long term, which will supply healthy margins for low-cost natural gas producers.

In the following video, Motley Fool energy analyst Joel South speaks with Taylor Muckerman about a few of his favorite low-cost natural gas players in this space.

With the swelling of the global middle class, energy consumption will skyrocket over the next few decades, so long-term investors know that you want exposure to this space now. We’ve picked one incredible natural gas company that presents a rare “double-play” investment opportunity today. We’re calling it “The One Energy Stock You Must Own Before 2014,” and you can uncover it today, totally free, in our premium research report. Click here to read more.

The article Natural Gas Prices Surging: Invest Here? originally appeared on Fool.com.


Joel South and Taylor Muckerman have no position in any stocks mentioned. The Motley Fool recommends Range Resources and Ultra Petroleum, owns shares of 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 …read more
Source: FULL ARTICLE at DailyFinance

Will These Companies Be Crushed by Debt?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Spending hundreds of millions to billions of dollars simply to maintain growth is a key characteristic of much of the energy and materials space. Due to shareholder expectations, companies that aren’t generating cash from operations typically turn to debt or equity sales. Each of the four companies discussed in the video below has driven up its debt levels to heights that worry Motley Fool analyst Taylor Muckerman.

Two companies on the wrong side of the fence
Of the four companies, two materials companies worry him the most. AK Steel is trying to survive in the maligned United States steel industry, and Berry Plastics is finding it tough to overcome interest expenses stemming from acquisition-related debt. Both of these companies need to figure out a way to right their ship, and quickly.

Will a natural gas rebound bail these producers out?
Two natural gas prices also “passed” Taylor’s screen, and he believes they have a chance to rebound along with natural gas prices. Writedowns in 2012 forced Ultra Petroleum and Quicksilver Resources into precarious situations, but with prices climbing, these companies should be fine.

High debt levels have led Chesapeake Energy to sell assets. Could the companies above follow suit? 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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Source: FULL ARTICLE at DailyFinance

Should This Energy Company Be So Cheap?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Taking a look at Apache‘s footprint in the energy production space, its tough to determine exactly why the company is down 43% since April 29, 2011. One reason that the investment community has focused on for this downward spiral is its exposure to Egypt. Being the largest producer in this region during the last couple of years, which included the Arab Spring and the overturn of the Egyptian government, has taken its toll. Even though temperatures have cooled there, uncertainty still seems to be reigning supreme with regards to Apache’s share performance.

How does Apache stack up against its peers?
Looking at the company’s return on equity average for the last three years compared to peers also leads me to believe that it is performing well enough to warrant the discount its trading at to be erased. Apache is currently trading at a 15.4 times price-to-earnings ratio, below the likes of Devon Energy , EOG Resources , and Anadarko Petroleum , all while leading this group with its three-year average ROE of 13%. I believe this imbalance is likely to correct as the company’s assets begin  performing up to expectations, which could mean great things for Apache shareholders.

Hear the details on Motley Fool analyst Taylor Muckerman‘s position on Apache in the following video:

Apache wasn’t the only energy company to be burned by recent asset grabs
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.

var FoolAnalyticsData = FoolAnalyticsData || []; FoolAnalyticsData.push({ eventType: “TickerReportPitch”, contentByline: “Taylor Muckerman and Joel South“, contentId: “cms.24887”, …read more
Source: FULL ARTICLE at DailyFinance

Why Is International Exposure So Valuable?

By Taylor Muckerman and Joel South, The Motley Fool

Filed under:

Energy services companies have been no strangers to pressure over the last several years. Drilling continues to dive deeper and deeper underground and below the water’s surface. However, this intense pressure isn’t what has been holding back shares of these companies lately. What has been holding them back is the pricing pressure in the North American land natural gas market.

Where to turn in times like these?
Due to a slowdown in natural gas drilling, coupled with an abundance of horsepower, services companies like Halliburton  and Schlumberger  have seen margins crimped in this market. Luckily for Schlumberger, over 70% of its revenues come from abroad. The last couple of years have certainly impressed the importance of the international market on Halliburton, and it is starting to take measures that should pay off handily over the next decade.

This fracking specialist looks to leverage its homegrown knowledge overseas
Domestic oil and gas service companies have taken a hit 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