Tag Archives: Permian Basin

Business, Finance, Occupation & Industry

Is SandRidge Wrong About the Mississippian Lime?

March 15, 2013 Bartle Doo Leave a comment

It’s been said that one man’s trash is another man’s treasure. In the case of the oil and gas exploration business, one company’s core operations is another company’s non-core asset that’s ripe to be sold to the highest bidder. That’s why investors shouldn’t initially get so worked up about asset sales because they’re never as cut and dry as they would appear.

The values placed on an asset can vary for any number of reasons, and a company’s reason to sell could be due more to distress than unlocking asset value. That’s part of the intrigue with the Mississippian Lime formation in Kansas. To one company, it’s a treasure, so it is selling everything it has to shine up that treasure for the world to see. Others see it as an outlier; it has potential but it’s better to get what you can before it loses all of its luster.

As an investor, it’s tough to know who to believe. You’re talking about some of the smartest people in the energy industry with two very different opinions on the same energy play. Let’s take a close look at the play and see what all the fuss is about.

Source: SandRidge Investor Presentation

To SandRidge Energy the Mississippian Lime is not just a treasure, but a gold mine. The company is basically building its business around this one asset. That’s why it seized the opportunity to sell its high-demand and attractively priced Permian Basin operations for $2.6 billion. The company’s plan is to invest all that cash to fund the development of its 1.85 million net acres in the Mississippian for the next two years.

This would appear to be in stark contrast to peers Chesapeake Energy and Devon Energy which have both sold partial stakes in their Mississippian Lime acres in the past year. Devon has about 600,000 net acres in the play, but it sold a 33% joint venture interest to Sinopec in a package with four other emerging plays for $2.5 billion last year. The deal covered 1.5 million net acres and a rough estimate puts the value of these acres at slightly less than $1,700 per acre. However, Devon’s sale was more about de-risking its emerging plays than anything against the Mississippian. In fact, the company currently has 15 rigs in the play and could increase that to 20 by the end of the year. It plans to drill about 400 wells and its early results are in line with expectations.

Chesapeake’s recent Mississippian asset sale is of a bit more concern to investors for a number of reasons. First, it appears to be offered at a fire-sale price given that the company had boasted much higher values for the assets. In fact, at a price per acre of less than $2,400, it’s less than a third of what the company claimed the land was worth at an investor presentation last …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Abraxas Petroleum Earnings: An Early Look

March 13, 2013 Bartle Doo Leave a comment

By Dan Caplinger, The Motley Fool

Filed under: Investing

Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Abraxas Petroleum is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Abraxas is a small, independent oil and gas company, with assets scattered across the middle of North America in places including Alberta, the Permian Basin, and the onshore Gulf Coast. Let’s take an early look at what’s been happening with Abraxas Petroleum over the past quarter and what we’re likely to see in its quarterly report on Friday.

Stats on Abraxas Petroleum

Analyst EPS Estimate	($0.01)
Year-Ago EPS	($0.12)
Revenue Estimate	$18.24 million
Change From Year-Ago Revenue	10.9%
Earnings Beats in Past 4 Quarters	1

Source: Yahoo! Finance.

Will Abraxas Petroleum generate some energy this quarter?
Analysts have gotten less optimistic about Abraxas Petroleum‘s earnings prospects in recent months. They’ve worsened their original break-even estimate for the just-ended quarter by a penny per share, and they’ve cut $0.04 per share off their full-year 2013 views. But since early December, the stock has done well, rising 16%.

For years, Abraxas struggled to break into the big leagues among small independent oil and gas companies. With its assets scattered across North America, it was hard for the company to focus on any one area, despite having promising locations like the Eagle Ford among its holdings.

Last year, though, Abraxas decided to concentrate on the Bakken, spending the bulk of its capital expenditure budget in the area and the nearby Niobrara and seeking to sell off most of its Eagle Ford and Alberta assets. In doing so, Abraxas hopes to follow the same game plan that brought Kodiak Oil & Gas to profitability, as Kodiak has greatly increased its production from the greater Williston Basin area to send revenue soaring. Northern Oil & Gas achieved similarly attractive results from its strategy to concentrate in the Bakken.

In the past quarter, Abraxas has had some positive news. Back in November, it doubled its production guidance for 2013, with an implied growth rate of 21%-28%. More recently, Abraxas came out with its operational update last month, showing good growth in oil and gas-liquids reserves during 2012 at the expense of natural-gas capacity.

In its quarterly report, watch for Abraxas to comment on its ongoing transition toward more lucrative oil and liquids, as well as how its chosen wells in the Bakken and its remaining Eagle Ford assets are performing. If all goes well, Abraxas could see some …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Approach Resources Inc. To Participate In Upcoming Conferences

March 13, 2013 Bartle Doo Leave a comment

By Business Wirevia The Motley Fool

Filed under: Investing

Approach Resources Inc. To Participate In Upcoming Conferences

FORT WORTH, Texas–(BUSINESS WIRE)– Approach Resources Inc. today announced that the Company plans to participate in the Morgan Stanley Houston Energy Summit on Thursday, March 14, 2013, at 10:00 AM CT. In addition, the Company plans to participate in Howard Weil‘s 41^st Annual Energy Conference on Tuesday, March 19, 2013, at 8:25 AM CT. The Company will refer to the March 2013 Investor Presentation at both conferences. The March 2013 Investor Presentation is currently available on the Investor Relations section of the Company’s website, www.approachresources.com. Neither conference will offer a live webcast.

Approach Resources Inc. is an independent oil and gas company with core operations, production and reserves located in the Permian Basin in West Texas. The Company targets multiple oil and liquids-rich formations in the Permian Basin, where the Company operates approximately 148,000 net acres. The Company’s estimated proved reserves as of December 31, 2012, total 95.5 million Boe, comprised of 39% oil, 30% NGLs and 31% natural gas. For more information about the Company, please visit www.approachresources.com. Please note that the Company routinely posts important information about the Company under the Investor Relations section of its website.

Approach Resources Inc.
Megan P. Hays, 817-989-9000
Manager, Investor Relations & Corporate Communications

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS:

The article Approach Resources Inc. To Participate In Upcoming Conferences originally appeared on Fool.com.

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Source: FULL ARTICLE at DailyFinance

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Can Canada's Oil Sands Overcome This Huge Hurdle?

March 12, 2013 Bartle Doo Leave a comment

By Arjun Sreekumar, The Motley Fool

Filed under: Investing

While it’s easy to get caught up in the euphoria surrounding America’s shale oil and gas revolution, let’s not forget that our neighbors to the north have also been blessed with massive reserves of unconventional oil and gas.

Though Canada might be better known for producing another sticky, brownish commodity – maple syrup – its province of Alberta lays claim to one of the largest reserves of recoverable oil sands anywhere in the world.

In addition to being plentiful, crude oil derived from Canada’s oil sands is as cheap as the dirt it’s separated from. It’s also denser and has higher sulfur content than crude produced in U.S. shale oil plays, which makes it attractive as a feedstock for many U.S. Gulf Coast oil refineries.

But Texas is a long way from Alberta and pipelines are few and far between, leaving energy producers with few options. While many refiners are making do with alternative forms of transportation, there should be pipeline relief on the way.

Limited transport options for Canadian crude
With new production of up to 250,000 barrels per day expected from Western Canada this year, new pipeline capacity is in high demand. But unfortunately, existing pipeline infrastructure transporting Western Canadian crude to American markets is bursting at the seams. As a result, Western Canadian crude is trading at a massive discount to the main American crude oil benchmark, West Texas Intermediate.

While transport via rail and barge is serving as a temporary solution to deliver Canadian crude to Gulf Coast refiners, pipelines are still the most efficient and most economical long-term solution. Currently, U.S. companies use the Keystone XL pipeline, operated by TransCanada , to transport crude from Canada’s oil sands to a limited number of destinations in the U.S.

For instance, ConocoPhillips uses Keystone to move oil sands production to its Wood River refinery in Roxana, Ill. – about 15 miles northeast of St. Louis. The first delivery of crude to Wood River started in July 2010 and provides the refinery with greater flexibility in processing heavier grades of crude.

However, even with the expansion of the Seaway pipeline, operated jointly by Enbridge and Enterprise Products Partners , the volumes of crude from Canadian oil sands being shipped to the U.S. are relatively insignificant. As it stands, Canadian crude is finding its way to coastal Texas refineries at a rate of some 100,000 barrels per day – a relative trickle compared to the quantities of oil being shipped from the Eagle Ford and the Permian Basin, two prolific oil plays in Texas.

But in the years ahead, two projects are aiming to change all that. Let’s take a look at both.

Proposed new pipeline to St. James
On Feb. 15, Enbridge and Energy Transfer Partners announced that they have agreed to jointly develop a project that will allow pipeline access to eastern Gulf Coast refiners from a hub located in Patoka, Ill.

The Patoka hub …read more
Source: FULL ARTICLE at DailyFinance

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LRR Energy, L.P. Announces Availability of 2012 Tax Packages

March 11, 2013 Bartle Doo Leave a comment

By Business Wirevia The Motley Fool

Filed under: Investing

LRR Energy, L.P. Announces Availability of 2012 Tax Packages

HOUSTON–(BUSINESS WIRE)– LRR Energy, L.P. (NYS: LRE) (“LRR Energy” or the “Partnership”) announced today unitholders may now access their 2012 tax packages, including Schedule K-1, online via the Partnership’s website at www.lrrenergy.com (select Investor Relations; then select K-1 Tax Information). The Partnership will begin the process of mailing the 2012 tax packages to unitholders today.

Unitholders may contact LRR Energy’s K-1 Partner DataLink call center toll free at 1-855-240-7560 between 8:00 a.m. and 5:00 p.m. CDT Monday through Friday or via email at LRRK1Help@deloitte.com.

About LRR Energy, L.P.

LRR Energy is a Delaware limited partnership formed in April 2011 by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America. LRR Energy’s properties are located in the Permian Basin region in West Texas and southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas and the Gulf Coast region in Texas.

LRR Energy, L.P.
Investor Contacts:
Todd Hassen, (713) 292-9534
Director of Finance
thassen@lrrenergy.com
or
Jaime Casas, (713) 345-2126
Chief Financial Officer
jcasas@lrrenergy.com

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS:

The article LRR Energy, L.P. Announces Availability of 2012 Tax Packages originally appeared on Fool.com.

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Source: FULL ARTICLE at DailyFinance

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The Contrarian Energy MLP

March 9, 2013 Bartle Doo Leave a comment

By Tyler Crowe, The Motley Fool

Filed under: Investing

With natural gas prices falling, we’ve seen several companies try to move their portfolios more toward liquids. Vanguard Natural Resources is going in the opposite direction. What does this company see that the others don’t? Let’s look at this company bucking the industry trend and see what it means for investors.

You say goodbye (to gas), and I say hello
The best way to understand the contrarian approach of Vanguard is to look at Chesapeake Energy . Before the natural gas boom, Chesapeake had gobbled up millions of acres in these emerging shale plays. Then, when natural gas prices sank in 2012, the value of these assets tumbled and the company struggled to service its debt load. So Cheaspeake has gone to great lengths to change its drilling strategy toward a more liquids approach, which is starting to pay off. Chesapeake has increased its liquids produciton by more than 41,000 barrels of oil equivalent in 2012.

Then you have Vanguard. Before 2011, the company was highly leveraged to oil production in mature, proven fields and was producing only 35% natural gas. With so many companies looking to offload their gas assets based on current prices, Vanguard has been a buyer. In 2012, it purchased more than $760 million in assets from both Antero Resources and Bill Barrett in the Arkoma, Piceance, Wind, and Powder River basins. The combination of these two purchases increases Vanguard’s natural gas production to about 65% of total production in 2013.

Why does this make sense? Simply put, the purchase price. These assets were purchased when the market value for natural gas was at its near lows, so the price to produce from them is much lower. Lease operating expenses for Vanguard dropped from $17 per Boe in the fourth quarter 2011 to just over $9 per Boe at the end of 2012. This means the company generates a return at lower natural gas prices.

Echoes of another MLP?
Since the end of the previous quarter, Vanguard has come to an agreement with Range Resources to purchase $275 million of producing assets in the Permian Basin. This would make for just over a billion in purchases over the past 12 months. According to the company’s most recent conference call, that pace may not slow either. Vanguard’s management hinted that it expects to close on as many deals as in 2012, potentially even more.

Its pace of acquisitions is reminiscent of another exploration and production MLP: Linn Energy . With such a similar appetite for acquisitions, it makes it a little less surprising that Vanguard has stated that it’s considering a move similar to Linn’s spin-off of LinnCo . This move not only allowed Linn to generate a large chunk of capital to fund some of its investments, but it also gave the company a vehicle for institutional investors to invest in the company. As of right now, Vanguard’s management believes that it can fund most of its acquisitions through more conventional methods. In the event that it plans to start going after …read more
Source: FULL ARTICLE at DailyFinance

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Why This Refining Stock Could See Further Gains

March 9, 2013 Bartle Doo Leave a comment

By Arjun Sreekumar, The Motley Fool

Filed under: Investing

The U.S. Gulf Coast is about to be inundated with oil. But not foreign oil, as was often the case in the past. I’m talking about light, sweet crude oil produced right here in America. The reason?

A number of pipeline projects — some already in service and others expected to come on line this year — will provide a substantial boost to takeaway capacity from the Eagle Ford and the Permian Basin, both major oil plays located in Texas. When the crude oil deluge hits the Gulf Coast, analysts expect the regional benchmark price — Louisiana Light Sweet, or LLS — to fall substantially.

At the same time, the expansion of the Seaway pipeline and the start-up of the Keystone XL Gulf Coast extension project are expected to lead to a narrower spread between the main domestic oil benchmark — West Texas Intermediate, or WTI) — and the global crude oil benchmark, Brent.

These are both major changes with some major implications for different refiners. Let’s first look at the broad impacts on mid-continent and Gulf Coast refiners and then examine one refining stock that appears best positioned to capitalize on these trends.

Impact on mid-continent refiners
Over the past couple of years, mid-continent refiners with access to cheap WTI have enjoyed remarkable profits and soaring stock prices. As a whole, their net operating margins averaged $18.59 last year, significantly higher than margins in 2011.

For instance, HollyFrontier , which operates five refining facilities in the mid-continent, southwestern, and Rocky Mountain regions, benefited tremendously from its access to crude oil flowing from North Dakota’s Bakken shale and Texas’ Permian Basin. In the fourth quarter, the company’s overall refining margins jumped to $24 a barrel, up from $15.32 a barrel in the year-earlier period.

This favorable refining environment, along with an increase in production, contributed to the company’s record 2012 earnings. In the fourth quarter, HollyFrontier posted a profit of $391.6 million, or $1.92 a share, representing a whopping 75% increase over the year-earlier period.

Similarly, Western Refining , a company that struggled for years with heavy debt and poor refining margins, has also reaped the rewards stemming from its highly advantageous geographic position. The company’s 128,000-barrel-per-day refinery in El Paso, Texas, has capitalized on cheap crude flowing from the nearby Permian Basin, which has boosted overall margins and allowed the company to reduce its debt load and even raise its dividend.

Going forward, however, if the spread between WTI and Brent narrows significantly, it would lead to weaker refining margins for these companies. But for reasons I discussed in a separate article, I think there’s a good chance that this is unlikely and that the WTI-Brent spread will remain wide throughout the year.

Impact on Gulf Coast refiners
On the other hand, I’m more convinced that LLS prices will fall, which would be good news for Gulf Coast refiners. Analysts at Tudor Pickering, an integrated energy …read more
Source: FULL ARTICLE at DailyFinance

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A Look at SandRidge in 2013

March 9, 2013 Bartle Doo Leave a comment

By Joel South and Taylor Muckerman, The Motley Fool

Filed under: Investing

In the following video, Motley Fool energy analysts Joel South and Taylor Muckerman discuss what SandRidge is going to look like in 2013. The past year was a difficult for the company, as it struggled with activist investors attacking the company’s current management and board of directors, as well as a big sell-off of some of the company’s important assets in the Permian Basin. Joel tells us some positives for the company, such as its production growth and proven reserve replacement, and tells us where it’s headed in 2013, but he says long-term investors need to be focused on the company’s long-term prospects if the current management team stays intact after the the March 15 vote for amending the company bylaws, brought on by TPG-Axon.

The future is still unclear, but it’s vitally important for shareholders to focus on the long-term prospects of SandRidge. However, if you’re unsure about the future of this emerging oil and gas junior and are looking to find out more about its strengths and weaknesses, you should view this brand-new premium report detailing SandRidge’s game plan and what to expect from the company going forward. To get started, click here!

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Source: FULL ARTICLE at DailyFinance

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Is the U.S. Gulf Coast the New Cushing?

March 6, 2013 Bartle Doo Leave a comment

By Arjun Sreekumar, The Motley Fool

Filed under: Investing

As the Financial Times wrote last year, the crude oil trade is “in throes of an historic shift.” U.S. Gulf Coast refiners, which had relied on imports of light sweet crude oil from OPEC nations for years, have drastically reduced such imports, courtesy of rising domestic oil production.

A number of pipeline projects – some already in service and others expected to come on line this year – will provide Gulf Coast refiners with more oil than they ever dreamed of, flowing from major production centers like the Eagle Ford Shale and the Permian Basin.

According to some experts, this sharp increase in pipeline capacity to the Gulf could overwhelm local refineries, many of which are ill-equipped to process the lighter grades of crude oil flowing from the Eagle Ford and the Permian.

They argue that this coming deluge of crude to the Gulf will turn the region into the new Cushing, with major consequences for domestic crude oil prices. Let’s take a closer look.

Gulf Coast light oil imports fall
As the production of light oil has increased drastically over the past five years, led by increases in production from the Eagle Ford, the Bakken, and the Permian Basin, Gulf Coast refineries have become less reliant on foreign light crudes from places like Nigeria.

In fact, light crude imports processed in the U.S. Gulf Coast, or PADD 3, fell to less than 0.8 million barrels per day in the first half of 2012 from an average 1.2 million barrels per day in 2010. Tellingly, Phillips 66 recently announced that it expects to process 80% more domestic crude this year than it did in 2012.

And Marathon Petroleum also plans on using much greater quantities of North American crude, having recently boosted capacity at its Detroit refinery by 13%, to 120,000 barrels per day, in order to process Canadian heavy crude, which is even cheaper than Bakken and other grades of domestic crude. Both companies reported fourth-quarter earnings that blew Wall Street estimates out of the water, due largely to their increased access to heavily discounted inland crudes.

New pipeline capacity
Going forward, this trend is expected to continue as increasing pipeline capacity delivers vast quantities of light, sweet crude to Gulf Coast refiners. For instance, the expansion of the West Texas Gulf Pipeline, the Longhorn reversal project, and the first and second phases of the Sunoco Logistics Permian Express Pipeline – all slated for completion this year or the next – are expected to provide a substantial boost to takeaway capacity from the Permian Basin.

Similarly, new projects serving the Eagle Ford region are also expected to go on line this year, though several major ones have already been completed. For instance, one of the biggest pipelines serving this play, the Eagle Ford Enterprise pipeline, went into service last year.

The 147-mile pipeline runs from Lyssy, Texas, to Sealy, Texas, with a targeted capacity of 350,000 barrels per day. At Sealy, the pipeline connects …read more
Source: FULL ARTICLE at DailyFinance

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What Sets These MLPs Apart?

March 5, 2013 Bartle Doo Leave a comment

By Matt DiLallo, The Motley Fool

Filed under: Investing

While most investors these days are familiar with midstream MLPs and the generous distributions paid, far fewer are familiar with the growing number of upstream oil and gas MLPs. These companies pay the same large distributions but, instead of transporting oil and gas around the country, they’re taking it out of the ground.

Traditional exploration and production companies still do most of the heavy lifting. An upstream MLP simply buys up mature producing wells to squeeze out every last drop of oil and gas from them while distributing virtually all of the profits to investors. To help you better determine which upstream MLP you might want to buy, I’ve compiled the top reason why you’d want each company in your portfolio.

If you want to own the top dog
LINN Energy , and by association LinnCo , is by far and away the top dog in the upstream MLP segment. Though, as some might point out, LINN‘s not exactly an MLP as its true structure is that of an LLC. That aside, LINN is not only the largest company in the space that it created, but it is bigger than every one of its peers combined:

Source: LINN Energy investor presentation

LINN‘s not just big, but it’s also the most hedged operator in the energy industry. It has hedged its natural gas output until 2017 and its oil production is hedged through 2016. This enables LINN and LinnCo to lock in cash flow to investors, allowing both companies to pay an 8% distribution. Bottom line here, if you want to earn income from oil and gas production, LINN‘s could be the safest way to play.

If you want to be paid monthly
If you want a slightly larger yield hitting your brokerage account a bit more often Vanguard Natural Resources‘ monthly distribution might be for you. Like its upstream peers, Vanguard’s lifeblood is its ability to acquire mature, long-life production. Just last week the company announced a $275 million deal to acquire oil and gas properties in the Permian Basin from Range Resources . The deal added 136 billion cubic feet equivalent of liquid-rich reserves and has an estimated reserve life of nearly 20 years. It’s a great MLP-type asset that should help Vanguard to keep its growing distribution flowing to investors.

If you want a bit more growth
While both LINN Energy and Vanguard are known for slower growth and rising distributions, EV Energy Partners is more of a faster growth story. The company operates in less mature plays like the Barnett Shale and the Utica Shale. It also has a growing midstream business in the fast-growing Utica. Because of the focus on growth, its distribution has been relatively flat over the first few years.

With this growth comes a lot of upside. The company is currently marketing its 100,000 acres in the Utica which could be worth upwards of $10,000 an acre …read more
Source: FULL ARTICLE at DailyFinance

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Analysts Remain Very Bullish on MLPs (EVEP, MEMP, LGCY, BBEP, KYN, SRV, CS, BAC)

March 5, 2013 Bartle Doo Leave a comment

By 24/7 Wall St.

Filed under: Earnings, Oil & Gas Industry

The MLP research team at Credit Suisse Group (NYSE: CS) are still firm believers in their “catch-up” rally slogan. Master limited partnerships (MLPs) underperformed the S&P 500 in 2012 for the first time since 1999, with the Alerian MLP Index (AMZX) gaining 4.8% versus 16.1% for the broader market. MLPs have made up ground thus far in 2013 and look to continue their solid progress. In a report issued today, Credit Suisse upgraded one MLP, and we also highlight other favorite MLP stocks to buy.

EV Energy Partners L.P. (NASDAQ: EVEP) gets the nod today as it is raised to Outperform from Neutral. The Credit Suisse team also raises their price target to $57.50 from $52.50. This is way below a very aggressive Wall St. consensus price target of $68. The current yearly distribution is $3.07 per year, for a 5.90% yield. MLP distributions often include return of principal.

The MLP analysts at Bank of America Corp. (NYSE: BAC) also have joined the growing chorus of those suggesting MLP stocks for their customers seeking solid, dependable income streams. In a recent research piece, the analysts pointed out that MLPs are attractive from an income and growth perspective, providing investors yield and return potential. They were positive on higher yielding MLP names. Here are three of them.

Memorial Production Partners L.P. (NASDAQ: MEMP) is a Houston-based MLP that has one of the highest distributions currently available. Paying $2.03 per unit, that translates to a 11.00% yield. The Thomson/First Call consensus price target is $21.50.

Based in west Texas, with properties in the Permian Basin, Mid Continent and the Rocky Mountain regions, Legacy Reserves L.P. (NASDAQ: LGCY) is another top Bank of America MLP pick. With a solid 8.60% distribution to unit holders, it has a consensus price target of $31.

Breitburn Energy Partners L.P. (NASDAQ: BBEP) another high yielding name, is a West Coast-based MLP that pays unit holders $1.88 per year, which equals a 9.80% yield. The consensus price target is $22.

As we have pointed out before, the advantage to owning MLPs in an investor portfolio is that they often present one of the best total return opportunities. These three high-yielding individual names could offer just that. Investors seeking diversification in the space may also want to look at the Kayne Anderson MLP Investment Co. (NYSE: KYN) or the more aggressive Cushing MLP Total Return Fund (NYSE: SRV). Both are exchange traded funds (ETFs) that offer a basket of MLPs.

Filed under: 24/7 Wall St. Wire, Analyst Calls, Oil & Gas Tagged: BAC, BBEP, CS, EVEP, KYN, LGCY, MEMP, SRV

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Whiting Petroleum Corporation to Present at Raymond James Institutional Investors Conference

March 4, 2013 Bartle Doo Leave a comment

By Business Wirevia The Motley Fool

Filed under: Investing

Whiting Petroleum Corporation to Present at Raymond James Institutional Investors Conference

DENVER–(BUSINESS WIRE)– Whiting Petroleum Corporation today announced that it will present at the Raymond James 34^th Annual Institutional Investors Conference at the JW Marriott Grande Lakes Resort in Orlando, Florida on Monday, March 4, 2013 at 2:15 p.m. Eastern Standard Time. Mark R. Williams, Senior Vice President of Exploration and Development, and Eric K. Hagen, Vice President of Investor Relations, will discuss the Company’s strategy, development plans and outlook.

Whiting’s live presentation may be accessed on the Internet by logging onto the following link: http://wsw.com/webcast/rj82/wll/. The presentation materials and link to the webcast will also be available on Whiting’s website at www.whiting.com beginning March 4, 2013. You may access the presentation by clicking on the “Investor Relations” box on the menu and then on the link titled “Webcasts.”

About Whiting Petroleum Corporation

Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain, Permian Basin, Mid-Continent, Michigan and Gulf Coast regions of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and its Enhanced Oil Recovery fields in Oklahoma and Texas. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com.

Whiting Petroleum Corporation
John B. Kelso, 303-837-1661
Director of Investor Relations
john.kelso@whiting.com

KEYWORDS: United States North America Colorado

INDUSTRY KEYWORDS:

The article Whiting Petroleum Corporation to Present at Raymond James Institutional Investors Conference originally appeared on Fool.com.

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Source: FULL ARTICLE at DailyFinance

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Where LINN Energy Plans to Grow in 2013

March 2, 2013 Bartle Doo Leave a comment

By Matt DiLallo, The Motley Fool

Filed under: Investing

Oil and natural gas income giant LINN Energy is out with its 2013 capital spending plan. With more than 10,000 prospective drilling locations across its more than half dozen core operating areas, LINN has plenty of options with which to invest its capital. Let’s drill down and examine where LINN will be looking to boost its organic production growth in the year ahead.

A quick look back
Last year, LINN drilled 440 gross wells, with only four of them coming up dry. Those wells cost the company around $1 billion and boosted organic production by 15%. They also helped the company to produce a reserve replacement ratio of about 150% if you exclude price-based revisions and undeveloped reserves more than five years old. Those were great results for the company, which is expecting even more in the year ahead.

Drilling down into the 2013 capital budget
LINN plans to spend $1.1 billion on developing its oil and liquids-rich acreage. That money will allow LINN to drill or participate in about 500 wells over the next year. If everything goes according to plan, those wells should help LINN deliver another year of double-digit organic production growth.

The money will be split across its portfolio:

Source: LINN Energy Investor Presentation.

The Granite Wash is far and away the most important growth asset for LINN at the moment. The company is planning to spend more than a third of its capital to drill 80 wells into the play. The liquids-rich Hogshooter formation will continue to be the key target area for the company, as it generated excellent returns in 2012. Aside from that, the Permian Basin will see its share of capital in the coming year. While it is getting just 18% of the capital, LINN will use it to drill nearly 100 wells. Finally, the most interesting aspect of the drilling budget, in my opinion, is that LINN will be spending a great deal of capital to further develop its Jonah Field, which it acquired from BP last year, while spending minimally on the Hugoton assets, which it also bought from BP last year.

Jonah is more of a gas asset, as 73% of production is natural gas. It also has a higher decline rate of 14%. Hugoton’s production, on the other hand, has a lower decline at 7%, while it’s just 63% natural gas. The likely reason for the focus on Jonah is that the company will be participating with Encana on approximately 58 wells while only drilling 18 wells that LINN will operate. That makes more sense, especially when you consider that Encana is one of the few companies that’s still drilling for natural gas these days.

Harvesting future fruit
While the deal won’t close until the second half of the year, LINN’s purchase of Berry Petroleum in conjunction with its affiliate LinnCo will add even more organic production growth. Before the deal was announced, Berry …read more
Source: FULL ARTICLE at DailyFinance

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