Friday, July 25, 2014

Top 5 Energy Stocks To Invest In Right Now

JP Morgan Chase (JPM) announced on Monday that it has raised its litigation reserve by more than $1.5 billion in the third quarter.

According to the bank’s Chief Financial Officer Marianne Lake “This addition to reserves covers a number of different matters, some of which you��e been reading about.�There�� been a crescendo of activity in past weeks and we are reacting to that where it makes sense.” The “activity” Lake is referring to involves the potential legal claims and fees resulting of U.S. criminal investigations into the bank’s energy-trading and mortgage-backed securities business, as well several other issues.

5 Best Communications Equipment Stocks To Own For 2015: S&P 500/Barra Value(SU)

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. The company involves in the development of petroleum resource basins in Canada's Athabasca oil sands; acquisition, exploration, development, production, and marketing of crude oil and natural gas in Canada and internationally; transportation and refining of crude oil; and marketing of petroleum and petrochemical products primarily in Canada. Its Oil Sands segment produces bitumen recovered from oil sands through mining and in-situ technology, and upgrades it into refinery feedstock, diesel fuel, and by-products. This segment?s products include gasoline and distillates. The company?s Natural Gas segment acquires, explores, develops, and produces natural gas, natural gas liquids, oil, and by-products from reserves located primarily in western Canada, the Northwest Territories, Alaska, and the Arctic Islands. Its International and Offshore segment engages in the exploration and pro duction of oil and gas in offshore Newfoundland and Labrador, in the North Sea, and in Libya and Syria. The company?s Refining and Marketing segment refines crude oil at Suncor's refineries in Edmonton, Alberta; Montreal, Quebec; and Sarnia, Ontario in Canada, as well as in Commerce City, Colorado into a range of petroleum and petrochemical products for sale to retail, commercial, and industrial customers. It also transports crude oil through pipelines in eastern and western Canada, as well as through wholly-owned pipelines in Wyoming and Colorado; and produces specialty lubricants and waxes. In addition, this segment operates retail sites in Canada under the Petro-Canada brand; and in Colorado under Phillips 66 and Shell brands. Suncor Energy Inc. also engages in third-party energy trading activities. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1953 and is headquartered in Calgary , Canada.

Advisors' Opinion:
  • [By Achilles Research]

    Marathon Oil has been doing well for shareholders with the second best performance in the peer group. Anadarko Petroleum (APC), which I have rated as a Sell recently because the share price has run away from its fundamentals, has returned 186% over five years. Marathon Oil achieved 124%, Occidental Petroleum (OXY) 105%, Suncor Energy (SU) 63%, Apache Corp. (APA) 20% and Devon Energy (DVN) 14%. As a value investor with a contrarian tilt I naturally look at underperformers because they often offer the best risk/reward ratio and asymmetric pay-off profiles. I also just recently added to my positions in Devon Energy and Apache Corp. as they are just too cheap to ignore (thesis here and here). Apache was extraordinarily hit on overblown fears of potential oil production interruptions in Egypt and corresponding asset sales.

  • [By Jon C. Ogg]

    This is the week that we will get to see 13-D and 13-F filings from investment firms, and one notable one is always that of Berkshire Hathaway Inc. (NYSE: BRK-A). Investors love Warren Buffett and they often copy his moves. It is presumed that General Electric Co. (NYSE: GE) and DaVita Healthcare Partners Inc. (NYSE: DVA) will be larger holdings. There might even be more International Business machine Corp. (NYSE: IBM) and Suncor�Energy Inc. (NYSE: SU) as well.� Wells Fargo & Co. (NYSE: WFC) seems a shoe-in to be a larger equity stake yet again.

  • [By Arjun Sreekumar]

    For instance, Total SA (NYSE: TOT  ) recently threw in the towel on its Voyageur�Upgrader project, a 200,000-barrels-a-day facility that was designed to "upgrade" bitumen into crude oil. It sold its 49% stake in Voyageur to its joint venture partner, Suncor Energy (NYSE: SU  ) , for $500 million, arguing that the project was "no longer justified from a strategic and economic" standpoint. Not long after, Suncor also decided to abandon the project, for which it took a C$1.5 billion write-down.

  • [By Sarah Jones]

    Invensys Plc (ISYS) surged 15 percent after Schneider Electric SA (SU) offered about 3.3 billion pounds ($5 billion) for the U.K. company. Phoenix Group Holdings rose 10 percent after saying it is in talks to combine with a unit of Swiss Re. Spanish utilities slid on government plans to cut profit for renewable energy companies and the electric grid operator.

Top 5 Energy Stocks To Invest In Right Now: Ecopetrol S.A.(EC)

Ecopetrol S.A. operates as an integrated oil company in Colombia, Peru, Brazil, and the U.S. Gulf Coast. The company engages in the exploration, development, and production of crude oil and natural gas. As of December 31, 2010, its proved reserves of crude oil and natural gas consisted of 1,714.0 million barrels of oil equivalent. The company also transports crude oil, motor fuels, fuel oil, and other refined products, as well as mixture of diesel and palm oil. It owns transportation network consisting of 3,003 kilometers of crude oil pipeline directly, as well as an additional 2,178 kilometers of crude oil pipeline with its business partners; and 3,017 kilometers of multi-purpose pipelines for transportation of refined products from refinery to wholesale distribution points. As of the above date, Ecopetrol S.A. owned 58 stations with a nominal storage capacity of 19 million barrels of crude oil and 6 million barrels of refined products. In addition, the company owns and o perates refineries that produce a range of refined products, including gasoline, diesel, kerosene, jet fuel, aviation fuel, liquefied petroleum gas, sulfur, heavy fuel oils, motor fuels, and petrochemicals, including paraffin waxes, lube base oils, low-density polyethylene, aromatics, asphalts, alkylates, cyclohexane and aliphatic solvents, and refinery grade propylene, as well as provides industrial services to third parties. Further, it markets various refined and feed stock products, including regular and high octane gasoline, diesel fuel, jet fuel, natural gas, and petrochemical products. The company was formerly known as Empresa Colombiana de Petroleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was founded in 1948 and is based in Bogota, Colombia.

Advisors' Opinion:
  • [By Rich Duprey]

    Looking to modernize its Cartagena refinery in Colombia, Ecopetrol's (NYSE: EC  ) board of directors has approved spending more than half a billion additional dollars this year on an upgrade. The full project is estimated to cost nearly $6.5 billion.

Top 5 Energy Stocks To Invest In Right Now: Baker Hughes Inc (BHI)

Baker Hughes Incorporated (Baker Hughes) is engaged in the oilfield services industry. Baker Hughes is a supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. It also provides industrial and other products and services to the downstream refining, and the process and pipeline industries. The Company may conduct its operations through subsidiaries, affiliates, ventures and alliances. It operates in more than 80 countries worldwide. The Company operates in five segments. Four of these segments represent its oilfield operations and their geographic organization: North America (U.S. Land, Gulf of Mexico and Canada), Latin America, Europe/Africa/Russia Caspian and Middle East/Asia Pacific. Its Industrial Services and Other segment includes downstream chemicals, process and pipeline services, and the reservoir development services group.

The geographic organization supports its oilfield operations and is responsible for sales, field operations and well site execution. Western Hemisphere operations consist of four regions - Canada, headquartered in Calgary, Alberta, and the United States Land, Gulf of Mexico and Latin America regions. Eastern Hemisphere operations consist of five regions - Europe, England; Africa, France; Russia Caspian, Russia; Middle East, United Arab Emirates, and Asia Pacific, Malaysia.

Oilfield Operations

The Company offers a suite of products and services to its customers worldwide. Its oilfield products and services fall into one of two groups, Drilling and Evaluation or Completion and Production. The Drilling and Evaluation group consists of Drill Bits, Drilling Services, Wireline Services, and Drilling and Completion Fluids. Drill Bits includes Tricone and PDC or diamond drill bits used for performance drilling, hole enlargement and coring. Drilling Services includes conventional and rotary steerable systems used to drill wells directionally and horizontally; measurement-while-drilling and! logging-while-drilling systems used to perform reservoir navigation services; drilling optimization services; tools for coil tubing drilling and wellbore re-entry systems; coring drilling systems, and surface logging.

Wireline Services includes tools for both open hole and cased hole well logging used to gather data to perform petrophysical and geophysical analysis; reservoir evaluation coring; casing perforation; fluid characterization; production logging; well integrity testing; pipe recovery, and seismic and microseismic services. Drilling and Completion Fluids includes emulsion and water-based drilling fluids systems; reservoir drill-in fluids, and fluids environmental services.

The Completion and Production group consists of Completion Systems, Wellbore Intervention, Intelligent Production Systems, Artificial Lift, Tubular Services, Upstream Chemicals and Pressure Pumping. Completion Systems includes products and services used to control the flow of hydrocarbons within a wellbore, including sand control systems; liner hangers; wellbore isolation; expandable tubulars; multilaterals; safety systems; packers and flow control, and tubing conveyed perforating. Wellbore Intervention includes products and services used in existing wellbores to improve their performance, including thru-tubing fishing; thru-tubing inflatables; conventional fishing; casing exit systems; production injection packers; remedial and stimulation tools, and wellbore cleanup.

Intelligent Production Systems includes products and services used to monitor and dynamically control the production from individual wells or fields, including production decisions services; chemical injection services; well monitoring services; intelligent well systems, and artificial lift monitoring. Artificial Lift includes electric submersible pump systems; progressing cavity pump systems; gas lift systems, and surface horizontal pumping systems used to lift large volumes of oil and water when a reservoir is no long! er able t! o flow on its own. Tubular Services includes hammer services; tubular running systems, and completion assembly systems. Upstream Chemicals includes chemicals and chemical application systems to provide flow assurance, integrity management and production management for upstream hydrocarbon production. Pressure Pumping includes cementing, stimulation, including hydraulic fracturing, and coil tubing services used in the completion of new oil and natural gas wells and in remedial work on existing wells, both onshore and offshore.

The Company competes with Schlumberger, Halliburton, Weatherford, National Oilwell Varco, Champion Technologies, Ecolab, Newpark Resources, and Frac Tech Services.

Advisors' Opinion:
  • [By Ben Levisohn]

    Halliburton (HAL), Schlumberger (SLB) and Baker Hughes (BHI). Three oil services firms with three very different responses to news today.

    Bloomberg

    First up, Halliburton. It reported a profit of 93 cents a share, above forecasts for 89 cents, yet Halliburton’s shares have dropped 1.8% to $49.76. Citigroup’s Robin Shoemaker and Mark Brown explain why:

  • [By Monica Gerson]

    Baker Hughes (NYSE: BHI) is expected to report its Q3 earnings at $0.78 per share on revenue of $5.77 billion.

    General Electric Company (NYSE: GE) is projected to report its Q3 earnings at $0.35 per share on revenue of $35.96 billion.

  • [By Dan Caplinger]

    Halliburton (NYSE: HAL  ) will release its quarterly report on Tuesday, and investors have expressed some concerns in recent months about the oil-services company's future prospects, bidding share prices down from their near-record high levels. After strong earnings from Schlumberger (NYSE: SLB  ) last week, investors want Halliburton earnings growth to show similar gains, but the company will still have to work hard to outperform peers including Baker Hughes (NYSE: BHI  ) and offshore specialist Transocean (NYSE: RIG  ) .

  • [By Eric Volkman]

    Also taking a slot on the S&P 100 will be insurance giant AIG (NYSE: AIG  ) , taking the position currently held by Baker Hughes (NYSE: BHI  ) . The latter's total market capitalization is now below $21 billion, which S&P Dow Jones Indices says "is no longer representative of the megacap market space." The stock will, however, remain on the S&P 500.

Top 5 Energy Stocks To Invest In Right Now: Statoil ASA (STO)

Statoil ASA (Statoil), incorporated on September 18, 1972, is an integrated energy company primarily engaged in oil and gas exploration and production activities. As of December 31, 2011, the Company had business operations in 41 countries and territories. Effective from January 1, 2011, the Company�� segments were Development and Production Norway; Development and Production International; Marketing, Processing and Renewable Energy; Fuel & Retail, Other. As of 31 December 2011, the Company had proved reserves of 2,276 million barrels (mmbbl) and 3,150 billion cubic meters (bcm) (equivalent to 17,681 trillion cubic feet (tcf)) of natural gas, corresponding to aggregate proved reserves of 5,426 mmboe. In December 2011, the Company acquired Brigham Exploration Company. On April 14, 2011, Statoil's formation of a joint venture and sale of 40% of the Peregrino field off the coast of Brazil to the Sinochem Group was closed. With effect from January 2011, Statoil formed a joint venture with PTTEP of Thailand in its oil sands business and, as part of that transaction, sold PTTEP a 40% interest in the leases in Alberta, Canada. Statoil retains 60% ownership and operatorship of the oil sands project. In June 2012, the Company divested its 54% interest in Statoil Fuel & Retail ASA to Alimentation Couche-Tard.

Development and Production Norway

Development and Production Norway (DPN) consists of the Company�� field development and operational activities on the Norwegian continental shelf (NCS). Development and Production Norway is the operator of 44 developed fields on the NCS. Statoil's equity and entitlement production on the NCS was 1.316 mmboe per day in 2011, which was about 71% of Statoil's total production. Acting as operator, DPN is responsible for approximately 72% of all oil and gas production on the NCS. In 2011, its average daily production of oil and natural gas liquids (NGL) on the NCS was 693 mboe, while its average daily gas production on the NCS was 99.1 mmcm (3.5 b! illion cubic feet (bcf)). The Company has an ownership interests in exploration acreage throughout the licensed parts of the NCS, both within and outside its production areas. It participates in 227 licenses on the NCS and is the operator for 171 of them. As of 31 December 2011, Statoil had a total of 1,369 mmbbl of proved oil reserves and 444 bcm (15.7 tcf) of proved natural gas reserves on the NCS. Total entitlement liquids and gas production in 2011 amounted to 1,316 mmboe per day.

Statoil's NCS portfolio consists of licenses in the North Sea, the Norwegian Sea and the Barents Sea. It has organized its production operations into four business clusters: Operations South, Operations North Sea West, Operations North Sea East and Operations North. The Operations South and Operations North Sea West and East clusters cover its licenses in the North Sea. Operations North covers the Company�� licenses in the Norwegian Sea and in the Barents Sea, while partner-operated fields cover the entire NCS and are included internally in the Operations South business cluster. During 2011, it two Statoil-operated oil discoveries: the Aldous discovery (PL265) in the North Sea and the Skrugard discovery (PL532) in the Barents Sea. The Aldous Major South discovery in PL265 on the Utsira Height in the Sleipner area is situated 140 kilometers west of Stavanger and 35 kilometers south of the Grane field. The Skrugard discovery is located about 250 kilometers off the coast from the Melkoya LNG plant in Hammerfest.

As of December 31, 2011, the Company�� fields under development included the Gudrun, Valemon, Visund South, Hyme, Stjerne, Vigdis North-East, Skuld, Vilje South, Skarv, and Marulk. In 2011, the Company�� total entitlement oil and NGL production in Norway was 252 mmbbl, and gas production was 36.2 bcm (1,287 bcf). The main producing fields in the Operations South area are Statfjord, Snorre, Tordis, Vigdis, Sleipner and partner-operated fields. Operations North Sea East is a gas area tha! t also co! ntains quantities of oil. The area includes the Troll, Fram, Vega, Oseberg and Tune fields. The Company�� producing fields in the Operations North area are Asgard, Mikkel, Yttergryta, Heidrun, Kristin, Tyrihans, Norne, Urd, Alve, Njord, Snohvit and Morvin.

Development and Production International

Development and Production International (DPI) is responsible for the development and production of oil and gas outside the Norwegian continental shelf (NCS). In 2011, the segment was engaged in production in 12 countries: Canada, the United States, Brazil, Venezuela, Angola, Nigeria, Iran, Algeria, Libya, Azerbaijan, Russia and the United Kingdom. In 2011, DPI produced 28.9% of Statoil's total equity production of oil and gas. Statoil has exploration licenses in North America (Gulf of Mexico, Canada and Alaska), South America and sub-Saharan Africa (Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania), Middle East and North Africa (Libya and Iran) and Europe and Asia (the Faeroes, Greenland, the United Kingdom, Azerbaijan and Indonesia). The main sanctioned development projects in which DPI is involved are in the United States, Angola and Canada. The Brigham Exploration Company acquisition added production of approximately 21 mboe per day (as of December) to Statoil's production and gave access to 1,500 square kilometers (375,000 acres) in the Bakken and Three Forks formations in the Williston Basin.

The Company has exploration licenses in North America (Gulf of Mexico, Canada and Alaska), South America and sub-Saharan Africa (Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania), Middle East and North Africa (Libya and Iran), and Europe and Asia (the Faroes, Greenland, the United Kingdom, Azerbaijan and Indonesia). It completed 16 wells in 2011. Five were announced as discoveries: the Mukuvo and Lira discoveries in Angola, the Gavea and Peregrino South discovery in Brazil and the Logan discovery in Gulf of Mexico (GoM). Statoil acquired in! terests i! n six new licenses in Indonesia in 2011. Statoil has activities in the United States, with approximately 300 exploration leases in the GoM and 66 in Alaska. It is also an operator and partner in exploration licenses off the coast of Newfoundland in Canada. Statoil is operator and partner in exploration licenses off the coast of Newfoundland (11,138 square kilometers). It has exploration licenses in Brazil, Cuba, Suriname, Venezuela, Angola, Mozambique and Tanzania. The Company has licenses in Libya, Iran, Faroes, Greenland, the United Kingdom, Azerbaijan and Indonesia. In 2011, Statoil's petroleum production outside Norway amounted to an average of 334 mboe per day of entitlement production and 534 mboe per day of equity production.

The Company has activities in the United States Gulf of Mexico, the Appalachian region, south-west Texas, the Williston Basin, off the East Coast of Canada and in the oil sands of Alberta, Canada. It also has a representative office in Mexico City. Offshore, the Company has production interests in Hibernia and Terra Nova, and interests in two development projects. Its development and production activities in South America and sub-Saharan Africa comprise the Peregrino operatorship in Brazil, the Petrocedeno project in Venezuela, the Agbami offshore field in Nigeria and four Angolan offshore blocks. Statoil's development and production in the Middle East and North Africa in 2011, primarily encompassed Algeria, Libya, Egypt, Iran and Iraq. The Company�� Development and Production in Europe and Asia primarily comprises Azerbaijan, Russia, United Kingdom and Ireland.

Marketing, Processing and Renewable Energy

Marketing, Processing and Renewable Energy (MPR) is responsible for the transportation, processing, manufacturing, marketing and trading of crude oil, natural gas, liquids and refined products, and for developing business opportunities in renewables. It runs two refineries, two gas processing plants, one methanol plant and three crude! oil term! inals. MPR is also responsible for marketing gas supplies originating from the Norwegian state's direct financial interest (SDFI). In total, it is responsible for marketing approximately 80% of all Norwegian gas exports. In 2011, Statoil sold 36.1 bcm (1.3 tcf) of natural gas from the Norwegian continental shelf (NCS) on its own behalf, in addition to approximately 33.5 bcm (1.2 tcf) of NCS gas on behalf of the Norwegian state. Statoil's total European gas sales, including third-party gas, amounted to 79.8 bcm (2.9 tcf) in 2011, of which 39.5 bcm (1.4 tcf) was gas sold on behalf of the Norwegian state. The Natural Gas business cluster is responsible for Statoil's marketing and trading of natural gas worldwide, for power and emissions trading and for overall gas supply planning. In 2011, the Company sold 36.1 bcm (1.3 tcf) of natural gas from the NCS on its own behalf, in addition to approximately 33.5 bcm (1.2 tcf) of NCS gas on behalf of the Norwegian state. Statoil's total European gas sales, including third-party gas, amounted to 79.8 bcm (2.9 tcf) in 2011, of which 39.5 bcm (1.4 tcf) was gas sold on behalf of the Norwegian state. In addition, it sold 5.5 bcm (0.2 tcf) of gas originating from its international positions, mainly in Azerbaijan and the United States, of which 2.7 bcm (0.1 tcf) was entitlement gas. As technical service provider (TSP), Statoil is responsible for the operation, maintenance and further development of the Karsto gas processing plant on behalf of the operator Gassco.

Statoil is the seller of crude oil, operating from sales offices in Stavanger, Oslo, London, Singapore, Stamford and Calgary and selling and trading crude oil, condensate, NGL and refined products. Statoil holds the lease for the South Riding Point crude oil terminal in the Bahamas, which includes, oil storage as well as loading and unloading facilities. It also operates the Mongstad terminal and has shared ownership with Petoro. The Company is a majority owner (79%) and operator of the Mongstad ref! inery in ! Norway, which has a crude oil and condensate distillation capacity of 220,000 barrels per day. It is the sole owner and operator of the Kalundborg refinery in Denmark, which has a crude oil and condensate distillation capacity of 118,000 barrels per day. In addition, it has rights to 10% of production capacity at the Shell-operated refinery in Pernis in the Netherlands, which has a crude oil distillation capacity of 400,000 barrels per day. The Company�� methanol operations consist of an 81.7% interest in the gas-based methanol plant at Tjeldbergodden, Norway, which has a design capacity of 0.95 million tons per year. It also operates the Oseberg Transportation System (36.2% interest), including the Sture crude oil terminal.

Technology, Projects and Drilling

Technology, Projects and Drilling (TPD) is responsible, as a global service provider to Statoil, for delivering projects and wells and for providing support through global expertise, standards and procurement. TPD is also responsible developing and implementing new technological solutions. Statoil's research and development portfolio is organized in seven programs covering the upstream building blocks. The research and development organization operates and develops laboratories and test facilities and has an academia program that addresses cooperation with universities and research institutes.

Global Strategy and Business Development

Global Strategy and Business Development (GSB) was established in 2011, with its main office in London. GSB sets the direction for Statoil and identifies, develops and delivers opportunities for global growth.

Advisors' Opinion:
  • [By Bruce Kennedy]

    Other oil companies also appear to be having second thoughts about their Arctic projects. Last April, ConocoPhilips (NYSE: COP) said its 2014 drilling plans in Alaska's Chukchi Sea were ��n hold due to regulatory uncertainties.��And according to the Anchorage Daily News, the Norwegian multinational Statoil (NYSE: STO) announced in 2012 it was delaying exploration plans in the area as well.

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