Tuesday, June 25, 2013

Top 10 Gas Companies To Buy Right Now

Climbing obesity rates around the world aren't a concern; they've now become a full-fledged problem.

Source: Centers for Disease Control & Prevention.

In the "Global Burden of Disease" report from the World Health Organization, which was compiled over a 20-year period from 1990 through 2010 using data from 500 researchers from 50 countries, it was determined that obesity had surpassed hunger as the greatest worldwide threat. With the exception of sub-Saharan Africa, obesity rates shot up globally by 82%. In the U.S., the obesity rate is a staggering 35.7%.

Obesity isn't just an individual killer, either; it affects those around us -- our family and friends -- both directly and indirectly. Obesity and the health problems that often accompany it are linked to $190 billion in annual health costs, or approximately 21% of all health expenditures. What's more, obesity costs U.S. businesses $164 billion annually because of health problems associated with being overweight, according to the Society of Actuaries. You can read about more flabbergasting costs associated with obesity from my Foolish colleague Keith Speights.

Top 10 Gas Companies To Buy Right Now: Worthington Energy Inc (WGAS)

Worthington Energy, Inc. (Worthington), formerly Paxton Energy, Inc., incorporated July 30, 2004, is an oil and gas exploration and production company with assets in Texas and in the Gulf of Mexico. Worthington�� assets in Texas consist of a minority working interest in limited production and drilling prospects in the Cooke Ranch area of La Salle County, Texas, and Jefferson County, Texas, all operated by Bayshore Exploration L.L.C. (Bayshore). The Company�� assets in the Gulf of Mexico consist of a leasehold working interests in certain oil and gas leases located offshore from Louisiana, upon which no drilling or production has commenced as of December 31, 2011, and a 10.35% interest in the recently drilled I-1 well and a 2% royalty interest in 14,400 acres in the Mustang Island Tract 818. On March 27, 2012, it acquired certain assets from Black Cat Exploration & Production, LLC.

In Texas, the Company has working interests ranging from 4% to 31.75% (net revenue interests ranging from 3% to 23.8125%) in the various wells. In the Gulf of Mexico it has a 70% leasehold working interest, with a net revenue interest of 51.975%, of certain oil and gas leases in the Vermillion 179 tract and 10.35% interest in the recently drilled I-1 well and a 2% royalty interest in 14,400 acres in the Mustang Island Tract 818. As of December 31, 2011, it had one producing well that generated average total monthly net revenue.

The Mustang Island 818-L Field, located in the Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate. Total production from the wells within the seismic coverage was 125.6 billion cubic feet. In January 2011, the Hercules Offshore 205 jack-up rig was contracted to re-enter the I-Well on the Mustang License Area. The oil and gas leases are located in the VM 179, which is in the shallow waters of the Gulf of Mexico offshore from Louisiana. VM 179 is at 85 inches water depth approximately ! 46 miles offshore Louisiana in the Gulf of Mexico.

Top 10 Gas Companies To Buy Right Now: Caiterra International Energy Corp (CTI)

CaiTerra International Energy Corporation (Caiterra), formerly Cyterra Capital Corp., is a Canada-based company is engaged in the exploration and development of oil and gas properties. The Company�� project includes Faust, Amadou and Lac La Biche. On March 9, 2012, the Company completed its qualifying transaction with West Pacific Petroleum Inc. (WPP), pursuant to which the Company acquired all of WPP�� working interests in certain petroleum and natural gas leases and an oil sand lease in the Lac La Biche and Amadou Projects located in Alberta, Canada and certain other assets (the QT Oil and Gas Properties) from West Pacific Petroleum Inc. (WPP). On December 17, 2012 the Company acquired the Faust Property located just north of the Swan Hills oil field and south of the Town of Slave Lake.

Top Industrial Disributor Stocks To Buy Right Now: Transdigm Group Incorporated(TDG)

TransDigm Group Incorporated designs, produces, and supplies engineered aircraft components for use on commercial and military aircraft principally in the United States. The company?s products include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, pumps and valves, power conditioning devices, AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, cockpit displays, aircraft audio systems, lavatory components, engineered interior surfaces, and lighting and control technology. Its customers comprise distributors of aerospace components; commercial airlines, including national and regional airlines; commercial transport and regional and business aircraft original equipment manufacturers (OEMs); various armed forces of the United States and foreign governments; defense OEMs; system suppliers; and various other industrial customers. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.

Top 10 Gas Companies To Buy Right Now: Markwest Energy Partners LP (MWE)

MarkWest Energy Partners, L.P. (MarkWest Energy) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. It provides services in the midstream sector of the natural gas industry. The Company also provides processing and fractionation services to crude oil refineries in the Corpus Christi, Texas area through its Javelina gas processing and fractionation facility. As of December 31, 2011, the Company operated in four segments: Southwest, Northeast, Liberty and Gulf Coast. Effective December 31, 2011, the Company acquired the remaining 49% interest in MarkWest Liberty Midstream. On February 1, 2011, the Company acquired Langley processing plant.

Southwest Segment

The Company owns a system in East Texas that consists of natural gas gathering pipelines, centralized compressor stations, a natural gas processing facility and an NGL pipeline. The East Texas system is located in Panola, Harrison and Rusk Counties and services the Carthage Field. Producing formations in Panola County consist of the Cotton Valley, Pettit, Travis Peak and Haynesville formations. During the year ended December 31, 2011, approximately 77% of its natural gas volumes in the East Texas System result from contracts with six producers. The Company sells substantially all of the purchased and retained NGLs produced at its East Texas processing facility to Targa Resources Partners, L.P. (Targa) under a long-term contract. Such sales represent approximately 19.4% of its consolidated revenue in 2011.

The Company owns a natural gas gathering system in the Woodford Shale play in the Arkoma Basin of southeast Oklahoma. The liquids-rich natural gas gathered in the Woodford system is processed through Centrahoma Processing LLC (Centrahoma), its equity investment, or other third-party processors. In addition, it owns the Foss Lake! natural gas gathering system and the Western Oklahoma natural gas processing complex, all located in Roger Mills, Beckham, Custer and Ellis Counties of western Oklahoma. The gathering portion consists of a pipeline system that is connected to natural gas wells and associated compression facilities. The Company also owns a gathering system in the Granite Wash formation in Wheeler County in the Texas panhandle that is connected to its Western Oklahoma processing complex. The Company completed the expansion of the Western Oklahoma natural gas processing plant in October 2011.

Approximately 70% of its Oklahoma volumes result from contracts with three producers in 2011. The Company sells substantially all of the NGLs produced in the Western Oklahoma processing complex to ONEOK Hydrocarbon L.P. (ONEOK) under a long-term contract. Such sales represent approximately 13.2% of its consolidated revenue in 2011. The Company owns a number of natural gas gathering systems located in Texas, Louisiana, Mississippi and New Mexico, including the Appleby gathering system in Nacogdoches County, Texas. It gathers a portion of the gas produced from fields adjacent to its gathering systems, including from wells targeting the Haynesville Shale. In addition, it owns four lateral pipelines in Texas and New Mexico.

Northeast Segment

The Company�� Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing plants, an NGL pipeline and the Siloam NGL fractionation plant. In addition, it has two caverns for storing propane at its Siloam facility and additional propane storage capacity under a long-term firm-capacity agreement with a third party. The Northeast segment operations include fractionation and marketing services on behalf of the Liberty segment. The Company owns and operates a crude oil pipeline in Michigan (Michigan Crude Pipeline) providing transportation service for three shippers.

Liberty Segment

The Company pr! ovides na! tural gas midstream services in southwestern Pennsylvania and northern West Virginia through MarkWest Liberty Midstream. It is a processor of natural gas in the Marcellus Shale, with gathering, processing, fractionation, storage and marketing operations.

Utica Segment

Effective January 1, 2012, the Company and The Energy and Minerals Group (EMG) formed MarkWest Utica EMG, a joint venture focused on the development of natural gas processing and NGL fractionation, transportation and marketing infrastructure to serve producers' drilling programs in the Utica shale in eastern Ohio. During 2011, the Utica Segment did not have any operations.

Gulf Coast Segment

The Company owns and operates the Javelina processing facility, a natural gas processing facility in Corpus Christi, Texas that treats and processes off-gas from six local refineries operated by three different refinery customers. As of December 31, 2011, the Company owned a 40% interest in Centrahoma Processing LLC (Centrahoma), a joint venture with Cardinal Midstream, LLC (Cardinal). Centrahoma owns certain processing plants in the Arkoma Basin and Cardinal operates an additional processing plant that is not owned by Centrahoma but is located adjacent to and operates in conjunction with the Centrahoma plants.

Top 10 Gas Companies To Buy Right Now: Exxon Mobil Corporation(XOM)

Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. As of December 31, 2010, it operated 35,691 gross and 30,494 net operated wells. The company has operations in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. Exxon Mobil Corporation was founded in 1870 and is based in Irving, Texas.

Advisors' Opinion:
  • [By Daniel Dicker]

    Of the biggest four or five multinational integrated oil companies, my favorite remains Exxon Mobil(XOM).

    The company's dominance will pay off if natural gas finally finds a floor and Exxon's stock buybacks and steady dividend make it the oil stock for pure buy-and-holders.

  • [By Steven Goldberg]

    ExxonMobil (XOM, $88.00, 2.9%) is the world's biggest non-government-owned oil and gas company. Exxon's executives have long managed the company with an eye toward producing high profits for shareholders. In the past five years, Exxon has bought back $100 billion in stock and paid more than $40 billion in dividends. The stock, another Dow member, trades at 10 times estimated earnings (its yield is based on a recently announced increase in the dividend rate).

  • [By John Reese]

    Again, another company that will win either way.  This is the largest company by market cap on the US stock market.  That makes them a safe haven asset when the economy is going south.  But in addition to their defensive qualities, they also have great long term prospects for growth.  They are always finding new reserves of oil.  But they are also investing in other energy sources as well like natural gas.  I think they will be a huge player in the natural gas power generation business in years to come.  I’m bullish here because I think gas will become a major player in the power generation industry in the US.  It burns cleaner than coal and safer than nuclear.

  • [By Stephen Faulkner]

    What keeps running around the headlines? What do you see when you fill up your tank 1, 2, 3 times a week? That would be rising fuel prices. As fuel prices go up, typically the companies which are in the business of selling that fuel, go up. Exxon Mobil is huge, running a $406.9 billion market cap. Solid earnings and low debt relative to income add to the attractive qualities of this stock. The days of "cheap gas" are behind us, and Exxon Mobil stands to appreciate as demand outstrips supply.

    Exxon Mobil has been trading around $85 for most of 2012 and currently sits at $86.33. As gas prices increase I expect share price to appreciate and head towards $100 per share, representing a 16% upside. Dividend payment is currently $0.47 per share, paid quarterly.

Top 10 Gas Companies To Buy Right Now: The Hong Kong and China Gas Co Ltd (0003.HK)

The Hong Kong and China Gas Company Limited, along with its subsidiaries, is engaged in the production, distribution and marketing of gas, water and energy related activities in Hong Kong and mainland China. The Company is also engaged in property development and investment activities in Hong Kong. As of December 31, 2011, the Company�� portfolio on the mainland includes a total of 138 projects in 21 provinces, municipalities and autonomous regions. As of the end of 2011, it had 100 city-gas projects in mainland cities, spread across 19 provinces/municipalities/autonomous regions. Its properties include residential and commercial properties. As of December 31, 2011, the Company�� subsidiaries included Apex Time Holdings Limited, Barnaby Assets Limited, Danetop Services Limited and others. In July and December 2011, it acquired 70 percent and 80 percent of Miluo Red-Horse Natural Gas Development Company Limited and Beipiao Hong Kong and China Gas Company Limited, respec tively.

Top 10 Gas Companies To Buy Right Now: Just Energy Group Inc (JE)

Just Energy Group Inc. (Just Energy), formerly Just Energy Income Fund, is engaged in the sale of natural gas and/or electricity to residential and commercial customers under long-term, fixed-price, price-protected or variable-priced contracts and green energy products. It also offers green products through its JustGreen and JustClean programs. In addition, through National Home Services (NHS), it rents and sells tankless water heaters, air conditioners and furnaces to Ontario residents. Through its subsidiary, Hudson Energy Solar, the Company completes solar power installations for customers in New Jersey, Pennsylvania and Massachusetts.The Company also produces and sells wheat-based ethanol. The Company markets its gas and electricity contracts in Canada and the United States under trade names which include Just Energy, Hudson Energy, Commerce Energy, Amigo Energy and Tara Energy. On October 3, 2011, the Company acquired Fulcrum Retail Holdings LLC.

Top 10 Gas Companies To Buy Right Now: Encana Corporation(ECA)

Encana Corporation and its subsidiaries engage in the exploration for, development, production, and marketing of natural gas, oil, and natural gas liquids. The company owns interests in resource plays that primarily include the Greater Sierra, Cutbank Ridge, Bighorn, and Coalbed Methane resource plays located in British Columbia and Alberta, as well as the Deep Panuke natural gas project offshore Nova Scotia in Canada. It also holds interests in resource plays comprising the Jonah in southwest Wyoming, Piceance in northwest Colorado, Haynesville in Louisiana, and Texas resource play, including east Texas and north Texas. The company serves primarily local distribution companies, industrials, energy marketing companies, and other producers. Encana Corporation was founded in 1971 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By Nelson]

    Encana is not the oil and gas company it once was – it spun off its oil division early in 2009 as Cenovus (another good name to pick up if you want to add to any of the above four), while leaving Encana itself as a pure natural gas play.  But if you want to invest in nat gas, Encana is your Cadillac.  It’s probably the best choice out there for a large cap, extremely well-managed name that you won’t lose sleep over.  You only have to be concerned with the underlying commodity price.

Top 10 Gas Companies To Buy Right Now: Halliburton Company(HAL)

Halliburton Company provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services, completion tools and services, cementing services, and Boots & Coots. Its production enhancement services include stimulation and sand control services; completion tools and services comprise subsurface safety valves and flow control equipment, surface safety systems, packers and specialty completion equipment, intelligent completion systems, expandable liner hanger systems, sand control systems, well servicing tools, and reservoir performance services; cementing services consist of bonding the well and well casing, while isolating fluid zones and maximizing wellbore stability, and casing equipment; and Boots & Coots include well intervention services , pressure control, equipment rental tools and services, and pipeline and process services. The Drilling and Evaluation segment provides field and reservoir modeling, drilling, evaluation, and wellbore placement solutions that enable customers to model, measure, and optimize their well construction activities. Its services comprise fluid services, drilling services, drill bits, wireline and perforating services, testing and subsea services, software and asset solutions, and integrated project management and consulting services. The company serves independent, integrated, and national oil companies. Halliburton Company was founded in 1919 and is headquartered in Houston, Texas.

Advisors' Opinion:
  • [By Ethan Roberts]

    The third company with “energized” insider buying is oil and gas producer Haliburton (NYSE:HAL). On Feb. 3, Director Murry Gerber purchased 30,000 shares of HAL stock at $36.84 per share, for a total of over $1.1 million. However, Gerber is a fairly new board member, so that somewhat tempers my enthusiasm for his fi rst purchase since becoming a director. And unfortunately for him, those shares could have been purchased for as little as $31 as recently as December 2011.

    In fact, it was quite an interesting week for Gerber, who also purchased over $1.1 million worth of BlackRock (NYSE:BLK) stock the day before.

    It’s been a roller coaster ride for Haliburton, which provides various products and services to the energy industry for exploring, developing and producing oil and natural gas worldwide, in the past year. After peaking in August around $57 per share, the stock pulled all the way back to below $28 in October, but has fought its way back to above $38 in February.

    HAL has a current P/E of 12.02 and, but a meager 1% dividend yield. As with Dominion, if natural gas and oil prices continue to rise, this stock should benefit. However, as the one-year daily chart shows, there’s some overhead resistance at $38 and then again at $40. For that reason, I would look for a pullback to between $35 and $ 35.50 before purchasing  HAL.

    It’s also comforting to know that one would be buying shares cheaper than the company insiders!

Top 10 Gas Companies To Buy Right Now: Midstates Petroleum Company Inc (MPO)

Midstates Petroleum Company, Inc. is an independent exploration and production company. The Company�� areas of operation include Pine Prairie, South Bearhead Creek/Oretta, West Gordon and North Cowards Gully. Its Upper Gulf Coast Tertiary trend extends from south Texas to Mississippi across its operating areas in central Louisiana. As of December 31, 2011, it had accumulated approximately 77,100 net acres in the trend. As of December 31, 2011, its development operations are focused in the Wilcox interval of the trend. The Company�� business is conducted through Midstates Petroleum Company LLC, as a direct, wholly owned subsidiary. In September 2012, the Company and its subsidiary acquired all of Eagle Energy Production, LLC�� producing properties as well as their developed and undeveloped acreage primarily in the Mississippian Lime oil play in Oklahoma and Kansas.

As of December 31, 2011, it drilled 57 gross wells in the trend, approximately 93% of. During the year ended December 31, 2011, its average daily production were 7,499 barrels of oil equivalent per day. As of December 31, 2011, it had a total of 974 gross vertical drilling locations, including 115 related to acreage under option, in the trend. As of December 31, 2011, the Company�� properties included approximately 92 gross active producing wells, 95% of, which it operate, and in which it held an average working interest of approximately 99% across its 77,100 net acre leasehold. During March 31, 2012, the Company continued its drilling program, spudding 14 wells, of which nine are producing, three are being drilled and two are waiting to be completed. As of December 331, 2011, it averaged daily production is approximately 9,000 barrels of oil equivalent per day.

Pine Prairie

The Company�� properties in the Pine Prairie area represented 46% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 3,793 net barrels of oil equ! ivalent per day, consisting of 2,143 barrels of oil, 565 barrels of natural gas liquidations (NGLs) and 6,508 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 92.2% and 68.9%, respectively, on its acreage in Pine Prairie area. The Company has an additional 194 identified drilling locations in this area based primarily on 10-acre spacing.

South Bearhead Creek/Oretta

The Company�� properties in the South Bearhead Creek/Oretta area represented 20.3% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 4,367 net barrels of oil equivalent per day, consisting of 2,196 barrels of oil, 438 barrels of NGLs and 10,396 million cubic feet of natural gas per day. During 2011, these wells produced at an average daily rate of 2,413 net barrels of oil equivalent per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 100% and 78.5%, respectively, on its acreage in South Bearhead Creek/Oretta area. The Company has an additional 43 identified drilling locations in this area based primarily on 40-acre spacing.

West Gordon

The Company�� properties in the West Gordon area represented 21% of its total proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 1,002 net barrels of oil equivalent per day, consisting of 617 barrels of oil, 68 barrels of NGLs and 1,901 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 95.9% and 71.2%, respectively, on its acreage in West Gordon area. The Company has an additional 74 identified drilling locations in this area based primarily on 40-acre spacing.

North Cowards Gully

The Company�� properties in the North Cowards Gully area represented 11.5% of ! its total! proved reserves as of December 31, 2011. During 2011, the Company�� average production from these properties was 149 net barrels of oil equivalent per day consisting of 103 barrels of oil, 11 barrels of NGLs, and 211 million cubic feet of natural gas per day. As of December 31, 2011, it held an average working interest and average net revenue interest of 94.3% and 71.2%, respectively, on its acreage in North Cowards Gully area. The Company has an additional 95 identified drilling locations in this area based primarily on 40-acre spacing.

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