Futures prices for both crude and gasoline were down yesterday. Unfortunately, that barely tells the real story.
So, enjoy the respite while it lasts.
Thanks to the growing Sunni insurrection and the rapid unraveling of the Shiite government in Baghdad, you can bet that prices for both crude and gasoline will be making the headlines over the next two months.
In fact, when it comes to oil, some bankers are now openly questioning the ability of the market to meet global demand a year out. Now prices further out on the futures curve are rising much more quickly than anticipated.
As the next-month rates (August 2014) fell in yesterday's trade, oil prices as far out as December 2018 began to spike.
Here's why yesterday's drop in prices is just the pause before the storm...
If Iraq Unravels, Oil Production Will Be CrippledThere's a reason why Iraq figures so prominently in this discussion. Everybody's estimates now suggest that global oil demand will accelerate to 94 million barrels a day by the end of this year.
Top 10 Wireless Telecom Stocks To Buy For 2015: Total SA (FP)
Total SA is a France-based integrated international oil and gas company. It is an integrated international oil and gas company and a chemicals manufacturer. Total engages in all aspects of the petroleum industry, including Upstream operations (oil exploration and production, together with activities related to natural gas), Refining & Chemicals (refining, petrochemicals, speciality chemicals, crude oil trading and shipping) and Marketing & Services (focused on the supply and sale of petroleum products, together with activities related to renewable energy). In April 12, 2013, it inaugurated the partnership with Veolia Environnement SA the Osilub plant. In July 2013, it sold its TIGF (Transport et Infrastructures Gaz France), gas transport and storage business. In September 2013, it announced the transfer to The National Gas Company of Trinidad &Tobago of all of its E&P assets in Trinidad through the sale of Total E&P Trinidad B.V and Elf Exploration Trinidad B.V. Advisors' Opinion:- [By Namitha Jagadeesh]
Telecom Italia (TIT) SpA gained 1.7 percent as Telefonica SA agreed to increase its stake in the phone operator. Nokia Oyj added 2.4 percent after a U.S. judge found that HTC Corp. violated two of its patents. Total (FP) SA climbed 2.6 percent after Barclays Plc raised its rating on the oil producer. Burckhardt Compression Holding AG slid 7.3 percent after saying fiscal first-half net income will decline from the year-earlier period.
- [By Sofia Horta e Costa]
Lloyds dropped 3.5 percent after the U.K. government sold a 3.2 billion-pound ($5.1 billion) stake in the lender. Continental and Galp Energia SGPS SA fell at least 2.5 percent as investors sold shares in the companies. Total SA (FP) retreated 1.3 percent following a report that Groupe Bruxelles Lambert SA may dispose of its 4 percent stake in the French oil producer.
Best Gas Companies To Watch In Right Now: Snam SpA (SRG)
Snam SpA is an Italy-based company engaged in the management of natural gas services. The Company is diversified into four operating segments. The Transportation segment covers transportation-related gas services, including capacity management and transportation of the gas at the entry points of the gas network to the redelivery points. It owns transportation infrastructures of gas pipelines. The Regasification segment is focused on extraction activities of natural gas, its liquefaction for transport by ship and subsequent regasification. The Storage segment covers deposits, gas treatment plants, compression plants and the operational dispatching system. The Distribution segment engages gas distribution through local transportation networks from delivery points at the metering and reduction stations to the gas distribution network redelivery points at the end customers. Additionally, Snam SpA as the parent company, focuses on planning, management, coordination and control of the group. Advisors' Opinion:- [By Tom Stoukas]
Snam SpA (SRG) dropped the most in almost a year as Eni SpA sold an 11.7 percent stake in the owner of Italy�� biggest natural-gas network. Wm Morrison Supermarkets Plc tumbled the most in more than 14 months. Experian Plc jumped to a record after the world�� largest credit-checking company raised its dividend and announced a share buyback.
- [By Victor Selva]
The Specialty Restaurant Group (SRG), which includes Bahama Breeze and The Capital Grille, has grown over the last couple of quarters. Eddie V's Restaurants and Yard House might be meaningful long-term drivers, as we think most of the growth in the next years will come from the acquisition of those restaurants.
Best Gas Companies To Watch In Right Now: Maverick Minerals Corp (MVRM)
Maverick Minerals Corporation (Maverick), incorporated on August 27, 1998, is an exploration-stage company. The Company is engaged in the acquisition, exploration, and development of prospective oils and gas properties and mineral properties. During the year ended December 31, 2011, the Company's business focus was to implement the terms of the Farmout Agreement pursuant to which were to earn an interest in certain oil and gas mineral leases located in Fort Bend and Wharton Counties, Texas.
The Company�� subsidiary includes Eskota Energy Corporation. On January 22, 2011, the Company completed drilling of its Initial Test Well on the Company's 4,513 acre Farm-Out property in Fort Bend County, Texas. As of December 31, 2011, the Company had not generated any revenues.
Advisors' Opinion:- [By Peter Graham]
On Friday, small cap mining stocks Maverick Minerals Corp (OTCMKTS: MVRM) and Liberty Coal Energy Corp (OTCMKTS: LBTG) plus oil stock Gray Fox Petroleum Corp (OTCBB: GFOX) sank 30.9%, 16.67% and 11.2%, respectively. However, only one of these stocks appears to have been the subject of some kind of paid promotion in the form of an investment in some shares. So will these three small cap mining or oil stocks keep coming up empty for investors this week? Here is a closer look:
Maverick Minerals Corp (OTCMKTS: MVRM) Has Been Quiet LatelySmall cap Maverick Minerals Corp is an exploration stage company involved in the acquisition, exploration, and development of prospective oil and gas properties and mineral properties. On Friday, Maverick Minerals Corp sank 30.9% to $0.38 for a market cap of $6.13 million plus MVRM is up 280% over the past year and up 322.2% over the past five years according to Google Finance.
Best Gas Companies To Watch In Right Now: Woodside Petroleum Ltd (WPL)
Woodside Petroleum Ltd (Woodside) is an Australia-based oil and gas company. Woodside, along with its subsidiaries is engaged in hydrocarbon exploration, evaluation, development, production and marketing. As of December 31, 2011, the Company produced around 700,000 barrels of oil equivalent each day from a portfolio of facilities, which it operates on behalf of some of the major oil and gas companies. It operating facilities include six liquefied natural gas (LNG) trains, five offshore platforms and four oil floating production storage and offloading (FPSO) vessels. It is one of the non-government operators LNG plants. The Company operates six segments: North West Shelf Business Unit, Australia Oil Business Unit, Pluto Business Unit, Browse Business Unit, United States Business Unit and Other. In September 2012, it sold a minority portion of its equity in the proposed Browse LNG Development to Japan Australia LNG (MIMI Browse) Pty Ltd. Advisors' Opinion:- [By Jonathan Burgos]
Agricultural Bank of China Ltd., the nation�� third-largest lender, slid 2.3 percent in Hong Kong. Yamada Denki Co. sank 4.8 percent in Tokyo after the consumer electronics retailer missed its full-year profit forecast. Woodside Petroleum Ltd. (WPL), Australia�� second-biggest oil producer, jumped 9.7 percent after announcing plans to return cash to shareholders.
- [By Yoshiaki Nohara]
Australia�� S&P/ASX 200 Index retreated 0.7 percent, led by energy and financial shares. Woodside Petroleum Ltd. (WPL), Australia�� second-biggest oil and gas producer, dropped 2 percent to A$34.67. Westpac Banking Corp. (WBC), Australia�� No. 2 lender by market value, shed 1.2 percent to A$27.47.
Best Gas Companies To Watch In Right Now: Murphy Oil Corp (MUR)
Murphy Oil Corporation, incorporated on June 29, 1964, is a worldwide oil and gas exploration and production company with retail and wholesale gasoline marketing operations in the United States and refining and marketing operations in the United Kingdom. In August 2013, the Company announced that it has completed the spin-off of its United States retail marketing business into an independent public company called Murphy USA Inc.
Murphy's exploration and production activities are subdivided into five geographic segments, including the United States, Canada, Malaysia, the Republic of the Congo and all other countries. Murphy's refining and marketing activities are subdivided into segments for the United States and the United Kingdom.
Exploration and Production
During the year ended December 31, 2012, Murphy's principal exploration and production activities were conducted in the United States by wholly owned Murphy Exploration & Production Company - USA (Murphy Expro USA), in Malaysia, Republic of the Congo, Indonesia, Suriname, Australia, Brunei, the Kurdistan region of Iraq, Cameroon, Vietnam and Equatorial Guinea by wholly owned Murphy Exploration & Production Company - International (Murphy Expro International) and its subsidiaries, in Western Canada and offshore Eastern Canada by wholly owned Murphy Oil Company Ltd. (MOCL) and its subsidiaries, and in the U.K. North Sea and the Atlantic Margin by wholly owned Murphy Petroleum Limited.
Murphy's crude oil and natural gas liquids production in 2012 was in the United States, Canada, Malaysia, the Republic of the Congo and the United Kingdom; its natural gas was produced and sold in the United States, Canada, Malaysia and the United Kingdom. MOCL owns a 5% undivided interest in Syncrude Canada Ltd. in northern Alberta, one of the producers of synthetic crude oil. Murphy's worldwide crude oil, condensate and natural gas liquids production in 2012, averaged 112,591 barrels per day. The Company's worldwi! de sales volume of natural gas averaged 490 million cubic feet per day in 2012.
In the United States, Murphy primarily has production of oil and/or natural gas from fields in the deepwater Gulf of Mexico, in the Eagle Ford Shale area of South Texas and onshore in South Louisiana. The Company produced approximately 26,100 barrels of oil per day and 53 million cubic feet of natural gas per day in the U.S. in 2012. During 2012, approximately 54% of total U.S. hydrocarbon production was produced at fields in the Gulf of Mexico. The Company holds a 60% interest at Medusa in Mississippi Canyon Blocks 538/582, which produced total daily oil and natural gas of about 4,300 barrels and for million cubic feet, respectively, in 2012. At December 31, 2012, the Medusa field had total proved oil and natural gas reserves of approximately 9.2 million barrels and 9.4 billion cubic feet, respectively. Murphy has a 62.5% working interest in the Front Runner field in Green Canyon Blocks 338/339. Oil and natural gas production at Front Runner averaged about 3,900 barrels of oil per day and four million cubic feet per day in 2012. The Company also acquired additional working interests in the Thunder Hawk field in Mississippi Canyon Block 734 in 2012 and holds 62.5% of this field. In 2012 oil production from this field averaged 2,800 barrels per day and 1.7 million cubic feet per day and 3.2 million cubic feet per day due to a new well completed in 2012.
The Company is primarily concentrating drilling efforts in the areas of the Eagle Ford where oil is the primary hydrocarbon produced. Totals for 2012 oil and natural gas production in the Eagle Ford area were approximately 13,300 barrels per day and 13 MMCF per day, respectively. On a barrel of oil equivalent basis, Eagle Ford production accounted for 44% of total U.S. production volumes in 2012. At December 31, 2012, the Company's proved reserves in the Eagle Ford Shale area totaled 113.6 million barrels of oil and 108.7 billion cubic feet of natural! gas. Tot! al proved U.S. oil and natural gas reserves at December 31, 2012 were 142.6 million barrels and 209.7 billion cubic feet, respectively. The Company is developing the Dalmatian field located in DeSoto Canyon Blocks 4 and 48 in the Gulf of Mexico.
In Canada, the Company owns an interest in three non-operated assets - the Hibernia and Terra Nova fields offshore Newfoundland in the Jeanne d'Arc Basin and Syncrude Canada Ltd. in northern Alberta. In addition, the Company owns interests in one heavy oil area, two natural gas areas and light oil prospective acreage in the Western Canadian Sedimentary Basin (WCSB). Murphy has a 6.5% working interest in Hibernia, while at Terra Nova the Company's working interest is 10.475%. Oil production in 2012 was about 5,300 barrels of oil per day at Hibernia and 1,700 barrels per day at Terra Nova. Total proved oil reserves at December 31, 2012 at Hibernia and Terra Nova were approximately 10.6 million barrels and 5.9 million barrels, respectively.
Murphy owns a 5% undivided interest in Syncrude Canada Ltd., a joint venture located about 25 miles north of Fort McMurray, Alberta. Syncrude utilizes its assets, which include three coking units, to extract bitumen from oil sand deposits and to upgrade this bitumen into a synthetic crude oil. Production in 2012 was about 13,800 barrels of synthetic crude oil per day. Total proved reserves for Syncrude at year-end 2012 were 119.1 million barrels. Daily production in 2012 in the WCSB averaged about 7,500 barrels of mostly heavy oil and about 217 million cubic feet of natural gas. Through 2012, the Company has acquired approximately 144 thousand net acres of mineral rights in the Montney area, including Tupper and Tupper West.
In Malaysia, the Company has majority interests in six separate production sharing contracts (PSCs). The Company serves as the operator of all these areas other than the Kakap field. The production sharing contracts cover approximately 2.79 million gross acres. Murphy h! as an 85%! interest in discoveries made in two shallow-water blocks, SK 309 and SK 311, offshore Sarawak. About 7,400 barrels of oil per day were produced in 2012 at Blocks SK 309/311, with almost 75% of this at the West Patricia field and the remainder mostly associated with gas liquids produced at other Sarawak fields. Total net natural gas sales volume offshore Sarawak was about 174 million cubic feet per day during 2012 . Total proved reserves of oil and natural gas at December 31, 2012 for Blocks SK 309/311 were 10.3 million barrels and 284.7 billion cubic feet, respectively.
The Company made a discovery at the Kikeh field in deepwater Block K, offshore Sabah, Malaysia. Total gross acreage held by the Company in Block K as of December 31, 2012 was 80,000 acres. Production volumes at Kikeh averaged 44,900 barrels of oil per day during 2012. Total proved reserves booked in Block K as of year-end 2012 were 85.4 million barrels of oil and 72.9 billion cubic feet of natural gas.Total proved reserves booked in Block K in 2012, were 85.4 million barrels of oil and 72.9 billion cubic feet of natural gas. Total gross acreage held by the Company at year-end 2012 in Block H was 1.40 million acres. Murphy has a 75% interest in gas holding agreements for Kenarong and Pertang discoveries made in Block PM 311, located offshore peninsular Malaysia.
The Company had interests in Production Sharing Agreements (PSA) covering two offshore blocks in Republic of the Congo - Mer Profonde Sud (MPS) and Mer Profonde Nord (MPN) during 2012. These interests covered approximately 1.33 million gross acres with water depths ranging from 490 to 6,900 feet, and the Company operated both blocks. Total oil production in 2012 averaged 2,100 barrels per day at Azurite for the Company's 50% interest. Anticipated production in 2013 is 1,500 barrels per day.
The Company holds six exploration permits in Australia and serves as operator of four of them. Block NT/P80 in the Bonaparte Basin, offshore northwester! n Austral! ia, was acquired in June 2009 and covers approximately 1.20 million gross acres. In May 2012, Murphy was awarded permit WA-476-P in the Carnarvon Basin, offshore Western Australia. The Company holds 100% working interest in the permit which covers 177,000 gross acres. In August 2012, Murphy was awarded permit WA-481-P in the Perth Basin, offshore Western Australia. The permit covers approximately 4.30 million gross acres, with water depths ranging from 20 to 300 meters. The Company holds a 40% working interest. The work commitment calls for tw0- dimensional (2D) and three-dimensional (3D) seismic acquisition and processing, geophysical work and three exploration wells. In November 2012, Murphy acquired a 20% non-operated working interest in permit WA-408-P in the Browse Basin. This block is adjacent to AC/P36 and is in the midst of a two-well exploration campaign. The permit comprises approximately 417,000 gross acres.
The Company has interests in four exploration licenses in Indonesia and serves as operator of all these concessions. . Following contractually mandated acreage relinquishment in 2012, the block covers approximately 745 thousand gross acres. The Company has a 28.3% interest in the block which covers about 543 thousand gross acres after a required partial relinquishment of acreage during 2012. The permit calls for a 3D seismic program and three exploration wells. Murphy has a 100% interest in the block which covers 1.22 million gross acres. In November 2012, the Company signed a production sharing contract with Vietnam National Oil and Gas Group and PetroVietnam Exploration Production Company, whereby it acquired 65% interest and operatorship of Blocks 144 and 145. The blocks cover approximately 4.42 million gross acres and are located in the outer Phu Khanh Basin. In late 2012, the Company was granted Vietnam's government approval to acquire a 60% working interest and operatorship of Block 11-2/11.
The Company operates and holds a 50% interest in the block. The Ce! ntral Doh! uk block covers approximately 153 thousand gross acres and is located in the Dohuk area of the Kurdistan region in Iraq. The Company shot seismic in 2011 and drilled an unsuccessful exploration well in 2012.The Company acquired a 100% working interest and operatorship of Block 48 offshore Suriname. The block encompasses 794 thousand gross acres with water depths ranging from 1,000 to 3,000 meters. Murphy relinquished Block 37 in July 2012.
Murphy was granted government approval to acquire a 50% working interest and operatorship of the NTEM concession. The working interest was acquired from Sterling Cameroon Limited (Sterling) via a farm-out agreement of the existing production sharing contract. Sterling retained a 50% non-operated interest in the block. The NTEM block, situated in the Douala Basin offshore Cameroon, encompasses 573 thousand gross acres, with water depths ranging from 300 to 1,900 meters. In October 2012, Murphy signed an agreement with Perenco Cameroon to acquire a 50% interest in the Elombo production sharing contract, immediately adjacent to the NTEM concession. The Company received government approval to acquire the acreage in December 2012. Perenco retained a 50% operating interest in the block. The Elombo block, situated in the Douala Basin offshore Cameroon, between the shoreline and the NTEM block, encompasses 594 thousand gross acres with water depths ranging up to 1,100 meters.
In December 2012, Murphy signed a production sharing contract for block W offshore Equatorial Guinea. Murphy has a 45% working interest and has been designated the operator. The government is expected to ratify the contract early in 2013. The block is located offshore mainland Equatorial Guinea and encompasses 557 thousand gross acres with water depths ranging from 60 to 2,000 meters. The initial exploration period of five years is divided into two sub-periods, a sub-period of three years and a second sub-period of two years. The sub-period may be extended one year and with this! extensio! n is the obligation to drill one well. Murphy has produced oil and natural gas in the United Kingdom sector of the North Sea for many years. In 2012, Murphy entered into several contracts to sell all of its oil and gas properties in the United Kingdom.
Murphy's total proved undeveloped reserves at December 31, 2012 increased 42.0 million barrels of oil equivalent (MMBOE) from a year earlier. Approximately 44.0 MMBOE of proved undeveloped reserves were converted to proved developed reserves during 2012. During 2012, there were 26.6 million barrels of oil per day of positive revisions for proved undeveloped reserves. At December 31, 2012, proved reserves are included for several development projects that are ongoing, including natural gas developments at the Tupper West area in British Columbia and offshore Sarawak Malaysia, and an oil development at Kakap, offshore Sabah Malaysia. Total proved undeveloped reserves associated with various development projects at December 31, 2012 were approximately 219 million barrels of oil per day, which is 36% of the Company's total proved reserves.
Murphy Oil USA, Inc. (MOUSA), a wholly owned subsidiary of Murphy Oil Corporation and markets its refined products through a network of Company stations, unbranded wholesale customers and bulk products customers in a 30-state area, primarily in the Southern and Midwestern United States. Murphy's Company stations are located in 23 states and are primarily located in the parking lots of Walmart Supercenters using the brand name Murphy USA. The Company stations also include stand-alone locations using the Murphy Express brand. During 2012, Company stations sold over 3.8 billion gallons of motor fuel. At December 31, 2012, the Company marketed fuel and convenience merchandise through 1,165 Company stations. Of these Company stations, 1,015 are located on parking lots of Walmart Supercenters or other Walmart stores and 150 are stand-alone Murphy Express locations.
The Company owns land und! erlying 9! 08 of the Company stations on Walmart parking lots. No rent is payable to Walmart for the owned locations. For the remaining 104 Company stations located on Walmart property that are not owned, Murphy has master agreements that allow the Company to rent land from Walmart. The master agreements contain general terms applicable to all rental sites on Walmart property in the United States. In addition to the motor fuel sold at the Company's Company stations, its stores carry a broad selection of snacks, beverages, tobacco products, and other non-food merchandise. The Company's merchandise offerings include two private label products, an isotonic drink offered in several flavors and a private label energy drink. In 2012, the Company purchased more than 88% of its merchandise from a single vendor, McLane's Company, Inc., a wholly owned subsidiary of Berkshire Hathaway, Inc.
Murphy owns an interest in a crude oil pipeline that connects storage at the Louisiana Offshore Oil Port (LOOP) at Clovelly, Louisiana, to the formerly owned Meraux refinery. Murphy owns a 40.1% interest in its 22 miles of this pipeline from Clovelly to Alliance, Louisiana, and 100% of the remaining 24 miles from Alliance to Meraux. Murco Petroleum Limited (Murco), a wholly owned U.K. subsidiary, owns 100% interest in a refinery at Milford Haven, Pembrokeshire, Wales. The refinery is located on a 938 acre site owned by the Company; 430 acres are used by the refinery and the remainder is rented for agricultural use. The refinery consistently performed near nameplate capacity during 2012. Murphy has announced its intention to sell the Milford Haven refinery and United Kingdom marketing assets.
Advisors' Opinion:- [By Rich Smith]
Sometime in the second half of this year, Murphy Oil� (NYSE: MUR ) will split in two. When that happens, the company announced today, its current president and CEO, Steve Cosse, will be leaving Murphy proper to join the spun-off business running the firm's current downstream operations, Murphy USA.
- [By Geoff Gannon]
For example, I happened to be looking at Murphy Oil (MUR) recently. There are a lot of questions you could ask about the company. Some are answered in a few seconds. For example, their financial condition is strong. It takes two seconds to see this. So you just see it and move on.
- [By Paul Ausick]
The sales big spender was Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) which posted 16 high bids, totaling just over $321 million. Chevron Corp. (NYSE: CVX) offered six high bids, totaling $106 million, followed by Murphy Oil Corp. (NYSE: MUR) with 16 high bids, totaling nearly $50 million, and Royal Dutch Shell PLC (NYSE: RDS-A) with four high bids, totaling more than $45 million.
Best Gas Companies To Watch In Right Now: Summit Midstream Partners LP (SMLP)
Summit Midstream Partners, LP is engaged in owning and operating midstream energy infrastructure that is located in North America. The Company provides natural gas gathering and compression services in two resource basins: the Piceance Basin, which includes the Mesaverde, Mancos and Niobrara Shale formations in western Colorado, and the Fort Worth Basin, which includes the Barnett Shale formation in north-central Texas. As of June 30, 2012, the Company�� gathering systems had approximately 385 miles of pipeline and 147,600 horsepower of compression. As of September 20, 2012, its systems gathered an average of approximately 909 million cubic feet per day of natural gas, of which approximately 64% consisted of natural gas liquids (NGLs), that were extracted by a third party processor. Summit Midstream GP, LLC is the Company�� general partner. On October 27, 2011, the Company acquired certain natural gas gathering pipeline, dehydration and compression assets in the Piceance Basin of western Colorado, which it refer to as the Grand River system. The Company�� customers include the natural gas producers in North America, such as Encana Corporation, Chesapeake Energy Corporation, TOTAL, S.A., Carrizo Oil & Gas, Inc., WPX Energy, Inc., Bill Barrett Corporation, Exxon Mobil Corporation and EOG Resources, Inc. In October 2012, the Company acquired ETC Canyon Pipeline, LLC from La Grange Acquisition, L.P., a wholly owned subsidiary of Energy Transfer Partners, L.P. On February 15, 2013, it closed the acquisition of to Meadowlark Midstream Company, LLC, formerly Bear Tracker Energy, LLC. In June 2013, Summit Midstream Partners LP acquires assets in Bakken, Marcellus. In June 2013, Summit Midstream Partners LP acquired Bison Midstream LLC. In June 2013, Summit Midstream Partners LP closed the previously announced acquisition of certain natural gas gathering pipelines and compression assets located in the liquids-rich window of the Marcellus Shale Play.
The Grand River system consists of approxi! mately 276 miles of pipeline and 97,500 horsepower of compression and is located in Garfield County, Colorado. The Grand River system primarily gathers natural gas produced by the Company�� customers from the liquids-rich Mesaverde formation within the Piceance Basin. The Grand River system also gathers natural gas produced from its customers' wells targeting the deeper Mancos and Niobrara Shale formations. As of September 20, 2012, the DFW Midstream system had five primary interconnections with third-party, intrastate pipelines that enables the Company to connect its customers, directly or indirectly, with the natural gas market hubs of Waha, Carthage, and Katy in Texas, and Perryville and Henry Hub in Louisiana. As of September 20, 2012, the DFW Midstream system gathered an average of approximately 325 million cubic feet per day from seven producers.
The Company competes with Access Midstream Partners, L.P., Crestwood Midstream Partners LP, Energy Transfer Partners, L.P., Williams Partners L.P., Energy Transfer Partners, L.P. and Enterprise Products Partners L.P.
Advisors' Opinion:- [By Matt DiLallo]
Midstream operator,�Summit Midstream Partners (NYSE: SMLP ) is expanding its reach after it announced two separate natural gas gathering acquisitions last week. The company is spending $460 million to acquire assets in the Bakken and Marcellus in unrelated deals. Let's take a closer look and the deals and what both mean for investors.
Best Gas Companies To Watch In Right Now: Matador Resources Co (MTDR)
Matador Resources Company is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its operations are focused primarily on the oil and liquids-rich portion of the Eagle Ford shale play in South Texas and the Wolfcamp and Bone Spring plays in the Permian Basin in Southeast New Mexico and West Texas. The Company also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. In addition, it has a large exploratory leasehold position in Southwest Wyoming and adjacent areas of Utah and Idaho where it is testing the Meade Peak shale.
As of December 31, 2012, the Company owned a 100% working interest in approximately 26,900 gross acres and 24,100 net acres in Gonzales, Karnes, LaSalle, Wilson and Zavala Counties and a 50% working interest in approximately 2,800 gross and 1,400 net acres in DeWitt County and are the operator of this acreage. It also owns an approximate 21% working interest in approximately 12,800 gross acres in Atascosa County operated by EOG Resources, Inc.
South Texas
The Company focuses on the exploration and development of its Eagle Ford shale properties in South Texas. During 2012, the Company completed and began producing oil and natural gas from 28 gross/24.5 net operated Eagle Ford shale wells, including 25 gross/23.7 net operated and 3 gross/0.8 net non-operated Eagle Ford shale wells. During 2012, 43% of its daily production, or 3,908 barrels of oil equivalent (BOE) per day, including 3,246 one stock tank barrel (Bbl) of oil per day and 4.0 one million cubic feet of natural gas (MMcf) of natural gas per day, was produced from the Eagle Ford shale in South Texas. During 2012, the Company drilled and completed a total of 32 gross/30.5 net Eagle Ford wells on its operated properties. As of December 31, 2012, its aggregate leasehold int! erests consisted of approximately 42,500 gross acres and 27,900 net acres in the Eagle Ford shale play in Atascosa, DeWitt, Gonzales, Karnes, LaSalle, Wilson and Zavala Counties in South Texas.
Northwest Louisiana and East Texas
During 2012, bout 56% of its average daily production, or 5,042 BOE per day, including 31 Bbl of oil per day and 30.1 MMcf of natural gas per day, was from its leasehold interests in Northwest Louisiana and East Texas. For the year ended December 31, 2012, about 76% of its daily natural gas production, or 26.0 MMcf of natural gas per day, was produced from the Haynesville shale, with another 12%, or 4.1 MMcf of natural gas per day, produced from the Cotton Valley and other shallower formations in this area. As of December 31, 2012, the Company had leasehold and mineral interests in approximately 22,300 gross and 14,200 net acres prospective for the Haynesville shale.
Advisors' Opinion:- [By Ben Levisohn]
Heading into today, Matador Resources (MTDR) had gained 40% so far this year, as the competitor to Anadarko Petroleum (APC) and EOG Resources (EOG) has boosted oil & gas revenue and oil production. Make that 32% after Matador Resources announced a secondary offering.
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