Hot New Stocks To Watch For 2015: Diamondback Energy Inc (FANG)
Diamondback Energy, Inc., incorporated on December 30, 2011, is an independent oil and natural gas company. The Company is focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. The Company is the operator of Janey 16H in Upton County with a 3,842 foot lateral in the Wolfcamp B interval. During the year ended December 31, 2012, the Janey 16H had produced a total of 48 thousand barrels of oil and 62 million cubic feet of natural gas. As of December 31, 2012, the Company had drilled 193 gross (176 net) wells, and participated in an additional 18 gross (eight net) non-operated wells, in the Permian Basin. Of these 211 gross wells, 191 were completed as producing wells and 20 were in various stages of completion. In the aggregate, as of December 31, 2012, it held interests in 225 gross (201 net) producing well in the Permian Basin.
The Company�� activities are primarily focused on the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations, which it refers to collectively as the Wolfberry play. The Wolfberry play is characterized by high oil and liquids rich natural gas, multiple vertical and horizontal target horizons, extensive production history, long-lived reserves and high drilling success rates. The Wolfberry play is a modification and extension of the Spraberry play, the majority of which is designated in the Spraberry Trend area field. As of December 31, 2012, its estimated proved oil and natural gas reserves were 40,210 million barrels of oil equivalent based on a reserve report prepared by Ryder Scott Company L.P. (Ryder Scott), its independent reserve engineers. Of these reserves, approximately 29.5% are classified as proved developed producing, (PDP). Proved undeveloped (PUD), reserves included in this estimate are from 306 vertical gross well locations on 40-acre spacing and four gross horizontal well locations. As of December 31, 2012, these proved reserves wer! e approximately 65% oil, 21% natural gas liquids and 14% natural gas.
The Company had have 881 identified potential vertical drilling locations on 40-acre spacing based on its evaluation of applicable geologic and engineering data as of December 31, 2012, and had an additional 1,118 identified potential vertical drilling locations based on 20-acre downspacing. It also has identified 731 potential horizontal drilling locations in multiple horizons on its acreage. The Company�� second horizontal well, Kemmer 4209H in Midland County is a non-operated well in which the Company owns a 47% working interest. In 2012, the Kemmer 4209H produced a total of 41 thousand barrels of oil and 45 million cubic feet of natural gas. In addition to the Janey and Kemmer wells, as of February 28, 2013, the Company had three additional horizontal wells in Midland County and four horizontal wells in Upton County in various stages of development. In Midland County, it drilled the ST25-1H well (83% working interest) with a lateral length of 4,617 feet.
In Upton County, the Company drilled three additional wells, the Neal 8-1H (100% working interest) with a lateral length of 7,652 feet, the Neal 8-2H (100% working interest) with a lateral length of 6,658 feet and the Janey 3H (100% working interest) with a lateral length of 4,629 feet. It completed a 32 stage frac on the Neal 8-1H well in January 2013. As of February 26, 2013, flowback operations were underway and for the last seven days the well averaged 806 barrel of oil equivalent per day with a peak rate of 871 barrel of oil equivalent per day with an 85% oil component.
Advisors' Opinion:- [By Robert Rapier]
As far as the best buy post drop — it comes down to risk tolerance. If you believe oil prices are going to remain strong in 2014, and you are aggressively inclined, there are several solid names. One that may not be on a lot of people’s radars is Diamondback Energy (NASDAQ: FANG), a Permian Basin-focused producer which IPO’d in October of 2012 and has gained 140 percent year-to-date. It was off recently 20 percent from its highs of early November, but has once again been moving up over the past few sessions. If the stock experiences a sharp correction as a result of broader market weakness, this is one that aggressive investors should consider.
- [By Robert Rapier]
Viper Energy Partners�(NASDAQ: VNOM), a spinoff from�Diamondback Energy�(NASDAQ: FANG). Viper owns mineral rights on 14,804 acres in the Permian Basin in West Texas, and became the first US-listed partnership structured on the basis of royalty payments
- [By Jake L'Ecuyer]
Diamondback Energy (NASDAQ: FANG) shares were also up, gaining 5.73 percent to $69.39 after the company reported a 30% growth in Q1 production.
Equities Trading DOWN
Shares of The Gap (NYSE: GPS) were down 2.53 percent to $38.29 after the company reported a 6% decline in its same-store sales in March, versus analysts' expectations for a 4.7% fall. - [By Jake L'Ecuyer]
Diamondback Energy (NASDAQ: FANG) shares were also up, gaining 4.65 percent to $68.68 after the company reported a 30% growth in Q1 production.
Equities Trading DOWN
Shares of The Gap (NYSE: GPS) were down 3.78 percent to $37.81 after the company reported a 6% decline in its same-store sales in March, versus analysts' expectations for a 4.7% fall.
Top 5 Oil Stocks To Invest In 2014: Dejour Energy Inc (DEJ)
Dejour Energy Inc. is engaged in the business of acquiring, exploring and developing energy projects with a focus on oil and gas exploration in Canada and the United States. The Company holds approximately 113,000 net acres of oil and gas leases in the Peace River Arch of northwestern British Columbia and northeastern Alberta, Canada and the Piceance, Paradox and Uinta Basins in the United States Rocky Mountains. The Company has 71.43% working interest in this 3,014 acre (gross) project located south of Roan Creek. The Company also has 71.43% working interest in this 18,000 acre (gross) project located north of the Rangely Field, is prospective for oil in the Lower Mancos (Niobrara), Dakota, Morrison and Phosphoria formations. Advisors' Opinion:- [By CRWE]
Vancouver, BC, Dec. 16, 2013 — (CRWE Press Release) — Dejour Energy Inc. (NYSE MKT:DEJ) (TSX:DEJ), an independent oil and natural gas exploration and production company operating in North America’s Piceance Basin and Peace River Arch regions, today announces that it has signed a Letter of Intent to create a strategic joint venture partnership with a private Singapore based energy company (��ECO�� to develop the company�� Colorado oil and gas assets.
Upon completion of due diligence, legal documentation and requisite approvals expected prior to January 31, 2014, SECO will invest an initial sum of up to $27.5mm in 2014 and 2015 to earn an 85% share in Dejour�� interests in its Colorado properties, primarily Kokopelli, subject to certain interest claw backs available to Dejour. Following this capital investment by SECO, the partners will continue to judiciously develop the reserves on a pro rata basis.
The terms of the agreement include a capital injection to Dejour of approximately US$ 4.5mm, including cash and assumption of certain liability agreements on outstanding debt and the 100% development funding of an initial $10.5mm in capital expenditures in 2014 with a further $12mm in 2015, targeting Kokopelli, subject to certain provisions. Additionally, SECO will assume 85% of the ongoing overhead of Dejour�� U.S. operations and joint project management during the initial period. SECO will also share responsibility to maintain the other Dejour U.S. leases in good standing on a pro rata ownership basis or return them to Dejour in a timely fashion. Dejour will remain the operator of record.
��ECO shares Dejour�� value proposition relating to the company�� U.S. E&P portfolio. This partnership will bring many strategic advantages to Dejour: minimizing capital requirement in the short term, bolstering the company�� balance sheet and long term US cash flow, the provision of flexibility for Dejour to pursue new
Top 5 Oil Stocks To Invest In 2014: Royal Dutch Shell PLC (RDS.B)
Royal Dutch Shell plc (Shell), incorporated on February 5, 2002, is an independent oil and gas company. The Company owns, directly or indirectly, investments in the numerous companies constituting Shell. Shell is engaged worldwide in the principal aspects of the oil and gas industry and also has interests in chemicals and other energy-related businesses. The Company operates in three segments: Upstream, Downstream and Corporate. Upstream combines the operating segments Upstream International and Upstream Americas, which are engaged in searching for and recovering crude oil and natural gas; the liquefaction and transportation of gas; the extraction of bitumen from oil sands that is converted into synthetic crude oil, and wind energy. Downstream is engaged in manufacturing; distribution and marketing activities for oil products and chemicals, in alternative energy (excluding wind), and carbon dioxide (CO2) management. Corporate represents the key support functions, comprising holdings and treasury, headquarters, central functions and Shell�� self-insurance activities. In October 2011, the Company bought a marine terminal on Canada's Pacific Coast as a possible site for a liquefied natural gas export terminal. In January 2012, the Company's 50% owned, Australia Arrow Energy Holdings Pty Ltd acquired all of the shares in Bow Energy Ltd. In January 2014, Royal Dutch Shell plc completed the acquisition of Repsol S.A.'s liquefied natural gas (LNG) portfolio outside North America.
Upstream International manages the Upstream businesses outside the Americas. It searches for and recovers crude oil and natural gas, liquefies and transports gas, and operates the upstream and midstream infrastructure necessary to deliver oil and gas to market. Upstream International also manages Shell�� entire liquefied petroleum gas (LNG) business, gas to liquids (GTL) and the wind business in Europe. Its activities are organized primarily within geographical units, although there are some activities that are mana! ged across the businesses or provided through support units.
Upstream Americas manages the Upstream businesses in North and South America. It searches for and recovers crude oil and natural gas, transports gas and operates the upstream and midstream infrastructure necessary to deliver oil and gas to market. Upstream Americas also extracts bitumen from oil sands that is converted into synthetic crude oil. Additionally, it manages the United States-based wind business. It comprises operations organized into business-wide managed activities and supporting activities.
Downstream manages Shell�� manufacturing, distribution and marketing activities for oil products and chemicals. These activities are organized into globally managed classes of business, although some are managed regionally or provided through support units. Manufacturing and supply includes refining, supply and shipping of crude oil. Marketing sells a range of products including fuels, lubricants, bitumen and liquefied petroleum gas (LPG) for home, transport and industrial use. Chemicals produces and markets petrochemicals for industrial customers, including the raw materials for plastics, coatings and detergents. Downstream also trades Shell�� flow of hydrocarbons and other energy-related products, supplies the Downstream businesses, markets gas and power and provides shipping services. Downstream additionally oversees Shell�� interests in alternative energy (including biofuels, and excluding wind) and CO2 management.
Projects and Technology manages the delivery of Shell�� major projects and drives the research and innovation to create technology solutions. It provides technical services and technology capability covering both Upstream and Downstream activities. It is also responsible for providing functional leadership across Shell in the areas of health, safety and environment, and contracting and procurement.
Advisors' Opinion:- [By Dividend Growth Investor]
The company�� last dividend increase was in April 2013 when the Board of Directors approved a 10.50% increase to 63 cents/share. The company�� largest competitors include Chevron (CVX), British Petroleum (BP) and Royal Dutch (RDS.B). In late 2012, I replaced Exxon Mobil with a position in ConocoPhillips.
- [By Sara Sjolin]
Oil firms were rising, tracking oil prices higher. Shares of BG Group PLC (UK:BG) �picked up 0.8%, BP PLC (UK:BP) � (BP) �added 0.6% and Royal Dutch Shell PLC (UK:RDSB) � (RDS.B) �inched 0.1% higher.
Top 5 Oil Stocks To Invest In 2014: LRR Energy LP (LRE)
LRR Energy, L.P (LRR Energy) is a limited partnership formed by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America. The Company�� 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. As of March 31, 2011, the Company�� total estimated proved reserves were approximately 30.3 million barrels of oil equivalent (MMBoe), of which approximately 84% were proved developed reserves. During the year ended December 31, 2010, approximately 55% of its pro forma revenues were from oil and natural gas liquids (NGLs) and approximately 37% of its total estimated proved reserves were oil and NGLs. As of March 31, 2011, the Company operated 93% of its proved reserves. Based on its pro forma average net production of 6,503 barrels of oil equivalent per day (Boe/d) for December 31, 2010, the Company�� total estimated proved reserves as of March 31, 2011 had a reserve-to-production ratio of approximately 12.8 years. In January 2013, the Company acquired oil and natural gas properties in the Mid-Continent region in Oklahoma from its sponsor, Lime Rock Resources. In April 2013, it announced that it closed its acquisition of oil and natural gas properties in the Mid-Continent region in Oklahoma.
The Company�� general partner, LRE GP, LLC, is controlled by Lime Rock Management LP. The Company�� general partner has sole responsibility for conducting its business and for managing its operations. The Company�� properties consist of mature, low-risk onshore oil and natural gas reservoirs with long-lived, predictable production profiles located across three diverse producing regions: 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. As of March 31, 2011, the Company�� estimated proved developed non-! producing reserves included 192 gross (158 net) recompletion, refracture stimulation and workover projects. In addition, as of March 31, 2011, the Company�� proved undeveloped reserves included 213 gross (140 net) identified drilling locations.
As of March 31, 2011, approximately 55% of the Company�� estimated proved reserves and approximately 44% of its pro forma average daily net production for the three months ended December 31, 2010, were located in the Permian Basin region. Approximately 60% of the Company�� estimated net proved reserves in the Permian Basin region are oil and NGLs. The Permian Basin is one of the oil and natural gas producing basins in the United States, extending over 100,000 square miles in West Texas and southeast New Mexico, and has produced over 24 billion barrels of oil. The Company owns an 83% average working interest across 665 gross (552 net) wells and operates approximately 92% of its properties in the Permian Basin. The Company�� estimated proved reserves for its Permian Basin properties as of March 31, 2011 totaled 16.6 MMBoe and had a standardized measure of $237.7 million, which represented 69% of the total standardized measure for all of its estimated proved reserves.
The Company�� properties in the Red Lake area is an oil-weighted field located in Eddy County, New Mexico. The Red Lake properties have produced approximately 4.9 MMBoe. The primary producing formations are the San Andres and Yeso at a depth of approximately 2,000 to 5,000 feet. The Company operates approximately 99% of its proved reserves in the Red Lake area, including 157 gross (144 net) producing wells in the field with an average working interest of 92%, and own a non-operated working interest in 10 gross (3 net) additional wells in the area with an average working interest of 31%. The Company�� properties in the field contained 9.6 MMBoe of estimated net proved reserves as of March 31, 2011, approximately 86% of which are oil and NGLs, and generated average n! et produc! tion of 1,410 Boe/d for December 31, 2010. These properties represented 32% of its total estimated proved reserves as of March 31, 2011 and 22% of the Company�� pro forma average net production for December 31, 2010. In addition, these properties had a standardized measure of $163.3 million as of March 31, 2011, which represented 48% of the total standardized measure for all of the Company�� estimated proved reserves.
The Company�� properties in the Pecos Slope area is a gas-weighted field located in Eddy, Chaves, Lea and Roosevelt Counties, New Mexico. The Company operates approximately 100% of its proved reserves in the Pecos Slope area, including 434 gross (382 net) producing wells in the field with an average working interest of 88%. The Company�� Willow Lake field is an oil-weighted field located in Eddy County, New Mexico. There are 41 gross (8 net) producing wells in this area with an average non-operated working interest of 19%. The Cowden Ranch area is an oil-weighted field located in Crane County, Texas. The Company operate s100% of its proved reserves in the Cowden Ranch area, including 8 gross (approximately 5 net) producing wells in the field with an average working interest of 71%. The Company�� properties in the Corbin and Vacuum have produced approximately 3.0 MMBoe. The Company operates 100% of its proved reserves in the Corbin and Vacuum areas, including 8 gross (8 net) producing wells with an average working interest of 100%.
As of December 31, 2010, approximately 33% of the Company�� estimated proved reserves and approximately 38% of its pro forma average daily net production for December 31, 2010 were located in the Mid-Continent region. The Company�� Potato Hills Area is an Arkoma Basin natural gas property located in Latimer and Pushmataha Counties in Southeast Oklahoma. The Company�� Reklaw properties have produced approximately 5.6 MMBoe. The Company operates 100% of its proved reserves in the Reklaw area, including 63 gross (61 net) pro! ducing we! lls in the field with an average working interest of 97%. Its properties in the Black Bayou-Doyle Creek area is a natural gas-weighted field located in Angelina, Cherokee and Nacogdoches Counties, Texas, in close proximity to the Reklaw area. The Company�� non-operated interest in 43 gross (approximately 12 net) producing wells in the field with an average non-operated working interest of 26%.
As of March 31, 2011, approximately 12% of the Company�� estimated proved reserves and approximately 18% of its pro forma average daily net production for December 31, 2010 were located in the Gulf Coast region. Approximately 31% of the Company�� estimated net proved reserves in the Gulf Coast region are oil and NGLs. The Company owns an 82% average working interest across 42 gross (35 net) wells and operates 100% of its properties in the Gulf Coast region. The Company�� property New Years Ridge area is a natural gas-weighted field located in DeWitt County, Texas. The Company�� George West-Stratton areas consist of natural gas-weighted fields located in Live Oak and Hidalgo Counties, Texas. The Company�� operates 100% of its proved reserves in the George West-Stratton areas, including 23 gross (17 net) producing wells in the George West-Stratton areas with an average working interest of 73%.
Advisors' Opinion:- [By Robert Rapier]
I am going to address LRR Energy LP (NYSE: LRE) and Memorial Production Partners LP (NASDAQ: MEMP) in an upcoming issue of MLP Investing Insider.
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