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  • Marin Katusa: Winter Is Coming - How Investors Can Win In The 'Colder War'
    Yesterday, 2:21 AM BASFY, OGZPY, UEC 2 Comments

    Summary

    • One must understand global politics and the Colder War to be a successful investor in the energy sector.
    • Latin America has great potential for resources, both energy and metal.
    • Oil is coming to the point where it's becoming unloved, which is exactly when you want when you expose yourself to a sector.
  • Angelos Damaskos: Juniors That Insulate Investors From Today's Low Oil Prices
    Sat, Nov. 15 SALDF, OPHRY Comment!

    Summary

    • Oil shale wells decline 50–70% in their first year of production; companies need to keep on drilling to maintain production.
    • Oil prices at current levels mean that shale companies will find it much more difficult to finance their capital programs.
    • Relatively smaller companies not widely covered by the investment community can often provide exceptional value.
  • Uranium Spot Price Spikes On Good News...And It's Not All From Japan
    Thu, Nov. 13 URA 2 Comments

    Summary

    • Uranium spot price received a major boost when approval to restart two nuclear reactors at the Sendai power plant in Japan was announced.
    • Trading is still thin, but the makeup of the bidders has changed a lot recently and sellers are getting less needy to sell.
    • Given utilities' need for supply, the market should prepare itself for a new wave of contracts in 2015.
  • Hunting On The Backbone For Valuable Master Limited Partnerships With Hinds Howard
    Fri, Nov. 7 AMLP, APC, EPB 5 Comments

    Summary

    • We expect MLP distribution growth rates to remain at historic levels for the next few years.
    • MLPs are compelling relative to other yield-based equities partly because MLPs focus on building out capacity, rather than growing through expensive acquisitions.
    • Dropdown MLPs really outperform, as they buy assets from the parent company over time.
  • Bob Moriarty Says $80 Oil Is The New Normal Minimum
    Fri, Nov. 7 POEFF, TRCH 3 Comments

    Summary

    • The U.S. will never have energy independence.
    • Saudi Arabia doesn't care about shale oil, because shale oil is not economic.
    • We are experiencing a natural correction, primarily due to slowdowns in Europe and China.
  • Colin Healey: Suppressed Uranium Price Shouldn't Keep Hedged Producers And Promising Explorers Down
    Wed, Nov. 5 CCJ, UEC, UUUU Comment!

    Summary

    • We expect a sustainable rally in the uranium spot market to coincide with progressive increases in the term price over the next 24 months.
    • Prices remain low as the market continues to be oversupplied, as much as 30% of current primary supply is thought to be uneconomic at current spot prices.
    • New reactor fuel loadings require about three times more uranium than the average annual burn of the same reactor, increasing demand when a fixed pipeline of new reactors comes on-line.
  • The Tao Of Investing In The Renewable Energy Market: Practice Patience, Not Panic, Says JinMing Liu
    Mon, Nov. 3 APD, CVA, DAR 2 Comments

    Summary

    • The risk associated with cleantech and renewable energy is higher than with more mature, bigger companies.
    • Lithium batteries have the most promising growth profile, for the very simple reason that lithium batteries offer very high energy density.
    • In this kind of environment, it's smart to invest in companies that are less volatile - in more defensive stocks.
  • Stansberry's Matt Badiali On The Companies That Could Thrive In A Cheap Oil And Gas World
    Fri, Oct. 31 ALJ, BHP, BTU 8 Comments

    Summary

    • Cheap energy trumps cheap labor any day.
    • The entire oil sector has just gone on sale, including the companies building the infrastructure.
    • Peak oil is no longer a problem, but peak storage is.
  • Credit Suisse Expert Targets MLPs That Could Increase Dividends And Yields In 2015
    Fri, Oct. 24 ENLC, ENLK, EPD 1 Comment

    Summary

    • MLPs are fee-based, so they have minimal direct commodity risk.
    • As long as oil prices stay above $80 a barrel, we think producers will continue to produce.
    • The preponderance of long-term contracts results in stable revenues for midstream MLPs.
    • Areas in West Texas with rising productivity will create demand for more assets.
  • Energy Master Limited Partnerships Go Mainstream: Baird's Ethan Bellamy
    Fri, Oct. 10 CELP, EPD, LGCY 2 Comments

    Summary

    • MLPs get the liquidity benefits of publically traded securities, coupled with the tax efficiencies and merits of a partnership.
    • It is sometimes misconstrued that MLPs are tax-free. In fact, they are not.
    • Oil price fragility could generate an outsize impact on upstream MLPs, and these partnerships are not all created equal.
  • Oil And Gas Investor Editor Leslie Haines: We Will Never Stop Importing Oil, But We May Start Exporting
    Fri, Oct. 3 CHK, COG, CXO Comment!

    Summary

    • We're never going to stop importing oil because supply diversity is prudent.
    • Both oil and natural gas production in this country are the highest in about 35 years.
    • There is an enormous demand for rig crews, frack crews and all the associated equipment and materials.
  • Kal Kotecha: Going Against The Grain In The Junior Resource Market
    Wed, Oct. 1 GLD, SLV, IAU Comment!

    Summary

    • Investment success doesn't come from buying good things, but rather from buying things well.
    • Junior mining companies should be judged by their ownership of mines, the quality of these mines and how management has executed similar projects in the past.
    • I don't think we will see double-digit growth for China any time soon, but I believe it can live up to its billing as the next economic super power.
  • Looking For Lithium Mega Deals With Thibaut Lepouttre
    Fri, Sep. 19 CCJ, OROCF, TM 4 Comments

    Summary

    • The demand for lithium is on a nice growth curve.
    • The good thing about the U.S. is that domestic production of phosphate covers all its consumption.
    • We expect a global uranium supply shock in 2015.
  • Where To Look For Yield During A Time Of Low Gas Prices: Elliott Gue
    Fri, Sep. 12 ALDW, BHI, CELP 2 Comments

    Summary

    • The biggest winners are going to be companies that consume gas, rather than companies that produce gas.
    • Due to the lack of pipeline capacity, there is a glut of crude oil in certain parts of the U.S.
    • I see a lot of value in new MLP listings.
  • Malcolm Gissen And Marshall Berol: Welcome To The Golden Era Of Oil And Gas
    Fri, Sep. 12 BXE, CNNEF, COP 5 Comments

    Summary

    • Even as fuel efficiency increases and technologies improve, oil will remain the No. 1 fuel type, with natural gas supplanting coal as No. 2.
    • Fracking is not a short-term solution, but a permanent one. It is here to stay.
    • Buyouts are an attractive way to go when all the metrics are there: properties, finances and good management teams.
  • Oil Field Services Surprise: Brandon Dobell On The Upstart That Could Compete With The Big 3
    Fri, Sep. 5 CJES, IMASF, NBR 1 Comment

    Summary

    • Most conventional basins are economical at current oil price levels.
    • The path of least resistance is for oil prices to move lower, but the lack of global spare capacity continues to influence overall commodity prices.
    • Well completions are driven more by science and less by horsepower, which tends to generate better initial production or better decline rates.
  • Ethan Park Expects To Harvest A Bumper Crop From Potash And Phosphate Juniors
    Thu, Aug. 28 CF, GQMLF, MOS 1 Comment

    Summary

    • The phosphate supply-and-demand equation looks good for the juniors.
    • Phosphate firms without a captive rock supply are finding it difficult to secure supply.
    • The macroeconomic fundamentals for MOP are rather bleak, but fundamentals for SOP demand are robust and promising.
  • Canaccord's Luke Smith: Five Aussie Companies With Cash Flows, Low Costs And MOUs
    Wed, Aug. 27 ACH, NCMGY, OROCF 1 Comment

    Summary

    • One aspect about gold mining is that companies can react relatively quickly to lower prices, unlike iron ore and coal companies.
    • From the smaller gold miners to the larger, companies are making the changes necessary to maintain margins.
    • We have seen all-in costs drop between $100/oz and $300/oz for most of the companies we cover.
    • The decrease of Indonesian nickel has already been positive for Australian nickel producers and explorers and the nickel price on the London Metals Exchange.
  • Musings On The Second Great Recovery Experiment And The Promise Of Natural Gas: Ron Muhlenkamp
    Fri, Aug. 22 CLNE, HAL, REXX 3 Comments

    Summary

    • The 2008 recession shared a distinction with the 1980-82 recession: Each, at the time, was the most serious recession since the Great Depression of the 1930s.
    • It's far more expensive to hire someone today than it was back in 1996. We believe that is why employment growth in the latest expansion has been so slow.
    • We're currently in the process of cutting energy costs in this country in half. It's already happened for consumers who heat with natural gas, but few are aware of it.
  • Looking For The Next Big Thing? Jason Sawatzky Has A Suggestion
    Fri, Aug. 8 CESDF, CYSVF, NWLTF 1 Comment

    Summary

    • We are very bullish on Canadian oilfield services heading into the second half of 2014 and on to 2015.
    • Large increases in gas storage levels in the U.S. have been the reason for the more recent pullback in gas prices.
    • U.S. LNG projects have a head start over Canada, as the U.S. already has infrastructure in place for imports. The U.S. is now converting its plants to export.
  • Africa: New Land Of Opportunity? Ashley Kelty Points To The Positives
    Fri, Aug. 1 BRGYY, CCAXF, GLCNF 4 Comments

    Summary

    • Explorers have been going for the lower-hanging fruit in some of the established basins, but much in Africa is relatively unexplored.
    • The disruption to Japanese nuclear power has helped LNG prices. . .the question is whether large companies are willing to press the button in East Africa.
    • The UK government is very keen to see the basement reservoirs developed, and is making noise about offering tax losses for the basement play.
  • Steve Palmer Buys The Summer Sleepers
    Fri, Jul. 25 1 Comment

    Summary

    • We believe the TSX.V will really heat up in the fall. The smart money has already started getting back into the junior sector.
    • We tend to avoid companies where there is little room for error in terms of cost of production versus the selling price.
    • The summer lull is a great time to invest, because the stock markets will likely reenergize in the fall.
  • Catalyst Check: Updating The Progress Of Energy Stocks On The Natural Resources Watchlist
    Fri, Jul. 18 NSFDF, CNKEF, DVN 1 Comment

    Summary

    • The Natural Resources Watchlist is up 14% as of July 17, 2014.
    • Iraqi insurgents are not likely to impact the region’s oil fields, which will keep oil prices down.
    • 'Normal insanity' had not yet returned to the mining market.
  • Jeb Handwerger: Are You Ready For Doubles And Triples In Uranium Mining Stocks?
    Fri, Jul. 11 CCJ, TSLA, URG 13 Comments

    Summary

    • Nuclear is going to be extremely important for the Chinese over the next generation.
    • The key is the battle of wills going on in Eastern Europe right now.
    • We're just beginning to see base metals and commodities turning the corner from the financial crisis of 2008.
  • Are You Ready To Capitalize On Emerging World Growth And U.S. Oil Independence?
    Fri, Jun. 27 BHI, BPT, CDLRF 4 Comments

    Summary

    • With 400 million more people set to get on the grid in India alone, smart investors will profit from new demand for all kinds of energy.
    • Juniors are investing in shales domestically and internationally.
    • Large oil equipment and services companies are an opportunity.
  • What Is Chen Selling? 1 Of His Tenbaggers. What Is Chen Buying? 2 Others With 10-Bagger Potential
    Thu, Jun. 26 GPRE, LSTMF, PCCYF 8 Comments

    Summary

    • Chen Lin doesn't get attached to stocks, only to profits.
    • China remains a big challenge, as well as a big opportunity.
    • Pacific Ethanol was one of my biggest winners in the past 6–12 months.
  • Brent Cook's Tips For Finding Juniors That Can Survive The Dust Bowl
    Wed, Jun. 25 AUY, BTG, DRLDF 1 Comment

    Summary

    • The majors, on average, have all-in production costs that are higher than the gold price right now.
    • Although the majors will improve their earnings this year, in 2015 and 2016, their mines won't be making much money.
    • Buy the companies that have the prospects or the people capable of finding the deposits that will be the leaders when the bull market comes back to the sector, as it will.
  • Randall Abramson: Juniors Clean Up Behind The Elephant Hunters
    Fri, Jun. 20 LEGPF, MRELF, NTI 3 Comments

    Summary

    • I think Northern Tier is getting closer to fair value.
    • What we like about Legacy is its high netbacks.
    • Legacy is growing its fair value.
  • Bill Bonner: Invest In Canada's Wild West
    Fri, Jun. 13 BXE, CRCTF, DALXF 2 Comments

    Summary

    • The crude-by-rail option has become an important variable in moving Canadian crude into the right markets. Rail is having a positive effect on the domestic price of oil.
    • There is a significant lift in domestic production in the U.S., so the real debate is whether the pace of lifting production can continue. I expect it to increase.
    • If a company has $30M cash flow and wants to drill in North Dakota, it will cost $10M to drill three wells.
  • The Next Billion (Barrels Of Oil): T. Boone Pickens Calls For Energy Plan At Stansberry Society Event
    Thu, Jun. 12 BHP, DVN, EOG 12 Comments

    Summary

    • I moved to Dallas from West Texas in 1989 worth about $25 million. I ran that $25M up to $4 billion by 2007.
    • This country desperately needs an energy plan; we're the only country in the world without one.
    • Eliminating Middle East imports is important because some portion of the money for oil purchased from OPEC inevitably goes to the Taliban.
  • What To Look For In An E&P Company: Foucaud's Secrets For International Investing
    Fri, Jun. 6 CCAXF, ENQUF, HGOCF 2 Comments

    Summary

    • Oil and gas valuations are becoming so attractive that industry is stepping in, expecially U.K.-listed names and international names.
    • In Canada, we have also seen a recovery of gas prices, and domestic Canadian names are coming back.
    • Africa has so many opportunities and so much exploration upside.
  • Surfing The Volatility Curve With Jason Wangler
    Fri, May. 23 BBG, FANG, GPOR 2 Comments

    Summary

    • Oil and gas prices are driven predominantly by global economics.
    • On the supply side, growth in the U.S. is fantastic, but we remain a net importer of oil.
    • The services market is very tough because natural gas prices are depressed, to say the least.