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  • Surfing The Volatility Curve With Jason Wangler

    There is money to be made as oil and gas prices fluctuate. Wunderlich Securities' Analyst Jason Wangler is no Pollyanna-he casts a cold, analytical eye on the volatility of the energy markets. In this interview with The Energy Report, Jason explains how to create a solid portfolio of attractive North American juniors-with lucrative side trips to South America and Africa.

    The Energy Report: Jason, you focus on the growth of junior oil and gas companies and the expansion of wells in the Midwest and Southwest of the U.S. What is the macroeconomic view of this sector so far this year?

    Jason Wangler: Energy is doing well. Oil and natural gas production is robust. The Bakken in North Dakota, the Niobrara in Colorado, and the Permian and Eagle Ford in Texas are all showing great results. Booming oil and gas production numbers are translating into solid earnings, cash flows and revenues for the juniors.

    TER: Is the price volatility of the past few years leveling out?

    JW: Oil and gas prices are driven predominantly by global economics. A couple of years ago, oil prices quickly dropped from $130-140 per barrel [$130-140/bbl] to $30/bbl. The price has now stabilized in the $90-100/bbl range. Energy markets are delicate from the supply and demand standpoint, but as long as there is not a significant downturn in the global economy, a series of significant drivers show that oil will remain in the $80+/bbl range, with less volatility.

    TER: What are the drivers?

    JW: On the supply side, growth in the U.S. is fantastic, but we remain a net importer of oil. We consume 10-11 million barrels per day [10-11 MMb/d] and we produce 6-7 MMb/d. That means that we import 3-5 MMb/d. We are playing catch-up with ourselves, so to speak, while the rest of the world is also looking for more oil and gas resources. Output by the Organization of the Petroleum Exporting Countries [OPEC], except for Iraq, is not growing as much as people had expected. And Russia could throw a monkey wrench in the market given the Ukraine situation. That said, demand generally tracks the growth of the world economy, and supply growth tracks demand/prices of the commodity.

    TER: In your last interview with The Energy Report, you spoke positively about Triangle Petroleum Corporation (NYSEMKT:TPLM). What's the latest with that Denver-based firm?

    JW: Triangle is doing a great job of building out its plans. Its focus is in the Williston Basin, the Bakken and the Three Forks area in North Dakota. It has boosted its production into the 10 thousand barrel a day [10 Mb/d] range. In addition to its exploration and production [E&P] business, it runs two other businesses that drive its revenue. One is a completion services company that can frack Triangle's own wells, as well as third parties' wells in the region. It owns a lot of pipeline infrastructure in the Bakken. The oil infrastructure in North Dakota is still very much in its infancy. Producers are using rail and trucks to move oil out of the basin. With its pipelines, Triangle is fairly self-sufficient. It really is a portfolio of energy companies, and all of its businesses are firing on all cylinders.

    TER: Does that split management's focus?

    JW: Triangle is predominantly focused on the E&P business-the actual exploration and production of its acreage. It has a CEO who separately runs RockPile Energy Services, the services company of which Triangle owns 100%. It also owns 40% of Caliber Midstream, which is the midstream portion. The other 60% of Caliber is owned by a private equity firm. There is not as much managerial work to be done there.

    TER: How do its financial fundamentals hold up?

    JW: Triangle's share price has done well of late. The winter months this year in North Dakota were very tough. But Triangle reported a solid quarter despite the weather issues. Its debt/cap ratio is in the 20-25% range, which is a bit below a typical E&P company's ratio. It will probably run up more debt as the company expands, but it is in a good position to grow without an equity raise.

    TER: Do you have any other picks in the Bakken?

    JW: In the Williston, which is a pure play, we like,Whiting Petroleum (NYSE:WLL). It has done a tremendous job of maximizing returns by reducing completion costs.

    Halcón Resources Corp. (NYSE:HK) has a nice Bakken position. It is moving down the tracks with impressive completion techniques that are generating 30-40% increases on the initial production rates. This property is Halcón's cash cow asset going forward. It is also in the Tuscaloosa Marine Shale in Louisiana and Mississippi. We are starting to see some interesting wells come in there. And in East Texas it is in the northern offshoot of the Eagle Ford.

    Floyd Wilson is now Halcón's CEO. He had tremendous success with his sale of Petrohawk Energy Corp., which was in the Eagle Ford. Wilson and his team have a lot of experience in the region and are starting to show good results in fields near Houston, as opposed to the fields around San Antonio, where the Eagle Ford started.

    TER: What other plays are you following in Texas?

    JW: The Permian in West Texas is the most profitable play in the U.S. The horizontal movement in the Permian has been very aggressive lately, and it is creating great value. The Permian has always had strong vertical well oil production, and now the horizontal wells can target individual zones. Firms can drill three, four, or five wells on the same swath of acreage in the different zones, effectively making five or six plays on top of each other. The pricing for the profitable acreage is going through the roof.

    Diamondback Energy Inc. (NASDAQ:FANG) is enjoying a good run in the Permian. It has only been public for a couple of years, but its stock price has quadrupled. Pioneer Natural Resources Co. (NYSE:PES) is the large player in the Permian game, but Diamondback is just as active and it controls a very nice chunk of Permian acreage.

    Resolute Energy (NYSE:REN) bought into the Permian near Diamondback. Resolute has a tremendous asset package. As we speak, it is selling some of its assets and looking to retool its balance sheet so it can expand its activities in the Permian-because the results there have been great.

    TER: Do you have any picks in the oilfield service sector in North America?

    JW: The services market is very tough because natural gas prices are depressed, to say the least. Services companies are struggling to keep their footing. The E&P companies have had the upper hand for a while, but that is starting to even out, which will benefit the service firms. Demand for best-in-class, high-specification rigs continues to increase.

    Pioneer Energy Services Corp. (PES) has state of the art equipment. Its utilization rate is 90%, versus the rate of 70% for older equipment in the services space. It is in the process of building more drilling rigs.

    On the compressor side of the business, Natural Gas Services Group Inc. (NYSE:NGS) and Tetra Technologies Inc. (NYSE:TTI) have nice inventories. When gas prices bounce back, there will be more demand for compression, because producers will need to maximize production.

    TER: Do service firm stock prices track the price movements of explorers and developers?

    JW: They are all tied together in the long-term perspective. In the short term, the service names are experiencing a tougher business environment than the E&Ps. Both spaces are predicated on energy prices. If oil and gas do well, the E&P companies will spend money drilling, and that means contracting with the oilfield services companies. Overall, the share prices of production and services firms move in tandem over extended periods.

    TER: We spoke previously about Harvest Natural Resources' (NYSE:HNR) plays in Venezuela and Gabon? How are those operations developing?

    JW: Harvest shareholders just voted to monetize its Venezuelan assets. The only thing left on the table for that deal is to get Venezuela itself to approve the sale. We think that will certainly happen. The buyer, Pluspetrol, has about 1 billion barrels [1 Bbl] in reserves. It is a South American company, so there is a cultural fit. Harvest will exit Venezuela with nice chunk of change, about $220M net, or $5/share on a $4.50 current stock price. Harvest is now talking about monetizing its sizeable position in Gabon. It does not have anymore debt, so the balance sheet is robust. And it does not have any properties outside of Gabon to spend the Venezuelan cash on. It could sell Gabon and spin off the cash to investors, or it could develop Gabon entirely on its own with the new money. It could also initiate a dividend, or buy back some shares.

    TER: What's the nature of the asset in Gabon?

    JW: It is a large offshore block. Harvest has four discoveries in the shallow waters off Gabon with significant proven resources that it could develop in the near term. It could have production going within 12-18 months on these four prospects. It also has a lot of deep water prospectivity in the region.

    TER: What other companies are successfully surfing the supply and demand curve?

    JW: Gulfport Energy Corp. (NASDAQ:GPOR) is on a tremendous run. Its Utica position is one of the best assets in the country. Its production this year is growing by 200%+, which is unheard of from an organic perspective-and it did it with cash flow!

    Bill Barrett Corporation (NYSE:BBG) is a Niobrara player with a really great asset in Colorado. As good results continue to emerge, people will flock to that name. Barrett has done a great job of turning the Colorado story around in the last 18 months. The Colorado property was a natural gas exploration play. With natural gas falling out of bed for five straight years, Barrett's debt level rose. It was still attacking natural gas, and this strategy was not going very well. There was a managerial change at the beginning of 2013, and the firm's focus has shifted toward oil development. It sold assets to improve the balance sheet. It brought the debt level back under $1B, to a 40-45% debt/cap ratio, when it had been in the 60% range. The new executives brought the asset portfolio down to a manageable level. Each property is a core asset.

    TER: Thank you for your time today, Jason.

    JW: Thank you, Peter.

    This interview was conducted by Peter Byrne of The Energy Report anc can be read in its entirety here. (5/22/14)

    http://www.theenergyreport.com/pub/na/surfing-the-volatility-curve-with-jason-wangler

    Jason Wangler has over five years of equity research experience focused on the exploration and production and oilfield services sectors of the energy space. Jason previously worked at SunTrust Robinson Humphrey and Dahlman Rose & Company before moving to Wunderlich Securities. He also previously worked at Netherland, Sewell & Associates, Inc. as a petroleum analyst. He received his Masters in Business Administration from the University of Houston where he was also named the 2007 Finance Student of the Year. He received his Bachelor of Science degree in Business Administration with a focus on Finance from the University of Nevada where he was named the 2003 Silver Scholar award winner for the College of Business Administration. In 2010 he was highlighted as a "Best on the Street" analyst by The Wall Street Journal and has been a guest on CNBC.

    Want to read more Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

    DISCLOSURE:
    1) Peter Byrne conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report, The Life Sciences Report and The Mining Report, and provides services to Streetwise Reports as an independent contractor. He owns, or his family owns, shares of the following companies mentioned in this interview: none.
    2) The following companies mentioned in the interview are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services.
    3) Jason Wangler: I own, or my family owns, shares of the following companies mentioned in this interview: None. I personally am, or my family is, paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
    4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.
    5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.
    6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

    May 22 7:05 PM | Link | Comment!
  • Survival Strategies In The Atacama Desert: Chilean Lithium Miners Manage By Playing The Regs

    Lithium is an essential component of batteries for small electronics and large electric vehicles as well as for materials for the housing and construction industry. In this interview with The Mining Report, economist Daniela Desormeaux, founder of signumBOX and widely quoted expert on industrial chemicals, shines a light on the lithium industry for investors looking for a new opportunity.

    The Mining Report: Daniela, thanks for joining us. What is the condition of the lithium space today?

    Daniela Desormeaux: Last year, lithium demand was lower earlier in the year than we expected. It was lower because the environmental and economic conditions were weaker than we previously thought. Now, demand is recovering, especially in the segment related to batteries and other applications that have glass and ceramics.

    Nevertheless, demand is closely related to the situation in China. Everything that is going on in China is very important for lithium demand, especially when it comes to demand for electronic devices and batteries. Now, we have a scenario where demand will grow about 6-7% this year. However, if China grows at a slower rate, the demand for lithium, of course, will slow down as well.

    On the other hand, the economies of Europe and the U.S. are recovering. So in those industries related to construction and housing where lithium is very important, we have seen a recovery as well because Europe and the U.S. are growing faster than in recent years. That's why we are more optimistic this year. We think that the demand will grow because of the U.S. and Europe, but we have to be very careful about the situation in China. This is on the demand side.

    On the supply side, new supply is coming into the market, mainly from Australian spodumene, which has a higher cost of producing compared with brine. Lithium can be obtained from brines contained underneath salars and from pegmatites, of which the most common source is spodumene.

    This new supply coming into the market has higher extraction and production costs compared to current lithium producers that extract lithium from salars in Chile and Argentina. So we are seeing more competition in the market, but at a higher cost. The situation has pushed prices up, but the market is becoming more competitive. We think that the market is balanced. The increased demand will be satisfied with this new supply, but with a little pressure on prices because of the higher production costs.

    TMR: You said the main source of demand in China is batteries. For what purpose-cars, electricity storage?

    DD: Currently the most important application in batteries is electronic devices and laptops: smartphones, mobile phones, cameras, laptops and tablets. Tablets are very important now.

    The lithium content in a battery is a relatively small quantity because the batteries themselves are small. But there are a huge number of smartphones, a huge number of tablets. These applications are the most important for batteries. If China grows slower than, for example, 7.8% or 7.5%, which is the estimated growth rate for this year, of course, consumption related to electronic devices also would expand at a lower rate. Obviously, this would impact lithium consumption because it's historically related to electronic devices. So if device consumption falls off in China, the situation would impact the battery industry.

    In the case of electric cars, these are huge batteries compared to the batteries for electronic devices. But this industry so far is developing; we haven't seen mass commercialization of these cars on the streets. Most of the automakers are developing electric cars, but the battery component, which is the most important, is still expensive. So these cars are still expensive.

    The best technology for the battery is still not known; there is no consensus on which battery is better for electric cars. Five years ago, many analysts thought that we were going to see plenty of electric cars on the streets by 2015. But so far, we haven't seen that. One of the reasons is the financial crisis in Europe. And after the crisis in the U.S. and the crisis in Europe, most governments didn't continue giving special incentives for this kind of purchase. So these cars are still very, very expensive. That's why we haven't seen this industry commercialize this kind of car on a massive scale.

    We think that commercialization is going to happen, perhaps by the end of the decade. We still have to spend time and money with research on batteries. I think this has a promising future but not now because there are still many issues that need to be solved. The safety of the batteries is one issue. The cost of the batteries is another issue. I think the industry is not ready to start a massive commercialization of electric cars.

    TMR: You said the source of demand in the U.S. and Europe is different from China's? Can you elaborate on that?

    DD: What I meant is that growth will be driven by other sources. Now, in the U.S. and Europe, we have seen that construction and housing activity are recovering from the crisis. The use of lithium, for example in glass and ceramics, is very related to housing and construction activities. That's why we believe that this recovery in the U.S. and Europe will have a positive impact on the use of lithium in those applications related to this industry. Batteries are important in the U.S. and in Europe, but the most important developments for batteries right now are in Asia, not in the U.S. or in Europe.

    TMR: Lithium-ion batteries have dominated the industry for a long time. Are there any other technologies that are on the horizon for batteries that could displace lithium?

    DD: We have seen some research about other technologies, but no viable commercial replacements for lithium. Lithium technology has a lot of advantages, and the research now is on trying to increase the battery performance and safety. After what happened with the Boeing 787 Dreamliner with the lithium battery, researchers are trying to focus on the improvement of lithium-ion batteries. There are other developments, but I don't see these other technologies replacing lithium-ion batteries in the near term.

    TMR: The price of lithium has fluctuated greatly in the last decade. What are you forecasting for the price?

    DD: I think the market is going to be balanced. The increasing demand will be satisfied by new supply. We are not going to see a tight market as we saw in the past. As I mentioned earlier, the new supply that is coming into the market has a higher marginal cost.

    In this industry, the price is driven by two factors. One factor is the balance between supply and demand. The second factor is the marginal cost of the last market entrant. If this new supply that is coming into the market continues to be produced from these minerals, which carry higher extraction costs, prices will be pushed, not because there isn't enough supply, but because of higher production costs.

    So it will depend basically on the commercial strategy of the lower-cost producers, who are mainly in Chile. If Rockwood Holdings Inc. (NYSE:ROC) decides to lower prices, we could see in the future lower prices. But doing that is not so simple.

    TMR: What is the price range for lithium right now?

    DD: It depends. When we talk about lithium, it is important to distinguish that there are many lithium compounds. You have lithium carbonate, which is the most important lithium compound. You have lithium hydroxide, lithium metal and butyl lithium, among others. But when we talk about lithium, we generally refer to lithium carbonate because it's the most important. About 60% of the total lithium in the world is sold in the form of lithium carbonate.

    Lithium carbonate's price ranges between $5,500 and $7,000 per ton [$5,500-7,000/ton], depending on the grade. There is technical-grade lithium carbonate for glass and ceramics, and there is also battery-grade lithium carbonate, which has a higher purity and smaller particle size. Battery-grade lithium carbonate, of course, is more expensive, in the range of $6,500-7,000/ton.

    TMR: Thanks, Daniela. I appreciate your time.

    This interview was conducted by Tom Armistead of The Mining Report and can be read in its entirety here. [5/20/14]

    http://www.theenergyreport.com/pub/na/survival-strategies-in-the-atacama-desert-chilean-lithium-miners-manage-by-playing-the-regs

    Daniela Desormeaux is an economist and an expert in industrial chemicals and natural resources. Prior to forming signumBOX, she was strategic marketing manager at Sociedad Química y Minera de Chile, where she was responsible for market intelligence on lithium, iodine and other industrial chemicals.

    Want to read more Mining Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see recent interviews with industry analysts and commentators, visit The Mining Report homepage.

    DISCLOSURE:
    1) Tom Armistead conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report, The Life Sciences Report and The Mining Report, and provides services toStreetwise Reports as an independent contractor. He owns, or his family owns, shares of the following companies mentioned in this interview: None.
    2) The following companies mentioned in the interview are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services.
    3) Daniela Desormeaux: I own, or my family owns, shares of the following companies mentioned in this interview: Li3 Energy Inc., RB Energy Inc., Galaxy Resources Ltd., Sichuan Tianqi Lithium Industries, Nemaska Lithium Inc. I personally am, or my family is, paid by the following companies mentioned in this interview: None. My company has no financial relationships with any of the companies mentioned in this interview, apart from those related to signumBOX's subscription service. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
    4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.
    5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.
    6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

    Streetwise - The Minig Report is Copyright © 2014 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material [i] only in whole [and always including this disclaimer], but [ii] never in part.

    Streetwise - The Minig Report is Copyright © 2014 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Mining Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110
    Petaluma, CA 94952

    Tel.: (707) 981-8999
    Fax: (707) 981-8998
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    May 20 1:30 PM | Link | Comment!
  • Fadel Gheit: Lift Oil Export Ban, Free Domestic Profits And Defeat Russia

    Oppenheimer & Co. Managing Director and Senior Energy Analyst Fadel Gheit knows how to thwart Russia's aggressive tendencies and encourage domestic oil and gas production: Lift the ban on oil exports. In the absence of a strategic U.S. energy policy, some companies will do better than others. In this interview with The Energy Report, conducted during earnings season, Gheit shares some of his insights on which companies have catalysts with bottom-line impacts.

    The Energy Report : We recently interviewed Matt Badiali and he talked about what a boon the conflict in Ukraine has been for U.S. refineries. Are you seeing the same effect? What about opportunities in Europe as countries try to diversify away from dependence on Russian oil and gas?

    Fadel Gheit: U.S. refiners benefit from the wide Brent/WTI discount. The Russian invasion of Ukraine has increased global tension, boosted Brent prices and widened the differential. With this cost advantage, U.S. refiners are able to significantly increase refined product exports, mainly to Latin America and Europe, which tightened U.S. supplies and boosted margins, despite flat demand.

    Unfortunately, the U.S. does not have an energy policy, and we still have a ban on exporting crude oil, which has been in effect for 40 years. Even with the Russian invasion, we seem paralyzed, confused and unable to respond to Russia's aggression. Lifting the export ban and supplying Europe with oil and refined products would reduce dependence on Russian oil and lower global oil prices, which in turn would hurt Russian exports and boost the economies of the U.S. and Europe.

    TER: In your last interview, you talked about the impact of instability in the Middle East on companies like Apache Corp. (NYSE:APA). Do you see the situation stabilizing there? Are you more comfortable with companies operating in Egypt and Turkey?

    FG: I believe the Middle East will remain volatile and unstable-not an attractive business environment. Apache sold 30% of its interests in Egypt to Sinopec, which is a step in the right direction. The sooner Apache exits Egypt and uses the proceeds to buy back stock, reduce debt and increase investment onshore in the U.S., the better off the shareholders will be. Why invest in Egypt or Turkey when you have the huge energy resources we have in the U.S.?

    TER: You also said natural gas prices in North America are severely depressed compared to the rest of the world. You called that a good thing because it would result in a second industrial renaissance. Are you still bullish on the prospects for natural gas as an economic engine for the U.S.?

    FG: Low natural gas prices are good for the consumer and drive U.S. manufacturing. But I also believe in free trade, and the U.S. government should allow LNG exports to higher-price markets, mainly in the Far East and Europe. If we had built large LNG export terminals, we could have significantly reduced Europe's dependence on Russian gas.

    TER: What companies are benefitting from the fracking boom?

    FG: Domestic oil and gas producers, as well as oil service companies. Infrastructure and transportation companies are also joining the party, despite regulatory hurdles.

    TER: How are the large, integrated oil companies faring in the new energy environment? What catalysts are you watching during earnings season?

    FG: The stocks of the large international oil companies have not performed well in the last 10 years, as they lagged all other energy sectors and the market in general. They are viewed as defensive investments, but offer no real growth. They have above-market dividend yield, but are not attractive enough for investors who favor the pure plays of refiners or oil and gas producers.

    We will be watching production growth, cost trends, capital spending and plans to return cash to shareholders in the form of dividends and share buybacks.

    TER: What about the prospects for the large independent exploration and production [E&P] companies?

    FG: The large E&P companies are more attractive than the integrated companies, less volatile than the refiners and more stable than the small producers. Each has a catalyst. Anadarko Petroleum Corp. (NYSE:APC) benefited from a legal settlement, Apache benefited from restructuring, and so did Hess Corp. (NYSE:HES) and Murphy Oil Corp. (NYSE:MUR). EOG Resources Inc. (NYSE:EOG) and Pioneer Natural Resources (NYSE:PXD) benefited from oil production growth, while investors are waiting for the restructuring of Occidental Petroleum Corp. (NYSE:OXY) to take place. Marathon Oil (NYSE:MRO) and Devon Energy Corp. (NYSE:DVN) have lagged, but offer the lowest valuations in the group. Cabot Oil & Gas Corp. (NYSE:COG) and Range Resources Corp. (NYSE:RRC) will continue to reflect natural gas prices and additional pipeline capacity, which have constrained production growth.

    As I mentioned in a recent research report, with higher production growth than the majors, a higher dividend yield and a lower valuation than E&P peers, ConocoPhillips (NYSE:COP) offers an alternative to both groups. We raised our 12-18 month price target to $85 from $80 to reflect an improving outlook on stronger financial and operating results and rated them outperform.

    TER: Thank you for your time Fadel.

    FG: Thank you.

    This interview was conducted by JT Long of The Energy Report and can be read in its entirety here. [5/15/14]

    http://www.theenergyreport.com/pub/na/fadel-gheit-lift-oil-export-ban-free-domestic-profits-and-defeat-russia

    Fadel Gheit , an energy analyst since 1986, is a managing director and senior analyst covering the oil and gas sector for Oppenheimer & Co. He has been named to The Wall Street Journal All-Star Annual Analyst Survey four times and was the top-ranked energy analyst on the Bloomberg Annual Analyst Survey for four years. He is frequently quoted on energy issues and has testified before Congress about oil price speculation.

    Want to read more Energy Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

    DISCLOSURE:
    1) JT Long conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report, The Life Sciences Report and The Mining Report, and provides services to Streetwise Reports as an employee. She owns, or her family owns, shares of the following companies mentioned in this interview: None.
    2) The following companies mentioned in the interview are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services.
    3) Fadel Gheit: I own, or my family owns, shares of the following companies mentioned in this interview: Devon Energy Corp. and ConocoPhillips. I personally am, or my family is, paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
    4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.
    5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.

    6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.

    Streetwise - The Energy Report is Copyright © 2014 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Energy Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110
    Petaluma, CA 94952

    Tel.: (707) 981-8204
    Fax: (707) 981-8998
    Email: jluther@streetwisereports.com

    May 15 4:48 PM | Link | Comment!
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  • "We reiterate our Strong Buy rating for $EXXI"-Andrew Coleman. Read more: http://ow.ly/AAjuP
    about 4 hours ago
  • " $FCUUF's drill results have tremendously increased our confidence in PLS"-Bhakti Pavani. Read more: http://ow.ly/AAjiT
    about 4 hours ago
  • " $NRG.CA's project pipeline is both diverse and maturing"-Michael Niehuser. Read more: http://ow.ly/AAj3M @AlterNRG
    about 4 hours ago
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