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Read Full Article Here: http://turnkeyoil.com/2012/12/12/watch-for-the-drop-chk/

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The Bakken formation is a large unconventional resource that underlies most of the western portion of North Dakota and Eastern Montana. This oil shale formation is located in what is called the Williston Basin. This formation is a rich deposit that the U.S. Geological Survey calls the largest continuous oil accumulation it has ever evaluated. There are currently over 6,617 oil wells in North Dakota, and that number is anticipated to increase as more oil is extracted.

The Bakken Formation consists of three levels: Upper shale, Lower Shale, and the Middle Member, which is a dolemetic sandy layer. The Middle Member of the Bakken is flooded with oil and gas at high pressures.

Montana oil production dates back to the 1950s. By the year 2000, the entire state of Montana produced 18 million barrels of oil. Four years later, this figure doubled to 36 million barrels due almost entirely to the application of horizontal drilling in the Bakken, most particularly in the Elm Coulee Field in Richland County Montana.

Read Full Article Here: http://turnkeyoil.com/2012/12/08/companies-going-big-in-bakken-xom-clr-kog-sto-eox/

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Billionaire Stanley Druckenmiller is one of the most renowned hedge fund managers of all time. His macro hedge fund, Duquesne Capital, which was shut down in 2010, was one of the most successful in the hedge fund industry, returning on average 30% per year, net of fees. At the time of closing, Duquesne Capital managed $12 billion in assets. Druckenmiller initially gained his reputation as a manager at George Soros' Quantum Fund, where he had earned more than $1 billion in a day on a short position that benefited from a forced devaluation of the U.K. pound. Today, with net worth of $2.7 billion, Druckenmiller runs a family office that manages some of his wealth.

The latest picks in Druckenmiller's portfolio have been revealed in his fund's most recent 13F filing with the Securities and Exchange Commission. He initiated new positions in U.S. energy giants, Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX), which, respectively, now represent his first and fourth largest holdings. Here is a closer look at Druckenmiller's five new picks that are paying attractive dividends.

Exxon Mobil Corporation is the single largest position in Druckenmiller's third-quarter portfolio, worth more than $123 million at the end of the quarter. Exxon Mobil is the world's largest integrated oil and natural gas company, with a market capitalization of $396 billion. The company is also the biggest dividend payer in the world. The energy behemoth pays a dividend yield of 2.6% on a payout ratio of 24%. Its competitors Chevron, ConocoPhillips (COP), and BP Plc (BP) pay dividend yields of 3.5%, 4.8%, and 5.4%, respectively. Over the past five years, Exxon Mobil's EPS and dividends grew at average annual rates of 5.0% and 9.7%, respectively. The company's 5-year CAGR is forecast at 6.3%. The company is likely to benefit from higher oil output and prices, as it boosts oil exploration and production from shale formations in North America. It is also going to benefit from a rebound in natural gas prices, given that, due to recent acquisitions, Exxon Mobil is more leveraged than its biggest competitors toward natural gas. The company is also more reliant on low-margin refining revenues than its competitors. The company has a very solid financial position and provides a total return on equity of 27%. Exxon Mobil has a forward P/E of 11.1, trading at a premium to its respective industry (with a forward P/E of 8.9, on average) and 8.6 for its rival Chevron. The stock is up 11.8% over the past 12 months. Billionaire Ken Fisher is also bullish about Exxon Mobil.

Read Full Article Here: http://turnkeyoil.com/2012/12/06/billionaire-hedge-fund-manager-reveals-latest-picks-cvx-xom/

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Exxon Mobil was asked in its Q3 conference call if the decline in drilling rigs directed at their unconventional natural gas acreage was going to result in pretty rapid declines in production in 2012. Exxon' reply was:

We will see how things go. I will tell you, in some areas, we've been actually able to keep the volumes flat, while reducing the rigs due to efficiencies we have gained, rates of drilled wells and that sort of thing. So we have been able to offset some of this decline in rigs with some improved operations and productivity.

Chesapeake is the number two producer in the country and has been responsible for a lot of the drilling that has been done at what have been uneconomic prices. You don't have to go far into the Chesapeake third quarter call to find some pretty interesting comments about what the company thinks will happen with natural gas in 2013. CEO Aubrey McClendon observed:

Read Full Article Here: http://turnkeyoil.com/2012/12/04/top-producers-speak-about-natural-gas-future-apc-chk-eca-upl-xom/

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Kodiak Oil and Gas (KOG) can be considered a buy based on two factors: an investor's view of future Bakken oil prices and KOG's ability to continue to both increase its production and reduce its well costs as CEO Lynn Peterson has said it will do, and as the company has been doing.

KOG has achieved a hockey-stick increase in Bakken oil production from 3,953 BOE/D in the third quarter of 2011 to 15,855 BOE/D in the third quarter of 2012. Operating income increased similarly, from $11.3 million in 3rd quarter of 2011 to $36.3 million in the third quarter of 2012. Although the stock has a steep trailing price-earnings ratio of 37, its forward price-earnings ratio is 12.5. Discounted in its current share price is KOG's solid position as one of the leading drillers in a prime US oil basin. Lagniappe is its status as a potential takeover target. Owning KOG is as close as an investor can get to owning oil without possessing the physical barrels.

KOG has a robust 53% ratio of liabilities to assets, 155,000 net Bakken acres, and expects to exit 2012 producing 27,000 BOE/D. Its current production is about 20,000 BOE/D, and 86% of its reserves are oil.

Read Full Article Here: http://turnkeyoil.com/2012/12/02/kodiak-keeps-charging-forward-kog/

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

After trailing the market since 2010, energy services stocks Diamond Offshore (DO) and Noble Corporation (NE) are starting to show signs of life again.

Earnings are reversing their late decade slide.

At Diamond Offshore, earnings per share peaked at $9.89 in 2009 before retreating to $4.63 in 2012. However, this year may be the trough for earnings. Analysts are projecting a return to earnings growth in FY13, with consensus looking for a 14% lift to $5.27. This would mark the most substantial percentage gain in earnings since 2008.

At Noble, earnings similarly peaked in 2009, at $6.41, before retreating to $1.30 in 2011. In 2012, they're expected to increase 75% to $2.28 and in FY13, they're expected to climb another 91% to $4.35.

Read Full Article Here: http://turnkeyoil.com/2012/11/30/drilling-companies-making-a-comeback-do-ne/

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.