Seeking Alpha

TurnkeyOil's  Instablog

TurnkeyOil
Send Message
The Turn Key Oil community strives to be the leading source for oil & gas stocks and exchange traded funds (ETF) research and information. (This is not an offer to buy or sell securities. Oil investment carries very high risks. Please read our full disclaimer before making any decisions.)
My company:
TurnKey Oil
My blog:
Turn Key Oil
View TurnkeyOil's Instablogs on:
  • Stocks To Avoid When Adding To Your Portfolio $AXAS $AREX $CMLP $NSH

    When looking for stocks to invest in its also good to look out for ones you shouldn't. These are a few that are not doing so well and probably should be avoided at the moment. While they are not to be bought there is always value in knowing what a company shouldn't be doing for future reference.

    This week, the ratings of nine Oil and Gas stocks on Portfolio Grader are down. Each of these rates a "D" ("sell") or "F" overall ("strong sell").

    This week, NuSTAR GP Holdings (NYSE:NSH) falls to a D ("sell"), worse than last week's grade of C ("hold"). Nustar operates oil pipelines, terminals, and storage facilities. In Portfolio Grader's specific subcategories of Earnings Growth, Earnings Momentum, Earnings Revisions, and Sales Growth, NSH also gets F's. The trailing PE Ratio for the stock is 84.20. Over the past month, NSH shares have declined 2.2%. This is worse than the S&P 500′s 0.3% drop for the same period. For more information, get Portfolio Grader's complete analysis of NSH stock.

    (click to enlarge)

    Crestwood Midstream Partner (NYSE:CMLP) experiences a ratings drop this week, going from last week's C to a D. Crestwood Midstream Partners owns and operates fee-based gathering, processing, treating, and compression assets that serve natural gas producers in the Barnett Shale geologic formation in the Fort Worth Basin of north Texas. In Earnings Growth, Earnings Revisions, Earnings Surprise, and Sales Growth the stock gets F's. The stock has a trailing PE Ratio of 33.80. To get an in-depth look at CMLP, get Portfolio Grader's complete analysis of CMLP stock.

    Read Full Article Here: http://turnkeyoil.com/2012/11/22/stocks-to-avoid-when-adding-to-your-portfolio-axas-arex-cmlp-nsh/

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

    Nov 23 7:01 PM | Link | Comment!
  • Less Drilling Might Equal More Profit $CHK $QEP $RRC $SWN $UPL $WPX

    With drilling rigs dropping much faster than expected things are looking good for natural gas producers. Those that have been able to hold steady during this low have enjoyed a large increase as of late and are expected to gain more if this trend continues. Here are some of the companies that might see to profit most from the possible large increase in price.

    The Baker Hughes (NYSE:BHI) rig report on Friday showed an interesting divergence with the commodity markets. While natural gas has jumped some 60% in the past few months, the amount of rigs drilling for natural gas has plunged to lows not seen since 1999. In the last week, the natural gas rig count dropped another 15 to only 422. Last year, the count was 936.

    Recently Forbes released an article describing the depletion curve in the Eagle Ford as higher than expected. Not only does this change the investment thesis on some of the shale plays, but it also dramatically changes the production rates and hence future inventory levels. In fact, Forbes is forecasting $8 gas this winter due to these factors.

    Natural Gas Producers

    Natural gas producers stand to benefit from the higher gas prices due to reduced drilling. In a recent investor presentation, Chesapeake Energy provided this recent chart of the top natural gas producers in the U.S.:

    Chesapeake Energy (NYSE:CHK) - the company is the second-largest producer of natural gas, a Top 15 producer of oil and natural gas liquids and the most active driller of new wells in the U.S. The company's operations are focused on the Eagle Ford, Utica, Anadarko Basin, Mississippi Lime, Marcellus, Haynesville, Niobrara and Barnett shale plays.

    Read Full Article Here: http://turnkeyoil.com/2012/11/20/less-drilling-might-equal-more-profit-chk-qep-rrc-swn-upl-wpx/

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

    Tags: CHK, QEP, RRC, SWN, UPL, WPX, Oil and Gas
    Nov 20 11:04 AM | Link | Comment!
  • A Good Way To Hedge Your Bets $LINE

    Not many companies have been able to get around this downward trend in the price of natural gas. So seeing a company far outperform all of its competitors is hard to overlook. This one has figured out the secret to profiting off of natural gas even with its historic lows.

    With new technologies like hydraulic fracturing and horizontal drilling unlocking natural gas from shale basins that were previously inaccessible, gas prices have plummeted in the past few years. Since 2008, the price of gas has fallen from a high above $13 per thousand cubic feet (Mcf) to today's price of $3.50 - a 73% decline in a little more than four years.

    That sell-off has been a thorn in the side of energy companies.

    Aside from the effect on day-to-day profits, many companies have also been forced to make downward adjustments on the balance sheet. Earlier this year, BHP Billiton (NYSE:BHP) took a $2.8 billion impairment charge for gas assets in the Fayetteville Shale. BP plc (NYSE:BP) had to write off $2.11 billion. And the largest gas producer in Canada - Encana Corp. (NYSE:ECA) - had to write down $1.7 billion.

    But I've found one energy company that is prospering, despite low natural gas prices. In fact, this company has navigated the difficult pricing environment so well that despite gas prices trading at a third of where they were back in 2007, its stock price is actually up 81% in the past five years.

    Linn Energy (NASDAQ:LINE)

    (click to enlarge)

    Read Full Article Here: http://turnkeyoil.com/2012/11/18/a-good-way-to-hedge-your-bets-line/

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

    Tags: LINE, Oil and Gas
    Nov 20 11:00 AM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.