2011 Energy Stock Stars
Who doesn’t want to be a star in their own industry? Everyone is striving to be the best, and the energy industry is one of the biggest industries play this game. Only a few get the honor of being star stocks, so investors be sure to take note of the stocks below. Investment Underground gives us all the details on why these a great stock picks and how they will maintain their star qualities.
Kinder Morgan, Inc. (KMI) KMI is a leading pipeline transportation and energy storage company in North America. It owns an interest in / operates more than 37,000 miles of pipelines and 180 terminals.
Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel.
ATP Oil and Gas (ATPG): The comedians at JP Morgan provided shareholders with entertainment by valuing the company at $10 per share last fall. It has since doubled in price, and then fallen back, creating a clear buying opportunity for interested investors. We think buying shortly after options expiration is the best bet given potential manipulation around options expiration as the price plummets to render certain options worthless.
GMX Resources (GMX) is an oil and natural gas production company based out of East Texas. GMX concentrates most of its drilling in the Haynesville Shale but recently added oil exploration in the Bakken formation in North Dakota and the Niobrara formation in Wyoming to diversify its holdings.
Range Resources (RRC) explores and produces natural gas in the U.S. RRC owns 2 million net acres across the U.S., including positions in the Permian Basin, Mid-Continent region, gas fields in southwestern Virginia, and 800,000 fairway acres in the Marcellus, one of the premier shale gas plays in North America. Like GMX, the biggest issue for Range in the future will be depressed gas prices.
TransOcean (RIG) Transocean, involved in the British Petroleum oil disaster, has a market cap of $25B, and is trading on a forward P/E of 9.4. RIG is the largest offshore driller in the world, and will certainly benefit from the re-opening of drilling in the Gulf of Mexico. The firm appears to be past any financial obligations resulting from the BP disaster, and has a fairly strong balance sheet.
SandRidge Energy(SD) This company announced on April 4 last year that it will acquire Arena Resources for $40 per share or $6.2 billion. This represented a 17% premium for Arena shareholders.This also positioned SandRidge as one of the largest producers of West Texas conventional oil and gas.
These start stocks are going to stay strong and hold their gusto for investors to make a little cash. There is a big a variety in this group as well. Some are onshore, and others are offshore. Some are working those shale plays like no ones business. With the variety present in this group, I hope you can find an investment that interests you.
Quotes taken from report by Investment Underground, Read the entire article here.
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