Keeping on the topic of NGL from yesterday, we are moving on to Devon Energy. Looks like NGL are also doing them some good! How much is it helping? Let’s look to Aimee Duffy for the answer.

For the full year
Liquids, you see, are keeping Devon afloat. The company’s sales of oil, gas, and natural gas liquids increased 14% in 2011, but liquids accounted for a whopping 60% of total upstream revenues. As a result, Devon’s full-year report was full of good news.

Net earnings for 2011 squeaked out an improvement over last year, coming in at $4.7 billion compared with $4.6 billion in 2010. The company generated a substantial increase in cash flow compared with last year, growing 23% to $6.5 billion. Annual revenue was also up, increasing 15% to $11.5 billion.

The company also announced that it is raising its dividend 18%, from $0.17 to $0.20 per share. The dividend is payable to shareholders on March 30, going ex-dividend on March 15. Devon has an excellent dividend history, increasing its payout seven times for 800% growth.

Look like NGL may have really saved DVN from some serious issues. Will this be the rise of NGL with companies really cashing in? Only time will tell, but I would say its worth watching!

Quotes taken from report by Aimee Duffy, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

Let’s look at a little less traditional energy sources, natural gas liquids. We haven’t posted much about NGL producers, but we want to bring in something a little more interesting. In this case, Enterprise Product Partners are showing who’s boss in the NGL industry. David White gives some details on EPD’s profits.

EPD has $3.9B gross operating margin for the year ended Dec. 31, 2011. Approximately 70% of this was fee based. NGL pipelines and services accounted for 56% of the $3.9B. Onshore natural gas pipelines and services accounted for 18%. Petrochemical and refined products services accounted for 14%. These included: refined products and petrochemical pipelines, butane isomerization facilities, octane enhancement and high purity isobutylene facilities, and marine terminals and transportation.. Onshore crude oil pipelines and services accounted for 6%. Offshore pipelines and services accounted for 6%.

If you add to this EPD’s steady operating margin increases (from $1.8B in 2006 to $3.9B in 2011) and EPD’s steady increases in declared dividends (from $1.83 in 2006 to $2.44 in 2011) you get the picture of a very healthy company. EPD has an excellent dividend of 4.7%, but that pales in comparison to its next five year EPS growth estimate per annum of 30.20%. EPD has a 3-year total return CAGR of 39.9%, a 5-year CAGR of 17.5% (with a recession thrown in), and a 10-year CAGR of 14.4% (with two recessions in the mix).

Interested in NGL? Well, if you want to get in on this industry, EPD may be a good choice. Good profits are a good sign, but be sure to dig deeper. Profits aren’t everything.

Quotes taken from report by David White, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

Peak oil has been the topic of discussion for a long time. We have been very hopeful about peak oil, but as always there are two sides of the story. We want you to be able to draw your own conclusions about peak oil, so here is an opposing viewpoint. Travis Hoium explains why peak oil will never happen.

The oil scare that never goes away
We’ve been hearing about peak oil for years, and even some of the brightest minds in energy think the theory has some validity. But, like any other apocalypse, it never quite seems to unfold as the predictions assert. There are just too many factors that peak oil prognosticators can’t account for in their bold predictions, so they always get them wrong.

Innovation trumps conventional wisdom
One of the problem with peak oil predictions is that they have so little imagination. They don’t consider the impact of new drilling techniques that open new oil fields to massive amounts of production. A decade ago, shale drilling wasn’t a well-known technique outside of the industry, much less a major contributor to our oil production. Today, Kodiak Oil & Gas(NYSE: KOG ) , Continental Resources, and Whiting Petroleum have turned the desolate North Dakota prairie into an energy bonanza by unlocking shale oil there.

Alternatives make a peak irrelevant
For the last century there were very few alternatives to the black gold that flowed freely from wells around the world. Today the dynamic is slowly changing, squashing the fear that peak oil once garnered. If diesel fuel gets too expensive, now truckers have an alternative in liquefied or compressed natural gas. Westport Innovations (Nasdaq: WPRT ) provides the technology to make the engines possible, and Clean Energy Fuels (Nasdaq: CLNE ) is quickly building a national natural gas highway to make fueling possible.

It is important to watch the markets closely when thinking about this topic. Keep up on you market currents and current events, these things can be telling about the future of peak oil.

Quotes taken from report by Travis Hoium, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

Need a fresh look at some new oil stock possibilities? It always good to get a fresh perspective, especially in the stock market. We have found some good lookin’ stocks you may have forgotten about. Ry Frank suggested a number of stocks to revisit, and here are our favorites.

Anadarko Petroleum Corporation (APC): Anadarko Petroleum Corporation has been range-bound over the past year, pretty much between $60 and $80 per share, but has broken out of this range over the past few days and is hitting new 52 week highs. In addition to this capital appreciation, the company pays out a dividend of $0.36 per share that brings in a dividend yield of 4% at the stock’s current price. The company has not produced a profit over the trailing twelve months, and has been paying its dividend through either its debt or retained earnings — this is not a sustainable situation, in my opinion.

Apache Corporation (APA): Apache Corporation is currently coming out of a trough that brought it to its 52-week low of $73.04 per share in October of 2011. The stock just crossed the $100 threshold and has momentum behind it. In addition to this capital appreciation the company pays out a dividend of $0.60 per share that brings in a dividend yield of .6% at the stock’s current price. The payout ratio on the stock is 6%, which is well below the industry average of 26%.

We haven’t talked about these stocks in awhile. So now they are back and ready to shine. Take some time to do some extra research to make sure they are a good fit for you.

Quotes taken from report by Ry Frank, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

High oil prices often mean good news for many elements of the oil business. However, the refiners are are a bit different. They have been suffering recently, and here are the ones who may be effected. Daniel Dicker gives some need to know details.

And for the last decade, speculative money has skewed the prices of input crude to output gas to destroy margins and literally put major refineries out of business. Besides Petroplus, a major refinery was shut two weeks ago by Hess/Hovensa in the U.S. Virgin Islands producing up to 500,000 barrels a day.Conoco Phillips(COP_) will shutter a huge refinery in Trainer, Penn. by July and Sunoco(SUN_), once one of the great independent American refiners, is literally leaving the business, spinning off its coke production assets and shuttering its last two refineries in Marcus Hook and Philadelphia, becoming little more than a gasoline distribution network.

Keep an eye on oil prices, and these stocks. If you hold these stock options, be sure to do some additional research. This is a little warning for you investors out there. The markets will only tell the future for these stocks.

Quotes taken from report by Daniel Dicker, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

In numerous shale areas, there are often predictions on how long they will last. The Marcellus Shale is no different, and many have predicted that this shale formation will last 2-3 years. Recently, others a having a different opinion. Addison Wiggin explains how new opinions are coming to light.

After five years? Many operators will go back and refrack the wells. Those five-year wells might become 10-year wells. Or 15.

“We’ll look back on 2012,” Byron King goes on, “as the best year for the energy business in Pennsylvania since Col. Drake drilled his first well before the Civil War.”

Full disclosure: We’re still skeptical about some of the big claims Byron makes. Can a domestic energy boom really overcome decades of debt racked up at the local, state and federal levels? As with any functioning relationship, we keep an open mind…

…Let’s examine the numbers:

• U.S. energy self-sufficiency bottomed in 2005 at 70%. Now it’s 81%
• Domestic crude production reached 5.7 million barrels a day last year — the highest since 2003
• Natural gas output grew 10.9% between 2007-10.

Seems like new wells and reworked wells are going to be continued. 2-3 years has recently turned into 10-15 years. You have to remember, you can’t always tell what the oil status is from the surface. 

Quotes taken from report by Addison Wiggin, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

We tend to focus on oil stocks, but lets shift gears back to natural gas. Natural gas has had an interesting run over the past year. Aimee Duffy has 5 picks, and we picked our favorites!

Magnum Hunter Resources (NYSE: MHR )
Magnum Hunter Resources is an example of a company turning the corner. The stock spent much of 2011 in decline, only to reverse course in November, climbing slowly but steadilysince then. A crucial component to the future success of this company is its reserve mix that consists of a 48% crude and NGLs to natural gas ratio.

It has set a target 2012 exit rate of 15,000 barrels of oil equivalent per day. For perspective, the company’s average daily rate right now is 13,000 BOE/d.

Stone Energy (NYSE: SGY )
Stone Energy is also one of the top 40 producers of U.S. natural gas, No. 39 to be exact. Though the company is a major producer of natural gas, oil makes up 42% of all reserves and 59% of its proved producing reserves. Stone’s gas comes from the booming Appalachian region; its oil from crucial assets is located offshore in the Gulf of Mexico, and onshore ranges from Alberta’s Bakken down to the Eagle Ford shale in Texas.

These stocks have potential to double. This is a great analysis for you and the stocks alike. We like underdog stocks, and that is exactly what they are. If these strike your interest, continue your research!

Quotes taken from report by Aimee Duffy, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

Each oil company is, of coarse, drilling for profits. However, Kodiak is really working hard to make the cash for the company and their investors. Need some details? Looks no further! Let’s check out the stats put together by Nick Pollari.

KOG is operating 6 drilling rigs with a 24-hour completion crew which is going to help drive this company to produce around 25,000 BOE/d (Barrels of Oil Equivalents per day) for 2012, up from approximately 13,000 BOE/d for 2011. KOG recently acquired an additional drilling rig, bringing the total to 7. In Q4 of 2011 KOG is expected to be selling 7195 BOE/d from 1783 BOE/d in Q4 2010, representing a 300% increase in production in a single year. KOG is also doing an excellent job getting each BOE sold and is expecting 3922 BOE/d sold for fiscal 2011, up from 1290 BOE/d for fiscal 2010. This company has increased its revenue 730% from the end of fiscal 2007 through the 9 months ended in 2011. Earnings will be released on 02/28 with the conference call to follow the next day (02/29). I will be eagerly watching the progress on a few mechanical issues that they experienced last quarter at a couple of wells as well as more accurate projections for the remainder of 2012.

Keep an eye on this production for KOG. If their production stays on route, they could be a wonderful investment. Production is key here, so watch closely!

Quotes taken from report by Nick Pollari, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

For those of you out there who like to pick a solid stock and stick with it, this article is for you! We have chosen a couple oil stocks we haven’t heard much about lately, but are good picks for those of you who like long term stocks. Stock Croc gives some important number for our two favorite picks.

Devon Energy Corporation (DVN)

Devon Energy Corporation has its business primarily in the development, production and exploration of natural oil and gas. At its market price of $66, I would recommend buying Devon at its current levels. My recommendation is based on my view that the oil and gas sector will be performing at its best levels in early 2013. In my opinion, lighter restrictions and regulations on the oil sector, would enable the companies of the sector to perform much better from the current levels.

EOG Resources, Inc. (EOG)

EOG Resources, is engaged in the development, production, and exploration of natural gas and oil. With the current market price at $106, EOG Resources, Inc. has Return on Assets of 0.81% and a Return on Equity of 1.59%. The company’s last 5 years average of the minimum forward price-to-earnings multiple is 29.08, whereas its average price-to-earnings multiple is 44.08. EOG Resources has shown an increase of 7.5% in 2012.

 

These stocks have been on our watch list, and are two of our favorites. EOG and DVN are worth watching. Pay attention you long holders!

Quotes taken from report by Stock Croc, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.

The more you invest and research stocks, the more you realize that things don’t always go to as planned. Usually, one would expect that is production is increased, profit would follow suit. However, with Shell, it is quite opposite. Reuters gives some additional details about Shell’s profits.

Royal Dutch Shell[RDSA-LN  2290.50    3.00 (+0.13%)] also announced a weaker rise in its dividend than some analysts expected, adding just 1 cent to its first quarter dividend for 2012, to $0.43 per share.

Hague-based Shell said it was eyeing a return to strong production growth in the coming years, after nearly a decade. Apart from a 5 percent rise in 2010, the group’s production has fallen every year since 2002.

“Oil & gas production should average some 4 million boe/d (barrels of oil equivalent per day) in 2017-18,” the company said in a statement.

Production averaged 3.215 million boe/d in 2011, a 3 percent drop on 2010.

However, a big rise in crude prices outweighed this drop, and weak refining profits. Net profits for 2011 were $24.69 billion, up 37 percent on the year.

The company said its fourth quarter current cost of supply (CCS) net income was $6.46 billion, helped by one-off gains from the sale of assets.

Excluding one-offs, the result rose 18 percent to $4.85 billion, shy of an average forecast of $5.17 billion from a Reuters poll of nine analysts.

Shell may be hurting a little bit from this outcome. However, they are a large company with a lot of gusto, so they should be just fine in the long run.

Quotes taken from report by Reuters, Read the entire article here.

This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.