ENERGY posts
FeedPosted Mar 30th 2011 5:30PM by Jason Raznick (RSS feed)
Filed under: Exxon Mobil (XOM), Russia, BP p.l.c. ADS (BP), Oil
BP's (BP) headache continues over its planned share swap with Russian-owned Rosneft. According to a report from Sky News, the Association of British Insurers (ABI) announced its concerns over the impact of the swap. ABI reportedly controls 10% to 15% of the U.K. stock market.
ABI's reservations also include a Swedish court's decision to block BP's planned venture with Rosneft in the Arctic. Perhaps most concerning of all -- and not just to ABI -- is Wednesday's report announcing that U.S. prosecutors are considering manslaughter charges against BP for its Gulf of Mexico oil spill. Eleven oil workers were killed as a result of the spill.
Continue reading With BP's Problems, Who Enters the Void?
Posted Mar 30th 2011 4:45PM by Trefis (RSS feed)
Filed under: Chevron Corp (CVX), ConocoPhillips (COP), BP p.l.c. ADS (BP), Duke Energy (DUK), Anadarko Petroleum (APC), Oil
Recently Anadarko (APC) has agreed to buy BP's 93% interest in the Wattenberg Plant, located in the northeastern part of Colorado, for about $575 million. Anadarko already owns the remaining interest in the plant.
Anadarko is the largest producer of natural gas in the Wattenberg field and the deal will provide Anadarko with 100% ownership of the plant. The company relies heavily on natural gas, which we estimate accounts for nearly 40% of its stock value. It vies for business with established oil and gas producers like Exxon Mobil, (XOM) ConocoPhillips (COP), Chevron (CVX), BP (BP) and Duke (DUK).
Continue reading Anadarko's Acquisition of BP's Wattenberg Adds to Gas Assets
Posted Mar 22nd 2011 5:00PM by Trefis (RSS feed)
Filed under: ConocoPhillips (COP), Stocks to Buy
ConocoPhillips (COP) is likely to gain in the short-term from political tensions in Libya and other Middle Eastern regions due to a rise in crude oil prices globally. However the recent news in Japan following fears of a nuclear crisis gives us some concern. ConocoPhillips and competitors like Exxon Mobil Corporation (XOM), BP (BP) and Anadarko Petroleum Corporation (APC) and Chevron Corporation (CVX) are sensitive to changes in oil prices.
While we expect ConocoPhillips's price of crude oil and LNGs (per barrel) will increase to around $83 by the end of the Trefis forecast period, Trefis members forecast the price rising to $102, implying an upside of 5% to our price estimate for COP stock.
Continue reading High Oil Prices to Support Conoco Shares Despite Japan's Woes
Posted Nov 17th 2010 12:30PM by Jason Raznick (RSS feed)
Filed under: ETF Investing, Commodities, Oil, Agriculture, S and P 500
Tuesday was another down day for the stock market, with the Dow losing almost 180 points and the S&P falling nearly 20. Right now, this appears like a much needed and long overdue correction. No need to panic. In fact, if the U.S. economy continues to improve, the next few days could present great buying opportunities in the commodity markets.
This is because the Federal Reserve is determined to make sure that the world is awash in liquidity going forward. The sheer scope and size of these liquidity injections have an awful lot of investors concerned about the long-term stability of fiat currencies, as well as a number of sovereign bond markets. As this uncertainty continues to manifest itself, hard assets may see more substantial price increases.
Continue reading If Correction Continues, Load Up on Commodities
Posted Oct 27th 2010 3:40PM by Joseph Lazzaro (RSS feed)
Filed under: Stocks to Buy

The shares of Utility NextEra Energy (
NEE), formerly called FPL Group and first discussed here at a price of $43.30
on March 3, 2009, have moved smartly higher, including a push
through $50 resistance, and now may be a good time to consider taking some profits off the table.
However, those investors who can tolerate the risk can consider holding a full position to go for an even larger gain.
Look for NextEra's earnings to increase about 10% in FY2010, on a likely above-average revenue growth rate. The company changed its name in May to better reflect the company's clean energy provider status.
Continue reading NextEra Energy: Time to Take Some Profits off the Table?
Posted Sep 16th 2010 10:00AM by Connie Madon (RSS feed)
Filed under: Economic Data, Commodities, Oil

The Labor Department reported that producer prices rose 0.4% in August, more than the 0.3% analysts expected, the
New York Times reported. This was also double the July figure of 0.2%. But when food and energy prices were removed, the core index rose only 0.1%, meaning inflation was in food and energy.
With these numbers, the government no doubt will loudly proclaim that inflation is not a problem. If you multiply 0.3% by 12 (the difference between the overall index and the core index), you get 3.6% -- all of it in food and energy.
Continue reading Producer Prices Rose in August
Posted Jul 1st 2010 4:40PM by Joseph Lazzaro (RSS feed)
Filed under: Stocks to Buy

The shares of Fluor Corporation (
FLR), a leading international design, engineering, and contracting firm that was first discussed here
on February 17, 2009, at a price of $39.21, have pulled-back, due to the Dow's recent retreat and U.S. work stoppages in the oil/natural gas sector.
Further, FLR's price has drifted dangerously close to the sell/stop loss at $39. Still, the calculation here is that the shares will hold support at $40, then start heading north again as oil/natural gas projects slowly resume in the quarters ahead.
Continue reading Fluor: Should One Ride Out the Rough Patch?
Posted May 13th 2010 6:30PM by Joseph Lazzaro (RSS feed)

The shares of utility PPL Corporation (
PPL), which I first wrote about
on May 26, 2009, at a price of $32.15, have totally misbehaved, and it's probably best to stand-aside at this juncture, pending additional performance data in the quarter ahead. If you own the shares, I'd hold them, but I wouldn't add to a position at this time.
In late April, PPL Corp's shares fell significantly after it announced its purchase of Kentucky-based utilities Louisville Gas & Electric and Kentucky Utilities for $7.625 billion, contingent on approvals. The consensus is that the deal will be (at best) modestly dilutive for the first year, and PPL's shares fell about $4 on the news.
Continue reading PPL Corp: Investors React Negatively After Acquisition
Posted Apr 21st 2010 12:00PM by Gary Sattler (RSS feed)
Filed under: Industry, Rants and Raves, Politics
On April 26, the long anticipated Senate climate bill is slated for its debut. Climate change talking points aside, how powerful a piece of legislation will this bill turn out to be for investors, and what could be its effects on manufacturing, retail and energy stocks?
For the sake of discussion, let's just assume that the bill will pass and become law. The first thing to understand is that it's not much more than an act of taxation. That new tax will be levied against businesses large and small via carbon offsets. They'll be showing up on balance sheets everywhere. Granted, we all know that businesses hand their tax bills down line to the consumers, but for large corporations and conglomerates, it's certain that the documentation and accounting will be more than a little distracting. Of course some business giants will be able to simply buy their way out from under the mess.
Continue reading Five Days Left to Deeply Consider Manufacturing and Energy Stocks
Posted Apr 14th 2010 5:00PM by Joseph Lazzaro (RSS feed)
Filed under: Stocks to Buy

Of course,
oil prices could moderate this year to the $40-per-barrel range, and the U.S. government could invest in a serious way in natural gas for vehicle propulsion.
But until then, the reign of oil continues, and it makes sense to consider Oceaneering International (
OII), which I first wrote about
on April 7, 2009 at a price of $38.01. If you bought Oceaneering in April 2009, you're up more than 100%, and there's more upside ahead. That said, it's perfectly acceptable to take some profits here with OII: those investors who can tolerate the risk, can retain the shares to go for an even bigger gain.
Continue reading Oceaneering: Take Some Profits off the Table
Posted Mar 30th 2010 2:40PM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Technology

The solar power industry is no doubt a fascinating long-term thesis; future solutions for global energy needs, ones that involve alternatives to oil-based platforms, will be in demand. Even so, that doesn't mean I have to like LDK Solar (
LDK) after its fourth-quarter report.
According to
TheFly.com, LDK Solar didn't score a win in the analyst expectations game. The call was for 12 cents per share. On an adjusted basis, the Chinese solar entity brought in only 3 cents per share. The top line was okay, but as indicated, margin quality wasn't necessarily the greatest. According to
Reuters, management is counting on margin improvement in the coming year. That's cool.
Continue reading LDK Solar Not Interesting After Q4
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