While renewable energy still has a long way to traverse before it competes on an apples-to-apples basis with hydrocarbon-based fuels, plenty of inroads have been built. Still, Southern� (NYSE: SO ) CEO Tom Fanning recently outlined three limitations with renewable energy. Holding back the sector are long distances from demand centers, intermittent supply, and government subsidies. �
Some recent players in the solar industry are working to solve the first problem, but more uncertainty surrounds the later two. Check out the following video for more insight into the future sustainability of renewable energy sources.�
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Top US Stocks For 2015: Bonanza Creek Energy Inc (BCEI)
Bonanza Creek Energy, Inc., incorporated in December 2010, is an oil and natural gas company engaged in the acquisition, exploration, development and production of onshore oil and associated liquids-rich natural gas in the United States. The Company�� assets and operations were focused primarily in southern Arkansas (Mid-Continent region) and the Denver Julesburg (DJ) and North Park Basins in Colorado (Rocky Mountain region) during the year ended December 31, 2010. In addition, it owns and operates oil producing assets in the San Joaquin Basin (California region). It operated approximately 99.4% and held an average working interest of approximately 85.8% of its proved reserves as of December 31, 2010. As of December 31, 2010, its net proved reserves was 32,860 million barrels of oil equivalent (MBoe).
The Company�� proved reserves and its drilling locations in its Mid-Continent acreage are located in the Dorcheat Macedonia field and the McKamie Patton field. In the Dorcheat Macedonia field the Company averages a 83.3% working interest and 68.5% net revenue interest, and all of the Company�� acreage is held by production. It had approximately 78 gross (65.0 net) producing wells and its average net daily production during April 2011, was approximately 1,249 barrels of oil equivalent per day (Boe/d) from a proved reserves base of 15,247 million barrels of oil equivalent, of which about 64.5% was oil and natural gas liquids. As of April 30, 2011, the Company had drilled 13 gross (10.2 net) wells. Immediately northwest of the Dorcheat Macedonia field, it owns and operates the McKamie gas processing facility, which processes all of the gas from the field. It owns additional interests in the Mid-Continent region near the Dorcheat Macedonia field. These include interests in the McKamie-Patton, Atlanta and Beach Creek fields. Its estimated proved reserves in these fields as of December 31, 2010, were approximately 1,947.8 million barrels of oil equivalent, and average net daily production du! ring April 2011, was approximately 239 barrels of oil equivalent per day.
The McKamie processing facility is located in Lafayette County, Arkansas and is located to serve its production in the region. The Company�� facility has a processing capacity of 15 million cubic feet per day (MMcf/d) of natural gas and 30,000 gallons per day of natural gas liquids. The facility processes natural gas and natural gas liquids, fractionates liquids into three components for sale, and sells four products at the facility's tailgate: propane, butane, natural gasolines and natural gas. It also owns approximately 150 miles of natural gas gathering pipeline that serves the facility and surrounding field areas and 32 miles of right-of-way crossing Lafayette County that can be utilized to connect the facility to other gas fields or future sales outlets. Natural gas is sold at the tailgate of the facility into a CenterPoint pipeline connection. Fractionated natural gas liquids are held on site and trucked out by the buyer, Dufour Petroleum. The McKamie processing facility had an average net output of 749 barrels of oil equivalent per day based on the facility contracts in April, 2011.
The two main areas in which the Company operates in the Rocky Mountain region include the DJ Basin in Weld County, Colorado and the North Park Basin in Jackson County, Colorado. The DJ Basin is a structural basin centered in eastern Colorado that extends into southeast Wyoming, western Nebraska, and western Kansas. Its operations in the DJ Basin are in the oil window of the Niobrara and as of December 31, 2010, consisted of approximately 42,698 gross (29,742 net) total acres. The Company�� estimated proved reserves in the DJ Basin were 8,402 million barrels of oil equivalent at December 31, 2010. As of April 30, 2011, it had a total of 141 gross (133.6 net) producing wells and its net average daily production during April 2011, was approximately 1,124 barrels of oil equivalent per day. The Company�� working inter! est for a! ll producing wells averages is 94.8% and its net revenue interest was approximately 76.5% in 2010. The Codell sandstone and Niobrara oil shale are blanket deposits in the DJ Basin.
The Company controls 47,003 gross (39,030 net) acres in the North Park Basin in northern Jackson County, Colorado. The Basin is divided into three principal opportunities: the North and South McCallum units and the non-unit acreage. The Company operates the North and South McCallum fields. The McCallum field covers 10,277 gross (8,606 net) acres of federal land with the majority of the oil production coming from a waterflood in the Pierre B formation and the carbon dioxide production coming from naturally flowing Dakota wells. Oil production is trucked to the market while carbon dioxide production is sent to a Praxair plant for processing and delivery to the market. In the North Park Basin, its estimated proved reserves as of December 31, 2010, were approximately 696.1 million barrels of oil equivalent, of which 100% were oil. Its average net production during April 2011, was approximately 140 barrels of oil equivalent per day. All of the Company�� 47,003 gross (39,030 net) acres in the North Park Basin are prospective for the Niobrara oil shale.
In California the Company owns acreage in four fields: Kern River, Midway Sunset and Greeley, which the Company operates, and Sargent, which it does not. Its estimated proved reserves in California were 886 million barrels of oil equivalent at December 31, 2010. As of April 30, 2011, we had a total of 57 gross (48.7 net) producing wells and its average net daily production was approximately 218 barrels of oil equivalent per day. Its working interest for all producing wells averages 85.4% and its net revenue interest is approximately 71.9%. As of December 31, 2010, it had identified approximately 18 gross (13.6 net) PUD locations in California.
Advisors' Opinion:- [By Holly LaFon]
Another area that is intriguing to us is the North American energy sector which looks to have a number of interesting catalysts currently. While the energy sector is at present only a modest overweight in the portfolios, we have been encouraged by several trends taking place for a number of years. These positive developments are also having an impact that goes far beyond the energy sector itself. Many believe that the U.S. will become energy independent and possibly a net exporter of natural gas and oil (currently restricted by law) in the next decade. This opinion is based primarily on the development of new drilling techniques (i.e. horizontal drilling, and high pressure fracking) that have enabled companies to access oil and natural gas reserves in shale formations that were previously not economically viable. The ability to tap into this acreage is a game-changer in our view and is already having a tremendous impact on the economy. Employment rates in these mostly rural areas surrounding the shale basins are very high and companies thus find hiring extremely competitive. Strong labor markets tend to create strong local economies. Oil States International (OIS) has been able to capitalize on this trend by providing housing and other services to oil service workers that are in demand in the area. CST Brands (CST) operates gas stations in Texas, but it is increasingly looking to broaden its product offering beyond fuel. Rail companies like Union Pacific (UNP), Canadian Pacific (CP), Kansas City Southern (KSU) and Genesee and Wyoming (GWR) have also benefited substantially. Given that shale areas are rural and often lacking infrastructure, substantial investment must be made to support drilling and production activities. Without pipelines in place, railroads have been the primary takeaway mechanism for moving production to the various clusters of refining capacity around the United States. In order to serve this demand, massive investment in railcars has been nee
- [By Ben Levisohn]
Not all stocks are created equal, however, and the analysts expect some stocks to handily outperform others, and their top picks “are poised to deliver long-term, capital-efficient growth…while trading at attractive valuations that currently provide 20%+ upside to our price targets.” Their winners?�Oasis Petroleum (OAS),�Approach Resources (AREX),�Bonanza Creek Energy�(BCEI) and Gulfport Energy�(GPOR), all of which are rated Buy with Oasis also added to Goldman’s conviction list. Investors, however, should avoid �WPX Energy�(WPX), which the analysts rate a Sell. They explain why:
- [By Robert Rapier] For those who are unaware, each month there is a joint web chat for subscribers of The Energy Strategist (TES) and MLP Profits. The chat is conducted by Igor Greenwald, managing editor for TES and chief investment strategist for MLP Profits, and myself. This month’s chat took place on Sept. 10.
We place a priority on answering questions about portfolio holdings and recommendations during the chat, but often we get questions about companies we don’t currently recommend. Or, we sometimes get questions or comments about a company that require an extended answer. In these cases we push those questions to the end, and attempt to answer them if time allows. For this past chat there were several questions remaining at the end, which I will address here today. For each company, a brief background is presented for readers who may not be familiar with the company.
Q: What is your view of BCEI at the present price?
Bonanza Creek Energy (NYSE: BCEI) is a Denver-based oil and gas company with operations in Colorado and southern Arkansas. While the Bakken Formation in North Dakota and the Eagle Ford Shale in Texas get more press, oil and gas plays in the Denver-Julesburg Basin have helped turn Colorado into one of the fastest growing energy producing states in the country and the fastest growing oil producer in the Rocky Mountains. Since 2008 oil production in Colorado has risen by an impressive 63 percent to a 50-year high.
BCEI is well-positioned with acreage in the Wattenberg Gas Field north of Denver. The field is one of the largest natural gas plays in the US. Wattenberg represents 60 percent of BCEI’s proved reserves, with 59 percent of those reserves classified as liquid. Of the company’s remaining reserves, 39 percent are located in the oil-bearing Cotton Valley Sands in Southern Arkansas (68 percent liquids) and 1 percent in Colorado’s North Park Basin (100 percent liquids).
BCEI has grown reserves at a 45 - [By Holly LaFon]
Bonanza Creek Energy, Inc. (BCEI) is an independent exploration and production company that is most active in the Niobrara Shale play in Northeast Colorado. The stock has performed well this quarter following improving drilling results from projects designed to fully understand the potential prospectivity of its acreage position in the Niobrara play. The stock also has benefited from management's decision to increase capital spending and accelerate the net present value of its resource base.
5 Best Energy Stocks To Own For 2014: EMCORE Corporation(EMKR)
EMCORE Corporation, together with its subsidiaries, provides compound semiconductor-based products for the broadband, fiber optics, satellite, and solar power markets. The company operates in two segments, Fiber Optics and Photovoltaics. The Fiber Optics segment offers broadband products, including cable television, fiber-to-the-premises, satellite communication, video transport, and defense and homeland security products; and digital products comprising telecom optical, enterprise, laser/photodetector component, parallel optical transceiver and cable, and fiber channel transceiver products. This segment?s products enable information that is encoded on light signals to be transmitted, routed, and received in communication systems and networks. The Photovoltaics segment provides gallium arsenide (GaAs) multi-junction solar cells, covered interconnected cells, and solar panels for satellite applications; and concentrating photovoltaic (CPV) power systems for commercial and utility scale solar applications, as well as GaAs solar cells and integrated CPV components for use in other solar power concentrator systems. The company markets its products through its direct sales force, external sales representatives and distributors, and application engineers worldwide. EMCORE Corporation was founded in 1984 and is headquartered in Albuquerque, New Mexico.
Advisors' Opinion:- [By CRWE]
EMCORE Corporation (Nasdaq:EMKR), a leading provider of compound semiconductor-based components and subsystems for the fiber optic and solar power markets, reported that it is ramping production and shipping the Opticomm-EMCORE NEXTGEN OTP-1DVI2A1SU insert cards for the Optiva platform.
5 Best Energy Stocks To Own For 2014: Bri-Chem Corp (BRY)
Bri-Chem Corp. is a North American distributor, blender, and manufacturer of drilling fluids and steel pipe for the oil and gas industry in North America. The Company operates in three segments: Fluids, Steel Distribution and Steel Manufacturing. Its Fluids segment includes the sale of fluids and chemical additives to the resource and industrial markets. The Steel Distribution segment includes the sale of tubular steel products to the resource, industrial and construction industries. The Steel Manufacturing segment produces seamless steel pipe through a thermal expansion process for sale to steel pipe distributors in North America. On May 31, 2011, it acquired all membership interest in Bri-Chem Supply Corp, LLC (BSU) and Stryker Transportation Ltd. (Stryker). In September 2013, Bri-Chem Corp acquired the cement blending business assets of Sun Coast Materials Co. and certain additional transportation assets from its affiliate Acme Trucking, Inc. Advisors' Opinion:- [By Tyler Crowe]
LINN Energy (NASDAQ: LINE ) had a "wait and see until we finish our Berry Petroleum (NYSE: BRY ) acquisition" kind of quarter. While overall production jumped a very healthy 69% over last year, it just didn't quite meet what the company expected. Weather was part of the problem, but much of the company's woes came in one place: Texas. Does LINN have a problem with Texas' tea? Let's take a look at these pieces of bad news and see if the problems lie with LINN or the Lone Star State.�
- [By Matt DiLallo]
Investors in LINN Energy (NASDAQ: LINE ) have been rattled lately as bears have been bashing the company's units. To top it off, those units were hit again last week as rumors began to surface that the complex deal with its affiliate LinnCo (NASDAQ: LNCO ) to buy�Berry Petroleum (NYSE: BRY ) was being delayed. The big concern is that the deal might fall apart, which would be a major blow to the company.
- [By Ben Levisohn]
It’s the moment investors in Linn Energy (LINE) have been waiting for–the SEC’s decision to approve or block it merger with Berry Petroleum (BRY).
5 Best Energy Stocks To Own For 2014: Forum Energy Technologies Inc (FET)
Forum Energy Technologies, Inc. incorporated on May 10, 2005, is an oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The Company designs and manufactures products, and engage in aftermarket services, parts supply and related services that complement its product offering. It operates in two segments: Drilling and Subsea Segment and Production and Infrastructure Segment. In December 2012, the Company acquired Merrimac Manufacturing, Inc. (Merrimac). In May 2013, the Company acquired Blohm + Voss Oil Tools from STAR Capital Partners Limited. In July 2013, Forum Energy Technologies Inc acquired Moffat 2000 Ltd.
Drilling and Subsea Segment
The Company designs and manufactures products and provides related services to the drilling, well construction, completion, intervention and subsea construction and services markets. Through this segment, it offers Subsea Technologies, including robotic vehicles and other capital equipment, specialty components and tooling, a range of complementary subsea technical services and rental items, and applied products for subsea pipelines. It offers Drilling Technologies which include capital equipment and a range of products consumed in the drilling and well intervention process. It offers Downhole Technologies, including cementing and casing tools, completion products, and a range of downhole protection solutions.
The Company designs and manufactures subsea capital equipment; specialty components and tooling; and applied products for subsea pipelines; and it also provides a suite of complementary subsea technical services and rental items. It has a core focus on the design and manufacture of unmanned submarines, remotely operated vehicles (ROVs), as well as other specialty subsea vehicles. The Company�� brands include its Perry and Sub-Atlantic vehicle brands. Its related technical services complement its vehicle offering by providing the m! arket with a selection of critical product solutions and rental items that enhance its customers��ability to operate in harsh subsea environments. The market for subsea ROVs can be segmented into three classes of vehicles based on size and category of operations: large work-class vehicles for subsea construction activities; drilling-class vehicles for use around an offshore rig, and observation-class vehicles for inspection and light manipulation. The Company is a provider of work-class and observation-class vehicles.
The Company manufactures ROV components, such as a range of Sub-Atlantic branded ROV thrusters. It designs and manufactures thrusters for incorporation into its own vehicles, as well for sale to other ROV manufacturers. It also designs and manufactures a tether management system (TMS). It also provides a suite of subsea tooling, both industry standard and custom designed for subsea applications. Industry standard tooling includes hot stabs, cable cutters, torque tools and indicators.
The vehicle-related subsea products, its Offshore Joint Services (OJS) brand is a provider of applied protective coatings on rigid subsea pipeline field joints, spools, and structures. Its VisualSoft product line provides another related technical product that reinforces in subsea vehicles and products. It sells or rents VisualWorks and VisualDVR Digital Video Systems that provide a solution for digital video capture, playback, processing and reporting of pipeline, structural or other inspection survey data. These products are often used in conjunction with the operation of inspection class ROVs or diving personnel when conducting survey work.
Geoscience Earth and Marine Science (GEMS) is its geophysical and geotechnical engineering group that provides consulting services to the oil and gas, and marine industries. It provides an interpretation service based on the analysis of third party subsea data provided by clients. The business has broadened into managing every p! hase of p! roject development, including scope of work, liaising with data acquirers, interpretation and analysis. Its primary customer base consists of oil and gas operator producers.
The Company provides both drilling consumables and capital equipment, including powered and manual tubular handling equipment, specialized torque equipment, customized offline crane systems, drilling data acquisition management systems, pumps, valves, manifolds, drilling fluid-end components, pressure control equipment for both coiled tubing and wireline well intervention operations and a broad line of items consumed in the drilling process. The Company has a core focus on products that enhance its customers��handling of tubulars on the drilling rig.
The Company designs and manufactures specialized torque equipment and related control systems for tubular connections, including high torque stroking, or bucking, units, fully rotational torque units, portable torque units for field deployment. In addition the Company designs and manufactures a range of rig-based offline activity cranes, multi-purpose cranes and personnel transfer solutions.
The Company�� pressure control products used for well intervention operations are sold directly to oilfield service companies and equipment rental companies. These products include both coiled tubing and wireline blowout preventers and their accessories. It also conduct aftermarket refurbishment and recertification services for pressure control equipment. The Company also designs and manufactures a range of consumable parts for pumps on drilling rigs, well servicing rigs, pressure pumping units, and hydraulic fracturing systems, along with top drive parts. The Company also manufacture data acquisition products that include integrated drill floor instrumentation and monitoring systems. These systems provide real-time monitoring and logging of drilling data to drilling contractors and oil and gas producers on the rig and at remote locations.
! The Compa! ny manufacture a broad line of downhole products that are consumed during the well construction, completion and production enhancement process. Through its Davis-Lynch downhole well construction and completion tools product line, it designs and manufactures products used in the construction of oil and gas wells. It designs and manufactures a range of centralizers, float equipment, stage cementing tools, inflatable packers, flotation collars, cementing plugs, fill and circulation tools for running casing, casing hangers and surge reduction equipment.
The Company manufactures a line of downhole completion tools, including composite plugs and wireline flow-control products. Its composite plugs are primarily used for zonal isolation during multi-stage hydraulic fracturing in horizontal and vertical wells. It offers l range of downhole protection solutions.
Production and Infrastructure Segment
The Company designs and manufactures products and provide related equipment and services to the well stimulation, completion, production and infrastructure markets. Through this segment, the Company suppllies Flow Equipment, including well stimulation consumable products and related recertification and refurbishment services; Production Equipment, including well site production equipment, process equipment and specialty pipeline construction equipment; and Valve Solutions, which includes a range of industrial and process valves.
The Company provides a range of high pressure flow equipment used by well stimulation, or pressure pumping, companies during the stimulation, intervention and flowback process. It focuses on consumable products that experience high rates of wear and replacement. The Company designs and manufactures pressure control plug, choke and relief valves, swivel joints, pup joints and integral fittings, manifolds and manifold trailers, as well as triplex and quintuplex fluid-end assemblies.
The Company surface Production Equipment product line p! rovides e! ngineered process systems and field services for capital equipment used at the wellsite, for production processing, and at the refinery. It serves the upstream, midstream and downstream segments in oil and gas production equipment and services. The Company engineers fabricates and installs tanks, separators, packaged production systems and American Society of Mechanical Engineers (ASME) and American Petroleum Institute (API) coded and non-coded pressure vessels, skidded vessels with gas measurement, modular process plants, header and manifold skids, process and flow control equipment and separators to help clean and process oil or gas as it travels from the wellhead and along the transmission line to the refinery.
The Company design, manufacture and provide a wide range of industrial valves that principally serve the upstream, midstream and downstream markets of the oil and gas industry. In addition its valve solutions serve general industrial, power and process industry customers as well as the mining industry. It also provides ball, gate, globe, check and butterfly valves across a range of sizes and applications.
The Company competes with Cameron International Corporation and FMC Technologies, Inc.
Advisors' Opinion:- [By Wax]
Posted-In: Markets Trading Ideas
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