Like most oil-and-gas producers, Breitburn’s (BBEP, $5.39, 18.5% yield) stock plunged in the past year, cascading 63%. That slide pushed its yield up to 27.5% just before Breitburn slashed its dividend in half in early January.
As a master limited partnership, Breitburn distributes most of its cash flow to its investors (known as unit holders) in monthly payments. But you shouldn’t bite, says Matthew Na, co-manager of the Westwood MLP and Strategic Energy Fund (WMLPX). Breitburn’s dividend is based on a forecast of oil prices averaging $60 a barrel this year and natural gas at $3.50 per million BTUs, both well above recent prices. The MLP’s balance sheet carries a lot of debt, and Breitburn has already tapped $2.2 billion of its $2.5 billion line of credit. That leaves a thin cash cushion to run the business or make acquisitions, a key part of the firm’s growth strategy, says Na. Breitburn’s line of credit may also come down when its lenders reevaluate the firm later this year. “If investors want energy exposure with a yield component, I believe there are better-positioned companies available,” Na says. “I would avoid this one for now.”
- The big picture, the company's cash machine, the company's ZERO debt, the company's stellar balance sheet, the company's development wells on its proven oilfields during Q3 and Q4 2014
- PTA's transformational deal with SRN that gives it access to the "sweet spot" of the Putumayo Basin, according to the official announcements
- PTA's gross undervaluation compared to the peers
- The fact that PTA is the next takeover target of the Colombian energy patch
- The fact that PTA trades just 1.6 times its 2014 EBITDA, while even the oil producers in Kurdistan, Yemen, Oman, Nigeria, Argentina where Kirchner nationalizes everything trade between 5 and 9 times their 2014 EBITDA
- The fact that PTA's Quinde wells from the Quinde oilfield are GUSHERS flowing 2,500 - 4,400 bopd, and there is not another company in Colombia with such amazing results from its wells.
Expected by the high expectations which were accordant to a higher than the current price...
They bought 4 months ago at 8 GBX, so they want to write in their books an easy 100% plus gain. This is the reason they sell a part of their shares I guess.
Unfortunately SA terminated its collaboration with Yahoo a couple of weeks ago.
I think a big player had some shares to sell above 0.40, when he finish, pps will gradually move to 50s.
GeoPark Reports Results for the Second Quarter Ended June 30, 2014
8:00 AM ET, 08/26/2014 - PR Newswire
SANTIAGO, Chile, Aug. 26, 2014 /PRNewswire/ -- GeoPark Limited (GeoPark) (NYSE: GPRK), the Latin American oil and gas explorer, operator and consolidator with operations and producing properties in Chile, Colombia, Brazil and Argentina, today reports results for 2Q2014....
Stock Runners – BAE Systems, (BAESY), EPSILON ENERGY, (OTCMKTS:EPSEF), MyEcheck, (MYEC),BNP Paribas, (OTCMKTS:BNPQY)
SUBMITTED BY EQUITY OBSERVER ON JULY 28, 2014 - 07:17 PM
Las Vegas, NV – July 28, 2014 — (TechSonian)
Epsilon Energy ( EPS in Canada, EPSEF in OTC) acreage is operated by Chesapeake Energy.
Epsilon Midstream owns 35% of the Auburn Gas Gathering System in Susquehanna County with partners Chesapeake Midstream Partners and Statoil.
EPSEF reached 52 weeks high today with record volume.
Energy Stocks Drag TSX From Record Highs -- Canadian Commentary
7/28/2014 11:18 AM ET
Canadian stocks are lower Monday mid morning, as falling crude oil prices hit the energy sector ahead of this week's interest rate announcement from the Federal Reserve.
The mood is cautious with investors looking ahead to a slew of U.S. economic data this week.
The Fed is widely expected to reduce quantitative easing by another $10 billion on Wednesday, dropping the size of the asset purchasing program down to $25 billion per month.
Investors are also watching the developments in Ukraine and the Middle East.
The benchmark S&P/TSX Composite Index is down 32.59 points or 0.21 percent at 15,422.45, after initially advancing to 15,465.29.
The index recorded a new closing high on Friday, settling at 15,455.04, with a gain of 60.59 points or 0.39 percent, after scaling a new all-time intraday high of 15,503.40. For the week, the index gained nearly 1.25 percent.
Energy stocks are down, tracking weak crude oil prices. The Energy Index is down nearly 1 percent, with Suncor Energy Inc. (SU.TO), Canadian Natural Resources Limited (CNQ.TO), Cenovus Energy Inc. (CVE.TO), Crescent Point Energy Corp. (CPG.TO), Encana Corporation (ECA.TO), Canadian Oil Sands Limited (COS.TO), Talisman Energy Inc. (TLM.TO) and ARC Resources Ltd. (ARX.TO) declining 0.6 to 1.2 percent.
Athabasca Oil Corporation (ATH.TO) is plunging nearly 6 percent. Athabasca announced that it is in the process of closing its option to sell a 40 percent stake in the Dover oil sands project to PetroChina. The deal is worth around $1.23 billion.
Meanwhile, Epsilon Energy (EPS.TO) is bucking the trend, gaining nearly 6.5 percent.
Not long ago, many in South Texas wondered whether the Eagle Ford Shale was real or just a figment of some geologist's imagination.
Now companies are talking about producing oil and natural gas for the next several decades in the region - but it was hard to see that projection coming, and even harder to figure out exactly what it meant.
Frank Brogan, managing director of the Port of Corpus Christi Authority, said at first it looked like the Eagle Ford would eliminate the need for the facility altogether.
The first wave of wells sent Eagle Ford oil to Corpus Christi refineries, which meant they didn't need to import foreign oil through the port anymore. Total tonnage dropped. Valero Energy Corp.'s Three Rivers Refinery used to move 75,000 barrels per day through the port but suddenly needed nothing, said Brogan, who spoke Wednesday at the Eagle Ford Consortium's annual conference in San Antonio.
"It's kind of like a tsunami where it comes and sucks the water out before it floods your area," Brogan said.
Eagle Ford production quickly outstripped the demand of local refineries. Now there's $22 billion in investment at the port, much of it driven by the Eagle Ford directly or the availability of a long-term supply of natural gas to fuel manufacturing plants. Starting last summer, more crude left Corpus Christi for other U.S. ports and Canada than foreign oil arrived.
The upgrade to OTCQX plus the awareness from two SA articles already started to support the sp.
I expect more in the near future. The Australians need some time to react as both factors came from US.
Eagle Ford news (acquisitions, investments etc) of the last 30 days:
Devon Subsidiary Constructing New Eagle Ford Oil Pipeline/
Abraxas Raises Eagle Ford Cap-Ex Budget by $35 Million/
Sun Resources Acquires 5,014 Net Eagle Ford Acres/
Sundance Energy Acquires 11,000 Net Eagle Ford Acres for $33-Million/
Sanchez Nearly Doubles Eagle Ford Acreage in $265 Million Deal with Shell/
Koch Expands its Eagle Ford Crude Oil Pipeline System/
Cabot Oil & Gas To Expand Eagle Ford Drilling Program/
Panhandle Oil and Gas Acquires Interest in Eagle Ford Acreage for $80 Million/
Sabine Oil & Gas Merger with Forest Oil Corporation/
Penn Virginia Seeks to Expand Eagle Ford Position/
Encana Corporation Purchases 45,500 net Eagle Ford acres from Freeport-McMoRan for $3.1 billion/
If LNREF stays for long so cheap, very soon larger oil cos will start the bids with significant premium.