Monday, January 27, 2014

For Investors Only; Enerplus Is Going To Report A Huge Well

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here. 

Natural gas:  in addition to the SeekingAlpha article linked below, there is another SeekingAlpha article with a positive slant on Clean Energy Fuels  Westport Innovations.

Natural Gas: Don sent me a link to a SeekingAlpha story/interview with Ron Muhlenkamp. I invested in his fund for my older daughter's IRA; it returned 34.4% last year. After getting married, I believe the Muhlenkamp IRA was rolled into another plan, so I don't have any agenda with regard to this story. Years ago I wrote a personal letter to Ron Muhlenkamp thanking him for the wonderful fund he ran; he must be getting up in years, a real "greybeard" by now. Anyway, Ron has a nice interview regarding natural gas. See his comments on the Bakken and the Keystone pipeline.
Cheap natural gas means Americans can buy the equivalent of a barrel of crude for $35. That's the exciting reality that has Ron Muhlenkamp, founder and portfolio manager of Muhlenkamp & Co. Inc., putting his investment dollars behind the next great fuel switch, this time in the transportation sector. With his fund having finished 2013 with a tidy 34.4% gain, he is now eyeing companies poised to outfit the U.S. transportation sector with all things natural gas, from fuel tanks to motors to filling stations.
In transportation, the infrastructure to make the switch to natural gas has not been in place. We didn't have the filling stations or the trucks. Now, the trucks are just becoming available. You can buy pickup trucks from Ford Motor Co. and General Motors Co. that run on natural gas. Furthermore, Clean Energy Fuels Corp. has established natural gas filling stations coast to coast, every 250 miles on five different interstate highways.
Westport Innovations Inc. has been producing 9-liter [9L] natural gas engines. Waste Management uses 9L engines on garbage trucks and expects 85-90% of its new trucks to be natural gas-fueled. Westport has just come out with 12L engines, which are used for over-the-road trucks. I don't expect those engines to get adopted as fast as the utility industry made the switch to natural gas, but there has been a fairly rapid adoption in the waste management industry. I think we're on the cusp of a major trend.
This may not be an investment site, but it certainly should give folks some ideas to explore. I hold no shares in CLNE, probably never will, but it remains one of the more fascinating energy companies. If I was 25 years old and just starting out, this might be a good one to consider accumulating for the very long term. The long-haul truckers are getting "killed" with the cost of diesel.


Caterpillar beat by 26 cents.


Random look at Enerplus well in South Fork:
  • 24763, conf, Enerplus, Catfish 148-93-15D-16H, South Fork, middle Bakken:

DateOil RunsMCF Sold

After posting the above, a reader told me of the other two Enerplus wells on the same pad as the Catfish:
  • 24764, conf, Pumpkin 148-93-14C-13H TF, South Fork: 
DateOil RunsMCF Sold
  •  24765, conf, Tobacco 148-93-14C-13H, South Fork:
DateOil RunsMCF Sold


This must be some type of record: nearly 30 companies (29, to be exact, I think) declare increased dividend, including:
  • CMS Energy
  • Crestwood Midstream Partners
  • EQT Midstream Partners LP
  • Holly Energy Partners
  • Pacific Coast Oil Trust
  • PriceSmart
  • QEP Midstream Partners LP
  • Rose Rock Midstream
  • Sabra Healthcare REIT
  • Summit Midstream Partners
  • Tesoro Logistics LP
  • Valero Energy
  • Williams Cos (previously posted)
  • Wintrust Financial
  • Xerox Corp

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