The Motley Fools have said exactly what I've been thinking for the past year or so: amass your fortune in the Bakken. Years ago I started investing in energy because I enjoyed following the industry, and to a great extent, I felt it was fairly stable, if not exciting. But now I think a young investor could do well by picking a few companies in the North Dakota Bakken and investing regularly.
The more I follow the Bakken, the more I think one could dollar cost average with any number of Bakken players and do very well over the long term. I agree with the Motley Fools: consistently invest -- that means on a monthly basis. If nothing else, put a little away each month and don't get worried about the day-to-day volatility.
It appears companies in the Bakken are being valued based on their assets in the Middle Bakken, and to some extent, perhaps, their assets in the Three Forks Sanish.
Among the bigger players, I like the following companies in the order given: WLL, CLR, EOG, BEXP.
Among the smaller players, I like the following companies in the order given: NOG, KOG (two different business models), and now OAS.
Among pipelines: MDU and Enbridge.
There are many, many more ways to play the Bakken and many companies in the Bakken to invest in. My intent is not to step on anyone's toes, just to give readers a general idea of what I'm thinking at this point in time.
Of the Bakken companies, I am dollar-cost averaging in CLR and NOG, and ENB, but to a lesser extent. I take advantage of dividends offered by EEP. I think I missed opportunities in EOG, KOG, and WLL. But I can't complain about how things have gone in the big picture.
I am most intrigued by Slawson but it is not publicly traded. I think MDU is perhaps the best long-term, most conservative (safe) company out there. It's had a couple of tough years, but when (if) the economy turns, it should do very well. Right now it's trading not far above it's 52-week lows. It has never (?) missed a dividend payment and has increased dividends for the past five years. I do not own MDU yet but for a conservative investor with a long horizon, it might not be a bad choice. I certainly think it is one of the best utilities nationwide. Cap and trade won't hurt it (it has plenty of wind energy to offset carbon footprint).
