Oil Back on An Up-Trend

The price of oil is creeping back up, July 8, 2010. I just thought I would post that to keep your spirits up.

For Investors: Lots and Lots of Opportunities for Dividends and Growth

Updates

September 28, 2012: CTL preferred over WIN; interesting comments about FTR. 

Original Post

... and lots and lots of opportunities to lose a lot of money. A little bit of reminiscing. 

I'm an eternal optimist when it comes to investing.

I remember my first introduction to the stock market back in the 1970's. I subscribed to the Wall Street Journal and followed the dividends. I was pretty naive then and I always wondered why people put money in a bank at 3% interest when they could get 6% interest in the market and some appreciation at the same time. I started my investing in the late 1970's, so I missed the 1973-1974 recession. But I didn't miss "black Friday," October, 1987.  I didn't know about recessions, depressions, the business cycles, etc., then.

I had been told to look for shares that sold for about $6; had a 6% dividend, and a P/E of 6. If only.

I listened to the spiel of an individual trying to sell me a mutual fund. He was very, very nice, until I told him I did not want to buy until I did some of my own research.  I was so naive I did not know the difference between a "load" and a "no-load" fund. Fortunately, I did not invest in his high-fee "load" fund.

I took the Forbes course to investing about that time.

I am not a trader. I am not agile enough, and certainly not smart enough.

I am an investor. I tend to "buy and accumulate" in the energy and telecommunication sectors.

I prefer companies who pay dividends.

In the past six months (maybe past year -- time goes by quickly when you get to my age), I started looking for higher-dividends, something I really had not done over the years. "They" say it's a fool's game to chase dividends. I wanted to raise cash to buy shares in Bakken companies. Interestingly enough, several of the companies appreciated nicely during the process. Some companies that I buy and sell after collecting the dividends have been EEP, CTL, WIN.  (These are my exceptions to not trading; but I'm not trading for price appreciation but rather for dividends.)

I don't hold CTL any more but I see it is still paying 8.7% and selling for $34 (I was in and out in the $30 - $31 range, so I should have held longer, I suppose). I don't hold WIN any more either, and I see the dividend is up to 9.4% and selling for about $11. I was in and out in the $10 range; again, I could have held and done just fine.

A month or so ago, I diversified a bit out of energy, buying a financial stock, NLY, which pays 15.6%. I had no hopes of any appreciation, but it, too, has appreciated.

I see, today, that something called Compass Diversified (CODI) will continue to pay 10.4% with its next dividend. I do not hold CODI and do not play to buy any shares in CODI; I am happy with what I have.

For those interested, CODI seems to be a bit like Warren Buffett's Berkshire Hathaway. CODI invests in and acquires small to medium size companies in North America. It was founded in 2005.

If one is interested in American oil trusts, it's hard to ignore Whiting Trust (WHX), now paying 17.4%. I am frustrated with myself for not having bought that a couple years ago, accumulating, and just holding on. Besides the payout, there has been some nice appreciation.

I still hold EEP and am very happy with that one. At 3.5%, I don't hold ENB for its dividend but I replaced MDU with ENB (both with similar dividends and during the recession, ENB seems a bit more stable).

Even T (ATT) is paying almost 7% and for long-term investors, it may even be more based on original investments.

These are very conservative holdings, for the most part. They won't move like Apple or Google or some small start-ups but they keep me interested in the market. And, of course, this all ends next year when dividends are taxed at full rates. It's complicated but if dividends are again taxed at higher rates, it may make trusts (distributions, not dividends) more interesting.

This is simply reminiscing. I am not making any recommendations, but I had a few minutes free in the local coffee shop while traveling so thought I would jot down a few notes. It also forced me to look at how some of these companies are doing.

Op-Ed: New "Cap and Trade" Bill Targets North Dakota

New "cap and trade" bill targets North Dakota; this is an op-ed piece.

If you don't like op-ed pieces, you can read the "facts" in the Wall Street Journal.

It ain't a pretty picture.

Update -- July 16, 2010: Read the article yourself in IBD. The "new" bill

• Won't decrease emissions
• Will target only utilities (think MDU, OTTR)
• Will transfer oil wealth to government

Finally we see what the real point was for "cap and trade." (Most of us knew it all along, but it's main purpose was to transfer wealth from deep pockets of the oil industry. The Spanish search for gold and silver in the new world was under the guise of spreading religion. Nothing has changed.)

Appeals Court Says "NO" to Moratorium in Gulf for Deep-Water Drilling

Administration has said it may re-draft bill to reinstate the moratorium. And if that doesn't work, they can do it again, and again, and again.

Not quite as efficient as the Chavez style in Venezuela but certainly nice for the lawyers.

Update, July 9, 2010: yes, the administration will submit a new moratorium plan. Meanwhile, the economic impact on Louisiana is minimal. Once this well is capped, this will become a non-story, but the administration will have gained more than it lost by trying to prolong the leak as possible.

NDIC Dockets for July 2010

I've posted my summary of the July NDIC dockets:

Some data points:

• Lots and lots of multi-well pads
• Spacing units are getting bigger and bigger (2560-acre) for these multi-well pads
• Anschutz has a huge number of cases on the docket
• EOG has a lot of 6-well dockets
• WLL continues to put in more 1280-acre spaced wells in between two 1280-acre wells already producing throughout the Sanish
• For my Australian readers: Samson has a number of cases on the July dockets; in fact, it may be the busiest I've seen Samson before the NDIC

I don't hold any shares in WLL but this is one of my favorite companies. If I had the cash, WLL and KOG might be the next two companies that I would invest in in the Bakken (currently, I accumulate shares in CLR, NOG, ENB). 

New Wind Farm in Minnesota

New wind farm in Minnesota: 150 MW capacity, 62 turbines, priced at 100% efficiency. Promoters expect 40% efficiency. Is 40% efficiency likely? One of the best wind farms in the US is near Baker, MT (USA), operated by MDU, and boasts an efficiency of 42%.

It's been my experience that most wind farms run about 30% efficient. So, we'll see.

More background on this story when it was is its planning stages can be found here.

North Dakota is looking at regulating such wind farms.

Newsweek: Great Great Boom in America's Heartlands

Great, great article on America's heartlands. It was spotted by one of my readers and sent my way. Thank you.

CLR Increases CAPEX to $1.3 Billion

CLR is expediting its drilling program. Worried about EPA and fracking? Just asking.

From the press release:

Based on the timing of the additional drilling, Continental now expects production growth in a range of 15-to-17 percent for 2010 and significantly stronger growth next year. The Company's previous production growth guidance was approximately 13 percent.

NDIC Dockets Summary for July, 2010

This is my summary for the NDIC dockets for July. There may be errors, so if something doesn't make sense, go to the NDIC site.  Also, this is all shorthand, so it probably won't make sense to a lo of folks.

July 28, 2010, Wednesday

12843: Ritchie, temp spacing, Bottineau, Sylvia 1-27

12844: EOG, temp spacing, Williams, Hardscrabble 1-16H

12845: EOG, 1 1280-acre, 1 well, Parshall, Mountrail

12846: EOG, 2 1280-acre, 2 wells, Alger, Mountrail

12847: EOG, 2 1920-acre, 12 wells, Alger, Mountrail

12848: EOG, 2 2560-acre, 12 wells, Alger, Mountrail

12849: EOG, 1 640-acre, 1 well, Ross/Alger, Mountrail

12850: EOG, 1 1280-acre, 3 wells, Clear Water, Mountrail

12539, cont: EOG, 1 1440-acre, 6 wells, McKenzie

12761, cont: EOG, 1 1920-acre, 4 wells, Van Hook, Mountrail

12851: Cirque, temp spacing, Gunnison State 44-36H

12852: BEXP, temp spacing, Tjelde 29-32 1-H

12853: BEXP, 1 1280-acre, extend Todd, 1 well, Williams

12854: BEXP, 1 1280-acre, extend Alger, 1 well, Mountrail

12855: CLR, 7 1600-acre and 2 960-acre, extend Camp/Banks; 9 wells, Williams, McKenzie

12856: CLR, 1 2560-acre, extend Camp, 4 wells, Williams, McKenzie

12857: CLR, 2 1280-acre, extend Corinth, 2 wells, Williams

12858: CLR, 8 1280-acre, extend Upland, 8 wells, Divide

12859: CLR, 1 2560-acre, extend Oakdale, 1 well, Dunn

12860: CLR, 1 2560-acre, extend Pershing/North Fork, 4 wells, McKenzie

12861: CLR, 1 2560-acre, extend Elm Tree, 4 wells, McKenzie

12862: CLR, 1 1280-acre, extend Poker Jim, 1well, McKenzie

12863: CLR, 4 1280-acre, extend Bicentennial, 4 wells, McKenzie, Golden Valley

12864: CLR, 1 1280-acre, extend Squaw Gap, 1 well, McKenzie

12316, cont: CLR, 1 1280-acre, extend Big Gulch, 4 wells, Dunn

12751, cont: CLR, temp spacing Ravin 1 1H, McKenzie

12752, cont: CLR, temp spacing Miles 1-6M, McKenzie

12447, cont: CLR, develop spacing for Ranch Coulee, McKenzie

12014, cont: CLR, temp spacing Traxel 1-31H

12553, cont: CLR, revoke Sinclair’s #18852, Pajorlie 1-2H, McKenzie

12865: Encore, 1 1280-acre, 1 well, McKenzie

12866: Encore, 1 1280-acre, 1 well, Murphy Creek, Dunn

12867: Encore, 3 1280-acre, 3 wells, Siverston, McKenzie

12868: Samson, 4 800-acre, 4 wells, Forthun, Divide

12869: Samson, 5 800-acre, 5 wells, Divide

12870: Samson, 4 1280-acre, 4 wells, Divide

12871: Slawson, 1 1280-acre, 1 well, extend Big Bend, Mountrail

12872: Baytex, 4 640-acre, extend Ambrose, 12 wells, Divide

12873: Newfield, 1 1280-acre, 3 wells, McKenzie

12511, cont: Newfield, temp spacing, Manta Ray 1-12H, McKenzie

12874: Anschutz, extend additional 50 feet of the TFS formation in several fields

12875: Anschutz, 22 1280-acre, 132 wells (6 wells on each unit), Little Knife, Billings, Dunn

12876: Prima, 22 640-acre, 22 wells, Burke

12877: Zenergy, 1 1280-acre, 1 well, Eagle Nest, McKenzie

12878: XTO, 1 1280-acre, extend MonDak, 1 well

12529, cont: XTO, revoke BR #18470, Olympian 14-35H

12772, cont: Pride, 1 1280-acre, 1 well, Saxon, Dunn

12785, cont: Armstrong, unitize Patterson Lake-Lodgepole, Stark

12291, cont: Tracker, spacing in Saxon, Dunn

12748, cont: Tracker, revoke Petro-Hunt #19041, Njos 157-100-26B-35-1H, Williams

12746, cont: TRZ/Tracker, Zone II spacing, 4 wells, Big Gulch, Dunn

12879: TRZ/Tracker, revoke Baytex #19133, Redfield 25-157-99H, Williams

12880: Peak, 1 640-acre, 1 well, Antelope, McKenzie

12881: Peak, 4 640-acre, 4 wells, McKenzie (rather than 2 1280-acre)

12882: EOG, SWD, Shell Creek 1-01 SWD, Parshall, Mountrail

12883: EOG, pooling Clearwater 17-01H, Clear Water, Mountrail

12884: EOG, pooling Ross 100-09H, Alger, Mountrail

12885: EOG, pooling Ross 20-16H, Alger, Mountrail

12886: EOG, pooling Burke 24-08H, Mountrail

12887: EOG, pooling Austin 30-13H, Parshall, Mountrail

12888: EOG, pooling, Parshall, Mountrail

12889: EOG, pooling Liberty 2-11H, Parshall, Mountrail

12890: EOG, pooling Fertile 101-04H, Parshall, Mountrail

12891: EOG, pooling Fertile 11-10H, Parshall, Mountrail

12892: EOG, pooling Fertile 34-31H, Parshall, Mountrail

12893: EOG, pooling Liberty LR 14-23H, Van Hook, Mountrail

12894: EOG, pooling Mandaree 10-05H, Squaw Creek, McKenzie

12895: BEXP, pooling Ross-Alger 6-7 1H, Alger, Mountrail

12896: BEXP, pooling Jack Cvancara 19-18 1H, Alger, Mountrail

12897: BEXP, pooling Owan 29-32 1H, Painted Woods, Williams

12898: BEXP, 1 1280-acre, 3 wells, Kittleson Slough, Mountrail

12899: Sagebrush, risk penalty, Kallberg 1H, Thompson Lake, Burke

12900: Sagebrush, conversion to SWD, Bottineau

12901: Sagebrush, EOR conversion, Wright 13-12, Kuroki-Madison, Bottineau

12902: XTO, 1 1280-acre, 3 wells, Border, Burke

12903: XTO, 1 1280-acre, 3 wells, Stoneview, Burke

12904: XTO, 1 1280-acre, 3 wells, Big Butte, Mountrail

12905: XTO, 1 1280-acre, 3 wells, Dollar Joe, Williams

12906: XTO, 1 1280-acre, 3 wells, Capa, Williams

12907: XTO, 1 1280-acre, 3 Lost Bridge, Dunn

12908: Baytex, SWD, O’Briend 1-7, Divide

12909: Baytex, pooling in Ambrose, Divide

12910: Baytex, pooling in Ambrose, Divide

12911: Baytex, pooling in Ambrose, Divide

12912: Baytex, poolign in Ambrose, Divide

12913: Denbury, pooling in Charlson, McKenzie

12914: Denbury, pooling in Chalrson, McKenzie

12915: Denbury, pooling in Charlson, McKenzie

12916: Denbury, pooling in Charlson, McKenzie

12917: Denbury, pooling in Camp, McKenzie

12918: Denbury, pooling in Camp, McKenzie

12919: Denbury, pooling in Antelope, McKenzie

12920: Denbury, pooling in Siverston, McKeznie

12921: Denbury, pooling in Siverston, McKenzie

12922: Denbury, pooling in Siverston, McKenzie

12923: CLR, pooling in Dolphin, Divide

12924: CLR, pooling in Hamlet, Divide

12925: CLR, pooling Sadler, Divide

12926: CLR, 1 1280-acre, 2 wells, Sadler, Divide

12927: CLR, 1 1280-acre, 2 wells, Fayette, Dunn

12928: Anschutz, pooling in St Anthony, Dunn

12929: Anschutz, pooing in Simon Butte, Dunn

12930: Anschutz, pooling Kadrmas 11-27H, Simon Butte, Dunn

12931: Anschutz, pooling in Fayette, Dunn

12932: Anschutz, poling William Kubischta 1-14-11H-143-96, Fayette, Dunn

12933: Anschutz, pooling State 1-16-21H-143-96, Fayette, Dunn

12934: Anschutz, pooling Schneider 1-33-28H-143-96, Fayette, Dunn

12935: Anschutz, pooling William Sadowsky 1-4-9H-142-96, Manning, Dunn

12936: Anschutz, pooling Dvorak State 1-16-21H-142-96, Cabernet, Dunn

12937: Anschutz, pooling Evelyn Kary 1-15-22H-144-97, Cabernet, Dunn

12938: Anschutz, pooling Jaeger State 1-34-27H-144-97, Cabernet, Dunn

12939: Anschtutz, pooling Kenneth Stroh 1-12-1H-143-97, Cabernet, Dunn

12940: Anschutz, increase density on each 1280-acre unit in St Anthony, up to six wells one each

12941: Anschutz, 1 1280-acre, 6 wells, Willmen, Billings

12942: Anschutz, 1 1280-acre, 6 wells, Smon-Butte, Dunn

12943: Anschutz, increase density, Hungry Man Butte, Billings; up to 6 wells on each 1280-acre unit

12944: Anschutz, increase density, St Demetrius, Billings, up to 6 wells on each 1280-acre unit

12945: Anschutz, increase density, Fayette, Dunn, up to 6 wells on each 1280-acre unit

12496: Anschutz, increase density, Russian Creek, Dunn, up to 6 wells on each 1280-acre unit

12947: Anschutz: increase density, Manning, Dunn, up to 6 wells on each 1280-acre unit

12948: Anschutz: increase density, Cabernet, Dunn, up to 6 wells on each 1280-acre unit

12949: Anschutz, increase density, Murphy Creek, up to 6 wells on each 1280-acre unit

12950: Zavanna, pooling Gary 1-24H, Stockyard, Williams

12951: Zavanna, pooling Hanson 28-33 1H, Stockyard Creek, Williams

12952: Fidelity, pooling Lynn 19-20-29H, Sanish, Mountrail

12953: Fidelity, pooling Domaskin 19-30-29H, Sanish, Mountrail

12954: Samson, pooling Hanson 17-20-163-98H, Blooming Prairie, Divide

12955: Samson, pooling Antonson 01-12-163-95H, Forthun, Divide

12956: Samson, pooling in Forthun, Divide

12957: Samson, pooling in Forthun, Divide

12958: Slawson, pooling in Big Bend, Mountrail

12959: Slawson, pooling in Big Bend, Mountrail

12960: Tracker, pooling in Truax, Williams

12961: Tracker, pooling in Truax, Williams

12962: Tracker, pooling in Elk, McKenzie

12963: Tracker, pooling Danielle 12-1H, Little Knife, Dunn

12964: Newfield, 1 1280-acre, 4 wells, Bear Den, McKenzie

July 29, 2010, Thursday

12965: Hess, proper spacing, Forthun, Divide

12966: Hess, Manitou or Alkali Creek, 18 wells on 1280-acre or 2560-acre spacing, Mountrail

12967: Hess, 1 2560-acre, 6 wells, Big Butte, Mountrail

12968: Hess, 3 wells, Manitou, Mountrail

12969: Hess, 3 wells on 5 spacing units, Alkali Creek, Mountrail

12970: Hess, 2 1280-acre units, 6 wells, Robison Lake, Mountrail

12971: Hess, 1 2560-acre, extend Tioga, 6 wells, Mountrail

12972: Hess, extend White Earth, 3 wells, Mountrail

12973: Hess, 3 wells, Mountrail

12974: Hess, 3 wells, Mountrail

12735, cont: Hess, pooling in Westberg, McKenzie

12975: Petro-Hunt, redefine Four Bears, McKenzie, Mountrail

12976: Petro-Hunt, 1 2560-acre, 2 additional wells, Charlson, McKenzie

12977: Petro-Hunt, 3 wells on all 1280-acre units, 2 sections, Charlson, McKenzie

12978: Petro-Hunt, 4 units, 28 wells (7 wells on each spacing unti), Clear Creek, McKenzie

12979: Petro-Hunt, 12 or more 1280-acre, 12 or more wells, Burg, Williams

12980: Petro-Hunt, 2 1280-acre, 2 wells, McKenzie

12981: Oasis, temp spacing for Sandaker 5602 11-13H, Williams

12982: Oasis, temp spacing for Rebne 11-7H, Burke

12983: Oasis, unrestricted production and flaring in Cottonwood, Mountrail

12984: Oasis, unrestricted production and flaring in Sorkness, Mountrail

12985: American, temp spacing for Ron Viall 1-25H, Williams

12722, cont: American, unspecified 640-acre, 4 wells per unit, total unspecified

12986: Marathon, 4 additional wells in each unit in Bailey, Dunn

12987: Marathon, pooling in Bailey, Dunn

12988: Marathon, pooling in Bailey, Dunn

12989: Marathon, 2 wells in each unit, unspecified number, Reunion, McKenzie, Mountrail

12990: Marathon, 2 wells in each 1280-acre unit; unspecified number, Mountrail

12991: Marathon, 4 units, 4 wells, McKenzie

12364, cont: Marathon, 1 1280-acre unit in Spotted Horn, McKenzie, Mountrail

12992: Cornerstone, 1 320-acre, 1 well, Lignite-Madison, Burke

12993: Cornerstone, 3 640-acre, 3 wells, Woburn-Madison, Burke

12994: Cornerstone, 2 640-acre, 2 wells, Burke

12995: Cornerstone, 2 640-acre, 2 wells, Burke

12996: Cornerstone, 2 640-acre, 2 wells, Burke

12997: Cornerstone, 2 640-acre, 2 wells, Burke

12998: Cornerstone, 2 640-acre, 2 wells, Burke

12999: Cornerstone, 2 640-acre, 2 wells, Burke

13000: Cornerstone, 2 640-acre, 2 wells, Burkes

13001: SM Energy, 2 1280-acre, 2 wells, Williams

13002: BR, 1 2560-acre, 6 wells, North Fork, McKenzie

13003: BR, 1 2560-acre, 6 wells, Johnson Corner and Blue Buttes, McKenzie

13004: BR 1 2560-acre, 6 wells, Johnson Corner and Camel Butte, McKenzie

13005: BR, pooling in Blue Buttes, McKenzie

13006: BR, pooling in Blue Buttes, McKenzie

13007: BR, pooling in Elidah, McKenzie

13008: BR, pooling in Haystack, McKenzie

13009: BR, pooling in Westberg, McKenzie

13010: BR, pooling in Corral Creek, Dunn

13011: BR, pooling in Little Knife, Dunn

13012: BR, pooling in Little Knife, Dunn

13013: BR, pooling in Little Knife, Dunn

13014: Whiting, 5 2560-acre; drill an additional well between 2 existing 1280-acre units, 5 wells, Sanish, Mountrail

13015: Whiting, pooling in Sanish, Mountrail

13016: 15 2560-acre units; an additional well between 2 existing 1280-acre units, 15 wells, Sanish, Mountrail

13017: Whiting, 15 spacing units in Sanish, Mountrail; unspecified acreage

13018: Whiting, 7 1280-acre, an additional well, 7 wells, Stark

13019: Whiting, 6 1280-acre; 6 wells

13020: Whiting, 6 1280-acre, 6 wells, Dutch Henry Butte, Stark

13021: Whiting, pooling in Dutch Henry Butte, Stark

13022: Whiting, 1 additional well

13023: Whiting, pooling in Morgan Draw-Birdbear, Billings

13024: Questar, temp spacing for MHA 1-06-31H-150-92, Dunn

13025: Questar, 2 560-acre, 2 wells, Deep Water Creek, McLean

13026: Paul Ranking, 1 well, Lodgepole, Williams and McKenzie

13027: Saltwater Disposal, Ross, Mountrail

13028: Kodiak, add a 640-acre unit to Twin Buttes field, Dunn

12248, cont: Gregory Tank, legalese with CLR and a well in Johnson Corner, McKenzie

12249, cont: Gregory Tank, legalese with BR and a well in Camel Butte, McKenzie