XOM.
Oil service companies.
Both from SeekingAlpha.com.
I posted a lot of stand-alone posts yesterday; it's possible some may have been missed. This is probably the most important post I put up yesterday, also with a link to SeekingAlpha.com.
Yes, it's a slow morning, but I felt I needed to post something new for those enjoying their first cup of coffee on the west coast and checking out the Bakken.
I look at the volatility in the market as an opportunity to purchase stocks at really discounted price. I purchased BEXP at a low point and will do it again as I believe this is a win win situation down the road. I keep up with this company and know what their holdings are and I only see this company getting bigger and better.
ReplyDeleteI agree 100%.
ReplyDeleteOn net acreage alone in the Bakken:
BEXP: 375,000 net acres
WLL: 680,000 net acres
CLR: 900,000 net acres
I think Newfield is very, very intereting: 270,000 net acres.
Oasis: 303,000 net acres.
I think OAS may be the sleeper here. Founded in 2007, headquartered in Houston, primarily in the Bakken, this is a very, very interesting company.
All others in the Bakken are either larger companies with extensive interests outside the Bakken (diluting the value of their Bakken holdings) or too small. The "too small" companies are likely to a) plateau (share price as they max out growth); or, b) get bought out.
Paying "cheap" for shale acreage is a thing of the past. Money is going to be made by efficiencies and agility (and that's why I get excited about Oasis). I do not own any shares in Oasis but will probably do so, "trading" my KOG for OAS.
Interesting point regarding Oasis. I have contended over the past six to ten months, that Oasis will eventually drill on temp. spacing areas currently held by G-3 Operating(another Houston based company) since both are present in Williams County (Strandahl Field). Another point, these temp. spacing areas are nearing expiration early next year. Interesting!
ReplyDeleteYes, recent comments from Oasis regarding "low hanging fruit" / efficiencies resulting in $$$ savings in the oil patch caught my attention.
ReplyDeleteYes, the Houston connection is very, very important. Denver is fine, but the competition in Houston has to drive companies like Oasis to strive for more. If that makes sense.