Two Bakken leaseholders have been knocked down by market and oil prices recently. However, their fundamentals have not changed. Both Whiting Petroleum Corp (WLL) and Hess Corp (HES) are set to deliver gains of 50%+ within a year. Hess missed on earnings, but some of that may be attributed to the loss of production from Libya. Recent developments there indicate that the rebels are very close to taking over the government. The most likely scenario now is that HES will soon get its properties and infrastructure back. I have no doubt the infrastructure will need repairs after a war. However, getting back a few percent of its production capacity should ultimately help Hess Corp. Plus it is light sweet crude near European refineries (effectively Brent crude).
Thursday, September 1, 2011
Hess and Whiting: Opportunities for Investors -- SeekingAlpha -- Bakken, North Dakota, USA
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Hear is my long awaited chance to ask anyone about the value of Whiting Trust fund, now yield 23%..
ReplyDeleteCan you trust it as a conservative investment? I suspect it all hinges on the price of goo...
Thank you for any advice or comments..
How interesting. I invested in this trust some time ago and have forgotten all about it. It's a long, long story, and not enough room in a comment section to talk about.
ReplyDeleteI would recommend looking at many internet sites to get a feeling for oil and gas trusts before investing.
The 23% distribution is probably because the price of the shares is so low. Again, a long, long story.