Friday, December 30, 2011

For Investors Only -- What A Great Story for the Last Trading Day -- 7 Bakken Stocks To Do Well -- SeekingAlpha

Link here.

Here are the seven, in the order presented, that the writer says will rise 50 percent in share price: NOG, CLR, KOG, GeoResources (GEOI), Abraxas (AXAS), EOG, and OAS.

That's practically everything in the Bakken. I assume the  writer would have included BEXP, also, had it not been bought by Statoil.

Noticeably absent: Whiting, SSN, Triangle Petroleum --- which I found strange, unless the writer realized that was about all that was left.

Companies like Newfield, SM, Williams, XOM, COP, etc., are all in the Bakken, but the Bakken is a small part of their overall portfolio.

Blurbs from each that caught my interest:

OAS:
  • 23,000 net acres in Indian Hill, which will be huge; this field right in the bull's eye
  • 20% of their CAPEX will be in this one field
  • "Increasing production and decreasing costs"
EOG: 
  • Lukewarm analysis; counting on the Eagle Ford
AXAS:
  • Small company, but nicely diversified: not only the Bakken, but also Eagle Ford
  • I forget but I think Abraxas acreage in the Eagle Ford is substantial
  • I don't own any shares of AXAS (and no plans to buy) but it certainly looks interesting
GEOI:
  • Pristine balance sheet compared to its peers
KOG:
  • 150,000 acres; could triple its production by end of 2012 (up to 30,000 bbls)
CLR:
  • Production up to 70,000 bbls daily
  • Note: CLR market cap $12 billion; almost 1 million acres in the Bakken; while KOG had less than 100,000 acres until recently; a market cap of $2 billion -- and then compare daily production of each)
NOG:
  • Growth continues and rate of growth could accelerate
  • Already to 160,000 acres; market cap, $1.5 billion and greater acreage than KOG

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