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Monday, July 15, 2013

Nice Day For Energy; Oil Nearly Flat -- Huge Day For Energy If One Stops To Smell The Crude Oil

Hitting new 52-week highs today:
  • BRK-B
  • EEP
  • COP
  • SRE
  • EPD
and many other energy shares are near their 52-week highs.

Union Pacific Railroad, one penny from 52-week high.

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or what you think you might have read here.

By the way, for newbies: if the price of oil goes too high too quickly, Bakken companies can actually show a loss for the quarter. Unexpected high oil prices are not necessarily good for oil companies; they are nice for mineral owners, but not necessarily for investors in shares of oil companies.

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For investors, this was a huge Monday; lots of energy stories. Some of them:
A great example of the potential a hidden asset like this can have on a company is found at Oasis Petroleum . The company has been building out its Oasis Well Services business in an effort to lower its well costs in the Bakken. Oasis invested $24 million initially, which has been money well spent. The business is expected to save Oasis about half a million dollars per operated well. Not only that, but the company produces cash flow from the business to the tune of about $200,000 per gross well as its non-operated partners pay Oasis for the service. These savings have enabled Oasis to completely pay back its initial equipment investment.

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