Citigroup’s Faisel Khan and team are going full bull on US refiners after upgrading Phillips 66 (PSX), HollyFrontier (HFC), CVR Refining (CVRR) and Alon USA Partners (ALDW) to Buy.� They explain why:
Associated PressWe are upgrading the rest of the refining sector on our view that crude differentials will widen on the back of growing North American production and a lack of any major change in oil export policy in the near future. We are further upgrading the sector on the growing value of the midstream assets that are being dropped down and developed at the master limited partnerships (MLPs) of the refiners. We are moving Phillips 66, Holly Frontier,�CVR Refining and�Alon USA Partners to Buy. Valero Energy (VLO) remains on the Focus list.
Shares of Phillips 66 have ticked up 0.3% to $77.60 at 3:52 p.m., while Holly Frontier has risen 0.7% to $42.13,�CVR Refining has advanced 0.8% to $23 and�Alon USA Partners has jumped 5% to $18.77. Valero Energy has gained 1.1% to $45.20.
Best Oil Companies To Invest In 2015: SBM Offshore NV (SBMO)
SBM Offshore NV is the Netherlands-based company engaged in the offshore energy industry. It is a provider of floating production and mooring systems, in production operations and in terminals and services. The Company�� main activity is the design, supply, installation and operation of floating production, storage and offloading (FPSO) vessels. The Company�� business is divided into two segments: Lease and Operate, providing leasing and operation of oil and gas production facilities, and Turnkey, providing engineering, supply, overhaul and maintenance of Catenary Anchor Leg Mooring (CALM) buoys, swivels, mooring systems, fluid transfer systems and offloading systems. The Company has four main project execution centers located in the Netherlands, Monaco, the United States and Malaysia, and operates a number of subsidiaries. On September 4, 2013, the Company sold its cryogenic hose system technology to Trelleborg Industrial Solutions, the business area of Trelleborg AB. Advisors' Opinion:- [By Tom Stoukas]
PSA Peugeot Citroen and Anglo American Plc led carmakers and mining companies lower, respectively, on concern demand from China will weaken. St. James�� Place Plc tumbled the most in 4 1/2 years after Lloyds Banking Group Plc sold 77 million shares in the British wealth manager. SBM Offshore NV (SBMO) jumped to the highest price in 13 months after saying its first-quarter revenue increased 35 percent.
Top Energy Companies To Own For 2014: NK Lukoil OAO (LUKOY)
LUKOIL is a Russia-based integrated oil and gas company. The Company is engaged in the business of oil exploration, production, refining, marketing and distribution. The Company's exploration and production activity is located in Russia, and its main resource base is in Western Siberia. It owns modern refineries, gas processing and petrochemical plants located in Russia, Eastern and Western Europe. The Company�� petroleum products are sold in Russia, Eastern and Western Europe and United States. The Company operates in four business segments: exploration and production, refining, marketing and distribution, and chemicals and other business.
In January 2009, the Company acquired a 100% interest in Energoaktiv ZAO. In March 2009, the Company established a subsidiary, LUKOIL Overseas Holding GmbH. In Addition, in March 2009, LUKoil OAO increased its stake in TGK-8 OAO up to 60.21% from 31.38% previously held. In December 2009, the Company sold its 99.99% stake in Agentstvo LUKOM-A OOO. In February 2010, the Company established a research center, LUKOIL-Engineering OOO, which would be responsible for the research and engineering complex of the exploration and production business segment. The main production region of the Company is Western Siberia. LUKOIL is carrying out international exploration and production projects in Kazakhstan, Egypt, Azerbaijan, Uzbekistan, Saudi Arabia, Colombia, Venezuela, Cote d��voire, Ghana and Iraq.
LUKOIL owns oil refining capacity both in Russia and abroad. In Russia the Company owns four large refineries at Perm, Volgograd, Ukhta and Nizhny Novgorod. Total capacity of LUKOIL facilities in Russia is 44.7 million tons of oil per year. LUKOIL also has refineries in Ukraine, Bulgaria, Romania, and a 49% stake in ISAB refining complex (island of Sicily, Italy), with total capacity of 21.8 million tons per year.
Advisors' Opinion:- [By Charles Sizemore]
Next on the list is French oil major Total SA (TOT). Total raised some eyebrows last month as discussions progressed to develop Russia�� massive shale fields in partnership with Lukoil (LUKOY). It appears that, despite the ongoing threat of sanctions from the United States, business is going on as usual in the real world.
- [By Dividend Growth Investor]
ConocoPhillips (COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids on a worldwide basis. I am attracted to the above average yield on ConocoPhillips, in comparison to Exxon and Chevron. Unfortunately Chevron is already one of my highest weighted positions, which is why ConocoPhillips was the second US oil choice. I am building my position in the stock with this purchase. The company is extremely well run, has a history of disposing out of non-core assets such as Lukoil stock (LUKOY) and Kashagan Project, and sending cash to shareholders in the process. The company has increased dividends for 13 years in a row, and has managed to boost them by 15.10%/year over the past decade. Currently, the stock trades at 10.70 times earnings and yields 4.20%. Check my analysis of ConocoPhillips.
Top Energy Companies To Own For 2014: Woodside Petroleum Ltd (WPL)
Woodside Petroleum Ltd (Woodside) is an Australia-based oil and gas company. Woodside, along with its subsidiaries is engaged in hydrocarbon exploration, evaluation, development, production and marketing. As of December 31, 2011, the Company produced around 700,000 barrels of oil equivalent each day from a portfolio of facilities, which it operates on behalf of some of the major oil and gas companies. It operating facilities include six liquefied natural gas (LNG) trains, five offshore platforms and four oil floating production storage and offloading (FPSO) vessels. It is one of the non-government operators LNG plants. The Company operates six segments: North West Shelf Business Unit, Australia Oil Business Unit, Pluto Business Unit, Browse Business Unit, United States Business Unit and Other. In September 2012, it sold a minority portion of its equity in the proposed Browse LNG Development to Japan Australia LNG (MIMI Browse) Pty Ltd. Advisors' Opinion:- [By Adam Haigh]
Energy producers advanced as crude oil prices rallied after the ousting of Egypt�� president fanned concern unrest will disrupt Middle East oil supply. Cnooc gained 2.1 percent to HK$12.80 in Hong Kong. China Petroleum & Chemical Corp., the nation�� largest refiner, rose 2.5 percent to HK$5.25. Woodside Petroleum Ltd. (WPL), Australia�� No. 2 energy producer, added 3 percent to A$35.64.
Top Energy Companies To Own For 2014: Murphy Oil Corp (MUR)
Murphy Oil Corporation, incorporated on June 29, 1964, is a worldwide oil and gas exploration and production company with retail and wholesale gasoline marketing operations in the United States and refining and marketing operations in the United Kingdom. In August 2013, the Company announced that it has completed the spin-off of its United States retail marketing business into an independent public company called Murphy USA Inc.
Murphy's exploration and production activities are subdivided into five geographic segments, including the United States, Canada, Malaysia, the Republic of the Congo and all other countries. Murphy's refining and marketing activities are subdivided into segments for the United States and the United Kingdom.
Exploration and Production
During the year ended December 31, 2012, Murphy's principal exploration and production activities were conducted in the United States by wholly owned Murphy Exploration & Production Company - USA (Murphy Expro USA), in Malaysia, Republic of the Congo, Indonesia, Suriname, Australia, Brunei, the Kurdistan region of Iraq, Cameroon, Vietnam and Equatorial Guinea by wholly owned Murphy Exploration & Production Company - International (Murphy Expro International) and its subsidiaries, in Western Canada and offshore Eastern Canada by wholly owned Murphy Oil Company Ltd. (MOCL) and its subsidiaries, and in the U.K. North Sea and the Atlantic Margin by wholly owned Murphy Petroleum Limited.
Murphy's crude oil and natural gas liquids production in 2012 was in the United States, Canada, Malaysia, the Republic of the Congo and the United Kingdom; its natural gas was produced and sold in the United States, Canada, Malaysia and the United Kingdom. MOCL owns a 5% undivided interest in Syncrude Canada Ltd. in northern Alberta, one of the producers of synthetic crude oil. Murphy's worldwide crude oil, condensate and natural gas liquids production in 2012, averaged 112,591 barrels per day. The Company's worldwi! de sales volume of natural gas averaged 490 million cubic feet per day in 2012.
In the United States, Murphy primarily has production of oil and/or natural gas from fields in the deepwater Gulf of Mexico, in the Eagle Ford Shale area of South Texas and onshore in South Louisiana. The Company produced approximately 26,100 barrels of oil per day and 53 million cubic feet of natural gas per day in the U.S. in 2012. During 2012, approximately 54% of total U.S. hydrocarbon production was produced at fields in the Gulf of Mexico. The Company holds a 60% interest at Medusa in Mississippi Canyon Blocks 538/582, which produced total daily oil and natural gas of about 4,300 barrels and for million cubic feet, respectively, in 2012. At December 31, 2012, the Medusa field had total proved oil and natural gas reserves of approximately 9.2 million barrels and 9.4 billion cubic feet, respectively. Murphy has a 62.5% working interest in the Front Runner field in Green Canyon Blocks 338/339. Oil and natural gas production at Front Runner averaged about 3,900 barrels of oil per day and four million cubic feet per day in 2012. The Company also acquired additional working interests in the Thunder Hawk field in Mississippi Canyon Block 734 in 2012 and holds 62.5% of this field. In 2012 oil production from this field averaged 2,800 barrels per day and 1.7 million cubic feet per day and 3.2 million cubic feet per day due to a new well completed in 2012.
The Company is primarily concentrating drilling efforts in the areas of the Eagle Ford where oil is the primary hydrocarbon produced. Totals for 2012 oil and natural gas production in the Eagle Ford area were approximately 13,300 barrels per day and 13 MMCF per day, respectively. On a barrel of oil equivalent basis, Eagle Ford production accounted for 44% of total U.S. production volumes in 2012. At December 31, 2012, the Company's proved reserves in the Eagle Ford Shale area totaled 113.6 million barrels of oil and 108.7 billion cubic feet of natural! gas. Tot! al proved U.S. oil and natural gas reserves at December 31, 2012 were 142.6 million barrels and 209.7 billion cubic feet, respectively. The Company is developing the Dalmatian field located in DeSoto Canyon Blocks 4 and 48 in the Gulf of Mexico.
In Canada, the Company owns an interest in three non-operated assets - the Hibernia and Terra Nova fields offshore Newfoundland in the Jeanne d'Arc Basin and Syncrude Canada Ltd. in northern Alberta. In addition, the Company owns interests in one heavy oil area, two natural gas areas and light oil prospective acreage in the Western Canadian Sedimentary Basin (WCSB). Murphy has a 6.5% working interest in Hibernia, while at Terra Nova the Company's working interest is 10.475%. Oil production in 2012 was about 5,300 barrels of oil per day at Hibernia and 1,700 barrels per day at Terra Nova. Total proved oil reserves at December 31, 2012 at Hibernia and Terra Nova were approximately 10.6 million barrels and 5.9 million barrels, respectively.
Murphy owns a 5% undivided interest in Syncrude Canada Ltd., a joint venture located about 25 miles north of Fort McMurray, Alberta. Syncrude utilizes its assets, which include three coking units, to extract bitumen from oil sand deposits and to upgrade this bitumen into a synthetic crude oil. Production in 2012 was about 13,800 barrels of synthetic crude oil per day. Total proved reserves for Syncrude at year-end 2012 were 119.1 million barrels. Daily production in 2012 in the WCSB averaged about 7,500 barrels of mostly heavy oil and about 217 million cubic feet of natural gas. Through 2012, the Company has acquired approximately 144 thousand net acres of mineral rights in the Montney area, including Tupper and Tupper West.
In Malaysia, the Company has majority interests in six separate production sharing contracts (PSCs). The Company serves as the operator of all these areas other than the Kakap field. The production sharing contracts cover approximately 2.79 million gross acres. Murphy h! as an 85%! interest in discoveries made in two shallow-water blocks, SK 309 and SK 311, offshore Sarawak. About 7,400 barrels of oil per day were produced in 2012 at Blocks SK 309/311, with almost 75% of this at the West Patricia field and the remainder mostly associated with gas liquids produced at other Sarawak fields. Total net natural gas sales volume offshore Sarawak was about 174 million cubic feet per day during 2012 . Total proved reserves of oil and natural gas at December 31, 2012 for Blocks SK 309/311 were 10.3 million barrels and 284.7 billion cubic feet, respectively.
The Company made a discovery at the Kikeh field in deepwater Block K, offshore Sabah, Malaysia. Total gross acreage held by the Company in Block K as of December 31, 2012 was 80,000 acres. Production volumes at Kikeh averaged 44,900 barrels of oil per day during 2012. Total proved reserves booked in Block K as of year-end 2012 were 85.4 million barrels of oil and 72.9 billion cubic feet of natural gas.Total proved reserves booked in Block K in 2012, were 85.4 million barrels of oil and 72.9 billion cubic feet of natural gas. Total gross acreage held by the Company at year-end 2012 in Block H was 1.40 million acres. Murphy has a 75% interest in gas holding agreements for Kenarong and Pertang discoveries made in Block PM 311, located offshore peninsular Malaysia.
The Company had interests in Production Sharing Agreements (PSA) covering two offshore blocks in Republic of the Congo - Mer Profonde Sud (MPS) and Mer Profonde Nord (MPN) during 2012. These interests covered approximately 1.33 million gross acres with water depths ranging from 490 to 6,900 feet, and the Company operated both blocks. Total oil production in 2012 averaged 2,100 barrels per day at Azurite for the Company's 50% interest. Anticipated production in 2013 is 1,500 barrels per day.
The Company holds six exploration permits in Australia and serves as operator of four of them. Block NT/P80 in the Bonaparte Basin, offshore northwester! n Austral! ia, was acquired in June 2009 and covers approximately 1.20 million gross acres. In May 2012, Murphy was awarded permit WA-476-P in the Carnarvon Basin, offshore Western Australia. The Company holds 100% working interest in the permit which covers 177,000 gross acres. In August 2012, Murphy was awarded permit WA-481-P in the Perth Basin, offshore Western Australia. The permit covers approximately 4.30 million gross acres, with water depths ranging from 20 to 300 meters. The Company holds a 40% working interest. The work commitment calls for tw0- dimensional (2D) and three-dimensional (3D) seismic acquisition and processing, geophysical work and three exploration wells. In November 2012, Murphy acquired a 20% non-operated working interest in permit WA-408-P in the Browse Basin. This block is adjacent to AC/P36 and is in the midst of a two-well exploration campaign. The permit comprises approximately 417,000 gross acres.
The Company has interests in four exploration licenses in Indonesia and serves as operator of all these concessions. . Following contractually mandated acreage relinquishment in 2012, the block covers approximately 745 thousand gross acres. The Company has a 28.3% interest in the block which covers about 543 thousand gross acres after a required partial relinquishment of acreage during 2012. The permit calls for a 3D seismic program and three exploration wells. Murphy has a 100% interest in the block which covers 1.22 million gross acres. In November 2012, the Company signed a production sharing contract with Vietnam National Oil and Gas Group and PetroVietnam Exploration Production Company, whereby it acquired 65% interest and operatorship of Blocks 144 and 145. The blocks cover approximately 4.42 million gross acres and are located in the outer Phu Khanh Basin. In late 2012, the Company was granted Vietnam's government approval to acquire a 60% working interest and operatorship of Block 11-2/11.
The Company operates and holds a 50% interest in the block. The Ce! ntral Doh! uk block covers approximately 153 thousand gross acres and is located in the Dohuk area of the Kurdistan region in Iraq. The Company shot seismic in 2011 and drilled an unsuccessful exploration well in 2012.The Company acquired a 100% working interest and operatorship of Block 48 offshore Suriname. The block encompasses 794 thousand gross acres with water depths ranging from 1,000 to 3,000 meters. Murphy relinquished Block 37 in July 2012.
Murphy was granted government approval to acquire a 50% working interest and operatorship of the NTEM concession. The working interest was acquired from Sterling Cameroon Limited (Sterling) via a farm-out agreement of the existing production sharing contract. Sterling retained a 50% non-operated interest in the block. The NTEM block, situated in the Douala Basin offshore Cameroon, encompasses 573 thousand gross acres, with water depths ranging from 300 to 1,900 meters. In October 2012, Murphy signed an agreement with Perenco Cameroon to acquire a 50% interest in the Elombo production sharing contract, immediately adjacent to the NTEM concession. The Company received government approval to acquire the acreage in December 2012. Perenco retained a 50% operating interest in the block. The Elombo block, situated in the Douala Basin offshore Cameroon, between the shoreline and the NTEM block, encompasses 594 thousand gross acres with water depths ranging up to 1,100 meters.
In December 2012, Murphy signed a production sharing contract for block W offshore Equatorial Guinea. Murphy has a 45% working interest and has been designated the operator. The government is expected to ratify the contract early in 2013. The block is located offshore mainland Equatorial Guinea and encompasses 557 thousand gross acres with water depths ranging from 60 to 2,000 meters. The initial exploration period of five years is divided into two sub-periods, a sub-period of three years and a second sub-period of two years. The sub-period may be extended one year and with this! extensio! n is the obligation to drill one well. Murphy has produced oil and natural gas in the United Kingdom sector of the North Sea for many years. In 2012, Murphy entered into several contracts to sell all of its oil and gas properties in the United Kingdom.
Murphy's total proved undeveloped reserves at December 31, 2012 increased 42.0 million barrels of oil equivalent (MMBOE) from a year earlier. Approximately 44.0 MMBOE of proved undeveloped reserves were converted to proved developed reserves during 2012. During 2012, there were 26.6 million barrels of oil per day of positive revisions for proved undeveloped reserves. At December 31, 2012, proved reserves are included for several development projects that are ongoing, including natural gas developments at the Tupper West area in British Columbia and offshore Sarawak Malaysia, and an oil development at Kakap, offshore Sabah Malaysia. Total proved undeveloped reserves associated with various development projects at December 31, 2012 were approximately 219 million barrels of oil per day, which is 36% of the Company's total proved reserves.
Murphy Oil USA, Inc. (MOUSA), a wholly owned subsidiary of Murphy Oil Corporation and markets its refined products through a network of Company stations, unbranded wholesale customers and bulk products customers in a 30-state area, primarily in the Southern and Midwestern United States. Murphy's Company stations are located in 23 states and are primarily located in the parking lots of Walmart Supercenters using the brand name Murphy USA. The Company stations also include stand-alone locations using the Murphy Express brand. During 2012, Company stations sold over 3.8 billion gallons of motor fuel. At December 31, 2012, the Company marketed fuel and convenience merchandise through 1,165 Company stations. Of these Company stations, 1,015 are located on parking lots of Walmart Supercenters or other Walmart stores and 150 are stand-alone Murphy Express locations.
The Company owns land und! erlying 9! 08 of the Company stations on Walmart parking lots. No rent is payable to Walmart for the owned locations. For the remaining 104 Company stations located on Walmart property that are not owned, Murphy has master agreements that allow the Company to rent land from Walmart. The master agreements contain general terms applicable to all rental sites on Walmart property in the United States. In addition to the motor fuel sold at the Company's Company stations, its stores carry a broad selection of snacks, beverages, tobacco products, and other non-food merchandise. The Company's merchandise offerings include two private label products, an isotonic drink offered in several flavors and a private label energy drink. In 2012, the Company purchased more than 88% of its merchandise from a single vendor, McLane's Company, Inc., a wholly owned subsidiary of Berkshire Hathaway, Inc.
Murphy owns an interest in a crude oil pipeline that connects storage at the Louisiana Offshore Oil Port (LOOP) at Clovelly, Louisiana, to the formerly owned Meraux refinery. Murphy owns a 40.1% interest in its 22 miles of this pipeline from Clovelly to Alliance, Louisiana, and 100% of the remaining 24 miles from Alliance to Meraux. Murco Petroleum Limited (Murco), a wholly owned U.K. subsidiary, owns 100% interest in a refinery at Milford Haven, Pembrokeshire, Wales. The refinery is located on a 938 acre site owned by the Company; 430 acres are used by the refinery and the remainder is rented for agricultural use. The refinery consistently performed near nameplate capacity during 2012. Murphy has announced its intention to sell the Milford Haven refinery and United Kingdom marketing assets.
Advisors' Opinion:- [By Ben Levisohn]
The shares will likely react more to the fleet status report that was released last night, which saw the newbuild Ocean BlackRhino secure a contract, but only because it will take over the contract that the Ocean Confidence was set to begin in April 2015. The transfer of this backlog suggests that the BlackRhino could not secure its own contract that commenced in its delivery window. The customer (Murphy Oil (MUR)) has the option to extend the original 285-day contract at $550k/d to a 2-year contract at $500k/d, or a 3-year contract at $485k/d. The 485k/d rate represents the step down from recent 3-year contracts in the $550-$600 range. While the rate is above initial speculation of a flat $400k/d rate and our estimate of $450k/d, we think it will be perceived negatively as it serves as a reminder that the trend in ultra-deepwater dayrates remains firmly down. Several positive datapoints recently had seemed to instill a sense of complacency in the market that this contract will likely help dispel.
- [By Geoff Gannon]
For example, I happened to be looking at Murphy Oil (MUR) recently. There are a lot of questions you could ask about the company. Some are answered in a few seconds. For example, their financial condition is strong. It takes two seconds to see this. So you just see it and move on.
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