Best Energy Companies To Buy For 2015

For years, natural gas has been a relatively regional product, and producers that had access to major markets via pipelines were the only game in town. The prospect of liquefied natural gas, or LNG, exports from new places all over the world is turning that logic on its head, and so the former big bosses of natural gas are looking to maintain their prominence through an OPEC-style cartel. Let's find out why these natural gas giants are nervous and discover what an organization like OPEC could mean for the natural gas industry.

Under pressure
At the most recent meeting of the Gas Exporting Countries Forum, Russian President Vladimir Putin urged members to defend the traditional method of pricing natural gas, through oil-indexed, long-term contracts. According to Putin, this would be done to maintain the energy security of import countries. Even if Putin's reasoning for this kind of move sounds altruistic, there is certainly a much more self-serving reason to maintain the oil-index price structure: maintaining price control.�

Top Construction Material Stocks To Buy Right Now: Endeavour International Corp (END)

Endeavour International Corporation (Endeavour), incorporated on January 13, 2000, is an independent oil and gas company engaged in the exploration, development and acquisition of energy reserves in the United States and United Kingdom. The Company has three producing fields in the United Kingdom, including Alba, Bacchus and Bittern, as well as a number of development projects including Rochelle and Columbus. In the United States, the Company has production in the Haynesville and Marcellus, as well as two oil frontier plays in Colorado and Montana. As of December 31, 2012, Endeavour had proved reserves of 71,591 million cubic feet (MMcf) of natural gas and 13,739 thousands of barrels (Mbbls) of crude oil for a combined 25.7 million barrels of oil equivalent (MBOE).

The North Sea is a resource area where it has a development project, producing properties and additional exploration licenses. During 2012, Alba production volumes were impacted by water handling issues. As of December 31, 2012, it held a 30% working interest in its Bacchus field asset, which is operated by Apache Corporation, who owns a 50% working interest. In April and July 2012, it achieved production from the first and second development wells, respectively, on the Bacchus field. The Company�� working interest in the Rochelle area is 44% and it is the operator of the field, which is comprised of Blocks 15/26b, 15/26c and 15/27. Its United States activity has targeted reserve and production growth in shale gas plays, including the Louisiana Haynesville and Pennsylvania Marcellus areas.

The Company is also targeting emerging oil-prone and liquids-rich plays, including the Montana Heath oil play and its new interests in the Colorado Niobrara area. The Company operates and controls the Marcellus assets while retaining a 50% position in its remaining producing Haynesville acreage. The Company has 19 Haynesville Units which held by production with an estimated over 80 remaining gross locations to be developed, dep! ending on development well spacing. The Company has interests in approximately 88,900 net acres in the emerging Heath Shale oil play in Montana, primarily in Rosebud and Garfield Counties.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Leading and Lagging Sectors
  Wednesday morning, the financial sector proved to be a source of strength for the market. Leading the sector was strength from SouFun Holdings (NYSE: SFUN) and E-House (China) Holdings (NYSE: EJ). In trading on Wednesday, energy shares were relative laggards, down on the day by about 0.67 percent. Among the energy stocks, Endeavour International (NYSE: END)was down more than 22 percent, while TransGlobe Energy (NASDAQ: TGA) tumbled around 6 percent.

• [By Jake L'Ecuyer]

  Energy shares dropped by 0.26 percent in the US market today. Among the sector stocks, Endeavour International (NYSE: END) was down more than 5.6 percent, while Pacific Ethanol (NASDAQ: PEIX) tumbled around 2.2 percent.

• [By Jon C. Ogg]

  Endeavour International Corp. (NYSE: END) was downgraded to Hold from Buy at Canaccord Genuity.

  Endo Health Solutions Inc. (NASDAQ: ENDP) was downgraded to Sell from an already cautious Neutral rating at Janney.

Best Energy Companies To Buy For 2015: USA Compression Partners LP (USAC)

USA Compression Partners, LP, incorporated on June 07, 2011, through its wholly owned subsidiary USA Compression Partners, LLC (Operating Subsidiary) and Operating Subsidiary�� wholly owned subsidiary USAC Leasing LLC, primarily provides natural gas compression services under term contracts with customers in the oil and gas industry, using natural gas compressor packages that it designs, engineers, operates and maintains. As of September 30, 2013, the Company had approximately 1,162,353 of fleet horsepower.

The Company provides compression services for a monthly service fee. As part of its services, the Company engineers, designs, operates service and repair its fleet of compression units and maintain related support inventory and equipment. The fleet of compression units that it owns and uses to provide compression services consists of engineered compression units that utilize standardized components, principally engines manufactured by Caterpillar, Inc. and compressor frames and cylinders manufactured by Ariel Corporation.

Advisors' Opinion:

• [By Robert Rapier]

  USA Compression Partners (NYSE: USAC) was the first MLP IPO of 2013, debuting on Jan. 15, and advancing 36 percent since. USAC is unique in the MLP space in providing compression services for the oil and gas industry. The way this works is that a natural gas producer, for example, will contract with USAC on a long-term fixed-fee basis to compress the natural gas so that it can be delivered via pipeline to customers. USAC installs compression equipment to move the gas from the well to its destination. Its customer base is scattered across the important natural gas-bearing shales like the Barnett and the Marcellus. At the current price, units yield 7.3 percent. Coverage for the second quarter distribution was 90 percent[1] , but the partnership expects full year DCF coverage of 110 percent.

Best Energy Companies To Buy For 2015: Western Refining Logistics LP (WNRL)

Western Refining Logistics, LP, incorporated on July 17, 2013, owns, operates, develops, and acquires terminals, storage tanks, pipelines, and other logistics assets. As of December 31, 2012, the Company�� assets includes pipeline and gathering assets and terminalling, transportation, and storage assets in the Southwestern portion of the United States, which included approximately 300 miles of pipelines and approximately 7.9 million barrels of active storage capacity, as well as other assets. The Company's assets are integral to the operations of Western�� refineries located in El Paso, Texas, and near Gallup, New Mexico.

As of December 31, 2012, the Company owns and operates two refineries, in El Paso, Texas and Gallup, New Mexico, with a total crude oil throughput capacity of 153,000 barrels per day (bpd). The Company does not take ownership of the hydrocarbons or products (other than certain additives) that it handles or engages in the trading of any commodities.

Advisors' Opinion:

• [By Robert Rapier]

  Western Refining Logistics (NYSE: WNRL) debuted on Oct. 10. The partnership was formed by Western Refining (NYSE: WNR) to own, operate, develop and acquire terminals, storage tanks, pipelines, and other logistics assets. WNRL’s assets include 300 miles of crude oil pipelines, gathering systems, and 566,000 barrels of crude oil storage located primarily in the Permian Basin. Most of its revenue is expected to be derived from two 10-year, fee-based agreements with Western Refining.

• [By Ben Levisohn]

  The full list: Buffalo Wild Wings, Cavium, CaesarStone (CSTE), Eclipse Resources, MobileIron (MOBL), Nextera Energy, Portland General Electric (POR), Rexnord Corp, Terex Corp, Western Refining Logistics (WNRL), and The Advisory Board.

• [By Aimee Duffy]

  It;s been a very robust year for master limited partnership IPOs to say the least. On Thursday, Western Refining (NYSE: WNR  ) successfully spun off its midstream logistics MLP, Western Refining Logistics (NYSE: WNRL  ) . The partnership became the 14th MLP to make its debut this year.

Best Energy Companies To Buy For 2015: Oil and Natural Gas Corporation Ltd (ONGC)

Oil and Natural Gas Corporation Limited (ONGC) is an India-based company. The Company is mainly engaged in the oil exploration and production activities. The Company operates in two segments: Offshore and Onshore. Its subsidiaries include ONGC Videsh Limited (OVL), Mangalore Refinery & Petrochemicals Ltd., ONGC Nile Ganga BV, ONGC Narmada Limited, ONGC Amazon Alaknanda Limited, ONGC Campos Ltda, ONGC Nile Ganga (Cyprus) Ltd. and ONGC Nile Ganga (San Cristobal) B.V. Advisors' Opinion:

• [By Zahra Hankir]

  India�� (SENSEX) benchmark stock index fell for a fourth day, capping its biggest weekly loss in three months, as the rupee dropped to a six-week low. HDFC Bank Ltd. (HDFCB) dropped 1.9 percent, leading a gauge of banking shares to a fifth day of losses, the longest losing streak since July. Oil & Natural Gas Corp. (ONGC) slid to a three-week low, leading a slide in the S&P BSE India Oil & Gas Index.

• [By Jonathan Burgos]

  India�� biggest energy companies rose after the government agreed to raise the price of natural gas. Reliance Industries Ltd., operator of the world�� biggest oil refining complex, climbed 3.1 percent to 855.2 rupees in Mumbai. Oil & Natural Gas Corp. (ONGC) added 1.7 percent to 325.70 rupees.

Best Energy Companies To Buy For 2015: Tallgrass Energy Partners LP (TEP)

Tallgrass Energy Partners, LP incorporated on February 6, 2013, is a limited partnership company. It provides natural gas transportation and storage services for customers in the Rocky Mountain and Midwest regions of the United States through its Tallgrass Interstate Gas transportation system and processing services for customers in Wyoming through its Midstream Facilities. The Company operates in two segments: Gas Transportation and Storage and Processing. The Gas Transportation and Storage segment is engaged in ownership and operation of interstate natural gas pipelines and related natural gas storage facilities that provide services to third-party natural gas distribution utilities and other shippers. The Processing segment is engaged in ownership and operation of natural gas processing and treating facilities that produce natural gas liquids and residue gas that is sold in local wholesale markets or delivered into pipelines for transportation to additional end markets.

The Company provides processing services for customers in Wyoming through its Casper and Douglas natural gas processing and West Frenchie Draw natural gas treating facilities. The Casper and Douglas plants have combined capacity of 138.5 138.5 MMcf/d. The Company has its operations in Lakewood, Colarado. The Company owns and natural gas processing plants in Casper and Douglas, Wyoming and a natural gas treating facility at West Frenchie Draw, Wyoming through its wholly-owned subsidiary, Tallgrass Midstream, LLC.

The Company competes with Kinder Morgan and Southern Star Central Gas Pipeline, Inc.

Advisors' Opinion:

• [By Robert Rapier] There were a half a dozen initial public offerings (IPOs) by master limited partnerships in the first half of the year, and all but one are now in the green while one has nearly doubled in value.
  
  The first MLP IPO of 2013 debuted on Jan. 15. USA Compression Partners (NYSE: USAC), which I mentioned in last week’s issue, provides compression services for the oil and gas industry. Units have advanced 36 percent since the IPO, and at the current price yield 7.3 percent.
  
  The day after the USA Compression Partners IPO, CVR Refining (NYSE: CVRR) made its debut.  CVRR was spun off from CVR Energy (NYSE: CVI), and both companies remain majority-owned by Carl Icahn. CVR Refining’s primary assets are two refineries located in Kansas and Oklahoma with a combined processing capacity of approximately 185,000 barrels per day (bpd). These refineries are strategically located near the major Cushing, Oklahoma shipment and storage hub, with easy access to discounted feedstock from the nearby Permian basin, as well as the Bakken shale and Canadian oil sands.
  
  But refiners have struggled with diminished margins in 2013 because of a much lower Brent-WTI differential. After the recently concluded second quarter, CVRR declared a distribution of $1.35 per unit, bringing its per-unit distributions for the first half of the year to $2.93. At the same time, CVR Refining lowered its annual distribution target to a range of $4.10 to $4.80 per unit. This was lower than the outlook issued in March, when it foresaw annual distributions of $5.50 to $6.50. CVRR units slid on the news, and are presently trading slightly below the $25 IPO price. The lower end of the revised forecast implies distributions of $1.17 per unit in the second half of the year, for a forward annualized yield of 10 percent based on the recent $23.50 unit price.
  
  SunCoke Energy Partners (NYSE: SXCP) was the third IPO to debut during a very busy third week of January. SXCP is the first M