Intriguing Developments

In this issue:

 Despite the recent leveling-off of the production from the Bakken, the tight-oil formation’s long-term potential remains barely tapped, according to the government’s new geological survey. We examine the region’s most promising producers, all of which are already in our portfolios.

Meanwhile, one of the top Bakken operators, EOG Resources, has just reported startlingly good results from its Eagle Ford acreage in south Texas. EOG’s rapid growth and windfall from diminishing costs makes it probably the best producer play of all at the moment.

Occidental’s revenue is still shrinking rather than growing, but the perennially underwhelming Growth Portfolio holding has become one of the energy sector’s hottest stocks, after a decisive shareholder vote dramatically increased the odds of a corporate breakup.

Meanwhile, refining hotshot Marathon Petroleum failed to allay concerns about slimmer margins with its generally strong earnings report. We’re not ready to buy yet, despite the excellent medium-term fundamentals.

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