Because You Asked: Why Energy Investors Should Thank the Hedge Funds and other Hot Money for Dumping Energy Assets Cheap
May 19, 2010 (Investorideas.com energy newswire) Investorideas.com has received many requests to re-post Mr. Miller's current analysis of the US Energy and Infrastructure market, originally posted May 17, 2010, where he accurately made the call that investors should "seize the moment" and purchase as many high quality public energy and infrastructure companies as possible at the current massively oversold prices.
Mr. Miller has made the call and supported the case for remaining invested long term in the Energy and Infrastructure market, and the leading money managers have started to publicly acknowledge that Mr. Miller made the correct call and starting to move money back into the oversold Energy sector in recent days.
Follow Karl Miller at Investorideas.com
http://www.naturalgasstocks.com/Karl_Miller/
Let me start by saying that experienced energy investors savor the times when the "Ambulance" chasers dump quality energy companies en masse to raise capital in order to chase a wounded victim, the Euro in this case.
For the record, the Euro is not going to fail. Some of the weaker countries in the EU may ultimately be removed from the Euro economic base, but as I will explain, they never should have been there in the first place. Hold that thought, and we will come back to it shortly.
For those investors that either know me from the Global Energy Industry over the past twenty years (20) or those that follow my commentary, I am certain all of you know my conviction that to accumulate and maintain true net worth, you must have a significant amount of your assets invested in the Energy Sector, with strong emphasis on US Energy companies, due to the preservation of capital.
It is common knowledge that I spent half it not more of my career working in the Global Energy Industry, mostly in Europe and Asia, with the balance in the US. While I am not a politician, when you work in Europe, especially in the Energy Sector, you must be part commercial executive and part politician, given the long, deep rooted socialist ideology in countries like France in particular, among others.
When the European Union was formed, and the Euro was created, the informed energy and other industry executives "knew full well" that the lesser countries like Greece, Italy, Spain and Portugal were not strong enough financially to meet the guidelines set out by the EU and doubted they every would meet the debt to GDP ratios and other key metrics. However, the euphoria about including as many countries in the Euro to compete with the US Dollar at that time overshadowed the economic reality that many of the lesser European countries were admitted way too soon, if they should ever have been allowed to become part of the EU in a currency weighted scenario.
Also, the capital markets, the very ones that are now attacking the Euro "knew full well" that the lesser countries that I refer to above and they refer to as "PIIGS" were not financially capable of meeting the EU guidelines. This includes many of the financial executives that are now running Hedge Funds, Bank Currency Trading operations, and other institutional investors that I refer to in my opening statement as "Ambulance" chasers.
So, where does that leave us? Well, firstly when extremely high quality energy companies get absolutely dumped for no good reason other than Ambulance chasers need to raise money fast to chase the latest trade en mass with the rest of the heard, you must be able to identify this movement and capitalize by purchasing these companies at significant discounts.
You can dispel that there is any reality to what is commonly referred to as "market correction". There are only two types of investing that are credible, owning hard assets such as Energy (Oil, natural gas, and other products) and by default, you control or own "real estate", which as I have stated in prior analysis is the foundation of investing dating back to the beginning of recorded human time.
Leave the "market correction" myth to the rest of the market. The undisputed historical and prospective fact is that "he who controls the natural resources" controls the world we live in, irrespective whether it is the US, Europe, or Asia. The Chinese, despite their lack of respect for the rule of law, sanctity of contracts, and basic business honor, understand that they must control the natural resources necessary to promote their economy, which is why you see the Chinese government owned and controlled energy and infrastructure companies buying assets anywhere they can "cheaply" now as they know what I know, you must lock down your natural resource supplies, for otherwise you will not be a "landlord", but be a tenant and pay rent in perpetuity.
For those old enough to have studied history, this is the primary reason the Japanese decided to attack the US in 1941, they were being starved of natural resources and had none of their own, and thus they had to seize other territories in Asia which produced oil, rubber, and iron ore to support Japan’s economy.
Now, we have a global economy now, so I don’t think anyone will be going to war anytime soon to seize control of natural resources, other than the first Gulf War, which was absolutely about insuring Kuwait and more importantly, Saudi Arabian oil kept flowing freely to the global markets.
The moral of this history brief and story is that while the investing world has changed, the reasons to invest have not. When Hedge Funds, Hot Money, and Ambulance chasers dump energy and infrastructure assets cheap, like they have in recent weeks, you should seize upon this "gift" and buy as much of the high quality public companies in the sector as you can.
For just as quickly as the Hedge Funds, Hot Money, and Ambulance chasers dumped energy and infrastructure stocks, they will come back into the sector in full force of a thundering herd of water buffalo struggling to cross a river infested with crocodiles when they grow tired of their latest chase, the Euro. Why will they do this you may ask, well despite the well informed investors reasons for owning natural resources outlined above, Hot Money has no choice. They must chase the trade for a living, and energy and infrastructure is a "trade in perpetuity", you must own it if you manage money.
Previous commentary ,"Did You Miss the Biggest Buying Opportunity in Energy, Thursday May 6, 2010" by energy executive Karl Miller was one of the most read articles on Investorideas.com.
Read the full article published May 6th at Investorideas.com:
http://www.naturalgasstocks.com/Karl_Miller/news/5071.asp
Karl Miller
Follow Karl Millers market and energy commentary and disclosure at:
http://www.naturalgasstocks.com/Karl_Miller/
Investors following energy stocks can follow energy stocks with news and commentary by Karl Miller and several guest contributors in the new energy newswire and RSS feed at Investorideas.com. Subscribe here:
http://www.investorideas.com/RSS/feeds/Energy.xml
Energy Investors can research energy stocks with the natural gas stocks directory or the oil and gas stocks directory listing publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.
About InvestorIdeas.com:
InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering investing in water, mining, renewable energy, energy, biotech, defense and global markets including China, India, Middle East and Australia. The website covers several sectors but has a focus on environment and water. Investorideas.com meets the needs of retail investors, public companies and entrepreneurs with unique tools and services ranging from stock directories, newsfeeds, funding directories and more.
About our energy portals:
www.OilandGasStockNews.com and www.Naturalgasstocks.com are energy portals within the InvestorIdeas.com umbrella, providing investor research, stock news and energy links as well as a directory of public companies within the energy sector.
Disclaimer: Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies including Indigo-Energy, Inc. (OTCBB: IDGG), news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp
Karl Miller Disclaimer: http://www.naturalgasstocks.com/Karl_Miller/
This column, Energy Commentary from Karl Miller, is the opinion of Karl Miller. Content found in the articles is subject to the terms found in the InvestorIdeas.com disclaimer and does not represent a recommendation of investment advice by Mr. Miller. Investors should seek the advice of a qualified investment professional prior to making any investment decisions.
For Additional Information:
Source – Investorideas.com/Karl Miller
Follow Investorideas.com on Twitter.com
http://twitter.com/Investorideas
Showing posts with label Energy Stocks; Atlas Energy. Show all posts
Showing posts with label Energy Stocks; Atlas Energy. Show all posts
Wednesday, May 19, 2010
Tuesday, May 18, 2010
Energy Stocks Active in Illinois Basin; Indigo-Energy, Inc. (OTCBB: IDGG), Rex Energy Corporation (Nasdaq:REXX)
May 18, 2010 ( Investorideas.com energy newswire) –Investorideas.com, an investor research portal covering oil and gas and coal stocks, as well as other leading sectors, updates energy investors with an overview of publicly traded companies active in the Illinois Basin.
The Illinois Basin covers an estimated 60,000 square miles in central and southern Illinois, south- western Indiana, and western Kentucky.
Energy stocks in the area include Indigo-Energy, Inc. (OTCBB: IDGG), Rex Energy Corporation (NASDAQ:REXX) as well as several of the largest coal companies in the US.
Indigo-Energy, Inc. (OTCBB: IDGG) is an independent Nevada energy company, engaged in the drilling, development, production and acquisition of certain oil and gas reserves located in different geological regions around the United States. This involves drilling of developmental oil and gas wells at the different program sites on proven reserves. It also includes the purchase of producing oil and gas wells, and existing oil and gas leasehold interests.
More info: http://www.investorideas.com/CO/IDGG/ or http://www.indigo-energy.com/
Recent News: Indigo-Energy (OTCBB: IDGG) Updates Progress in the Illinois Basin
Indigo-Energy, Inc. (OTCBB: IDGG) is pleased to update its progress on natural gas production in the Illinois Basin. The Company began completion efforts on one vertical well and two horizontal wells back in December of 2009 and announced in March that these wells had begun flowing and flaring a significant volume of natural gas. Since that announcement, the Company and its operating partners in the basin have successfully completed testing and inspections by the state utilities regulatory commission and passed gas quality testing with the pipeline company. Additionally, the Company announced that a contract for the purchase of gas had been signed and that final steps were being taken to ensure the most consistent and optimum flow of gas to the pipeline once production into the pipeline begins.
Read news: http://www.investorideas.com/CO/IDGG/news/5131.asp
Rex Energy Corporation (NASDAQ:REXX) is an independent oil and gas company operating in the Illinois Region and the Appalachian Region of the United States. The company has pursued a balanced growth strategy of exploiting its sizable inventory of lower risk developmental drilling locations, pursuing its higher potential exploration drilling prospects and actively seeking to acquire complementary oil and natural gas properties.
Recent News: Rex Energy posts $2M profit
(http://pittsburgh.bizjournals.com/pittsburgh/stories/2010/05/03/daily27.html?ana=yfcpc)
Other smaller energy stocks in the Illinois Basin play include Kentucky USA Energy, Inc. (OTCBB: KYUS.OB), an exploration stage natural gas exploration company and
Strategic American Oil Corporation (OTCBB: SGCA).
Coal stocks in the Illinois Basin include Peabody Energy (NYSE: BTU), Natural Resource Partners L.P. (NYSE: NRP) and Alliance Resource Partners, L.P. (NASDAQ: ARLP). Peabody Energy's operations are geographically diverse within the United States and around the world, with locations on five continents. Peabody has the number one position in the Powder River Basin, Southwest, Illinois Basin and Colorado. NRP owns coal reserves and coal handling and transportation infrastructure in the three major coal producing regions of the United States: Appalachia, the Illinois Basin and the Powder River Basin. In addition, the partnership owns and manages aggregate reserves being mined in six states. ARLP is currently the fifth largest coal producer in the eastern United States with mining operations in the Illinois Basin, Northern Appalachian and Central Appalachian coal producing regions.
Read the history of the Illinois Basin:
http://www.ioga.com/Special/Geohist.htm
To research more energy stocks in the Illinois Basin and other plays investors can turn to
the Investorideas.com oil and gas stocks directory list of publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE. Other sub sectors featured within the directory includes Bakken Stocks and Oilsands stocks. Visit: http://www.investorideas.com/OGSN/Stock_List.asp
Investorideas.com Showcase Energy Stock: Indigo-Energy, Inc. (OTCBB: IDGG)
Profile Page on Investorideas.com http://www.investorideas.com/CO/IDGG/
About our Oil and Gas Investor portal:
www.OilandGasStockNews.com an energy stocks investor portal within the InvestorIdeas.com provides investor research, energy stocks and industry commentary from Karl Miller, stock news and energy links as well as a directory of public companies within the oil and gas sector. Investors can follow energy news by subscribing to the energy stocks newswire at:
http://www.investorideas.com/RSS/feeds/Energy.xml
Additional Energy Stocks directories:
Coal Stocks Directory:
http://www.investorideas.com/CSS/Stock_List.asp
Natural Gas Stocks Directory (http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp)
Global Directory of Publicly traded Natural Gas Stocks listed on the TSX, TSX Venture, OTC, NASDAQ, AMEX, NYSE, ASX, AIM and other leading global Stock Exchanges.
About InvestorIdeas.com:
Investor Ideas is a global investor research portal specialized in sector investing, providing in-depth research, news, investor tools and stock directories for energy stocks, renewable energy, homeland security, water, gold / mining stocks, nanotech stocks, biotech and other leading sectors. Investor Ideas Members currently get login access to 11 stock directories including all energy stock directories. Visit the Investor Ideas membership page to learn more at:
http://www.investorideas.com/membership/
Disclaimer: The following info/article was part of the paid advertising program for showcase energy stock, Indigo-Energy, Inc. (OTCBB: IDGG). Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp
Disclosure - http://www.investorideas.com/About/News/Clientspecifics.asp
For Additional Information and or interest in becoming a content /revenue partner:
Dawn Van Zant: 800-665-0411 - dvanzant@investorideas.com
Source: OilandGasStockNews.com and Investorideas.com
May 18, 2010 ( Investorideas.com energy newswire) –Investorideas.com, an investor research portal covering oil and gas and coal stocks, as well as other leading sectors, updates energy investors with an overview of publicly traded companies active in the Illinois Basin.
The Illinois Basin covers an estimated 60,000 square miles in central and southern Illinois, south- western Indiana, and western Kentucky.
Energy stocks in the area include Indigo-Energy, Inc. (OTCBB: IDGG), Rex Energy Corporation (NASDAQ:REXX) as well as several of the largest coal companies in the US.
Indigo-Energy, Inc. (OTCBB: IDGG) is an independent Nevada energy company, engaged in the drilling, development, production and acquisition of certain oil and gas reserves located in different geological regions around the United States. This involves drilling of developmental oil and gas wells at the different program sites on proven reserves. It also includes the purchase of producing oil and gas wells, and existing oil and gas leasehold interests.
More info: http://www.investorideas.com/CO/IDGG/ or http://www.indigo-energy.com/
Recent News: Indigo-Energy (OTCBB: IDGG) Updates Progress in the Illinois Basin
Indigo-Energy, Inc. (OTCBB: IDGG) is pleased to update its progress on natural gas production in the Illinois Basin. The Company began completion efforts on one vertical well and two horizontal wells back in December of 2009 and announced in March that these wells had begun flowing and flaring a significant volume of natural gas. Since that announcement, the Company and its operating partners in the basin have successfully completed testing and inspections by the state utilities regulatory commission and passed gas quality testing with the pipeline company. Additionally, the Company announced that a contract for the purchase of gas had been signed and that final steps were being taken to ensure the most consistent and optimum flow of gas to the pipeline once production into the pipeline begins.
Read news: http://www.investorideas.com/CO/IDGG/news/5131.asp
Rex Energy Corporation (NASDAQ:REXX) is an independent oil and gas company operating in the Illinois Region and the Appalachian Region of the United States. The company has pursued a balanced growth strategy of exploiting its sizable inventory of lower risk developmental drilling locations, pursuing its higher potential exploration drilling prospects and actively seeking to acquire complementary oil and natural gas properties.
Recent News: Rex Energy posts $2M profit
(http://pittsburgh.bizjournals.com/pittsburgh/stories/2010/05/03/daily27.html?ana=yfcpc)
Other smaller energy stocks in the Illinois Basin play include Kentucky USA Energy, Inc. (OTCBB: KYUS.OB), an exploration stage natural gas exploration company and
Strategic American Oil Corporation (OTCBB: SGCA).
Coal stocks in the Illinois Basin include Peabody Energy (NYSE: BTU), Natural Resource Partners L.P. (NYSE: NRP) and Alliance Resource Partners, L.P. (NASDAQ: ARLP). Peabody Energy's operations are geographically diverse within the United States and around the world, with locations on five continents. Peabody has the number one position in the Powder River Basin, Southwest, Illinois Basin and Colorado. NRP owns coal reserves and coal handling and transportation infrastructure in the three major coal producing regions of the United States: Appalachia, the Illinois Basin and the Powder River Basin. In addition, the partnership owns and manages aggregate reserves being mined in six states. ARLP is currently the fifth largest coal producer in the eastern United States with mining operations in the Illinois Basin, Northern Appalachian and Central Appalachian coal producing regions.
Read the history of the Illinois Basin:
http://www.ioga.com/Special/Geohist.htm
To research more energy stocks in the Illinois Basin and other plays investors can turn to
the Investorideas.com oil and gas stocks directory list of publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE. Other sub sectors featured within the directory includes Bakken Stocks and Oilsands stocks. Visit: http://www.investorideas.com/OGSN/Stock_List.asp
Investorideas.com Showcase Energy Stock: Indigo-Energy, Inc. (OTCBB: IDGG)
Profile Page on Investorideas.com http://www.investorideas.com/CO/IDGG/
About our Oil and Gas Investor portal:
www.OilandGasStockNews.com an energy stocks investor portal within the InvestorIdeas.com provides investor research, energy stocks and industry commentary from Karl Miller, stock news and energy links as well as a directory of public companies within the oil and gas sector. Investors can follow energy news by subscribing to the energy stocks newswire at:
http://www.investorideas.com/RSS/feeds/Energy.xml
Additional Energy Stocks directories:
Coal Stocks Directory:
http://www.investorideas.com/CSS/Stock_List.asp
Natural Gas Stocks Directory (http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp)
Global Directory of Publicly traded Natural Gas Stocks listed on the TSX, TSX Venture, OTC, NASDAQ, AMEX, NYSE, ASX, AIM and other leading global Stock Exchanges.
About InvestorIdeas.com:
Investor Ideas is a global investor research portal specialized in sector investing, providing in-depth research, news, investor tools and stock directories for energy stocks, renewable energy, homeland security, water, gold / mining stocks, nanotech stocks, biotech and other leading sectors. Investor Ideas Members currently get login access to 11 stock directories including all energy stock directories. Visit the Investor Ideas membership page to learn more at:
http://www.investorideas.com/membership/
Disclaimer: The following info/article was part of the paid advertising program for showcase energy stock, Indigo-Energy, Inc. (OTCBB: IDGG). Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp
Disclosure - http://www.investorideas.com/About/News/Clientspecifics.asp
For Additional Information and or interest in becoming a content /revenue partner:
Dawn Van Zant: 800-665-0411 - dvanzant@investorideas.com
Source: OilandGasStockNews.com and Investorideas.com
Sunday, May 16, 2010
Buy Energy Infrastructure and Real Estate at Distressed Prices Now
(Investorideas.com energy newswire) Investorideas.com issues energy stocks and market commentary from energy executive Karl Miller, May17th .
Follow Karl Miller at Investorideas.com
http://www.naturalgasstocks.com/Karl_Miller/
Karl Miller:
This is the bottom line on Net Worth Accumulation and Wealth Transfer over generations:
"You will be judged by the amount of money in your wallet and thus dictates you must own hard assets: Energy Infrastructure and Real Estate to accumulate True Net Worth".
The "Landlord" always wins and the servants always lose! It has been this was since the beginning of recorded human records.
All other investment activities and classes are effectively "losers" over the long term.
Investors must learn from history and when the market gives them a rare, very rare in current market conditions, opportunity to acquire Energy Infrastructure Asset companies and effectively Real Estate very cheap, investors should capitalize on it promptly. Do not buy mutual funds and exchange traded funds at this time. Now is the time to invest directly in high quality Energy companies at deep discounts and distressed real estate on a regional basis directly from financial institutions.
Fortunes were made buying such assets as recently as the late 1980's Bank crisis in the US and I stake my professional reputation and market credibility that the energy companies in my "Charitable Energy Stocks" portfolio, will never go to zero value or anywhere close, even BP, despite the clean up cost the company will incur in the Gulf of Mexico.
Winston Churchill once said to one of his adversaries in Parliament, "Sir, you are a modest man, with much to be modest about and a sheep in sheep's clothing".
Don't be a sheep to slaughter in this market, be an opportunistic investor and know how and when to invest in Energy companies and Real Estate at a discount, and become a landlord!
Karl Miller
______________________
Previous commentary ,”Did You Miss the Biggest Buying Opportunity in Energy, Thursday May 6, 2010” by energy executive Karl Miller was one of the most read articles on Investorideas.com.
Read the full article published May 6th at Investorideas.com:
http://www.naturalgasstocks.com/Karl_Miller/news/5071.asp
Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980s and has an extensive background in banking, commodities trading and risk management.
Mr. Miller also published “You Must Be Invested in the U.S. Equity Markets: Overweight on Energy Producers and Utilities”
http://www.naturalgasstocks.com/Karl_Miller/news/5051.asp
For public interest I disclosed my model energy portfolio “Charitable Energy Stocks” on January 27, 2010. To see my model energy portfolio go to weblink:
http://www.naturalgasstocks.com/Karl_Miller/news/1281.asp
Follow Karl Millers market and energy commentary at
http://www.naturalgasstocks.com/Karl_Miller/
Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricite de France, El Paso Energy, Enron Corporation and JPMorgan Chase.
Investors following the energy sector can also follow Karl Miller in the energy news RSS feed.
Subscribe here:
http://www.investorideas.com/RSS/feeds/Energy.xml
Energy Investors can research energy stocks with the natural gas stocks directory:
http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp
The oil and gas stocks directory lists publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.
http://www.investorideas.com/OGSN/stock_list.asp
Investors also have the option to access the directory as part of the Investor Ideas Membership premium content. The full directory is now available to Investor Ideas members as part of the annual membership that currently features 11 stock directories and investor newsletter, including an oil and gas stocks directory.
Join Investor Ideas in the 2010 Campaign - One Million Members Stronger - Learn more about becoming a member http://www.investorideas.com/membership/
About InvestorIdeas.com:
InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering investing in water, mining, renewable energy, energy, biotech, defense and global markets including China, India, Middle East and Australia. The website covers several sectors but has a focus on environment and water. Investorideas.com meets the needs of retail investors, public companies and entrepreneurs with unique tools and services ranging from stock directories, newsfeeds, funding directories and more.
Disclaimer: All content is the opinion of Karl Millerand,not that of Investorideas.com . Mr. Miller is not compensated for the creation of the published content. Investor Ideas sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp
Source - Investorideas.com /Karl Miller
Follow Investorideas.com on Twitter.com http://twitter.com/Investorideas
(Investorideas.com energy newswire) Investorideas.com issues energy stocks and market commentary from energy executive Karl Miller, May17th .
Follow Karl Miller at Investorideas.com
http://www.naturalgasstocks.com/Karl_Miller/
Karl Miller:
This is the bottom line on Net Worth Accumulation and Wealth Transfer over generations:
"You will be judged by the amount of money in your wallet and thus dictates you must own hard assets: Energy Infrastructure and Real Estate to accumulate True Net Worth".
The "Landlord" always wins and the servants always lose! It has been this was since the beginning of recorded human records.
All other investment activities and classes are effectively "losers" over the long term.
Investors must learn from history and when the market gives them a rare, very rare in current market conditions, opportunity to acquire Energy Infrastructure Asset companies and effectively Real Estate very cheap, investors should capitalize on it promptly. Do not buy mutual funds and exchange traded funds at this time. Now is the time to invest directly in high quality Energy companies at deep discounts and distressed real estate on a regional basis directly from financial institutions.
Fortunes were made buying such assets as recently as the late 1980's Bank crisis in the US and I stake my professional reputation and market credibility that the energy companies in my "Charitable Energy Stocks" portfolio, will never go to zero value or anywhere close, even BP, despite the clean up cost the company will incur in the Gulf of Mexico.
Winston Churchill once said to one of his adversaries in Parliament, "Sir, you are a modest man, with much to be modest about and a sheep in sheep's clothing".
Don't be a sheep to slaughter in this market, be an opportunistic investor and know how and when to invest in Energy companies and Real Estate at a discount, and become a landlord!
Karl Miller
______________________
Previous commentary ,”Did You Miss the Biggest Buying Opportunity in Energy, Thursday May 6, 2010” by energy executive Karl Miller was one of the most read articles on Investorideas.com.
Read the full article published May 6th at Investorideas.com:
http://www.naturalgasstocks.com/Karl_Miller/news/5071.asp
Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980s and has an extensive background in banking, commodities trading and risk management.
Mr. Miller also published “You Must Be Invested in the U.S. Equity Markets: Overweight on Energy Producers and Utilities”
http://www.naturalgasstocks.com/Karl_Miller/news/5051.asp
For public interest I disclosed my model energy portfolio “Charitable Energy Stocks” on January 27, 2010. To see my model energy portfolio go to weblink:
http://www.naturalgasstocks.com/Karl_Miller/news/1281.asp
Follow Karl Millers market and energy commentary at
http://www.naturalgasstocks.com/Karl_Miller/
Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricite de France, El Paso Energy, Enron Corporation and JPMorgan Chase.
Investors following the energy sector can also follow Karl Miller in the energy news RSS feed.
Subscribe here:
http://www.investorideas.com/RSS/feeds/Energy.xml
Energy Investors can research energy stocks with the natural gas stocks directory:
http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp
The oil and gas stocks directory lists publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.
http://www.investorideas.com/OGSN/stock_list.asp
Investors also have the option to access the directory as part of the Investor Ideas Membership premium content. The full directory is now available to Investor Ideas members as part of the annual membership that currently features 11 stock directories and investor newsletter, including an oil and gas stocks directory.
Join Investor Ideas in the 2010 Campaign - One Million Members Stronger - Learn more about becoming a member http://www.investorideas.com/membership/
About InvestorIdeas.com:
InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering investing in water, mining, renewable energy, energy, biotech, defense and global markets including China, India, Middle East and Australia. The website covers several sectors but has a focus on environment and water. Investorideas.com meets the needs of retail investors, public companies and entrepreneurs with unique tools and services ranging from stock directories, newsfeeds, funding directories and more.
Disclaimer: All content is the opinion of Karl Millerand,not that of Investorideas.com . Mr. Miller is not compensated for the creation of the published content. Investor Ideas sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp
Source - Investorideas.com /Karl Miller
Follow Investorideas.com on Twitter.com http://twitter.com/Investorideas
Tuesday, May 11, 2010
McDermott International (NYSE: MDR): The Best Kept Secret in the Energy Industry
May 12, 2010 ( Investorideas.com energy newswire ) Investorideas.com releases energy commentary from Karl Miller on McDermott International (NYSE: MDR):
Follow Karl Millers market and energy commentary at
http://www.naturalgasstocks.com/Karl_Miller/
It is common knowledge that the top of my conviction must own or buy list are Occidental Petroleum (OXY) an outstanding mid-cap integrated oil, gas and chemical producer; Chesapeake Energy (CHK) the premier acquirer, developer and producer of low cost shale gas with a world class set of integrated oil partners, and McDermott International (MDR) a company that primarily services U.S. Utility power generation fleet, performs U.S. government contract work, and services the oil and gas industry through fabrication and other non-drilling related operations, in addition to the balance of the disclosed energy portfolio.
For public interest I disclosed my model energy portfolio "Charitable Energy Stocks" on January 27, 2010. To see my model energy portfolio go to weblink: http://www.naturalgasstocks.com/Karl_Miller/news/1281.asp
However, I feel that one of my model companies, MDR, while being one of the highest rated buy stocks by Wall Street Energy Analysts, is completely misunderstood by the majority of the market and investors. So let’s dispel some fallacies and focus on the facts and more importantly, the real value of MDR, and why it is a “must own” energy stock.
The MDR Board of Directors, with shareholder approval, plan to spin-off the company into two (2) separate publicly traded companies in a spin-off of Babcock and Wilcox in a tax free transaction, which is targeted to be completed by the end of June 2010, a little over a month from now. The two companies will be owned 100% by the current MDR shareholders and operate under the following names and structure:
1) McDermott International which, per the Company will take on the name of J. Ray McDermott S.A. will continue to focus and lead the industry in Offshore Oil & Gas Construction segment provides engineering, construction, installation and project management services to offshore oil and gas field developments worldwide. They operate in most major offshore producing regions throughout the world, including the U.S. Gulf of Mexico, Mexico, the Middle East, India, the Caspian Sea and Asia Pacific. J. Ray McDermott, S.A. will employ approximately 16,000 people worldwide.
2) The Babcock & Wilcox Company ("B&W") per the Company is a leading technology innovator in power generation and a specialty manufacturer of nuclear components with a rich legacy spanning over 140 years. B&W designs, engineers, manufactures, and constructs power generation systems, primarily for large utility and industrial customers, as well as related aftermarket parts, services and environmental control systems. For its largest customer, the U.S. Government, B&W supplies nuclear components for defense programs and manages and operates nuclear facilities and environmental management sites. B&W, including its joint venture companies, employs over 15,000 people worldwide.
Now, while a tax free spin-off is always interesting, what is more interesting is the value inherent in the current consolidated MDR entity and the value creation and exposure to various sectors of the US and Global energy market the spin-off provides investors. Offshore Oil & Gas Construction segment provides engineering, construction, installation and project management services to offshore oil and gas field developments worldwide
Firstly, I can speak with authority on J. Ray McDermott, S.A. They are “Not” engaged any drilling or exploration activities. What they do is what we commonly refer to as “selling pick axes to the miners”, and collect a hefty fee for providing such services as Offshore Oil & Gas Construction segment provides engineering, construction, installation and project management services to offshore oil and gas field developments worldwide. Secondly, they double by being called in to repair any and all offshore oil and gas infrastructure problems, will go anywhere in the world, will take virtually any job for the right price, and trust me, they charge a fortune to mobilize and just to get their equipment on site, let alone start the daily billing for equipment, labor and insurance and other overhead, plus a health profit margin. Thirdly and most importantly, near and dear to everyone at the current time, they clean up, cap, and repair deep sea pipelines, flanges, and wellheads.
So if we use a home contractor example, one can look at J. Ray McDermott as the Builder/Contractor, interior trade worker who installs the plumbing, electrical, and HVAC, among other furnishings, and is also the Contractor that is called in to clean up fire and water damage. They have been doing this since the 1960’s, and are arguably the best in the business and as I said, will take virtually any job, anywhere in the world, as long as the Client is willing to pay the mobilization charges J.Ray charges, which the client always does, given the limited nature of competition in the sector.
Now, let’s look at B&W and what value they deliver to shareholders. They design, engineer, manufacture, and construct power generation systems, primarily for large utility and industrial customers, as well as related aftermarket parts, services and environmental control systems and their largest customer is the “U.S. Government”. Given the stability and lucrative nature of servicing the current U.S. Nuclear power generation fleet of power plants, and government facilities, B&W can be looked at as an annuity for shareholders, much like some of the top Master Limited Partnerships in the Oil and Gas Sector, like Kinder Morgan. They are going to deliver a steady, healthy stream of cash flow to investors each year, and the cash flow is expected to grow, especially as the U.S. Government becomes more involved in the development of future nuclear technology to replace the aging U.S. Nuclear generation fleet of power plants and the aging nuclear powered fleet of submarines, aircraft carriers and cruisers for the U.S. Navy. B&W also services and cleans up coal plants by installing “scrubbers” among other technology to capture and reduce the carbon emissions, among other services, such as cleaning the boiler piping and tubing, inherent in both nuclear and coal fired power plants.
So where does this leave shareholder who own MDR before and after the spin-off of B&W into a separately traded company. MDR is currently priced near $25/share in the market. Just on a stand-alone basis, MDR should be valued somewhere in the $30-$35/share price range on a combined cash flow multiple (EBITDA multiple) and a discounted cash flow model valuation, given the companies virtual monopoly in its respective business lines.
Now, if we take the sum of the parts analysis, and put an 8-10X EBITDA multiple on projected operating income per company plus organic growth, you are looking at a $9 billion enterprise value ,which using the approximate outstanding shares of 230,000,000 shares, yields a value of $40/share.
Conclusion: Compared with the current stock price of $25/share, I view MDR as undervalued by 60% on a consolidated and a spin-off basis. MDR post spin-off should provide the equivalent of $40/share within 12-24 months to investors and based upon the current share price, up to a 60% return on invested capital.
Follow Karl Millers market and energy commentary at
http://www.naturalgasstocks.com/Karl_Miller/
Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980s and has an extensive background in banking, commodities trading and risk management.
Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricite de France, El Paso Energy, Enron Corporation and JPMorgan Chase.
Investors following the energy sector can also follow Karl Miller in the energy news RSS feed. Subscribe here: http://www.investorideas.com/RSS/feeds/Energy.xml
Energy Investors can research energy stocks with the natural gas stocks directory:
http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp
The oil and gas stocks directory lists publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.
http://www.investorideas.com/OGSN/stock_list.asp
Disclaimer: Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp
Source – Investorideas.com/Karl Miller
May 12, 2010 ( Investorideas.com energy newswire ) Investorideas.com releases energy commentary from Karl Miller on McDermott International (NYSE: MDR):
Follow Karl Millers market and energy commentary at
http://www.naturalgasstocks.com/Karl_Miller/
It is common knowledge that the top of my conviction must own or buy list are Occidental Petroleum (OXY) an outstanding mid-cap integrated oil, gas and chemical producer; Chesapeake Energy (CHK) the premier acquirer, developer and producer of low cost shale gas with a world class set of integrated oil partners, and McDermott International (MDR) a company that primarily services U.S. Utility power generation fleet, performs U.S. government contract work, and services the oil and gas industry through fabrication and other non-drilling related operations, in addition to the balance of the disclosed energy portfolio.
For public interest I disclosed my model energy portfolio "Charitable Energy Stocks" on January 27, 2010. To see my model energy portfolio go to weblink: http://www.naturalgasstocks.com/Karl_Miller/news/1281.asp
However, I feel that one of my model companies, MDR, while being one of the highest rated buy stocks by Wall Street Energy Analysts, is completely misunderstood by the majority of the market and investors. So let’s dispel some fallacies and focus on the facts and more importantly, the real value of MDR, and why it is a “must own” energy stock.
The MDR Board of Directors, with shareholder approval, plan to spin-off the company into two (2) separate publicly traded companies in a spin-off of Babcock and Wilcox in a tax free transaction, which is targeted to be completed by the end of June 2010, a little over a month from now. The two companies will be owned 100% by the current MDR shareholders and operate under the following names and structure:
1) McDermott International which, per the Company will take on the name of J. Ray McDermott S.A. will continue to focus and lead the industry in Offshore Oil & Gas Construction segment provides engineering, construction, installation and project management services to offshore oil and gas field developments worldwide. They operate in most major offshore producing regions throughout the world, including the U.S. Gulf of Mexico, Mexico, the Middle East, India, the Caspian Sea and Asia Pacific. J. Ray McDermott, S.A. will employ approximately 16,000 people worldwide.
2) The Babcock & Wilcox Company ("B&W") per the Company is a leading technology innovator in power generation and a specialty manufacturer of nuclear components with a rich legacy spanning over 140 years. B&W designs, engineers, manufactures, and constructs power generation systems, primarily for large utility and industrial customers, as well as related aftermarket parts, services and environmental control systems. For its largest customer, the U.S. Government, B&W supplies nuclear components for defense programs and manages and operates nuclear facilities and environmental management sites. B&W, including its joint venture companies, employs over 15,000 people worldwide.
Now, while a tax free spin-off is always interesting, what is more interesting is the value inherent in the current consolidated MDR entity and the value creation and exposure to various sectors of the US and Global energy market the spin-off provides investors. Offshore Oil & Gas Construction segment provides engineering, construction, installation and project management services to offshore oil and gas field developments worldwide
Firstly, I can speak with authority on J. Ray McDermott, S.A. They are “Not” engaged any drilling or exploration activities. What they do is what we commonly refer to as “selling pick axes to the miners”, and collect a hefty fee for providing such services as Offshore Oil & Gas Construction segment provides engineering, construction, installation and project management services to offshore oil and gas field developments worldwide. Secondly, they double by being called in to repair any and all offshore oil and gas infrastructure problems, will go anywhere in the world, will take virtually any job for the right price, and trust me, they charge a fortune to mobilize and just to get their equipment on site, let alone start the daily billing for equipment, labor and insurance and other overhead, plus a health profit margin. Thirdly and most importantly, near and dear to everyone at the current time, they clean up, cap, and repair deep sea pipelines, flanges, and wellheads.
So if we use a home contractor example, one can look at J. Ray McDermott as the Builder/Contractor, interior trade worker who installs the plumbing, electrical, and HVAC, among other furnishings, and is also the Contractor that is called in to clean up fire and water damage. They have been doing this since the 1960’s, and are arguably the best in the business and as I said, will take virtually any job, anywhere in the world, as long as the Client is willing to pay the mobilization charges J.Ray charges, which the client always does, given the limited nature of competition in the sector.
Now, let’s look at B&W and what value they deliver to shareholders. They design, engineer, manufacture, and construct power generation systems, primarily for large utility and industrial customers, as well as related aftermarket parts, services and environmental control systems and their largest customer is the “U.S. Government”. Given the stability and lucrative nature of servicing the current U.S. Nuclear power generation fleet of power plants, and government facilities, B&W can be looked at as an annuity for shareholders, much like some of the top Master Limited Partnerships in the Oil and Gas Sector, like Kinder Morgan. They are going to deliver a steady, healthy stream of cash flow to investors each year, and the cash flow is expected to grow, especially as the U.S. Government becomes more involved in the development of future nuclear technology to replace the aging U.S. Nuclear generation fleet of power plants and the aging nuclear powered fleet of submarines, aircraft carriers and cruisers for the U.S. Navy. B&W also services and cleans up coal plants by installing “scrubbers” among other technology to capture and reduce the carbon emissions, among other services, such as cleaning the boiler piping and tubing, inherent in both nuclear and coal fired power plants.
So where does this leave shareholder who own MDR before and after the spin-off of B&W into a separately traded company. MDR is currently priced near $25/share in the market. Just on a stand-alone basis, MDR should be valued somewhere in the $30-$35/share price range on a combined cash flow multiple (EBITDA multiple) and a discounted cash flow model valuation, given the companies virtual monopoly in its respective business lines.
Now, if we take the sum of the parts analysis, and put an 8-10X EBITDA multiple on projected operating income per company plus organic growth, you are looking at a $9 billion enterprise value ,which using the approximate outstanding shares of 230,000,000 shares, yields a value of $40/share.
Conclusion: Compared with the current stock price of $25/share, I view MDR as undervalued by 60% on a consolidated and a spin-off basis. MDR post spin-off should provide the equivalent of $40/share within 12-24 months to investors and based upon the current share price, up to a 60% return on invested capital.
Follow Karl Millers market and energy commentary at
http://www.naturalgasstocks.com/Karl_Miller/
Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980s and has an extensive background in banking, commodities trading and risk management.
Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricite de France, El Paso Energy, Enron Corporation and JPMorgan Chase.
Investors following the energy sector can also follow Karl Miller in the energy news RSS feed. Subscribe here: http://www.investorideas.com/RSS/feeds/Energy.xml
Energy Investors can research energy stocks with the natural gas stocks directory:
http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp
The oil and gas stocks directory lists publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.
http://www.investorideas.com/OGSN/stock_list.asp
Disclaimer: Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp
Source – Investorideas.com/Karl Miller
Wednesday, April 28, 2010
Energy Stocks; Investorideas.com Stock Profile for Indigo-Energy, Inc. (OTCBB: IDGG)
Indigo-Energy (OTCBB: IDGG) Announces Oil Production in the Illinois Basin
Delta B.C.- April 28 , 2010 –(Investorideas.com energy newswire) www.InvestorIdeas.com and its leading oil and gas investor portal, www.OilandGasStockNews.com announce new showcase energy stock, Indigo-Energy, Inc. (OTCBB: IDGG).
Indigo-Energy, Inc. (OTCBB: IDGG) is an independent Nevada energy company, engaged in the drilling, development, production and acquisition of certain oil and gas reserves located in different geological regions around the United States. This involves drilling of developmental oil and gas wells at the different program sites on proven reserves. It also includes the purchase of producing oil and gas wells, and existing oil and gas leasehold interests.
Profile Page on Investorideas.com http://www.investorideas.com/CO/IDGG/
Recent News :
Indigo-Energy (OTCBB: IDGG) Announces Oil Production in the Illinois Basin
HENDERSON, Nev. – April 21, 2010 (Investorideas.com energy newswire) – Indigo-Energy, Inc. (OTCBB: IDGG) is pleased to announce today that is producing oil from its horizontal oil well, the "D-1," recently completed in the Illinois Basin. The well began flowing commercial grade oil about one week ago and is now consistently producing approximately 80 barrels per day. The Company believes that continued adjustments to the well and down-hole pump may cause increased production in the coming weeks. In addition to the oil production, this well is also producing natural gas at a flow rate of approximately 200 MCFD (thousand cubic feet per day). Because of this additional production development, a new gas line has been run to the well site so the natural gas can be gathered and sold simultaneously with the oil, making the D-1 both a gas and oil producing well.
Full news: http://www.investorideas.com/CO/IDGG/news/4211.asp
Request News & Updates from Indigo-Energy, Inc. (OTCBB: IDGG)
Investorideas.com sign up page:
http://www.investorideas.com/Resources/Newsletter.asp
About Investorideas.com Oil and Gas portal:
www.OilandGasStockNews.com (OGSN), a portal within the InvestorIdeas.com, provides investor research, stock news and energy links as well as a directory of public companies within the oil and gas sector.
Energy Stocks Directory:
The oil and gas stocks directory lists publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.
http://www.investorideas.com/OGSN/stock_list.asp
The full directories are part of the Investor Ideas premium member’s content.
Become an InvestorIdeas.com member and access all of our 10 stock directories by login. -Learn more: http://www.investorideas.com/membership/
Join our Campaign for 2010- One million members stronger…
About InvestorIdeas.com:
InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering over thirty industry sectors and global markets including China, India, the Middle East and Australia.
Disclaimer: The following company profile for IDGG is a paid for submission. Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions, company profile submissions and online advertising. http://www.investorideas.com/About/Disclaimer.asp
Disclosure: http://www.investorideas.com/About/News/Clientspecifics.asp
Investor Protection and Regulation for Pinks sheets:
For info about Indigo-Energy, Inc. (OTCBB: IDGG)
Email: info@indigo-energy.com
Investor Relations:
Cathy Root, 1-702-990-3387
For Additional Information about Investorideas.com:
Dawn Van Zant: 800-665-0411 - dvanzant@investorideas.com Source – Investorideas.com
Indigo-Energy (OTCBB: IDGG) Announces Oil Production in the Illinois Basin
Delta B.C.- April 28 , 2010 –(Investorideas.com energy newswire) www.InvestorIdeas.com and its leading oil and gas investor portal, www.OilandGasStockNews.com announce new showcase energy stock, Indigo-Energy, Inc. (OTCBB: IDGG).
Indigo-Energy, Inc. (OTCBB: IDGG) is an independent Nevada energy company, engaged in the drilling, development, production and acquisition of certain oil and gas reserves located in different geological regions around the United States. This involves drilling of developmental oil and gas wells at the different program sites on proven reserves. It also includes the purchase of producing oil and gas wells, and existing oil and gas leasehold interests.
Profile Page on Investorideas.com http://www.investorideas.com/CO/IDGG/
Recent News :
Indigo-Energy (OTCBB: IDGG) Announces Oil Production in the Illinois Basin
HENDERSON, Nev. – April 21, 2010 (Investorideas.com energy newswire) – Indigo-Energy, Inc. (OTCBB: IDGG) is pleased to announce today that is producing oil from its horizontal oil well, the "D-1," recently completed in the Illinois Basin. The well began flowing commercial grade oil about one week ago and is now consistently producing approximately 80 barrels per day. The Company believes that continued adjustments to the well and down-hole pump may cause increased production in the coming weeks. In addition to the oil production, this well is also producing natural gas at a flow rate of approximately 200 MCFD (thousand cubic feet per day). Because of this additional production development, a new gas line has been run to the well site so the natural gas can be gathered and sold simultaneously with the oil, making the D-1 both a gas and oil producing well.
Full news: http://www.investorideas.com/CO/IDGG/news/4211.asp
Request News & Updates from Indigo-Energy, Inc. (OTCBB: IDGG)
Investorideas.com sign up page:
http://www.investorideas.com/Resources/Newsletter.asp
About Investorideas.com Oil and Gas portal:
www.OilandGasStockNews.com (OGSN), a portal within the InvestorIdeas.com, provides investor research, stock news and energy links as well as a directory of public companies within the oil and gas sector.
Energy Stocks Directory:
The oil and gas stocks directory lists publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.
http://www.investorideas.com/OGSN/stock_list.asp
The full directories are part of the Investor Ideas premium member’s content.
Become an InvestorIdeas.com member and access all of our 10 stock directories by login. -Learn more: http://www.investorideas.com/membership/
Join our Campaign for 2010- One million members stronger…
About InvestorIdeas.com:
InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering over thirty industry sectors and global markets including China, India, the Middle East and Australia.
Disclaimer: The following company profile for IDGG is a paid for submission. Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions, company profile submissions and online advertising. http://www.investorideas.com/About/Disclaimer.asp
Disclosure: http://www.investorideas.com/About/News/Clientspecifics.asp
Investor Protection and Regulation for Pinks sheets:
For info about Indigo-Energy, Inc. (OTCBB: IDGG)
Email: info@indigo-energy.com
Investor Relations:
Cathy Root, 1-702-990-3387
For Additional Information about Investorideas.com:
Dawn Van Zant: 800-665-0411 - dvanzant@investorideas.com Source – Investorideas.com
Friday, April 09, 2010
Energy Stocks; Atlas Energy, Inc. (NASDAQ: ATLS ) Announces $1.7 Billion Marcellus Shale Joint Venture with Reliance Industries
Atlas Management to Host Conference Call at 9AM ET on Monday, April 12th to Discuss the Joint Venture Transaction
PITTSBURGH--(www.Investorideas.com energy newswire)--Atlas Energy, Inc. (NASDAQ: ATLS ) (“Atlas” or “the Company”) announces today its entry into a joint venture transaction with a wholly owned affiliate of Reliance Industries Limited (“Reliance”), the largest private sector company in India and a global energy leader, pursuant to which Atlas will transfer an interest in its Marcellus Shale position equal to 120,000 net acres in a transaction valued at $1.7 billion. Reliance will pay approximately $340 million in cash upon closing and an additional $1.36 billion in the form of a drilling carry. Atlas will serve as the development operator for the joint venture. Reliance will have the option to operate in certain project areas in the coming years outside of Atlas’ core operating areas of Fayette, Greene, Washington, and Westmoreland Counties in southwestern Pennsylvania.
Pursuant to the agreement, Reliance will acquire a 40% undivided interest in approximately 300,000 net acres (120,000 net to Reliance) of undeveloped leasehold held by Atlas, and Atlas will retain a 60% undivided interest in the acreage. In addition to funding its own 40% of drilling obligations, Reliance has agreed to fund 75% of Atlas’ respective portion of drilling and completion costs until the $1.36 billion drilling carry is fully utilized. Atlas has 5-1/2 years to utilize the drilling carry, subject to a two-year extension under certain conditions. Atlas and Reliance have agreed upon a five-year development plan that calls for the drilling of 45 horizontal Marcellus Shale wells for the joint venture during the remainder of 2010, increasing to 108 wells in 2011, 178 wells in 2012, and 300 wells in 2013 and 2014.
Atlas will act as the sole leasing agent for the joint venture in the area of mutual interest (“AMI”). In the near future, Atlas and Reliance expect to considerably grow the joint venture’s Marcellus Shale leasehold position within the AMI. Reliance will have the option to acquire a 40% share of such new acreage under terms comparable to those agreed to by Atlas, with each party paying its proportionate share of acquisition costs. In addition, if Atlas decides to sell all or part of the 280,000 additional Appalachian acres currently controlled by it, but excluded from the joint venture and not included in the AMI, Atlas has granted Reliance a right to purchase such acreage at a price of $8,000 per acre. Reliance also receives a right of first offer with respect to potential future sales of this acreage by Atlas at lower prices. This acreage is located predominantly in Mercer, Crawford, and other Pennsylvania counties not currently included in Atlas’ core Marcellus area of southwestern Pennsylvania.
“We are excited by this opportunity to partner with Reliance, one of the world’s largest vertically integrated energy companies, and one that has demonstrated exceptional capability in all aspects of the energy business. We believe that this joint venture will greatly increase the value of Atlas’ business,” commented Edward E. Cohen, Chairman and Chief Executive Officer of Atlas Energy. “This transaction will enable us to accelerate sharply our development of the Marcellus while further reducing our already low finding and development costs and our capital structure will immediately benefit from reduced leverage and enhanced liquidity. As a result of this joint venture, we anticipate creating a significant number of new, well-paying Pennsylvania jobs. Pennsylvania will also benefit from our strong commitment to the highest environmental and safety standards."
Reliance Industries Limited, an India-based industrial enterprise, is one of the largest refiners and petrochemical producers in the world. Its recent market capitalization was over $78 billion and Reliance currently produces almost 3 Bcfe per day of oil & gas production from their E&P operations.
The purchase and sale is subject to certain closing conditions, including the consent of participating lenders under Atlas’ senior secured credit facility. The transaction is expected to close in April 2010.
Jefferies & Company, Inc. acted as lead financial advisor and J.P. Morgan Securities, Inc. acted as financial advisor to Atlas Energy on the joint venture transaction. Jones Day, Ledgewood and Wachtell, Lipton, Rosen & Katz acted as legal counsel to Atlas Energy.
Interested parties are invited to access the live webcast of an investor call with Atlas Energy’s management regarding the joint venture transaction on Monday, April 12, 2010 at 9:00 am ET by going to the Investor Relations section of Atlas Energy’s website at www.atlasenergy.com. For those unavailable to listen to the live broadcast, the replay of the webcast will be available following the live call on the Atlas Energy website and telephonically beginning at 11:00 am ET on April 12, 2010 by dialing 888-286-8010, passcode: 93641727.
Atlas Energy, Inc. is one of the largest independent natural gas producers in the Appalachia and Michigan Basins and a leading producer in the Marcellus Shale in Pennsylvania. Atlas Energy, Inc. is also the country’s largest sponsor and manager of tax-advantaged energy investment partnerships. Atlas Energy, Inc. also owns 1.1 million common units in Atlas Pipeline Partners, L.P. (NYSE: APL - News) and a 64% interest in Atlas Pipeline Holdings, L.P. (NYSE: AHD - News), a limited partnership which owns the general partner interest of APL. Atlas Pipeline Partners, L.P. is active in the gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region in Oklahoma and Texas, APL owns and operates eight active gas processing plants and a treating facility, as well as approximately 10,300 miles of active intrastate gas gathering pipeline. In Appalachia, APL is a 49% joint venture partner with The Williams Companies in Laurel Mountain Midstream, LLC. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.
Cautionary Note Regarding Forward-Looking Statements
This document contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Atlas Energy, Inc. cautions readers that any forward-looking information is not a guarantee of future performance. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, resource potential, the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Risks, assumptions and uncertainties that could cause actual results to materially differ from the forward-looking statements include, but are not limited to, those associated with general economic and business conditions; changes in commodity prices; changes in the costs and results of drilling operations; uncertainties about estimates of reserves and resource potential; inability to obtain capital needed for operations; the Company’s level of indebtedness; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production; tax consequences of business transactions; and other risks, assumptions and uncertainties detailed from time to time in the Company’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”). Forward-looking statements speak only as of the date hereof, and the Company assumes no obligation to update such statements, except as may be required by applicable law.
_______________________________________
energy investor info-
Energy Investors can research energy stocks with the natural gas stocks directory:
http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp
The oil and gas stocks directory lists publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.
http://www.investorideas.com/OGSN/stock_list.asp
Investors also have the option to access the directory as part of the Investor Ideas Membership premium content. The full directory is now available to Investor Ideas members as part of the annual membership that currently features 10 stock directories and investor newsletter, including an oil and gas stocks directory.
Join Investor Ideas in the 2010 Campaign- One Million Members Stronger - Learn more about becoming a member http://www.investorideas.com/membership/
Atlas Management to Host Conference Call at 9AM ET on Monday, April 12th to Discuss the Joint Venture Transaction
PITTSBURGH--(www.Investorideas.com energy newswire)--Atlas Energy, Inc. (NASDAQ: ATLS ) (“Atlas” or “the Company”) announces today its entry into a joint venture transaction with a wholly owned affiliate of Reliance Industries Limited (“Reliance”), the largest private sector company in India and a global energy leader, pursuant to which Atlas will transfer an interest in its Marcellus Shale position equal to 120,000 net acres in a transaction valued at $1.7 billion. Reliance will pay approximately $340 million in cash upon closing and an additional $1.36 billion in the form of a drilling carry. Atlas will serve as the development operator for the joint venture. Reliance will have the option to operate in certain project areas in the coming years outside of Atlas’ core operating areas of Fayette, Greene, Washington, and Westmoreland Counties in southwestern Pennsylvania.
Pursuant to the agreement, Reliance will acquire a 40% undivided interest in approximately 300,000 net acres (120,000 net to Reliance) of undeveloped leasehold held by Atlas, and Atlas will retain a 60% undivided interest in the acreage. In addition to funding its own 40% of drilling obligations, Reliance has agreed to fund 75% of Atlas’ respective portion of drilling and completion costs until the $1.36 billion drilling carry is fully utilized. Atlas has 5-1/2 years to utilize the drilling carry, subject to a two-year extension under certain conditions. Atlas and Reliance have agreed upon a five-year development plan that calls for the drilling of 45 horizontal Marcellus Shale wells for the joint venture during the remainder of 2010, increasing to 108 wells in 2011, 178 wells in 2012, and 300 wells in 2013 and 2014.
Atlas will act as the sole leasing agent for the joint venture in the area of mutual interest (“AMI”). In the near future, Atlas and Reliance expect to considerably grow the joint venture’s Marcellus Shale leasehold position within the AMI. Reliance will have the option to acquire a 40% share of such new acreage under terms comparable to those agreed to by Atlas, with each party paying its proportionate share of acquisition costs. In addition, if Atlas decides to sell all or part of the 280,000 additional Appalachian acres currently controlled by it, but excluded from the joint venture and not included in the AMI, Atlas has granted Reliance a right to purchase such acreage at a price of $8,000 per acre. Reliance also receives a right of first offer with respect to potential future sales of this acreage by Atlas at lower prices. This acreage is located predominantly in Mercer, Crawford, and other Pennsylvania counties not currently included in Atlas’ core Marcellus area of southwestern Pennsylvania.
“We are excited by this opportunity to partner with Reliance, one of the world’s largest vertically integrated energy companies, and one that has demonstrated exceptional capability in all aspects of the energy business. We believe that this joint venture will greatly increase the value of Atlas’ business,” commented Edward E. Cohen, Chairman and Chief Executive Officer of Atlas Energy. “This transaction will enable us to accelerate sharply our development of the Marcellus while further reducing our already low finding and development costs and our capital structure will immediately benefit from reduced leverage and enhanced liquidity. As a result of this joint venture, we anticipate creating a significant number of new, well-paying Pennsylvania jobs. Pennsylvania will also benefit from our strong commitment to the highest environmental and safety standards."
Reliance Industries Limited, an India-based industrial enterprise, is one of the largest refiners and petrochemical producers in the world. Its recent market capitalization was over $78 billion and Reliance currently produces almost 3 Bcfe per day of oil & gas production from their E&P operations.
The purchase and sale is subject to certain closing conditions, including the consent of participating lenders under Atlas’ senior secured credit facility. The transaction is expected to close in April 2010.
Jefferies & Company, Inc. acted as lead financial advisor and J.P. Morgan Securities, Inc. acted as financial advisor to Atlas Energy on the joint venture transaction. Jones Day, Ledgewood and Wachtell, Lipton, Rosen & Katz acted as legal counsel to Atlas Energy.
Interested parties are invited to access the live webcast of an investor call with Atlas Energy’s management regarding the joint venture transaction on Monday, April 12, 2010 at 9:00 am ET by going to the Investor Relations section of Atlas Energy’s website at www.atlasenergy.com. For those unavailable to listen to the live broadcast, the replay of the webcast will be available following the live call on the Atlas Energy website and telephonically beginning at 11:00 am ET on April 12, 2010 by dialing 888-286-8010, passcode: 93641727.
Atlas Energy, Inc. is one of the largest independent natural gas producers in the Appalachia and Michigan Basins and a leading producer in the Marcellus Shale in Pennsylvania. Atlas Energy, Inc. is also the country’s largest sponsor and manager of tax-advantaged energy investment partnerships. Atlas Energy, Inc. also owns 1.1 million common units in Atlas Pipeline Partners, L.P. (NYSE: APL - News) and a 64% interest in Atlas Pipeline Holdings, L.P. (NYSE: AHD - News), a limited partnership which owns the general partner interest of APL. Atlas Pipeline Partners, L.P. is active in the gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region in Oklahoma and Texas, APL owns and operates eight active gas processing plants and a treating facility, as well as approximately 10,300 miles of active intrastate gas gathering pipeline. In Appalachia, APL is a 49% joint venture partner with The Williams Companies in Laurel Mountain Midstream, LLC. For more information, please visit our website at www.atlasenergy.com, or contact Investor Relations at InvestorRelations@atlasenergy.com.
Cautionary Note Regarding Forward-Looking Statements
This document contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Atlas Energy, Inc. cautions readers that any forward-looking information is not a guarantee of future performance. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, resource potential, the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts. Risks, assumptions and uncertainties that could cause actual results to materially differ from the forward-looking statements include, but are not limited to, those associated with general economic and business conditions; changes in commodity prices; changes in the costs and results of drilling operations; uncertainties about estimates of reserves and resource potential; inability to obtain capital needed for operations; the Company’s level of indebtedness; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production; tax consequences of business transactions; and other risks, assumptions and uncertainties detailed from time to time in the Company’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”). Forward-looking statements speak only as of the date hereof, and the Company assumes no obligation to update such statements, except as may be required by applicable law.
_______________________________________
energy investor info-
Energy Investors can research energy stocks with the natural gas stocks directory:
http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp
The oil and gas stocks directory lists publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.
http://www.investorideas.com/OGSN/stock_list.asp
Investors also have the option to access the directory as part of the Investor Ideas Membership premium content. The full directory is now available to Investor Ideas members as part of the annual membership that currently features 10 stock directories and investor newsletter, including an oil and gas stocks directory.
Join Investor Ideas in the 2010 Campaign- One Million Members Stronger - Learn more about becoming a member http://www.investorideas.com/membership/
Subscribe to:
Posts (Atom)