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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mr.Gogo who wrote (40887)	1/2/2011 11:17:41 PM
From: E_K_S	1 Recommendation Read Replies (2) \| Respond to of 78702

Re: Large Integrated Oils Meter Reader A Weekly Analysis of Large Cap Oil and Gas Stocks December 14, 2010 A Few Good Contrarian Buys Left mcdep.com I would suggest you look at the latest McDep report. COP is still one of the best values for the Large Cap Oil and Gas Stocks as measured by the McDep ratio. Of course, it has been at this level for quite some time. In fact it seems like every time I go through the McDep reports, the ratios have not changed too much. COP is up from .68 (when I was making my buys in 2009) to .76 in the most current report. All are still undervalued by 25%. It seems like the best indicator is the (future) price of oil. Anadarko Petroleum Corp is the only larger Cap that is close to a McDep ratio of 1. Isn't it interesting that BHP is rumored to be looking at it.... Dec. 30, 2010, 5:05 p.m. EST Betting that BHP’s on the prowl again marketwatch.com From the article:"...As far as rumors go, this is a good one. Anadarko Petroleum Corp. (APC 76.16, +0.57, +0.75%) shares surged nearly 7% to $75.59 Thursday on a single report in London’s Daily Mail that claims BHP Billiton Ltd. (BHP 92.92, +0.02, +0.02%) is mulling a bid for the Texas-based oil company. Read about BHP's possible bid...." Here is the link to previous McDep reports. mcdep.com ===================================================================== I would have to agree with Paul Senior that there are still some significant values to be found in many of the smaller E&P companies that have virgin land and proven reserves. Many of these companies could be valued 2x (200%) their current market price. COP is No. 3 in my top 10. CVX is No. 2. BHP is my No. 1 holding. I made five buys in 2009 for COP w/ prices ranging from $42-$50. My last buy of CVX was 1/03/06. My most current buy for an integrated large cap oil was XOM with two buys in 2010 at prices around $58.00/share. My new money is focused on the smaller E&P companies, many of the mid cap NG drillers w/ gathering systems and pipeline & storage subsidiaries. The key to making money with this group is finding companies with the capital (or JV partners) to drill new wells that will generate future cash flows and has company owned land (not leased) that can be developed in the future. It gets more difficult as oil approaches $100/barrel because the prices of many of these companies get bid up in value. When the price of oil falls, so does the stock price. That's why those companies with NG reserves that can break even (w/ such low current NG price) should do extremely well when NG prices rise. Hope that helps. EKS

To: Mr.Gogo who wrote (40887)	11/16/2011 11:54:04 AM
From: E_K_S	Respond to of 78702

ConocoPhillips to sell $2 billion in pipeline assets Houston-based ConocoPhillips (NYSE: COP) will sell its interests in two U.S. pipeline companies for $2 billion. bizjournals.com The company said Wednesday it will sell its 16.55 percent interest in Colonial Pipeline Co. and Colonial Ventures LLC to a subsidiary of Caisse de Depot et Placement du Quebec. Conoco will also sell its stake in the Seaway Crude Pipeline Co. to a unit of Enbridge Inc. ------------------------------------------------------------------------------ Wonder what they plan to do w/ the $2B. That was a valuable asset so I would think they may look at Oil shale assets in exchange for the pipeline. Just hope they do not over pay. They have upwards of $10B in cash to invest. EKS