Black Gold Rush Is Here: 7 Energy Stocks Set To Rally In 2012

I posit these energy equities will soon soar from their current share prices based on macroeconomic, sector and company specific catalysts. The world has stepped up and taken notice of the vast value of the North American unconventional shale plays and put their money where their mouth is. I believe this trend will drive the share prices of these stocks higher. America's black gold rush is here, and these stocks are set to rally in 2012.

In this article, we will discuss the following stocks: EOG Resources, Inc. (EOG), SandRidge Energy, Inc. (SD), Chesapeake Energy Corporation (CHK), Cabot Oil & Gas Corporation (COG), Kodiak Oil & Gas Corp. (KOG), Hess Corporation (HES) and CSX Corp. (CSX). These companies have exposure to North American Shale plays.

Please review the illustration below detailing the plays.

Click to enlarge

Illustration provided by Merricksystems.com.

These stocks have major upside potential based on the tremendous value of their proven and unproven reserve leaseholds in these shale plays as well as some that stand to gain significant business facilitating the extraction and delivery of the products. Please review the following macro-economic positive highlights and major oil and gas market catalysts followed by company specific catalysts and a chart detailing current fundamentals regarding these buying opportunities.

2012 Macro-Economic Positive Indicators

2012 began on a strong note by recording its preeminent single-session percentage gain in weeks, closing at a two-month high. There were a multitude of positives spurring the advance. Please review the following highlights of macro-economic positive indicators.

• The manufacturing reading from China advocated activity expanded after contracting the prior month.
• India reported its best manufacturing reading in six months.
• Manufacturing data from Europe was comparatively inspiring.
• Recent manufacturing activity in the United Kingdom was better than expected.
• Eurozone manufacturing activity was somewhat in-line with outlooks.
• Progress by the euro proved positive for stocks.
• The December ISM Manufacturing Index improved to 53.9 from 52.7 in November, exceeding expectations of 53.4.
• November construction spending increased by 1.2% besting analyst estimates of 0.5%.
• The FOMC meeting minutes specified that domestic economic activity grew temperately notwithstanding seeming deceleration in growth of overseas economies and continuing monetary complications in the eurozone. The FOMC largely remains sure the speed of economic activity will increase in the coming years. Nevertheless, many members specified present and future circumstances may well merit further policy accommodation.
• Commodities advanced, taking the CRB Commodity Index 2.6% higher, its best single-session percentage gain in a quarter. Oil ascended over 4% and settled just below $103 per barrel. A weak greenback and aggressive rhetoric from Iran where seen as the primary catalysts.

Major Macro Oil and Gas Catalysts

Based on several bullish technical indicators, the market's unending resilience in the face of continual negative headlines, I believe the market is setting up for a 2012 rally. The following is a list of macro catalysts for oil and gas in 2012.

• Foreign energy companies are chomping at the bit to get in on America's black gold rush. Total (TOT) and China's Sinopec (SHI) are the most recent entrants. Total recently closed a $2.32 billion deal on a 25% stake in an Ohio shale deposit operated by Chesapeake. Sinopec recently paid $900 million and pledged to cover up to $1.6 billion in drilling costs for a 33% stake in Devon's (DVN) portfolio of properties.
• Emerging market countries (China and India) increasing strategic reserve stockpiles
• Middle Eastern instability due to Iran, Iraq and Syria. The European Union reached a preliminary agreement to ban imports of Iranian crude, intensifying strains in the West's impasse with Tehran.
• Chinese and emerging market demand growth rising
• U.S. Fed and ECB printing presses working overtime
• U.S. dollar weakness driving commodities prices higher.
• Recent drawn downs of U.S. reserves
• OPEC decision to not increase production
• The winds of political change are blowing hard these days. If the Republicans take the 2012 presidential election, energy stocks will soar.
• The eurozone seems to be taking the proper actions to calm its tumultuous financial markets. Recently bond yields of the eurozone fringe sovereigns that were rocketing higher have sunk vastly lower with the back-door liquidity injections engineered by the ECB in the form of the LTRO.
• Recent better than expected U.S. consumer confidence and manufacturing statistics.
• Interest rates are low and the Fed has confirmed its dovish stance is here to stay.

Company-Specific Catalysts and Fundamental Statistics

EOG Resources recently reported third quarter 2011 net income of $540.9 million, or $2.01 per diluted share. This compares to a third quarter 2010 net loss of $70.9 million, or $0.28 per diluted share.

Operational Highlights

Driven by a 64% rise in U.S. crude oil and condensate production during the third quarter 2011, EOG delivered 54% total company crude oil and condensate production growth versus the third quarter 2010. For the first nine months of 2011, year-over-year crude oil and condensate production increased 51%. The South Texas Eagle Ford led the surge in crude oil production growth, followed by the Fort Worth Barnett Shale Combo. Total company liquids production increased 49% in the third quarter 2011 over the same period in the prior year and 47% year-over-year for the first nine months of 2011.

Fundamental Statistics

SandRidge Energy, Inc. recently announced that it has entered into a joint venture with a subsidiary of Repsol YPF, S.A., a leading international energy company based in Madrid, Spain. Under the agreement, SandRidge will sell an approximately 25% non-operated working interest, or 250,000 net acres, in the Extension Mississippian play located in Western Kansas and an approximate 16% non-operated working interest, or 113,636 net acres, in its Original Mississippian play.

Fundamental Statistics

Chesapeake Energy Corporation recently announced substantial progress in achieving its long-term debt reduction goal set forth in its 30/25 Plan announced in January 2011. Chesapeake's long-term debt (net of cash) as of year-end 2011, was approximately $10.3 billion, a reduction of $1.4 billion from the September 30, 2011, level of $11.7 billion and a reduction of $2.2 billion from the year-end 2010 level of $12.5 billion.

Fundamental Statistics

Cabot Oil & Gas Corporation recently announced a new milestone for its Marcellus production with the achievement of 606 Mmcf per day (before royalty) for a 24 hour period and an average of 600 Mmcf per day for the final two days of 2011. This level represents a 154% increase over the 2010 Marcellus exit rate of 236 Mmcf per day. Contributing to the additional volumes is a recently commissioned upgrade to the Teel compressor station that increased compression capacity to 200 Mmcf per day from 100 Mmcf per day, giving the company 650 Mmcf per day of total compression.

Fundamental Statistics

Kodiak Oil & Gas Corp. recently announced the closing of its private offering of $650 million in aggregate principal amount of senior notes due 2019 in a private placement to eligible investors. The notes bear interest at 8.125% per annum and were issued at a price of 100% of their face amount.

Fundamental Statistics

Hess Corporation recently announced that they will proceed with the development of Tubular Bells, a deep-water oil and gas project operated by Hess in the Gulf of Mexico. Annual gross production is expected to peak in the range of 40,000-45,000 barrels of oil equivalent per day. Total estimated recoverable resources for Tubular Bells are estimated at more than 120 million barrels of oil equivalent. The development is estimated to cost $2.3 billion, with additional commitments for production handling, export pipeline and oil and gas gathering and processing services. Following BOEM approval of the recent assignment of BP's interest, Hess will hold a 57.14% interest in the field, and Chevron (CHK) will hold the remaining 42.86% interest.

Fundamental Statistics

CSX Corporation recently announced third quarter net earnings of $464 million, or $0.43 per share, versus $414 million, or $0.36 per share, in the same period last year. This is a 19% improvement in earnings per share and a record third quarter for the company.

Year-Over-Year Highlights:

• Operating income improves to $878 million
• Earnings per share increases 19% to 43 cents
• Operating ratio remains strong at 70.4%

Fundamental Statistics

Conclusion

With the current tumultuous events in the Middle East bringing attention to the mounting energy requirements of emerging economies, in addition to the burgeoning necessities of the recovering developed economies, the fact that demand is outstripping supply appears to be blatantly obvious. All the easy oil and gas has been discovered, recovered, depleted and expended. We are now left with on shore "fracking" and deep sea drilling which are much more expensive endeavors, ultimately driving the price of a barrel of oil sky-high sooner rather than later.

The emerging markets of the globe are just beginning to demand their fair share on top of many other factors. Think of this fact, even with the sad state of the current global economy, we are at $100 a barrel oil. Due to the finite nature of oil resources it seems the tipping point of the oil supply/demand equation is coming to fruition. What do you think is going to occur when the economies of the world begin to recover and emerging markets gain viable traction? You can kiss $100 a barrel oil goodbye forever.

Nonetheless, this is only the first step in finding winners for your portfolio. Please use this information as a starting point for your own due diligence and research methods before determining whether or not to buy or sell a security.

Disclosure: I am long CHK.

Source: http://seekingalpha.com/article/317438-black-gold-rush-is-here-7-energy-stocks-set-to-rally-in-2012?source=feed

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Mitt Romney: Winning, One Slogan at a Time (Time.com)

Danny Wilcox Frazier / Redux for TIME

Republican presidential candidate Mitt Romney spoke to an overflow crowd in downtown Davenport, Iowa, Dec. 27, 2011.

Clinton, Iowa

As Mitt Romney enters the final stretch in Iowa, poll numbers rising, crowds appearing, the inevitability beginning to sink in, his message is honed down, lean and mean, with declarative sentences that slice the air with the flashy precision of a fruit ninja. ?I love this country,? he says, as if this sets him apart. Then he adds, ?I don?t want America to turn into Europe.?

No, Romney continues, ?I want to make America work again.? Then he elaborates. ?I want to get America working again for the middle class.? Those are subtle digs at the sitting President. But Romney is not trying to be subtle. ?I?m frightened that we have a President that doesn?t understand America,? he says in Clinton, Iowa, on Wednesday afternoon. ?He?s had his moment. Now is our time.? And then: ?He will transform America. I will restore America.?

Everything Romney says is built for repetition, to be quoted in newspapers, in televised soundbites and seared into the national psyche. Everything is a catchphrase, a bumper sticker waiting to be printed. The lines make tweets feel long. ?I don?t want class warfare to poison the American spirit,? he continues. He says Obama wants an ?entitlement society? and Romney wants an ?opportunity society.? He adds, ?I don?t want to substitute envy for ambition.?

In Clinton, Muscatine and North Liberty, the crowds are not huge?in the low hundreds?but they overflow the small spaces Romney has booked for the events. On his second ride in the presidential campaign rodeo, the candidate no longer has to worry about introducing himself. He no longer bothers to assure voters that he is more conservative than they suspect on issues like guns, abortion and gay rights. He is a singularly focused, Obama-destroying machine. ?People in Washington think it?s government that makes us strong,? he says. ?It?s free people pursuing our dreams that makes us great.?

Romney?s is an effective presentation, convincing in its single-minded message. The crowds eat it up. These people want what he is promising, after all: to get rid of the sitting President. And no other candidate has yet shown that he or she can compete with Romney?s general election competitiveness. They want to win. Romney seems to have Obama?s number. ?Democrats are scared,? says Illinois Rep. Aaron Schock, who introduces Romney at campaign events.

But the very effectiveness of Romney?s presentation make the awkward moments that much more striking. He greets a group of seniors eating an Italian lunch in Clinton with the phrases, ?Ooh, dinner looks good. I like the pizza. I like the pizza.? Or when he opens a town hall at a factory in North Liberty with a comment on the platform he is standing on. ?This thing I am standing on is one of the pieces of machinery, a tool, that helps them make the various products they make out of various forms of plastic,? he says. When someone in the audience mentions Denver Broncos? quarterback Tim Tebow?s religious displays, Romney responds earnestly, ?I appreciate people who are willing to stand up for their differences.?

And then there is his talk about song. He praises God Bless America. Discusses the national anthem. Repeats the lesser known verses of America the Beautiful, which he calls, ?Oh, Beautiful for Spacious skies.? ?Does corn qualify as amber waves of grain?? he asks off the cuff. ?Not really. But you get the point.?

The audience does. This is an Obama toppler before them. He talks of an epic battle for the ?core? of the country. ?I want America to be more like America, again,? he declares. And the voters are coming around, he predicts, in Iowa, in New Hampshire, in swing states across the country. Obama?s days are numbered, Romney assures the crowds: ?They are going to send him back to the private sector where he finally deserves to go.?

Put it on a card. Hang it on your wall. Repeat every night before bedtime. This presidency is going to end. Romney?s slogans will make it so.

Source: http://us.rd.yahoo.com/dailynews/rss/us/*http%3A//us.rd.yahoo.com/dailynews/external/time_rss/rss_time_us/httpswamplandtimecom20111229themittromneyiowaexperienceonesloganatatimexidrssnationyahoo/44034199/SIG=13h8do6n0/*http%3A//swampland.time.com/2011/12/29/the-mitt-romney-iowa-experience-one-slogan-at-a-time/?xid=rss-nation-yahoo

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China Says Man Dies From Bird Flu

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Source: www.nytimes.com --- Saturday, December 31, 2011
The death, in Guangdong Province, was the first in 18 months attributed to the virus. ...

Source: http://www.nytimes.com/2012/01/01/world/asia/china-says-man-dies-from-bird-flu.html

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Nigerian anger heats up as petrol prices rocket (Reuters)

ABUJA (Reuters) ? Nigerian motorists and unions vented their anger Monday at a sudden more than doubling of fuel prices, a day after government subsidies were removed in a sweeping economic reform that could trigger mass protests.

Opposition leaders, unionists and local rights groups have condemned the move by the state's fuel regulator, which they say will hike the prices of goods at a time when many Nigerians, the majority of whom live on less than $2 per day, already find basic commodities too expensive.

Economists have long argued the fuel subsidies were hugely corrupt, wasteful and simply bled money from the Treasury into the pockets of a group of wealthy fuel importers.

But their removal remains an explosive political issue. A lot of Nigerians see the subsidy as the sole benefit they get from living in a major crude oil producer.

Many fuel stations in the capital Abuja and main commercial city Lagos were shut Monday while they waited to figure out how to adjust their prices. Those that were open were jammed with queues and selling at prices of up to 150 naira ($0.92) per liter, up from a fixed price of 60 naira before.

"This is a bad New Year present from the government," said David Akpe, a motorist at pump in Abuja, as a queue of about 30 cars formed behind him. "What next?"

The measure risks bringing public wrath down on President Goodluck Jonathan, who says it is needed to reform the economy.

"Don't push us to the street; for we went to the street to make you president and would not like to go to the street to remove you as president!" the Conference of Nigerian Political Parties (CNPP), an opposition umbrella group, warned.

Responding to a call to demonstrate, about 500 people marched through the northern city of Kano with placards saying 'No to subsidy removal' and 'Jonathan wants to kill Nigerians'.

A few dozen protesters also occupied the area around Eagle Square in central Abuja. In a sign tolerance was likely to be limited for such protests in the capital, police dispersed people with teargas and made arrests, a Reuters witness saw.

The Trades Union Congress and Nigerian Labor Congress called Sunday for mass action to repeat strikes and street protests that thwarted previous attempts to end subsidies[ID:nL6E8C107B].

There has not yet been any major organized response.

Petroleum sector workers also rejected the price hike.

"The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) rejects (it) as totally unacceptable and a crass display of bad faith," they said in a statement Monday.

"We therefore urge all Nigerians to ... begin immediate mobilization for the struggle ahead."

JONATHAN RESPONDS

Jonathan released a statement saying he had appointed a committee to ensure the money saved in subsidies was well spent and to "dialogue with organized labor, civil society and stakeholders."

Many Nigerians worry that any savings will simply be consumed by corrupt politicians.

The committee would produce monthly savings estimates and make sure the funds are transferred to a special account in the central bank, which would fund poverty alleviation programs, Jonathan's statement said.

Lawmakers have been divided on the subsidy issue, leaving the future of the measure potentially still in doubt.

Senate spokesman senator Enyinnaya Abaribe said in a statement the Senate had not yet ruled on the subsidy removal, so it was still open to debate.

The subsidies were left out of the 2012 budget, which has yet to be voted on by both houses. To restore the subsidies, lawmakers would have to add them to the budget and find some way of paying for them, probably by cutting expenditure elsewhere.

"While it is true that there was no provision for subsidy in the 2012 budget proposal, the Senate ... is yet to reach a consensus on the matter," Abaribe said. Such a decision would "take cognizance of the general mood," he added.

Some people see sense in ending them.

"The people against the subsidy removal are the people who have been milking Nigeria," said retired banker Peter Madu. "The labor unions are just being selfish."

Nigeria produces more than 2 million barrels per day of crude oil, but a lack of investment in refineries and infrastructure means almost all of it is exported, while refined products such as gasoline have to be imported at great cost.

Going ahead with the plan will save the Treasury more than 1 trillion naira ($6.13 billion) in 2012, according to the government, which was heavily criticized by the International Monetary Fund (IMF) for the wasteful use of public funds.

(Additional reporting by Tim Cocks and Afolabi Sotunde in Abuja, Mike Oboh in Kano, Chijioke Ohuocha in Lagos and Anamesere Igboeroteonwu in Onitsha; Writing by Tim Cocks; Editing by Matthew Jones)

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/nm/20120102/ts_nm/us_nigeria_subsidy

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PFT: Elway needs Tebow more than ever

Getty Images

We handle the biggest injury news throughout the day in the Rumor Mill.

The rest goes right here, in the weekly injury report segment designed to freak you out.

1. The big names we?ve already covered Friday: Tom Brady, Logan Mankins, Osi Umenyiora, Aaron Rodgers, Charles Woodson, Reggie Bush, LeSean McCoy, and?Colt McCoy. ?(Note: The McCoys are not related.)

2. Ravens receiver Anquan Boldin was upgraded to doubtful with a knee injury after running on Friday. Pro Bowl guard Marshal Yanda (chest) is also doubtful. That?s a big loss for Baltimore.

3. The Bengals? biggest injury concern is defensive end Carlos Dunlap. He?s questionable with a hamstring injury. He did practice all week in a limited fashion.

4. The Titans are healthy for their game against Houston. Defensive end?Jason Jones is the only Titan not expected to play.

5. ?San Diego receiver Vincent Jackson is probable despite missing practice most of the week with a groin injury. Running back Ryan Mathews (calf) is a gametime decision.

6. The Broncos are expected to play without safety Brian Dawkins. He?s doubtful with a neck injury.

7. Rams quarterbacks Sam Bradford (ankle) and A.J. Feeley (thumb) are both doubtful to play in the season finale. Kellen Clemens will wrap up the season at quarterback for the Rams.

8. The Bears list Brian Urlacher (knee) as questionable, but he?s expected to play Sunday. Marion Barber (calf) is doubtful.

9. Cardinals cornerback Patrick Peterson (achilles) will be a gametime decision against the Seahawks. ?Kevin Kolb (concussion) is listed as questionable, but he?s not expected to be active Sunday.

10. The Chiefs will head into Denver without running back Jackie Battle, who has been ruled out with a foot injury.

11. The Panthers will be without their best defensive player. Defensive end Charles Johnson (back) is doubtful. He finishes with nine sacks on the year.

12. New Orleans will be without running back?Mark Ingram (toe) and wideout Lance Moore (hamstring). It?s looking like Ingram won?t be back for the playoffs. Jonathan?Vilma (knee) and?Malcolm Jenkins (neck) are questionable. They should play after being limited in practice.

13. Dallas Clark is officially questionable with a neck injury. He should play in what could be his final game as a Colt. Oh, and Peyton Manning (neck) is officially listed as out for the 16th straight week.

14. Ben Roethlisberger (ankle) is officially probable. He?s fully expected to start, although he may not play the whole game against the Browns. Center Maurkice Pouncey (ankle) is also probable. ?LaMarr Woodley (hamstring) is doubtful.

15. The Raiders are likely to get wideout?Jacoby Ford (foot) and safety Michael Huff (hamstring) back this week. They are both questionable, but practiced all week. Darren McFadden (foot) is out again.

16. The 49ers should have?Patrick Willis (hamstring) available if they want to use him. He?s questionable, but has practiced during the week.

17. The Redskins should get running back?Roy Helu (toe,?knee) back in the mix. He?s questionable.

Thanks for reading all year if you made it this far. Now say hello to your families.

Source: http://profootballtalk.nbcsports.com/2011/12/30/on-sunday-tebow-can-save-elway/related/

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Singer, actress Kaye Stevens dies in Florida (AP)

THE VILLAGES, Fla. ? Singer and actress Kaye Stevens, who performed with the Rat Pack and was a frequent guest on Johnny Carson's "The Tonight Show," has died at a central Florida hospital. She was 79.

Close friend Gerry Schweitzer confirmed that Stevens died Wednesday at the Villages Hospital north of Orlando following a battle with breast cancer and blood clots.

Stevens, a longtime South Florida resident, performed with Rat Pack members including Frank Sinatra, Dean Martin, Sammy Davis Jr. and Joey Bishop. She also sang solo at venues like Caesar's Palace in Las Vegas and the Plaza Hotel's Persian Room in New York City.

During the Vietnam War era, Stevens performed for American soldiers in the war zone with Bob Hope's USO tour.

According to a handout from friend Rhonda Glenn, Stevens was born Catherine Louise Stephens in Pittsburgh. Her family eventually moved to Cleveland, where a teenage Stevens got her start as a drummer and singer. She later married now deceased bandleader and trumpet player Tommy Amato, and the couple performed throughout the eastern U.S.

During a gig in New Jersey, Stevens was discovered by Ed McMahon, Carson's longtime sidekick, which led to new bookings. Her big break came when she was playing a lounge at The Riviera Hotel in Las Vegas. Debbie Reynolds became ill and was unable to perform in the main room. Stevens filled in and was an instant hit.

Besides singing, Stevens also acted in film and television. She appeared in six movies, earning a Golden Globe nomination in 1964 for "The New Interns." She was a regular celebrity player on game shows and appeared as a regular on "Days of Our Lives" from 1974-79.

During the past two decades, Stevens started her own ministry and began performing only Christian and patriotic music. She staged benefits to help build St. Vincent Catholic Church in her longtime home of Margate, Fla., where city officials named a park in her honor.

Source: http://us.rd.yahoo.com/dailynews/rss/topstories/*http%3A//news.yahoo.com/s/ap/20111230/ap_on_en_mu/us_obit_kaye_stevens

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Customs Union of Russia, Belarus and Kazakhstan

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Tajikistan News.Net
Saturday 31st December, 2011 (Source: RIA Novosti)

The leaders of Russia, Belarus and Kazakhstan approved at their summit on Monday Russian Industry and Trade Minister Viktor Khristenko as head of the Eurasian Economic Commission, a new supranational body to integrate the three former Soviet republics within a common economic space. ...

Read the full story at RIA Novosti

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Source: http://feeds.tajikistannews.net/?rid=202285417&cat=929bcf2071e81801

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