There’s good news and bad news for offshore drillers today after Statoil (STO) canceled the contract on Diamond Offshore Drilling’s (DO) Ocean Vanguard rig. The bad news is that it’s another sign that demand for rigs is still not there. The good news is that while Diamond Offshore has gotten hammered, other drillers like Noble (NE), Transocean (RIG) and Seadrill (SDRL) have weathered the announcement better than many would have expected.
ReutersGlobal Hunter’s Mark Brown and team explain what the cancellation could mean for Diamond Offshore:
We model the Ocean Vanguard having an annualized marginal EBITDA contribution of ~$89MM (EPS contribution of ~$0.49/share) based on a $454K/day rate and $192K/day opex assumption. The contract has approximately eight months remaining through February 2015, implying a ~$59MM EBITDA potential impact (~$0.33/share).
Best Semiconductor Stocks To Buy Right Now: HollyFrontier Corp (HFC)
HollyFrontier Corporation (HollyFrontier), formerly Holly Corporation, incorporated in 1947, is a petroleum refiner, which produces light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. HollyFrontier operates in two segments: Refining and Holly Energy Partners, L.P. (HEP). The Refining segment includes the operations of its El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries and NK Asphalt. The HEP segment involves all of the operations of HEP. The Company merged with Frontier Oil Corporation (Frontier), on July 1, 2011. On November 9, 2011, HEP acquired from the Company certain tankage, loading rack and crude receiving assets located at its El Dorado and Cheyenne Refineries.
Refinery Operations
The Company�� refinery operations serve the Mid-Continent, Southwest and Rocky Mountain regions of the United States. HollyFrontier owned and operated five refineries having an aggregate crude capacity of 443,000 barrels per day, as of December 31, 2011. During the year ended December 31, 2011, gasoline, diesel fuel, jet fuel and specialty lubricants represented 48%, 32%, 5% and 3%, respectively of its total refinery sales volumes. Its refineries are located in El Dorado, Kansas, (the El Dorado Refinery), Tulsa, Oklahoma (the Tulsa Refineries), which consists two production facilities, the Tulsa West and East facilities, a petroleum refinery in Artesia, New Mexico, which operates in conjunction with crude, vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (the Navajo Refinery), Cheyenne, Wyoming (the Cheyenne Refinery) and Woods Cross, Utah (the Woods Cross Refinery). Light products are shipped by product pipelines or are made available at various points by exchanges with other parties and are made available to customers through truck loading facilities at the refinery and at terminals.
The Company�� principal customers for gasoline include other refin! ers, convenience store chains, independent marketers, and retailers. Diesel fuel is sold to other refiners, truck stop chains, wholesalers, and railroads. Jet fuel is sold for military and commercial airline use. Specialty lubricant products are sold in both commercial and specialty markets. LPG�� are sold to LPG wholesalers and LPG retailers. HollyFrontier produces and purchases asphalt products that are sold to governmental entities, paving contractors or manufacturers. Asphalt is also blended into fuel oil and is either sold locally or is shipped to the Gulf Coast. Tulsa West facility is 85,000 barrels per stream day refinery in Tulsa, Oklahoma. It owns Tulsa East facility is 75,000 barrels per stream day refinery that is also located in Tulsa, Oklahoma. In September 2011, HEP completed the Tulsa interconnecting pipeline project which facilitated a combined crude processing rate of 125,000 barrels per stream day. The El Dorado Refinery is a coking refinery.
The El Dorado Refinery is located on 1,100 acres south of El Dorado, Kansas and is a refinery. The principal process units at the El Dorado Refinery consists of crude and vacuum distillation; hydrodesulfurization of naphtha, kerosene, diesel, and gas oil streams; isomerization; catalytic reforming; aromatics recovery; catalytic cracking; alkylation; delayed coking; hydrogen production, and sulfur recovery. Supporting infrastructure includes maintenance shops, warehouses, office buildings, a laboratory, utility facilities, and a wastewater plant (Supporting Infrastructure) and logistics assets owned by HEP, which includes approximately 3.7 million barrels of tankage, a truck sales terminal, and a propane terminal. The facility processes approximately 135,000 barrels per stream day of crude oil with the capability. The Tulsa West facility is located on a 750-acre site in Tulsa, Oklahoma situated along the Arkansas River. The principal process units at the Tulsa West facility consists of crude distillation (with light ends recovery), n! aphtha hy! drodesulfurization, catalytic reforming, propane de-asphalting, lubes extraction, methyl ethyl ketone (MEK) dewaxing, delayed coker and butane splitter units.
Tulsa West facility�� Supporting Infrastructure includes approximately 3.2 million barrels of feedstock and product tankage, of which 0.4 million barrels of tankage is owned by Plains All American Pipeline, L.P. (Plains), and an additional 1.2 million barrels of tank capacity was out of service, as of December 31, 2011. The Tulsa East facility is located on a 466-acre site also in Tulsa, Oklahoma situated along the Arkansas River. The principal process units at the Tulsa East facility consists of crude distillation, naphtha hydrodesulfurization, fluid catalytic cracking (FCC), isomerization, catalytic reforming, alkylation, scanfiner, diesel hydrodesulfurization and sulfur units. The Tulsa East facility�� Supporting Infrastructure includes approximately 3.75 million barrels of tankage capacity on the refinery�� premises, of which approximately 3.4 million barrels of tankage is owned by HEP. The primary markets for the El Dorado Refinery�� refined products are Colorado and the Plains States, which include the Kansas City metropolitan area.
The gasoline, diesel and jet fuel produced by the El Dorado Refinery are primarily shipped via pipeline to terminals for distribution by truck or rail. The Company ships product via the NuStar Pipeline Operating Partnership L.P. Pipeline to the northern Plains States, via the Magellan Pipeline Company, L.P. (Magellan) mountain pipeline to Denver, Colorado, and on the Magellan mid-continent pipeline to the Plains States. The Tulsa Refineries��principal customers for conventional gasoline include Sinclair Oil Company (Sinclair), other refiners, convenience store chains, independent marketers and retailers. Sinclair and railroads are the primary diesel customers. Jet fuel is sold primarily for commercial use. The refinery�� asphalt and roofing flux products are sold via truck or! railcar ! directly from the refineries or to customers throughout the Mid-Continent region primarily to paving contractors and manufacturers of roofing products. HollyFrontier�� Tulsa West facility also produces specialty lubricant products sold in both commercial and specialty markets throughout the United States and to customers with operations in Central America and South America.
The El Dorado Refinery is located about 125 miles, and the Tulsa Refineries are located approximately 50 miles from Cushing, Oklahoma, a crude oil pipeline trading and storage hub. Both its Mid-Continent Refineries are connected via pipeline to Cushing, Oklahoma. In addition, the Company has a transportation services agreement to transport up to 38,000 barrels per calendar day of crude oil on the Spearhead Pipeline from Flanagan, Illinois to Cushing, Oklahoma, enabling it to transport Canadian crude oil to Cushing for subsequent shipment to either of the Company�� Mid-Continent Refineries or to its Navajo Refinery. The Navajo Refinery has a crude oil capacity of 100,000 barrels per stream day.The Navajo Refinery�� Artesia, New Mexico facility is located on a 561-acre site and is a refinery with crude distillation, vacuum distillation, FCC, residuum oil supercritical extraction, (ROSE) (solvent deasphalter), hydrofluoric (HF) alkylation, catalytic reforming, hydrodesulfurization, mild hydrocracking, isomerization, sulfur recovery and product blending units. Supporting Infrastructure includes approximately 2 million barrels of feedstock and product tankage, of which 0.2 million barrels of tankage are owned by HEP.
The Artesia facility is operated in conjunction with a refining facility located in Lovington, New Mexico, approximately 65 miles east of Artesia. The principal equipment at the Lovington facility consists of a crude distillation unit and associated vacuum distillation units. Supporting Infrastructure includes 1.1 million barrels of feedstock and product tankage, of which 0.2 million barrels of! tankage ! are owned by HEP. The Lovington facility processes crude oil into intermediate products that are transported to Artesia by means of three intermediate pipelines owned by HEP. The Navajo Refinery primarily serves the southwestern United States market. The Navajo Refinery primarily serves the southwestern United States market. The Company�� products are shipped through HEP�� pipelines from Artesia, New Mexico to El Paso, Texas and from El Paso to Albuquerque and to Mexico via products pipeline systems owned by Plains and from El Paso to Tucson and Phoenix via a products pipeline system owned by Kinder Morgan�� subsidiary, SFPP, L.P. (SFPP). In addition, the Navajo Refinery transports petroleum products to markets in northwest New Mexico and to Moriarty, New Mexico, near Albuquerque, via HEP�� pipelines running from Artesia to San Juan County, New Mexico.
HollyFrontier has refined product storage through its pipelines and terminals agreement with HEP at terminals in El Paso, Texas; Tucson, Arizona; and Artesia, Moriarty and Bloomfield, New Mexico. The Company uses a common carrier pipeline out of El Paso to serve the Albuquerque market. In addition, HEP leases from Mid-America Pipeline Company, L.L.C., a pipeline between White Lakes, New Mexico and the Albuquerque vicinity and Bloomfield, New Mexico. HEP owns and operates a 12-inch pipeline from the Navajo Refinery to the leased pipeline, as well as terminalling facilities in Bloomfield, New Mexico, which is located in the northwest corner of New Mexico, and in Moriarty, which is 40 miles east of Albuquerque. The Navajo Refinery is situated near the Permian Basin. The Company purchases crude oil from independent producers in southeastern New Mexico and west Texas, as well as from oil companies.
HollyFrontier also purchases volumes of isobutane, natural gasoline and other feedstocks to supply the Navajo Refinery from sources in Texas and the Mid-Continent area that are delivered to its region on a common carrier pipeline ! owned by ! Enterprise Products, L.P. The Cheyenne Refinery has a crude oil capacity of 52,000 barrels per stream day and the Woods Cross Refinery has a crude oil capacity of 31,000 barrels per stream day. The Cheyenne Refinery processes Canadian crudes, as well as local sweet crudes, such as that produced from the Bakken shale and similar resources. The Woods Cross Refinery processes regional sweet and black wax crude, as well as Canadian sour crude oils into light products. The Cheyenne Refinery facility is located on a 255- acre site and is a refinery with crude distillation, vacuum distillation, coking, FCCU, HF alkylation, catalytic reforming, hydrodesulfurization of naphtha and distillates, butane isomerization, hydrogen production, sulfur recovery and product blending units. Supporting Infrastructure includes approximately 1.6 million barrels of feedstock and product tankage, of which 1.5 million barrels of tankage are owned by HEP.
The Woods Cross Refinery facility is located on a 200-acre site and is a fully integrated refinery with crude distillation, solvent deasphalter, FCC, HF alkylation, catalytic reforming, hydrodesulfurization, isomerization, sulfur recovery and product blending units. Supporting Infrastructure includes approximately 1.5 million barrels of feedstock and product tankage, of which 0.2 million barrels of tankage are owned by HEP. The facility processes or blends an additional 2,000 barrels per stream day of natural gasoline, butane and gas oil over its 31,000 barrels per stream day capacity. The Company owns and operates four miles of hydrogen pipeline that connects the Woods Cross Refinery to a hydrogen plant located at Chevron�� Salt Lake City Refinery. The Cheyenne Refinery primarily markets its products in eastern Colorado, including metropolitan Denver, eastern Wyoming and western Nebraska. Crude oil is transported to the Cheyenne Refinery from suppliers in Canada, Nebraska, North Dakota and Montana via common carrier pipelines owned by Kinder Morgan, Plains All Am! erican Pi! peline and Suncor Energy, as well as by truck.
The Woods Cross Refinery obtains its supply of crude oil from suppliers in Canada, Wyoming, Utah and Colorado as delivered via common carrier pipelines that originate in Canada, Wyoming and Colorado. HollyFrontier manufactures and markets commodity and modified asphalt products in Arizona, New Mexico, Oklahoma, Kansas, Missouri, Texas and northern Mexico. The Company has three manufacturing facilities located in Glendale, Arizona; Albuquerque, New Mexico; and Artesia, New Mexico. The Company's Albuquerque and Artesia facilities manufacture modified hot asphalt products and commodity emulsions from base asphalt materials provided by its refineries and third-party suppliers. The Company�� Glendale facility manufactures modified hot asphalt products from base asphalt materials provided by its refineries and third-party suppliers. HollyFrontier�� products are shipped via third-party trucking companies to commercial customers that provide asphalt based materials for commercial and government projects.
The Company owns Ethanol Management Company, is 25,000 barrels per calendar day products terminal and blending facility located near Denver, Colorado. It also owns a 50% joint venture interest in Sabine Biofuels II, LLC, a 30 million gallon per year biodiesel production facility located near Port Arthur, Texas. The Company owns a 75% joint venture interest in the UNEV Pipeline, a 400 mile 12-inch refined products pipeline from Salt Lake City, Utah to Las Vegas, Nevada, together with terminal and ethanol blending facilities in the Cedar City, Utah and North Las Vegas areas and storage facilities at the Cedar City terminal with Sinclair, its joint venture partner, owning the remaining 25% interest. The pipeline has a capacity of 62,000 barrels per calendar day (based on gasoline equivalents). The pipeline was mechanically completed in November 2011.
Holly Energy Partners, L.P.
As of December 31, 2011, the Compa! ny owned ! a 42% interest in HEP, including the 2% general partner interest. HEP owns and operates logistic assets consisting of petroleum product and crude oil pipelines and terminal, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. Revenues are generated by charging tariffs for transporting petroleum products and crude oil through its pipelines and by charging fees for terminalling petroleum products and other hydrocarbons, and storing and providing other services at its storage tanks and terminals. In additioin, HEP owns a 25% interest in the SLC Pipeline LLC (SLC Pipeline) that serves refineries in the Salt Lake City, Utah area. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations, as well as revenues relating to pipeline transportation services provided for its refining operations. HEP has a 15-year pipelines and terminals agreement with Alon USA, Inc.
Advisors' Opinion:- [By Robert Rapier]
Our recommended stocks in the camp are HollyFrontier (HFC), Valero (VLO), and Western Refining (WNR).
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- [By Dimitra DeFotis]
Among energy stocks, refiners, whose input costs are rising, were losers: Marathon Petroleum�(MPC) had dropped by 0.72%, while�Valero Energy�(VLO),�HollyFrontier�(HFC) and�Tesoro�(TSO) were down fractionally. Shares of integrated oil-and-gas producer and refiner ExxonMobil (XOM) were up 0.22% to $87.65. Exploration companies have been winners with the price of both oil and natural gas moving higher in July and August.
- [By John Reese, Founder and CEO, Validea.com And Validea Capital Management]
HollyFrontier (HFC) is a petroleum refiner, which produces light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt.
Top 5 Oil Stocks To Own For 2014: Genel Energy PLC (GEGYF.PK)
Genel Energy plc, formerly Vallares PLC, is an exploration and production company. It is an independent oil producer in the Kurdistan Region of Iraq. The Group has two reportable business segments, which are its oil and gas exploration and production business in the KRI and its oil and gas exploration business in Africa. The Company had operational bases in Ankara, Turkey; in Taq Taq, Erbil and Suleimaniah in the Kurdistan Region, and in London. The Company�� oil producing fields of Taq Taq (in which it held a 44% interest) and Tawke (25% interest) had estimated gross proven and probable reserves of 1.2 billion barrels of oil and proven, probable and possible reserves of 1.9 billion barrels of oil. The Company�� subsidiaries include: Genel Energy Holding Company Ltd, Genel Energy Somaliland Limited, A&T Petroleum Limited, Genel Energy UK Services Limited, Genel Energy Netherlands Holding 2 B.V. and Genel Energy Somaliland Limited. Advisors' Opinion:- [By Street Smart Investor]
DNO International is an independent E&P company, geographically focused on the Middle East and North Africa with operations in Yemen, the Kurdistan region of Iraq, Tunisia, Oman, Ras Al Khaimah and Somaliland. The company's asset portfolio currently stands at 20 assets in six countries. For the year ended December 2012, DNO International has proven and probable reserves of 520.3 MMboe with 90% of the reserves in the Kurdistan region of Iraq. The company's reserves in Kurdistan come from the Tawke oil block, which is among the largest oil blocks in Kurdistan. DNO International has a 55% stake in the Tawke block with Genel Energy PLC (GEGYF.PK) holding a 25% stake. The remaining 20% stake is held by the Kurdistan Regional Government. For the first half of 2013, DNO International had a production rate of 33,917 boepd, which includes production from Kurdistan, Oman and Yemen.
Top 5 Oil Stocks To Own For 2014: Weatherford International Ltd(WFT)
Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. It offers artificial lift systems, which include reciprocating rod lift systems, progressing cavity pumps, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, wellhead systems, and multiphase metering systems. The company also provides drilling services, including directional drilling, ?Secure Drilling? services, well testing, drilling-with-casing and drilling-with-liner systems, and surface logging systems; and well construction services, such as tubular running services, cementing products, liner systems, swellable products, solid tubular expandable technologies, and inflatable products and accessories. In addition, it designs and manufactures drilling jars, underreamers, rotating control devices, and other pressure-control equipment used in drilling oil and nat ural gas wells; and offers a selection of in-house or third-party manufactured equipment for the drilling, completion, and work over of oil and natural gas wells for operators and drilling contractors, as well as a line of completion tools and sand screens. Further, the company provides wireline and evaluation services; and re-entry, fishing, and thru-tubing services, as well as well abandonment and wellbore cleaning services; stimulation and chemicals, including fracturing and coiled tubing technologies, cement services, chemical systems, and drilling fluids; integrated drilling services; and pipeline and specialty services. It serves independent oil and natural gas producing companies. The company was founded in 1972 and is headquartered in Geneva, Switzerland.
Advisors' Opinion:- [By Dr. Kent Moors]
That's why some of the biggest OFS providers - like Schlumberger (NYSE: SLB), Halliburton (NYSE: HAL) and Weatherford International (NYSE: WFT) - have been buying up oil and gas equipment companies.
- [By Rich Bieglmeier]
And that belongs to William Macaulay who is a director at Weatherford International, Ltd. (WFT). The director bought 78,000 shares of WFT on September 27, 2013 for a total of $1.19 million. Mr. Macaulay's recent purchase is particularly peculiar.
- [By Holly LaFon]
Weatherford International Ltd. (0.4%) (WFT)(WFT - $17.36 - NYSE), based in Houston, Texas, finally resolved its tax accounting problems and various government investigations, which had been on-going for several years. It is now focused on growing its core businesses, enhancing profitability, reducing leverage and improving capital efficiency. The company is targeting total segment operating profit margin to reach 20% by 2016 from 11.3% in 2013 and reducing debt to capitalization from 52% to 25%. It aims to realize $500 million in annualized cost savings and sell four non-core businesses. Also, Weatherford plans to spin-off a portion of its international drilling rig business by the end of 2014 or early 2015. All available free cash flow generated and proceeds from asset sales will be used to reduce debt.From Mario Gabelli (Trades, Portfolio)'s Value 25 Fund first quarter 2014 shareholder commentary. Also check out: Mario Gabelli Undervalued Stocks Mario Gabelli Top Growth Companies Mario Gabelli High Yield stocks, and Stocks that Mario Gabelli keeps buying Currently 0.00/512345
Rating: 0.0/5 (0 votes)
Top 5 Oil Stocks To Own For 2014: Marlin Midstream Partners LP (FISH)
Marlin Midstream Partners, LP, incorporated on April 19, 2013, develops, owns, operates and acquires midstream energy assets. The Company provides natural gas gathering, transportation, treating and processing services and One million cubic feet (NGL) transportation services, which it refer to as its midstream natural gas business, and crude oil transloading services, which it refer to as its crude oil logistics business. The Company operates in two segments: Midstream Natural Gas and Crude Oil Logistics. Its primary midstream natural gas assets consist of two related natural gas processing facilities located in Panola County, Texas; a natural gas processing facility located in Tyler County, Texas; two natural gas gathering systems connected to its Panola County processing facilities, and two NGL transportation pipelines that connect its Panola County and Tyler County processing facilities to third party NGL pipelines.
Midstream Natural Gas
The Company's primary midstream natural gas assets consist of two related natural gas processing facilities located in Panola County, Texas with an approximate design capacity of 220 One million cubic feet per day (MMcf/d), a natural gas processing facility located in Tyler County, Texas with an approximate design capacity of 80 MMcf/d, two natural gas gathering systems connected to its Panola County processing facilities that include approximately 65 miles of natural gas pipelines with an approximate design capacity of 200 MMcf/d, and two NGL transportation pipelines with an approximate design capacity of 20,000 Stock tank barrel per day (Bbls/d) that connect its Panola County and Tyler County processing facilities to third party NGL pipelines. Its primary midstream natural gas assets are located in long-lived oil and natural gas producing regions in East Texas and gather and process NGL-rich natural gas streams associated with production primarily from the Cotton Valley Sands, Haynesville Shale, Austin Chalk and Eaglebine formations.
Crude Oil Logistics
The Company's crude oil logistics assets consist of two crude oil transloading facilities: its Wildcat facility located in Carbon County, Utah, where it operates one skid transloader and two ladder transloaders, and its Big Horn facility located in Big Horn County, Wyoming, where the Company operates one skid transloader and one ladder transloader. Its transloaders are used to unload crude oil from tanker trucks and load crude oil into railcars and temporary storage tanks. It�� Wildcat and Big Horn facilities provide transloading services for production originating from well-established crude oil producing basins, such as the Uinta and Powder River Basins. Its skid transloaders each have a transloading capacity of 475 Stock tank barrel per hour (Bbls/hr), and its ladder transloaders each have a transloading capacity of 210 Bbls/hr.
Advisors' Opinion:- [By Marc Bastow]
Mid-stream energy asset manager Marlin Midstream Partners (FISH) raised its quarterly dividend 1% to 35.5 cents per share payable May 6 to shareholders of record May 1. At nearly an 8% dividend yield, FISH is the highest yielder of this week’s dividend stocks.
FISH Dividend Yield: 7.85% - [By Robert Rapier] In last week’s MLP Investing Insider (MLPII) I took a look at the MLP IPOs from the first half of 2013. Today I review the half dozen that have debuted in the second half of 2013.
Phillips 66 Partners (NYSE: PSXP) launched on July 23 as one of the most anticipated IPOs this year. PSXP owns some of the midstream logistics assets of its sponsor, Phillips 66 (NYSE: PSX). PSXP has yet to announce its first distribution, but according to the IPO prospectus the minimum yield will be $0.85 per unit on an annualized basis. At the current unit price, this equates to a minimum annual yield of 2.8 percent, which is mainly a function of the huge run-up in unit price between the IPO pricing and today’s unit price. If the distribution does come in near the minimum, the unit price will almost certainly correct downward following the announcement.
Marlin Midstream Partners (Nasdaq: FISH) launched on July 26. The partnership provides natural gas gathering, transportation, treating and processing services, NGL transportation services and crude oil transloading services. Marlin’s assets include three natural gas processing facilities in Texas, two natural gas gathering systems, two NGL transportation pipelines, and two crude oil transloading facilities. Marlin expects most of the gross margin to be generated under fee-based, minimum volume commercial agreements.
Marlin targets a coverage ratio of 1.10x to support distributions. Marlin’s partnership agreement provides for a minimum quarterly distribution of $0.35 per unit for each whole quarter, or $1.40 per unit on an annualized basis. The prorated distribution for the two months of the recently concluded quarter since tje IPO should be announced soon. The minimum annual yield based on the current unit price is projected at 7.7 percent. The unit price has declined 6 percent since the IPO.
- [By Robert Rapier]
Performance so far has been consistent with the advances enjoyed by most of the MLP IPOs over the past year. In fact a few of them made major advances. As discussed in last week�� article No Letup for Last Year�� Top IPO, the best performing MLP of the year so far is Phillips 66 Partners (NYSE: PSXP), which came public last summer and is up 48 percent year-to-date. Of course, there are some exceptions. Marlin Midstream Partners (Nasdaq: FISH) conducted its IPO three days after Phillips 66 Partners last year, and it has traded below its IPO price since. �
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