Top 5 Gas Stocks To Invest In Right Now

It's been all the rage the past few years.

And with good reason... This new technology has literally reshaped the world energy market and put America back on the oil and natural gas map.

Of course, I am talking about the shale revolution. Many investors seem to be clamoring to own a piece of the next big shale play -- at higher and higher prices.

But while investors are champing at the bit to get their hands on the next shale field, I am selling most of my holdings in this space. In fact, I've sold five oil and gas companies from the portfolio in my Scarcity & Real Wealth newsletter in the past few weeks so I can focus my money elsewhere.

 

Let me explain why...

There's a lot of talk about the growth potential of shale-focused producers (which admittedly has been explosive), and little talk of the risks involved with growing costs and infrastructure issues in areas that have never been drilled before.

Top 5 Cheapest Stocks To Own For 2015: Exxon Mobil Corporation(XOM)

Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. As of December 31, 2010, it operated 35,691 gross and 30,494 net operated wells. The company has operations in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. Exxon Mobil Corporation was founded in 1870 and is based in Irving, Texas.

Advisors' Opinion:

• [By Ben Levisohn]

  The rally in energy stocks has lifted ExxonMobil (XOM) and Chevron (CVX) almost equally during the past three months. Argus Research, however, is only downgrading one.

  Reuters

  Argus analyst Michael Burke explains why he downgraded Chevron:

  We are lowering our rating on Chevron Corp. to HOLD from BUY as the stock has approached our $130 price target. [Chevron] shares have performed well over the last three months, with a total return of 16%, compared to a 5% gain for the S&P 500. We believe that the stock is trading near fair value following this run-up and see few positive catalysts in the near term. Although Chevron has several promising new projects, we do not expect them to contribute meaningfully to production until 4Q14. We also note that the increased capital spending has led to higher debt and significantly lower free cash flow. In 1Q14, trailing 12-month free cash flow came in at negative $484 million, down from positive $2.9 billion a year earlier and well below the all-time high of $14.6 billion in 2011.

  Burke is feeling a little more optimistic about ExxonMobil, however. He explains why:

  We are maintaining our BUY rating on Exxon Mobil Corp. and boosting our target price to $114 from $104. Our higher target reflects our positive view of management�� planned reduction in capital spending, which should boost free cash flow going forward. We also like the company�� plan to increase profitability in the upstream segment by focusing on higher-margin production and by increasing the percentage of production from liquids from a current 52% to 69% by the end of 2017.

  We note that Exxon�� plan to curtail capital spending in the coming years contrasts with that of rival Chevron, which continues to spend heavily on new projects. As a result, Chevron has struggled to generate free cash flow over the last 12 months.

  In our view, Exxon will remain the global energy leader, with superior returns on invested cap

• [By MONEYMORNING.COM]

  Warren Buffett's Berkshire Hathaway meeting for shareholders this weekend let investors - not just Berkshire (NYSE: BRK.A; BRK.B) investors - get some nuggets of wisdom from the 83-year-old billionaire.
  
  Berkshire's earnings are meticulously scrutinized every quarter because its investments include a number of well-known consumer-oriented components. Stock holdings include American Express Co. (NYSE: AXP), Coca-Cola Co. (NYSE: KO), Exxon Mobil Corp. (NYSE: XOM), International Business Machines Corp. (NYSE: IBM), and Wal-Mart Stores Inc. (NYSE: WMT).

Top 5 Gas Stocks To Invest In Right Now: New Source Energy Partners LP (NSLP)

New Source Energy Partners L.P., incorporated on October 2, 2012, is engaged in the acquiring oil and natural gas properties in the United States. The Company�� properties consist of non-operated working interests in the Misener-Hunton formation (the Hunton Formation), a conventional resource reservoir located in east-central Oklahoma. As of June 30, 2012, of which approximately 58% were classified as proved developed reserves and of which approximately 76.4% were comprised of oil and natural gas liquids. As of June 30, 2012, the Company had 89,116 gross (31,554 net) acres, of which 6,796 gross (2,323 net) acres were undeveloped. As of June 30, 2012, the Company had 127 gross (28.5 net) proved undeveloped drilling locations, of which 66 gross (20.7 net) were infill drilling locations. In June 2013, New Source Energy Partners LP announced that it has acquired additional oil and natural gas properties from New Source Energy Corporation. In November 2013, New Source Energy Partners LP acquired MCE LP.

The Company�� properties are located in the Golden Lane field within the Hunton Formation of east-central Oklahoma and consist of mature, legacy oil and natural gas reservoirs. The Company�� properties consist of non-operated working interests in producing and undeveloped leasehold acreage, including 215 gross (82.4 net) producing wells with working interests ranging from 21% to 87% (38.3% weighted average); and 127 gross (28.5 net) proved undeveloped drilling locations with working interests ranging from 1% to 84% (22.4% weighted average). As of June 30, 2012, the Company had 89,116 gross (31,554 net) acres in the Golden Lane field.

Advisors' Opinion:

• [By Robert Rapier] There were a half a dozen initial public offerings (IPOs) by master limited partnerships in the first half of the year, and all but one are now in the green while one has nearly doubled in value.
  
  The first MLP IPO of 2013 debuted on Jan. 15. USA Compression Partners (NYSE: USAC), which I mentioned in last week’s issue, provides compression services for the oil and gas industry. Units have advanced 36 percent since the IPO, and at the current price yield 7.3 percent.
  
  The day after the USA Compression Partners IPO, CVR Refining (NYSE: CVRR) made its debut.  CVRR was spun off from CVR Energy (NYSE: CVI), and both companies remain majority-owned by Carl Icahn. CVR Refining’s primary assets are two refineries located in Kansas and Oklahoma with a combined processing capacity of approximately 185,000 barrels per day (bpd). These refineries are strategically located near the major Cushing, Oklahoma shipment and storage hub, with easy access to discounted feedstock from the nearby Permian basin, as well as the Bakken shale and Canadian oil sands.
  
  But refiners have struggled with diminished margins in 2013 because of a much lower Brent-WTI differential. After the recently concluded second quarter, CVRR declared a distribution of $1.35 per unit, bringing its per-unit distributions for the first half of the year to $2.93. At the same time, CVR Refining lowered its annual distribution target to a range of $4.10 to $4.80 per unit. This was lower than the outlook issued in March, when it foresaw annual distributions of $5.50 to $6.50. CVRR units slid on the news, and are presently trading slightly below the $25 IPO price. The lower end of the revised forecast implies distributions of $1.17 per unit in the second half of the year, for a forward annualized yield of 10 percent based on the recent $23.50 unit price.
  
  SunCoke Energy Partners (NYSE: SXCP) was the third IPO to debut during a very busy third week of January. SXCP is the first M
• [By Lee Jackson]

  New Source Energy Partner L.P. (NYSE: NSLP) is definitely a name for investors interested in yield. While the company faced some issues in the second quarter due to flooding in some of its drilling areas, production is back to normal and management is very positive for the remainder of 2013. Oppenheimer has a $23 price objective, while the consensus is at $24. Investors are paid a stellar 11% distribution.

• [By Robert Rapier]

  New Source Energy Partners (NYSE: NSLP) debuted in February 2013 as the year’s first initial public offering of an upstream master limited partnership, with an initial enterprise value (EV) of $186 million. The partnership is engaged in the development and production of liquids-rich conventional resource reservoirs in east-central Oklahoma.

Top 5 Gas Stocks To Invest In Right Now: Devon Energy Corporation(DVN)

Devon Energy Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada. It also involves in transporting oil, gas, and natural gas liquids (NGL); and processing natural gas. The company owns oil and gas properties in the mid-continent area of the central and southern United States; the Permian Basin in Texas and New Mexico; the Rocky Mountains area of the United States; and the onshore areas of the Gulf Coast, principally in south Texas and south Louisiana. It also owns oil and gas properties in the provinces of Alberta, British Columbia, and Saskatchewan, Canada. In addition, the company offers marketing and midstream services, including marketing of gas, crude oil, and NGL, as well as constructing and operating pipelines, storage and treating facilities, and natural gas processing plants. As of December 31, 2010, it had 2,042 million barrel of oil equivalent of proved developed reserves. The company sells its gas production to various customers, such as pipelines, utilities, gas marketing firms, industrial users, and local distribution companies; crude oil production to refiners, remarketers, and other companies; and NGL production to customers in petrochemical, refining, and heavy oil blending activities. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.

Advisors' Opinion:

• [By Paul Ausick]

  Stocks on the Move: Crosstex Energy Inc. (NASDAQ: XTXI) is up 71.5% at $35.33 on a merger with Devon Energy Corp. (NYSE: DVN). Crosstex Energy LP (NASDAQ: XTEX) is up 33.9% at $27.25 on the same news. Voxeljet AG (NYSE: VJET) is up 22.7% at $35.34. J.C. Penney Co. Inc. (NYSE: JCP) is down 8.4% at $6.42, after posting another record low today.

Top 5 Gas Stocks To Invest In Right Now: Atlas Energy LP (ATLS)

Atlas Energy, L.P. (Atlas Energy), incorporated on December 15, 2005, is a limited partnership. The Company's assets consist of the Company's ownership interests in the Atlas Resource Partners, L.P. (ARP), an independent developer and producer of natural gas, crude oil and natural gas liquids (NGL), with operations in basins across the United States; Atlas Pipeline Partners, L.P. (APL) a midstream energy service provider engaged in natural gas gathering, processing and treating services in the Anandarko and Permian Basins of the United States, and Lightfoot Capital Partners, LP (Lightfoot LP) and Lightfoot Capital Partners GP, LLC (Lightfoot GP), the general partner of Lightfoot L.P. (collectively, Lightfoot), entities which incubate new master limited partnerships (MLPs) and invest in existing MLPs. As of December 31, 2012, the Company had an approximate 16% general partner interest and 12% limited partner interest in Lightfoot.

On April 30, 2012, ARP acquired 277 billion cubic feet equivalent of proved reserves, including undeveloped drilling locations, in the core of the Barnett Shale from Carrizo Oil & Gas, Inc. (Carrizo). The assets include 198 gross producing wells. On July 26, 2012, ARP acquired Titan Operating, L.L.C. (Titan), which owned approximately 250 billion cubic feet equivalent of proved reserves and associated assets in the Barnett Shale on approximately 16,000 net acres. Titan's assets are located in close proximity to the assets acquired from Carrizo in the Barnett Shale. On September 24, 2012, ARP acquired Equal Energy, Ltd�� (Equal) remaining 50% interest in approximately 8,500 net undeveloped acres. On December 20, 2012, ARP acquired 210 billion cubic feet equivalent of proved reserves in the Fort Worth basin from DTE Energy Company (DTE). The assets include 261 gross producing wells on over 88,000 net acres. The acreage position includes approximately 75,000 net acres prospective for the Marble Falls play, in which there are over 700 identified vertical drilling l! ocations..

In February 2012, APL acquired a gas gathering system and related assets, at its WestOK region. In June 2012, APL acquired a gas gathering system and related assets in the Barnett Shale in Tarrant County, Texas. In December 2012, APL acquired 100% interests held by Cardinal Midstream, LLC (Cardinal) in three wholly owned subsidiaries. The assets of these companies include gas gathering, processing and treating facilities in Arkansas, Louisiana, Oklahoma and Texas as the Tupelo plant, the East Rockpile treating facility, a fixed fee contract gas treating business, a 60% interest in Centrahoma Processing, LLC (Centrahoma), the Coalgate and Atoka plants, and the prospective Stonewall plant.

Atlas Resource Partners

During the year ended December 31, 2012, ARP�� average daily net production was approximately 77.2 million cubic feet equivalent. As of December 31, 2012, ARP owned production positions, including the Barnett Shale and Marble Falls play in the Fort Worth Basin in northern Texas; the Appalachia basin, including the Marcellus Shale and the Utica Shale; the Mississippi Lime and Hunton plays in northwestern Oklahoma, and the Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana, and the Antrim Shale in Michigan. ARP has ownership interests in over 525 wells in the Barnett Shale and Marble Falls play. ARP has ownership interests in over 10,200 wells in the Appalachian basin, including approximately 270 wells in the Marcellus Shale. The Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana, and the Antrim Shale in Michigan.

Atlas Pipeline Partners

APL conducts its business in the midstream segment of the natural gas industry through two reportable segments: gathering and processing, and transportation, treating and other. The gathering and processing segment consist! s of the A! rkoma, WestOK, WestTX and Velma operations, which are comprised of natural gas gathering and processing assets servicing drilling activity in the Anadarko, Arkoma and Permian Basins, and natural gas gathering assets located in the Barnett Shale play in Texas and the Appalachian Basin in Tennessee. Gathering and processing revenues are derived from the sale of residue gas and NGLs and the gathering and processing of natural gas.

APL's gathering and processing operations, own, have interests in and operate 12 natural gas processing plants with aggregate capacity of approximately 1,090 million cubic feet per day located in Oklahoma and Texas; a gas treating facility located in Oklahoma, and approximately 10,100 miles of active natural gas gathering systems located in Oklahoma, Kansas, Tennessee and Texas. APL's gathering systems gather natural gas from oil and natural gas wells and central delivery points and deliver this gas to processing plants, as well as third-party pipelines.

APL's gathering and processing operations are located in Golden Trend, Mississippian Limestone and Hugoton field in the Anadarko Basin; the Woodford Shale; the Spraberry Trend, which is an oil play with associated natural gas in the Permian Basin, and the Barnett Shale. APL's gathering systems are connected to approximately 8,600 receipt points, consisting of individual well connections and secondarily, central delivery points, which are linked to multiple wells.

APL's transportation and treating operations consists of 17 gas treating facilities used to provide contract treating services to natural gas producers located in Arkansas, Louisiana, Oklahoma and Texas, and a 20% interest in West Texas LPG Pipeline Limited Partnership (WTLPG), which owns a common-carrier pipeline system, which transports NGLs from New Mexico and Texas to Mont Belvieu, Texas for fractionation. WTLPG is operated by Chevron Pipeline Company, an affiliate of Chevron Corporation (Chevron), which owns the remaining 80% i! nterest. ! The contract gas treating operations are located in various shale plays, including the Avalon, Eagle Ford, Granite Wash, Haynesville, Fayetteville and Woodford.

The Company competes with Access Midstream Partners, LP; Caballo Energy, LLC, Carrera Gas Company; Copano Energy, LLC; Crosstex Energy Services, L.P.; DCP Midstream, LLC; Energy Transfer Partners, LP.; Enogex, LLC; Lumen Midstream Partners, LLC; MarkWest Energy Partners, L.P.; Mustang Fuel Corporation; ONEOK Field Services Company, LLC; Scissor Tail Energy, LLC; SemGas, L.P.; Southern Union Company; Superior Pipeline Company, LLC; Targa Resources Partners LP, and West Texas Gas, Inc.

Advisors' Opinion:

• [By Matt DiLallo]

  The management team at oil and gas company�Atlas Energy (NYSE: ATLS  ) has really taken Warren Buffett's advice to heart. Buffett's old adage to "be fearful when others are greedy and greedy when others are fearful" seems to be that team's approach. After selling its shale assets to Chevron at the top of the market, the company has been diligently acquiring natural gas assets at the market's low. That blueprint continues to be followed as evidenced by the recently announced acquisition of substantial natural gas assets via its master limited partnership, Atlas Resource Partners (NYSE: ARP  ) .

• [By David Smith]

  Several companies, including Pittsburgh-based Atlas Energy (NYSE: ATLS  ) , appear likely to submit proposals to participate in the effort by the August deadline. Atlas has already completed 450 natural gas wells in a four-county area of Tennessee.

• [By WilliamBriat]

  
  Investors interested in oil and gas pipeline stocks can start researching any number of energy infrastructure companies, including Atlas Energy, L.P. (NYSE: ATLS), Energy Transfer Equity, L.P. (NYSE: ETE), and Targa Resources Partners LP (NYSE: NGLS).

• [By Dividend]

  Atlas Energy (ATLS) has a market capitalization of $2.72 billion. The company employs 832 people, generates revenue of $1.521 billion and has a net income of $-16.88 million. Atlas Energy�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $212.91 million. The EBITDA margin is 13.99 percent (the operating margin is 2.42 percent and the net profit margin -1.11 percent).