March 2015

March 2015 Issue

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Are We at the Bottom?

As I approached this month’s issue of Energy Investor, I was struck by a bit of déjà vu.

I had come across two random headlines that seemed eerily familiar. The first simply read: Oil Crashing to $10. The second, as if trying to make an equally inane boast with similar flair, read: Get Ready for $200 Oil.

The gimmick worked, because I found that I absolutely had to read both articles extensively; and after poring over both, I had reached one simple conclusion... neither analyst had any idea of what

they were talking about.

So, will oil go to $20 before it spikes unexpectedly to $200?

Of course it won’t.

But even though nobody can tell you with absolute certainty where oil prices will be tomorrow, next week, next month, or even next year, there’s one unquestionable fact before us...

We are be staring at the strongest buying opportunities since 2009.

This belief isn’t rooted in speculation.

Understand that right now, it’s all about the supply and demand dynamic. To get even more specific, we’re talking about oversupply.

Truth is, U.S. crude oil stocks are at a level that haven’t been seen since the 1930s.

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Look, we both know exactly how things have gotten to this point. As the EIA recently put it, U.S. output increased by 16.2% in 2014 – it’s highest growth rate in 75 years!

Now, you may be asking why we’re expecting a rally in the second half of 2015, even though most analysts are expecting U.S. production to increase this year?

There’s two reasons, actually. The first is the declining rig count. Last week, Baker Hughes reported that the number of rigs drilling for oil in the United States fell by 12 units. For the record, that’s a 50% decline since October of 2014.

But it’s more than the lack of rigs drilling to U.S. soil.

Earlier this month, Moody’s reported that E&P companies have slashed their budgets by 41%, and that 20% of North American producers will cut their capital expenditures by at least 60%. We’ve been seeing this firsthand, however, as many of our positions have updated their 2015 capital expenditures.

Now take these two factors, and toss in the fact that one of the downsides to the tight oil boom is that it requires intensive drilling to maintain production. For example, North Dakota needs approximately 115 drilling rigs to maintain its output of around 1.2 million barrels per day. Recently, the number slipped to below 100.

So why am I getting a sense of déjà vu? It’s because I can honestly say that we haven’t seen a buying opportunity of this magnitude since the first quarter of 2009. Moreover, not only are there a host of grossly oversold stocks in the sector currently, but the investment herd hasn’t realized that most of these stocks have been trading flat since we rang in the New Year.

And today’s company spotlight is a perfect example of how undervalued some stocks in the oil and gas sector have become over the past nine months.

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Company Spotlight: Abraxas Petroleum

Enterprise Value: $415.4 million

Price-to-Earnings (TTM): 5.2

PEG Ratio: 2.19

Shares Outstanding: 104.1 Million

52-Week Range: $2.33 - $6.45

Although Abraxas Petroleum hasn’t made our company spotlight since last November, the company catapulted to the top of the list after releasing its annual report recently.

I’ll admit that it was only a matter of time before it happened, and it really won’t surprise us to see shares double during the latter half of 2015.

Now let’s take a look at what’s driving our bullish sentiment.

As you know, Abraxas is an independent oil and natural gas company that focuses on the exploration, development, production,and acquisition of oil and natural gas resources on its core properties; and make no mistake about it, this company is operating in the three most prominent

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tight oil plays in the North America: the Bakken/Three Forks play in the Williston Basin, the Eagle Ford Shale in South Texas, as well as the Permian Basin in West Texas.

In case you were wondering why those three areas are so important, consider the fact they account for 54% of the United States’ total daily crude oil output.

But we can break this down even further...

Approximately 49% of the company’s total acreage – roughly 43,855 net acres – is located in the Rocky Mountain region, home to the Williston Basin and Powder River Basin. Furthermore, slightly more than half of Abraxas’ 2014 net production – 1.088 million barrels of oil equivalent – comes from this area. That’s also not to mention the region is home to

In West Texas, the company controls roughly 30,891 net acres in the Permian Basin. Specifically, the company’s properties are located in the Delaware Basin and Eastern Shelf parts of the play. At the end of 2014, the company owned an average working interest in 236 gross producing wells, and held an estimated 30.8 million barrels of proved reserves in the two sub-basins.

That brings us to South Texas, where the company’s operations are focused on the Edwards trend in DeWitt and Lavaca Counties, the Eagle Ford Shale in Atascosa and McMullen Counties, as well as the Portilla field in San Patricio County.

And if we take away nothing else from its latest results, it’s that we can expect Abraxas to weather this period of low commodity prices.

In the Eagle Ford, for example, where companies have been hit hard since last summer, Abraxas owns 100% of its properties. This allows the company to kick-start its operations as soon as the economics are attractive once again. Moreover, the company’s gas facility should be on-line any day now, which will both reduce flaring and increase production. During the latest conference call, Abraxas’ CEO mentioned that the company’s Eagle Ford activity is expected to continue during the down cycle, and will even be looking for opportunities to expand their operations in the play.

Of course, it also helps that Abraxas doesn’t have to raise equity to save their balance sheet, and the only time we expect Abraxas to do so is for an acquisition.

And then there’s the company’s growth to take under consideration...

During 2014, Abraxas boosted its proved reserves to approximately 42.4 million barrels of oil equivalent – a 36% year-over-year-increase.

Moreover, the company’s total production also increased 36% last year. Below, you’ll find a detailed

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snapshot of Abraxas’ production since 2012, which I took directly from the company’s latest 10-K:

Since 2012, Abraxas’ crude oil production from the Bakken/Three Forks has surged more than 18,500%, with oil output from the play totaling 660,447 barrels in 2014. During the same period in the in the Eagle Ford, oil production jumped an impressive 3,215% to 431,892 barrels in 2014.

That’s incredible growth, no matter how skeptical you are of the sector.

Yet despite this growth, the bears have pushed share prices to around the same level they were in April, 2012.

Last year, the company drilled and completed a total of 20 gross (16.4 net) development wells, half of which were located in the Rocky Mountain region, and the other half located in South Texas.

In fact, as of March 10th, Abraxas had 6 gross (5 net) operated wells that were in the process of being drilled and/or completed.

Recently, Abaxas’ Stenehjem 3H well, located at the company’s North Fork prospect, tested at an average rate of 1,057 boepd during its first 30 days of production. Meanwhile, the Stenehjem 2H and 4H wells tested at an average rate of 863 boepd from the Three Forks play during the first 30

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days of production.

Over on the Jore unit, the company recently set the production casing in the lateral sections of the Jore 5H, 6H, 7H, and 8H wells, all of which are now waiting to be completed.

In the Eagle Ford, Abraxas’ Cat Eye 1H well averaged 491 boepd during its first 30 days of production. After placing the well on a submersible pump, however, production averaged 587 boepd over the following twelve production days. For our newer members, this well is the first well on the company’s Southern fault block at the Jourdanton prospect. Also in this area, Abraxas completed the Grass Farm 2H well, which is now waiting to be completed.

Over at the Dilworth East prospect in McMullen County, Abraxas finished drilling the R. Henry 1H well, which is now waiting to be completed.

Abraxas generated $134.1 million during 2014 (inclusive of hedge settlements), and posted an adjusted net income of $39.8 million, or approximately $0.40 per share.

The bottom line for us is that Abraxas feels sorely undervalued at this level. The stock is not only trading at the low end of its 52-week range, but also below the value of it’s reserves (including its current debt load).

For the first quarter of 2015, the company’s production is expected to average between 6,600 and 6,800 boepd, with full year production averaging between 7,200 and 7,300 boepd. With the company averaging 5,776 boepd in 2014, we could see a 25% year-over-year increase even if the company hits the bottom range of its 2015 guidance.

Abraxas is currently rated a buy for us under $7.00.

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Reader Questions

Hey Keith, can we get an update on GasFrac? It seems like this stock has been in limbo for

months.

Regards, Tim C.

I can categorically say you are not alone thinking that this stock has been in limbo for a while. Unfortunately, the situation hasn’t gotten much better for us.

To catch up our other members, I mentioned in the last issue that trading was halted on GasFrac after the company commenced proceedings and obtained court order protection under the Companies’ Creditors Arrangement Act.

I also want to mirror the same frustration I felt last month. As I’ve said before, it’s always painful to watch a Canadian services company with a proven waterless fracturing technology to struggle so much in its transition in to the U.S. shale market.

We do, however, have a few devastating updates.

On March 27th, the company announced it had obtained approval for the purchase of operating assets and services between GasFrac and a third party. According to the press release, GasFrac would purchase certain fracking assets and related services. The transaction allows GasFrac to continue its operations following the completion of the previously announced sale transaction involving STEP Energy Services, which was announced on March 3rd.

Adding more insult to injury, it was announced on March 20th that common shares of GasFrac will be delisted from the Toronto Exchange at the close of business on March 31, 2015.

At this point, there’s nothing more that can be done, though stock does still trade on the gray market.

Even though the stock is considered a sell right now, I will continue covering this company until we have some closure.

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Rankings and Position Updates

March’s Top 10 List:

1. Abraxas Petroleum

2. Osage Exploration

3. Magnum Hunter Resources

4. Gastar Exploration

5. Oasis Petroleum

6. Range Resources

7. Black Ridge Oil & Gas

8. Swift Energy

9. Penn Virginia Corp.

10. ONEOK Partners

We’ve got a lot to cover this month, so I just want to note one major change to this month’s ‘Top 10’ list. This month, I’ve pushed Abraxas Petroleum to the top of the list, reflecting the strong buying opportunity we’re currently seeing with this stock.

As you saw above, the company has proven it can ride out the oil price volatility this year, and we feel the stock is sorely undervalued at its current price.

And with that quick note, let’s get started on the rest of our positions...

Apache Corp. (NYSE: APA)

Apache Corp. is an independent energy company that is quickly transitioning into a powerhouse producer in North America.

Since 2009, the company has successfully shifted its attention to its onshore properties in North America. And to understand exactly how far they’ve come, here’s a look at the company’s production over the last six years:

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In fact, nearly three-quarters of the company’s proved reserves of 2.2 billion barrels of oil equivalent can now be found in North America. To achieve this, the company has had to make five major acquisitions worth $15.5 billion, as well as divest $14.8 billion worth of its non-core projects.

You might have noticed several of the more notable sales last year, when it sold off $7 billion worth of assets, while adding $1.5 billion worth of leaseholds and property acquisitions.

Now, even though it was Apache’s interests in the Kitimat LNG project in British Columbia, we’re more than willing to keep our long-term bullish outlook on this play simply from its move into the Permian Basin.

In West Texas, the company controls approximately 3.2 million gross acres in the Permian Basin, and is now one of the largest operators in the area. And that’s not to mention the fact that Apache holds the third largest acreage position in the region.

Throughout 2014, the company had an average of 40 rigs drilling away into the Texas soil, helping the company boost its production in the Permian Basin by 25%, year-over-year. The company’s proved reserves in the Permian also increased by 7% during 2014, to approximately 970 million barrels of oil equivalent.

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As you might expect, Apache will continue executing its strategy to increase its presence in the Permian Basin.

Below, you can see that the company is directing roughly 60% of its 2015 capital expenditures toward its Permian Basin activity, as well as how the company will be allocating its rigs this year.

Overall, Apache has approximately 5,300 horizontal well locations still on the books right now, and was producing approximately 169,000 boepd from its West Texas operations at the end of 2014.

Finally, we can’t forget the company’s dividend. On February 20th, Apache declared its next dividend of $0.25 per share will be paid on May 22, 2015, to shareholders on record as of April 22, 2015.

Once crude prices begin to rally later this year, it’ll be Apache’s Permian activity that pushes our position back into the green.

Apache remains a long-term buy for us under $90.

Approach Resources (NASDAQ: AREX)

Approach is one of our pure Permian Basin plays, where the company controls approximately 136,000 net acres.

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Although the company is developing the Wolfcamp Shale formation, remember that the Permian Basin is famous for its stacked plays. So, along with the Wolfcamp, Approach also has potential target in several other zones, including the Clearfork, Canyon Sands, Strawn and Ellenburger zones.

At the end of February, the company reported solid earnings and record results for 2014.

To start, the company posted adjusted net earnings of $3.4 million, or $0.08 per diluted share, slightly missing the consensus of $0.10 from analysts following the company. Revenues for the fourth quarter, 2014, totaled $55.1 million.

For the full year, Approach generated revenues of $258.5 million – a 43% year-over-year increase. Net income came int at $56.2 million, or $1.42 per share. Moreover, the company recorded an annual record EBITDAX of $188.3 million, or 47% higher compared to 2013.

Operationally, production during 2014 averaged 13,800 boepd, a solid 47% increase over the previous year.

During the fourth quarter, production averaged 15,100 boepd – a 34% jump over the same period in 2013. Furthermore, the company drilled 18 horizontal wells and completed 13 horizontal wells in the Wolfcamp. In total, Approach drilled 68 horizontal wells and completed 63 wells throughout 2014.

Once again, we’ve got a company that has been sorely beaten down and feels incredibly undervalued at this level.

Last year, Approach increased its total amount of proved reserves to 146.2 million barrels of oil equivalent, representing a 27% year-over-year increase.

What’s impressive, however, is that 85% of the company’s total proved reserves are from the horizontal Wolfcamp play. Proved reserves in this play jumped 53% in 2014, compared to the previous year.

Here’s a better look at the company’s reserve growth over the last few years:

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Along with its earnings announcement, the company also announced its 2015 guidance. Approach is expecting production to total between 5.45 and 5.65 million barrels this year, and has set its capital spending at $160 million.

Approach Resources is a buy at current prices, but we are adjusting our ‘buy under’ price to $10.

Atwood Oceanics (NYSE: ATW)

Over the last few months, I’ve received a lot of questions regarding the offshore drilling positions still in our portfolio.

But if there’s anyone in that sector that I believe will weather this period of volatility, it’s Atwood Oceanics. The company’s fleet consists of six ultra-deepwater drillships and submersibles, two deepwater submersibles, and five jack-ups.

I saw a clever headline last month that simply read, “No Country for Old Rigs,” which immediately summed up my thoughts on offshore drillers. You see, Atwood has one o the youngest fleets in the sector, with their latest – the Atwood Achiever – having been delivered in 2014. In fact, the company is expecting to take delivery on two additional rigs by the end of 2015.

And in case you were worried that there’s not enough work out there for offshore contractors due

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to low oil prices, just remember that this company is in an excellent position to weather the market storm. Approximately 95% of Atwood’s fleet is contracted throughout 2015, and the company is sitting on a hefty $2.5 billion contract backlog. I also would like to note that approximately near $2 billion of that backlog is contracted through 2015 and 2016.

Moreover, revenues have grown consistently over the last several years. Below, you can see this revenue growth firsthand:

The most recent news coming out of Atwood was in regards to the Atwood Osprey. The company announced that the unit parted several mooring lines and drifted roughly three nautical miles from its position. This, of course, took place during a recent cyclone that affected the northwest coast of Australia. According to the release, the rig is now stable, with no injuries during the event, and will only be out of service for a maximum of thirty days due to minimal damages.

Finally, that leaves us with the company’s latest dividend announcement. Atwood recently declared its quarterly cash dividend of $0.25 per share will be paid out on April 9th to shareholders on record as of April 2nd. For our newer members, or anyone looking to capitalize on this stock, the annual $1.00 dividend represents a solid 3.5% annual yield at current price levels.

The bottom line here is that our stance on Atwood hasn’t changed since the we first established our initial position. We’re looking at a sorely undervalued stock right now, trading at just 6x its trailing earnings.

Atwood Oceanics is a buy for us at current prices.

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Cenovus Energy (NYSE: CVE)

Forget the nightmarish images of the surface mining operations that blight the northern Alberta landscape. For years, I’ve been telling my readers that the future of the bituminous deposits in Alberta lies in those companies able to extract the resource through in-situ methods like SAGD.

Remember, fully 80% of this vast resource is simply too deep to be mined. And companies like Cenovus, which utilize in-situ extraction methods, are perfectly positioned right now.

Back in mid-February, the company announced that its oil sands production increased 25% in 2014, and boosted its bitumen reserves by 7%. In total, output last year averaged 128,000 barrels per day. Furthermore, the company’s non-fuel operating costs declined about 14%, year-over-year.

Now, it should not come as a surprise that companies operating in the oil sands have been hard hit since oil prices have plummeted. However, do we really think that these operators are going to pack up shop?

Absolutely not.

To start, Canada is perhaps the only country where oil exports to the U.S. have increased

throughout the last decade. And the country is easily the United States’ largest source for crude.

Let me show you exactly what I mean...

In December of 2014, Canada exported an average of 3.955 million barrels of oil per day to the United States – accounting for roughly 42% of all U.S. oil imports!

It’s only a short matter of time before that amount surges past 4 million barrels per day. But what’s even more important is that heavy oil production is playing an increasingly greater role in Canada’s oil supply.

The thought of crawling to OPEC and begging them for an extra 4 million barrels per day leaves a bad taste in my mouth.

So rather than pack up and call it a day, we’re expecting Canadian oil sands producers to weather this volatile period for oil prices, just like they’ve been doing in ever bear market since they opened up shop in the 1950s.

Earlier this month, Cenovus also announced a 67.4 million share offering that grossed $1.5 billion, or approximately $22.25 per share. The proceeds were used to partially fun the company’s capital expenditure program, as well as repay debt.

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I feel Cenovus Energy is a strong buy at its current price under $20, but I also want to note that this is a long-term outlook. This is the kind of stock I’m looking to hold on to for years, even decades, not trade over the short-term.

I am also adjusting our buy under price to $35, to better reflect the recent price drop.

Enbridge Inc. (NYSE: ENB)

Enbridge is a premiere North American energy transportation and distribution company. These guys own and operate hundreds of miles of oil and natural gas pipelines, stretching from British Columbia to the U.S. Gulf of Mexico.

Here’s a snapshot of the kind of scope to which I’m referring:

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On February 19th, the company released its Fourth Quarter and Full Year 2014 results. Here’s a brief summary of the highlights from the press release:

• Q4 2014 earnings totaled $88 million, with adjusted coming in at $409 million, or approximately $0.49 per share.

• For the full year, Enbridge posted adjusted earnings of approximately $1.574 billion, or $1.90 per share in 2014.

• During the year, the company announced it would transfer the majority of its Canadian Liquids Pipelines business and certain Canadian renewable energy assets to Enbridge Income Fund, as well as considering a potential transfer of its directly held United States liquids pipelines assets to Enbridge Energy Partners, L.P.

• Enbridge placed 15 projects into service during 2014, totaling $10 billion, which included the Flanagan South Pipeline and Seaway Crude Pipeline System Twinning.

I’ve said this before, but Enbridge is the quintessential long-term energy stock. Regardless of how bullish you are on the future of renewables, more fuel-efficient cars, the simple fact is that crude oil and natural gas will play a pivotal role in the world’s energy dynamic for decades to come.

That’s not to say we won’t make incredible strides elsewhere, but we still have a long ways to go before oil is out of the picture. The EIA’s current long-term outlook shows a very slight decline in U.S. oil consumption over the next few decades. Despite that, let’s not forget that this still amounts to an extraordinary amount of crude. And I’m certain that many of you have already caught on to the fact that the U.S. is slowly making a transition to natural gas.

Of course, we also know that there are only a handful of ways that oil and gas companies can get their product to market. When it comes to crude oil, they can either pipe it out, or ship it out via rail or truck. Naturally, the latter two come with an added cost.

In fact, I suspect that the cost of transporting oil by rail will increase further now that train derailments are making front-page news. Not only can we expect a flood of government regulations to start pouring in, but every tragic headline will cause the public to favor more pipelines (I’ll add that every year, 99.9% of oil transported through pipelines will make its way safely to market).

Meanwhile, Enbridge will continue paying out a solid dividend to individual investors like us.

Enbridge is currently a HOLD after surpassing our buy limit of $48. I’ll keep a close eye on this company in the coming months, and will re-evaluate our position accordingly. For now, we’re still looking to pick up shares on any further dips below our buy under price.

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Encana Corp. (NYSE: ECA)

Another one of our leading North American energy producers is Encana Corp. To help make it through this low commodity price environment, Encana has shifted approximately 80% of its capital spending this year toward four of its core plays: the Permian Basin, Eagle Ford, Montney, and the Duvernay.

Here’s a quick rundown of those those core areas:

West Texas

In the Permian Basin, the company is allocating $700 million this year running between 4-6 horizontal and 4-6 vertical wells. As you might suspect, however, it’s their horizontal drilling program that we believe will best help boost liquids production in 2015. And like everyone else in developing these tight oil plays, we expect Encana to continue increasing its drilling efficiency while still lowering overall costs.

Overall, Encana controls approximately 140,000 net acres in the play, has roughly 5,000 drilling targets on the books already, and is sitting on a recoverable resource base of about 3 billion barrels of oil equivalent.

Looking ahead, the company expects to drill about 55 net horizontal wells and 110 net vertical wells in the Permian Basin throughout 2015, which production expected to average around 45,000 barrels per day this year.

Eagle Ford

This year, the company is spending approximately $550 million developing its acreage in the Eagle Ford, with a special focus in the Kenedy area interests, which is located in Karnes County. Since entering the Eagle Ford, Encana has successfully boosted its IP30 rates by 25%, lowered drilling costs by 10% (roughly $300,000 per well), and reduced its cycle times by one-quarter. Furthermore, Encana reported it had successfully executed two re-frac operations recently, increasing production by an average of 450 barrels per day.

Encana’s position in South Texas totals approximately 45,400 net acres, and the company holds a 92% average working interest in its wells here. By year-end, the company expects its production in the Eagle Ford to exceed 50,000 barrels of oil equivalent per day.

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Montney

In Canada, the company was able to increase liquids production in the Montney play by 87% to roughly 19,000 barrels per day. Thanks to new completion designs and improved performance, Encana managed to save $150 million throughout 2014.

This year, the company is spending around $245 million executing a three-rig drill program. Encana controls over 600,000 net acres in the play, with wells costing between $7 and $10 million.

During the fourth quarter of 2014, production from this play averaged 24,000 barrels per day of liquids, and 570 Mmcf/d of natural gas.

We also learned a few months ago that the company reached an agreement to sell midstream infrastructure assets in northeastern British Columbia to Veresen Midstream Limited Partnership.

Duvernay

Finally, Encana’s liquids production in the Duvernay surged 200% during 2014. After cutting its drilling times in half, and lowering well costs by about 40%, an average well in this play costs averages $12.4 million on a 4-4 pad. For the record, this is roughly half the cost of these wells compared to 2013.

Throughout 2014, Encana drilled approximately 24 net wells into the Duvernay, and the company is now planning to spend $230 million, and running two to three rigs in the play.

Overall, the company’ liquids production averaged 86,800 barrels per day last year, a 61% year-over-year increase. In fact, fourth quarter production jumped 61% to 106,400 bbls/d, compared to the same period in 2013.

We rate Encana a buy under $20.

Gastar Exploration (NYSE MKT: GST)

Gastar is an independent energy company that engages in the exploration, development, and production of oil and natural gas resources in the lower-48 states. Specifically, the company primarily focuses on developing its assets in the Hunton Limestone horizontal play, located in the Mid-Continent region, as well as its natural gas assets in the Marcellus and Utica plays, which are located in the Appalachia region.

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Here’s a breakdown of the company’s assets:

At year-end 2014, the company held approximately 102.1 million barrels of oil equivalent in proved reserves, about two-thirds of which is found in the Appalachia region, and the rest in the Mid-Continent region. In 2014, the company achieved a reserve replacement of 1,384%.

That said, it’s also important to realize that approximately 64% of the company’s Mid-Continent assets account for the company’s PV-10 of $988.7 million.

Moreover, it’s clear that the company is making a successful transition to liquids. In 2010, liquids made up a negligible amount of the Gastar’s total proved reserves; today, liquids account for more than half.

In fact, it’s th exact same story for production. In 2014, oil and natural gas liquids made up nearly half of the company’s daily output.

In Gastar’s latest presentation, you can find a detailed look at the company’s operations:

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Now, one of the reasons we’re not looking to dump our position along with the rest of the investment herd, is because despite the harsh price environment in the latter half of 2014, Gastar still put up some solid growth.

Production totaled 3.7 million barrels of oil equivalent during the year, a 15% increase compared to 2013. During the fourth quarter of 2014, production totaled slightly more than 1 million barrels of oil equivalent, a strong 27% jump over the same period a year ago.

During the fourth quarter, Gastar generated a net income of $26.7 million, or $0.34 per share. After excluding the $24.9 million gain from the mark-to-market outstanding hedge positions, the adjusted net income comes out to $1.8 million, or $0.02 per diluted shares. This is compared to a net loss of $3.3 million the company posted during the fourth quarter of 2013.

Revenues increased 13% to $33.1 million during the last quarter, compared to $29.2 million during the same period a year ago.

In Oklahoma, we can break down the company’s interests into its operated Hunton activity, and the non-operated AMI joint venture.

On Gastar’s WEHLU acreage, the company has two rigs running right now on the northern portion of their project. Once they drill two wells – the Easton 22-3H and Blair Farms 31-1H – the rigs will be moved to the southern portion of their acreage that doesn’t currently contain any proven or probable reserves.

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At present, there are no rigs drilling in the AMI project. However, approximately 7 gross (3.2 net) non-operated wells were placed on production during the last quarter of 2014, and another 4 gross (2.1 net) wells are expected to be placed on production during the first quarter of 2015. Currently, 2 gross (0.9) net wells have been placed on production this year, with another 8 gross (3.6 net) wells already drilled and awaiting completion.

In total, the company plans to spud 14 gross (12.2 net) wells this year in Oklahoma. Approximately 11 gross (10.8) are operated Hunton wells, and 3 gross (1.4 net) wells are non-operated Hunton wells. Furthermore, the goal is for Gastar to complete 21 gross (16.2 net) wells. Out of those, 13 gross (12.8 net) will be in the operated Hunton wells, and 8 gross (3.4 net) are expected to be AMI Hunton wells.

According to Gastar’s press release earlier this month, the company’s production in the Appalachian Basin averaged 6,100 boepd during the fourth quarter of 2014, a 10.2% decrease over the previous year. The reason for the decline is due to fewer wells being brought on-line.

Last month, the company completed 3 gross (1.5 net) wells Marcellus wells on the Goudy pad, and has just started flowback operations. Moreover, initial production from the three wells was 5,300 Mcf/d and 890 barrels of condensate. Right now, Gastar is completing two gross (1 net) Marcellus well on the Hoyt pad, and then expects to complete another two gross (1 net) Marcellus well and one gross (0.5 net) Utica/Point Pleasant well on the Blake pad. According to the release, the company believes production on the Hoyt pad will begin next month, with production on the Blake pad commencing in May.

Gastar is currently a buy for us at current prices.

Lightstream Resources (TSX: LTS, OTC-Pink: LSTMF)

Lightstream Resources is a light oil exploration and production company primarily with assets in Saskatchewan, Alberta, and British Columbia.

The company holds about 161 million barrels of oil equivalent in 2P reserves spread across three major light oil plays. Also, these reserves hold a present value (discounted at 10%) of $3.2 billion, a figure that far surpasses the company’s $1.9 billion enterprise value (further proof we may be staring at a truly undervalued gem in the Canadian oil patch). In total, Lightstream still holds around 585,000 acres of undeveloped land.

In mid February, the company announced an update on its year-end reserves and operations.

From a production standpoint, Lightstream’s output averaged about 36,400 boepd in January,

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2015, and the company expects to drill 14 net wells during the first six months of the year. And to add more good news to the mix, Lightstream believes that its capital expenditures will be $20 million less than expected during the first half of 2015.

In fact, the company announced that funds flow from operations is expected to exceed capital expenditures by up to $20 million, with the surplus being used on debt.

Earlier this month, Lightstream updated us on its fourth quarter and year-end 2014 financial and operating results.

First, I want to note the company has continues its strategy of selling off non-core assets to help strengthen its books, and so far it has been able to generate $729 million to help take care of its debt. If you recall, one of the major concerns a few years ago was the company’s debt load.

So far, Lightstream’s strategy to divest these non-core assets has been successful, and total debt has been reduced to $1.65 billion at year-end 2014, or 28% lower than the same time last year.

Moreover, the company is maintaining its financial flexibility despite the low price environment. Like I just mentioned, the company’s capital program this year is expected to be fully funded by internal cash flow.

Operationally, Lightstream’s production during the fourth quarter of 2014 averaged 36,472 boepd, and approximately 40,420 boepd during the full year.

The company generated revenues of $1.1 billion in 2014, an 11% decrease compared to 2013. Furthermore, the company posted a net loss of $446 million for 2014, which according to the press release was due to a $700 million impairment charge to property, plan, and equipment, mainly due to reduced forward pricing estimates compared to 2013.

So what’s in store for Lightstream in 2015?

The company plans to drill 15 net wells (8 in the Bakken, 7 in the Cardium) this year, as well as complete and bring 13 wells on production that were drilled last year.

Even with Lightstream’s second half drilling program on hold, the company raised its initial guidance for 2015. Production is now expected to average between 30,500 and 32,500 boepd this year, and lowered its exit production, which is now projected to be between 26,500 and 28,500 boepd.

After suspending its dividend, we changed our rating to a HOLD after the company suspended its dividend. Again, I’ll keep a close eye on this stock going forward, and will re-evaluate our position

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should the situation warrant it.

LINN Energy (NASDAQ: LINE)

LINN energy is an independent oil and natural gas company focused on acquiring, developing, and increasing cash flow from a growing portfolio of long-life oil and natural gas resources. The company controls assets located in South Texas, East Texas, the Permian Basin, Michigan/Illinois, California, the Hugoton Basin, the Mid-Continent and Rocky Mountain regions.

The goal here is simple: find and build a portfolio of long-life, high quality properties.

The most recent news from this company came last week, when LINN announced a strategic acquisition alliance with Quantum Energy Partners. According to the deal, Quantum will commit up to $1 billion of equity capital to fund acquisitions and development of oil and natural gas assets.

LINN will have the opportunity in all acquisitions, with a working interest ranging from 15-50%. The acquired assets will be operated by LINN, in exchange for a reimbursement of general and administrative expenses.

The following is taken directly from the press release, and highlights the benefits we’re expecting for LINN:

• Creates a “drop-down” entity in which assets can be purchased and harvested on an

ongoing basis;

• Allows participation in acquisitions outside of the conventional MLP asset profile;

• Enhances ability to capture acquisition opportunities during distressed market conditions;

• Provides potentially more accretion to cash flow per unit as a result of the promote

structure;

• Creates a long-term partnership with a private capital provider which is scalable and

repeatable; and

• Provides LINN with the dynamic ability to acquire and finance acquisitions at the most

advantageous times.

Last month, the company also reported its fourth quarter and full-year 2014 results.

During the fourth quarter of 2014, LINN’s production averaged 1.358 Bcfe/d, a 53% year-over-year increase. Throughout the year, production averaged 1.210 Bcfe/d – a 47% jump over the previous year.

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In 2014, distributions to shareholders totaled $962 million, or 41% more than the $682 million paid out during 2013.

The company posted a net loss of $155 million, or approximately $0.47 per unit during the fourth quarter. This was due to a non-cash impairment charge of approximately $1.6 billion. Furthermore, LINN also posted a net loss of $452 million, or $1.40 per unit, for the full-year 2014. Again, the loss was due to non-cash impairment charges of $2.3 billion.

At year-end 2014, the company held a solid 17 year reserve-life index, with approximately 7.3 trillion cubic feet of natural gas equivalent in total proved reserves.

Recently, the company announced a 65% reduction to its capital budget compared to 2014. LINN has set its 2015 budget at $520 million, allowing the company to focus on low risk targets and optimization projects, as well as workover and recompletion opportunities.

Let’s not forget the company’s strong dividend, which is currently yielding nearly 11%. Earlier this month, LINN declared its monthly distribution of $0.1042 per unit, which was paid out on March 17th.

Although we still consider LINN Energy a buy at current prices, we’re lowering our buy under price to $16, and will re-evaluate our position once crude prices start rallying later this year.

Magnum Hunter Resources (NYSE: MHR)

There’s a reason why Magnum Hunter commands the third spot on our ‘Top Ten’ list this month. Simply put, this company is operating in the most prolific natural gas producing area in North America – the Marcellus Shale.

In fact, the company not only has approximately 80,000 net acres in the Marcellus, but also 128,000 net Utica acres, as well as 278,800 net acres in the southern Appalachia region. And to illustrate how critical these plays are to Magnum, just take a look at a breakdown of the company’s proved reserves at the end of 2014:

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As you can see, more than 90% of the company’s proved reserves of 83.8 MMBoe can be found in the Appalachia region. So, it’s no surprise that the company is allocating 70% of its $100 million capital budget toward its Appalachia assets.

And while the company has significantly increased it’s liquids production since 2010, natural gas still accounts for more than half of daily output. In 2014, production averaged 16,879 boepd.

To put it another way, Magnum’s production has surged 1222% between 2010 and 2014!

And the kicker here is that we’re still expecting incredibly growth this year.

Production in 2015 is projected to grow between 77-101% year-over-year.

In total, Magnum Hunter has approximately 477,600 net acres in the Appalachia Basin.

In the Utica, the company has drilled and completed 62 gross wells so far, and holds roughly 464 gross drilling locations in the play. This compares to the 387 gross locations left in the Marcellus.

This year, we’re anticipating Magnum to bring 11 wells on production (3 Marcellus and 8 Utica wells). Here’s a more detailed look at this planned activity, which I took directly from the company’s latest presentation:

The bottom line for us is that Magnum Hunter is still an explosive opportunity. In the last issue of Energy Investor, I mentioned that the company’s share price jumped nearly 60% after rebounding off of its 52-week low.

Over the last two weeks, we’ve seen shares surge nearly 30% on the back of its March 16th press release.

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Here’s what happened...

Magnum announced that Eureka Hunter experienced record throughput volumes of 623,713 MMBtu per day on Friday, March 13, 2015. (So much for Friday the 13th superstitions!)

I’ll let Mr. Chris Akers, Magnum’s Vice President and COO of Eureka Hunter, explain our bullish sentiment:

“The calculated risks and subsequent capital resources we deployed last year into Eureka Hunter to

build out the interconnects (now nine) with the various pipelines located within our area of operation,

are proving to be a wise decision. Based upon management projects derived from producer volumes

anticipated for the remainder of 2015, we are expecting throughput volumes approaching 1.0 Bcf per

day on Eureka Hunter by year-end. These dramatic increases in throughput volumes are indicative of

the prolific nature of both the Marcellus and Utica Shale plays within this region.”

Magnum Hunter remains a buy for us while oil prices remain under pressure.

Matador Resources (NYSE: MTDR)

Matador is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas in the Permian Basin in West Texas, as well as the Eagle Ford Shale in South Texas.

Like Magnum, this is another one of our positions that we feel is going to surprise a number of investors during the next twelve months... especially if the company can put similar growth this year to what they experienced in 2014.

During the last quarter of 2014, Matador recorded record oil production of 1.018 million barrels, a 67% year-over-year increase over the same period last year.

In fact, the company also hit a new record for natural gas production too! Matador’s gas output during the last quarter of 2014 totaled 5.4 billion cubic feet – a 40% increase over the same period last year.

After hearing those last two statistics, it’s no shock that the company experienced record daily production during the fourth quarter, averaging 20,807 boepd, a solid 29% jump over the fourth quarter of 2013.

Revenues for the last quarter increased 34% year-over-year to $93.1 million.

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Overall, the company produced 3.32 million barrels of oil for the full-year 2014 – 56% higher than during 2013. Meanwhile, natural gas production hit a new record of 15.3 billion cubic feet during 2014.

And in case you were wondering... yes, 2014 was a record year for production. The company produced an average of 16,082 boepd during the year, generating revenues of $367.7 million – a 37% year-over-year increase.

At the end of February, the company successfully completed its merger with Harvey E. Yates Company, adding producing properties and undeveloped acreage in Lea and Eddy counties, New Mexico, to Matador’s portfolio.

By the end of 2014, the company’s total proved reserves stood at 68.7 million. Representing a 33% year-over-year increase.

For a better idea of the company’s Texas operations, here’s a detailed map that breaks down its acreage, production, reserves, and drilling locations by location:

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It turns out the future is looking bright for this company. Not only did production and reserves grow considerably, but the company increased the number of drilling locations in the Permian Basin by 440%! Matador now has 2,265 gross (1,362 net) locations on its books.

The next question on our mind is how the company will proceed during this bearish period for crude prices.

In the Permian Basin, the company plans to spend around $245 million drilling 36 gross (23.7 net) wells, while bringing 33 gross (21 net) wells on-line during 2015.

In South Texas, the company managed to increase production to 9,100 bbls/d during the fourth quarter – a 44% year-over-year increase.

More important, however, is that the company is becoming more efficient at extracting these oil and natural gas resources.

To start, Matador drilled 90% of its Eagle Ford wells last year in batch mode on 40-50 acre spacing. This helped lower well costs by about 15%, with one well now costing $5.5 million in the western portion of the company’s acreage.

Batch drilling is actually more effective than both pad and single well drilling by 10% and 21%, respectively.

And despite this good news, Matador still expects to reduce well costs by approximately 28% this year.

As expected, shares quickly shot higher after the company released its 2014 results. Unfortunately, the news wasn’t enough to avoid the overall market volatility.

For us, this represents a good buying opportunity, and we’re looking pick strengthen our position on further market dips.

Oasis Petroleum (NYSE: OAS)

Oasis is one of the pure Bakken positions that we hold. The company focuses on the exploration, production, acquisition, and development its assets in the Williston Basin.

The company has more than 500,000 net acres in the play, as well as 973 gross (527.8 net) producing wells in the Bakken and Three Forks formations. As of December 31, 2014, Oasis held approximately 272.1 million barrels of net proved reserves.

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Now, considering that about 87% of the company’s proved reserves are crude oil, it’s hardly surprising that this stock has been beaten down time and again over the past 9 months.

Fortunately, the bottom may finally be in for Oasis.

Below, you can see that shares have been trading relatively flat since the first week of December. Now, I’m sure most of my readers can already guess that the fateful OPEC meeting (where the oil cartel decided to maintain output levels) in November caused stocks across the entire sector to plummet; Oasis was no exception.

In terms of performance, Oasis Petroleum had a record year in 2014. The company’s continued to increase both its reserve base and daily output, and completed approximately 195 gross operated wells.

Production during the year averaged 45,656 boepd, a 35% year-over-year increase. At year-end, daily output reached 50,143 boepd, surpassing previous expectations.

Net income surged 122% to $506 million (inclusive of the company’s $187 million gain on the Sanish sale), compared to 2013.

And we’re expecting more growth ahead in 2015.

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Currently, Oasis has set its capital budget this year at $705 million, about 80% of which will be spent on drilling and completing activities. The company expects production to average between 45,000 and 49,000 boepd, completing 79 gross (63.3 net) operated and 2.6 net non-operated wells.

Also helping this company weather the low oil prices is the fact that 85% of the company’s net acreage in the Williston Basin is held-by-production. Furthermore, after its latest equity offering yielded $463 million, the company officially has $140 million drawn on it’s $1.5 billion borrowing base.

Once again, we’re staring at a golden buying opportunity, and Oasis Petroleum is currently rated a buy in our portfolio under $30.

Osage Exploration (OTCQB: OEDV)

Osage is one of our Mid-Continent operators that has taken a beating since crude prices started falling last summer.

In our last issue, I mentioned that the company hasn’t released any major news since announced its latest well results on January 5th.

Unfortunately, we still don’t have any concrete news on Osage’s 2014 results. I also speculated that we would see an announcement during the week of March 31, 2015.

If the company hold true to its pattern, I still expect to see a press release soon. For now, I don’t want to take my news from the rumor mill, and will hopefully have an update for you when our April issue is released this Friday.

Until then, Osage remains a buy for us.

Pacific Drilling (NYSE: PACD)

This company is one of our offshore players in the deepwater, and currently commands a fleet of eight drillships.

I’d like to share with you the information that my Oil & Gas Trader readers received recently, because I believe it highlights one of the reasons why I’m expecting our Pacific Drilling trade to bear fruit.

Understand that one of the distinguishing features with Pacific Drilling is the fact that its fleet

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is composed entirely of high specification rigs. What this means is that the company’s rigs can operate with a much greater efficiency than rival fleets.

Despite the fact that the entire offshore drilling sector has been hard hit since oil prices started falling, we still have an extremely bullish outlook on this company. Remember, Pacific is sitting on a contract backlog of approximately $2.3 billion (as of the first quarter of 2015).

For the most up to date status of the company’s fleet, simply click here.

The most recent bit of good news came out when Pacific announced its fourth quarter and full year 2014 results.

The company posted a net income of $188.3 million in 2014, an impressive 95% year-over-year increase. Earnings came in at $0.87 per share, on revenues of $1.08 billion – a solid growth of 45% compared to 2013.

During the fourth quarter, Pacific Drilling generated a net income of $68 million, or approximately $0.32 per share – a 41% increase compared to the fourth quarter of 2013.

Here’s a perfect breakdown of the revenue growth we’ve seen over the last three years:

Looking ahead, Pacific Drilling’s fleet is contracted for 78% of 2015, and nearly half of 2016.

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The point here is simple: this company will be able to weather this period of high volatility. The only thing keeping shares of this stock from surging back into double-digits is weak oil prices.

This year, the company is expected to achieve an average revenue efficiency between 92-96%. If no further contracts are signed over the next two years, revenue is expected to remain flag over 2014 levels, before declining in 2016.

But again, that’s only if the company fails to ink any additional contracts.

In other words, we’re looking at a strong buying opportunity right now with shares right around $4.

Pacific Drilling remains a buy for us.

Penn Virginia Corp. (NYSE)

The path forward for Penn Virginia (or any company in the energy sector, for the matter) is to continue growing in value for shareholders while maintaining strict fiscal discipline. Penn Virginia spells out three strategies on how to achieve this directly in one part of its latest 10-K:

“Maintain disciplined flexible capital spending. Crude oil prices have declined more than 45%

since October 2014. As a result we have reduced the number of rigs we are operating from eight in

December 2014 to three currently. We plan to increase, or decrease, the number of rigs we operate

depending upon the commodity price environment. In furtherance of this plan, we have entered into

drilling and completion contracts with shorter terms, which afford us greater flexibility.

Focus on high return projects. We intend to invest principally in our highest return development

projects – those that we believe have significant resource potential discoverable at a low cost. We plan

to continue to improve drilling and completion efficiencies and costs, including by using multi-well

pad drilling, decreasing the number of frac stages per well by increasing the distance between stages,

decreasing the amount of proppant per stage and renegotiating service sector costs.

Protect cash flow with hedges. In 2014, we were able to execute additional hedge contracts for an

average of 9,500 bopd at a weighted-average price of $89.47 per barrel for 2015 and 4,000 bopd at a

price of $88.12 per barrel for 2016. The addiction of these contracts has increased our total hedged

crude oil production to 13,000 bopd at a weighted-average price of $90.48 per barrel for the first half

of 2015 and 11,000 bopd at a weighted-average price of $89.86 per barrel for the second half of 2015,

or approximately 80 to 90 percent of our estimated crude oil production for 2015.”

As you know, the company owns approximately 102,000 net acres in the liquids rich area of the Eagle Ford Shale, on which the company believes it has a 15-year drilling inventory.

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You can say the company put all of its eggs in one basket during 2014, spending 99% of its $785 million capital expenditures in the Eagle Ford.

Below, you’ll find a map of the company’s oil and gas assets:

So how did it turn out for them?

Since 2012, daily production from the company’s South Texas operations has increased 154% to 16,201 boepd. Boosting their presence in the Eagle Ford has helped the company’s overall production grow 22.1% over the last two years to 21,738 boepd.

Penn Virginia’s crude oil and NGL production increased 73% in 2014, compared to the previous year.

Since 2010, the company has added a total of 280 gross wells in the Eagle Ford. Last year, the company drilled a total of 84 gross (51.6 net) wells, all of which were located in South Texas.

Make no mistake, the company isn’t deviating from its focus on the Eagle Ford, either. Penn Virginia expects to spend 90% of its capital expenditures – or approximately $345 million – in the Eagle Ford in 2015, running up to four rigs in the play.

In total, we’re expecting the company to drill and completely about 64 gross wells in the play, including 24 gross wells in the Upper Eagle Ford.

About a month ago, the Wall Street Journal reported that Penn Virginia was on the selling block, exploring a sale of the company. According to the post, searching out a potential buyer came at the

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behest of George Soros.

Whether or not there is truth to this, investors have flocked to Penn Virginia, pushing shares nearly 20% higher over the last four weeks.

I won’t speculate on possible buyouts at this time, but I do believe that shares are grossly undervalued right now.

Penn Virginia is a solid buy for us at current prices.

Ring Energy (NYSE MKT: REI)

Ring Energy is a double throat right now, with nearly 30,000 gross (17,270 net) acres in the Permian Basin, and slightly more than 18,000 gross acres in the Mississippian Lime play in Kansas.

In total, the company has 10.4 million barrels of oil equivalent in proven reserves, about 98% of which is crude oil.

For now, let’s focus on the company’s Permian Basin prospects. After all, almost 98% of the company’s daily production comes from its Texas operations.

Ring’s acreage is located in Andrews and Gaines counties in Texas, where the company can execute its vertical drilling program.

Last year, these guys drilled 135 wells in the Permian Basin, and added nearly 2,500 potential drilling locations to its books. Moreover, Ring has identified 24 possible re-frac candidates as of December 2014.

Two weeks ago, the company reported its fourth quarter and full year 2014 results.

The company reported a net income of $2.7 million during the fourth quarter, approximately 76% higher than the same period in 2013. For the year, the company generated $38 million in revenues – an incredible 269% increase over 2013!

Also, Ring reported a net income of $8.42 million for the full-year 2014, or approximately $0.34, compared to a net loss of $452,209 in 2013.

Of course, let’s also not forget that this company has absolutely no debt on the books right now.

Although Ring hasn’t announced a 2015 capital budget, we do know that the company announced

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it has returned the three rigs it had running in the Permian Basin, and has suspended its drilling program until oil prices recover.

Ring is a buy under current prices, with an eye for the long-term.

Triangle Petroleum (NYSE MKT: TPLM)

Many of you already recognize Triangle Petroleum as another one of our pure Bakken plays. The company holds 128,000 net acres in the Williston Basin, including 86,000 net acres in two of the most prominent counties in North Dakota: McKenzie and Williams.

The company is currently producing approximately 13,000 boepd, and has about 57.1 million barrels of oil equivalent in proved reserves. I’d also like to note that proved reserves have increased an estimated 76% year-over-year.

Last month, the company provided its fiscal year 2016 capital budget and guidance. For the fiscal year 2016, the company plans on spending between $165 and $195 million, about 86% of which will be allocated toward its E&P operated drilling program. According to the press release, this represents a 71% reduction in the company’s budget, compared to the previous year.

Despite the fact that oil prices are in the gutter, there is a silver lining. Triangle is working with vendors and service providers to lower drilling and completion costs, and believes it can achieve a 10-20% reduction.

The company also announced it is delaying all operated well completions until at least May, and expects between 20-24 wells will be awaiting completion by the first of May.

Now, I don’t want to jump the gun on Triangle, since the company will be announcing earnings the week of April 14th.

I hope to have more for you on this play at that time.

For now, Triangle remains a buy at current prices.

Trinidad Drilling (TSX: TDG, OTC-Pink: TDGCF)

Trinidad Drilling is a oil and gas drilling with a fleet of 117 drilling units. This fleet consists of 54 land rigs in Canada, 50 land rigs in the United States, 4 land rigs in Saudi Arabia, 4 land rigs in Mexico, and 5 barge drilling unites in the United States.

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Unfortunately, one of the most prominent headlines over the last several months has been the irreversible decline in drilling rigs operating in North America. As you might expect, this will put a downward pressure on the day rates commanded by Trinidad’s rigs due to lower customer demand.

In response to the low price environment, the company decided to slash its capital expenditures this year by 50% to $175 million. This allows Trinidad to preserve the $55 million it had on hand at the end of 2014.

Now before you make a mad dash for the exits, it’s important to note that this remains a strong long-term play for us. Specifically, it’s because of the nature of North America’s oil and natural gas production.

Both you and I are well aware that tight oil and gas resources play a massive role in today’s output. Eventually, people are going to realize that the days of cheap oil are over, and that developing these new resources isn’t as easy as drilling a hole a few hundred feet in the ground and waiting for a gusher to appear.

More to the point, we have to remember that it’s technology that’ll drive this oil and gas boom.

Let’s be clear: This means high specification rigs.

And that, dear reader, is where Trinidad’s fleet comes in play. Approximately 85% of the company’s fleet of drilling rigs are modern, high performance rigs. And according to Trinidad, the average age of its rigs is 9 year.

Also helping the company last through weak oil prices is the fact that nearly half of the company’s fleet is on a long-term contract. In fact, the average contract will last a year and a half, and the company is only constructing new rigs under long-term contracts

Finally, the company announced its latest cash dividend on March 18th. The $0.05/share dividend will be paid on April 15, 2015, to shareholders on record as of March 31st.

Given the decline in the rig count recently, as well as the fact that we may not see this bearish trend reverse in the short-term, we’re changing our rating on Trinidad to a ‘HOLD’. Once conditions improve, we’ll once again evaluate our position.

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A Final Note...

Before I sign off, I wanted to quickly remind you that while your March issue was delayed due to the flood of earnings announcements made by our positions, your April issue will arrive right on time. In other words, you can fully expect to receive your next issue of Energy Investor this Friday.

Considering today’s issue was heavily dedicated toward the portfolio, I plan on focusing our next issue on the upcoming rally we will see later this year. More importantly, I will have a new trade that will help us capture that buying opportunity without taking on a load of risk.

Good investing,

Keith Kohl

Energy Investor

The Energy Investor Copyright © 2015, 111 Market Place, Suite 720, Baltimore, MD 21202. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the

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