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Energy. Current Holdings. Energy Sector 4.8% $3,808.52 Exxon Mobile (XOM): Integrated Oil & Gas 2.8% $2,214.52 Weatherford Int’l (WFT): Oil Related Services 2% $1,594.00. Areas of Interest. Coal Peabody Energy Oil & Gas Drilling Helmerich & Payne Nabors Industries

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Presentation Transcript

Current holdings
Current Holdings

  • Energy Sector

    • 4.8%

    • $3,808.52

  • Exxon Mobile (XOM): Integrated Oil & Gas

    • 2.8%

    • $2,214.52

  • Weatherford Int’l (WFT): Oil Related Services

    • 2%

    • $1,594.00


Areas of interest
Areas of Interest

  • Coal

    • Peabody Energy

  • Oil & Gas Drilling

    • Helmerich & Payne

    • Nabors Industries

  • Oil & Gas Refining/Marketing

    • Valero Energy


Peabody energy intro
Peabody Energy Intro

  • Peabody Energy Corporation, incorporated in 2001, is a coal company. The Company owns majority interests in 28 coal mining operations located in the United States and Australia. In addition to mining operations, it markets, brokers and trades coal.

  • It operates in four segments: its three mining segments and Trading and Brokerage segment. The three mining segments are Western U.S. Mining, Midwestern U.S. Mining and Australian Mining.

  • Its fifth segment, Corporate and Other, includes mining and export/transportation joint ventures, energy-related commercial activities, as well as the management of its coal reserve and real estate holdings.



Peabody energy swot
Peabody Energy SWOT

  • Strengths

    • Large Coal Reserves

    • Australia Operations

    • Economies of Scale

      • Powder River Basin Coal (PRB)

  • Weaknesses

    • McArthur Acquisition

      • Highly Leveraged

  • Opportunities

    • Current Robust Coal Prices

    • PRB Coal Reserves

      • Less Sulfur content

  • Threats

    • Coal Price Uncertainty

    • Weak US coal demand

    • Potential slow in Asian economies


Peabody energy chart valuation
Peabody Energy Chart & Valuation

  • Yahoo! Chart

  • Current Price: $39.23

  • Morningstar

    • Fair Value: $55.00

    • Consider Buy: $33.00

    • Consider Sell: $85.30

  • NEV/EBITDA (25%/45% M.O.S.)

    • Fair Value: $58.92

    • Consider Buy: $44.19

    • Consider Sell: $85.43


Btu news
BTU News

  • Best Values In Coal Mining Group That May Outperform In A Recovery

    • Seeking Alpha

  • A$9 Billion Coal Port Expansion Approved in Australia

    • Bloomberg

  • Move by central banks exhilarates Wall Street

    • AP


Helmerich payne intro
Helmerich & Payne Intro

  • Helmerich & Payne, Inc., incorporated on February 3, 1940, is engaged in contract drilling of oil and gas wells for others.

  • The Company’s contract drilling business consists of three business segments: U.S. land drilling, offshore drilling and international land drilling.

    • Its United States land drilling is conducted primarily in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Mississippi, Pennsylvania, Utah, Arkansas, New Mexico, Alabama, Montana, North Dakota and West Virginia.

    • Offshore drilling operations are conducted in the Gulf of Mexico, and offshore of California, Trinidad and Equatorial Guinea.

    • During the fiscal year ended September 30, 2010 (fiscal 2010), its international land segment operated in seven international locations: Ecuador, Colombia, Argentina, Mexico, Tunisia, Bahrain and Venezuela.



Helmerich payne swot
Helmerich & Payne SWOT

  • Strengths

    • FlexRigs

      • Premium Technology

      • Lower Cost

    • Large Corporate Customers

  • Weaknesses

    • Poor Venezuelan Operations

    • Poor investment portfolio

  • Opportunities

    • FlexRigs well suited for horizontal drilling

  • Threats

    • 60% of sales from top 10 customers


Helmerich payne chart valuation
Helmerich & Payne Chart & Valuation

  • Yahoo! Chart

  • Current Price: $56.96

  • Morningstar

    • Fair Value: $74.00

    • Consider Buy: $44.50

    • Consider Sell: $114.70

  • NEV/EBITDA (25%/45% M.O.S.)

    • Fair Value: $55.97

    • Consider Buy: $41.97

    • Consider Sell: $81.15


Hp news
HP News

  • Commodity Trends: Raw Material Stocks Are Outperforming

    • Motley Fool

  • 7 Relative-Strength Trades to Beat the Market in 2012

    • CNBC

  • These Beaten Down Oil Services Companies Are Ready For A Christmas Rally

    • Seeking Alpha


Nabors industries intro
Nabors Industries Intro

  • Nabors Industries Ltd. (Nabors) is a land drilling contractor and a land well-servicing and workover contractor in the United States and Canada.

  • As of December 31, 2010, the Company marketed approximately 550 land drilling rigs for oil and gas land drilling operations in the United States Lower 48 states, Alaska, Canada, South America, Mexico, the Caribbean, the Middle East, the Far East, Russia and Africa.

  • As of December 31, 2010, the Company marketed approximately 555 rigs for land well-servicing and workover work in the United States and approximately 172 rigs for land well-servicing and workover work in Canada.



Nabors industries swot
Nabors Industries SWOT

  • Strengths

    • Pressure Pumping Operations

      • “Fracking”

    • 2/3 of rigs are new

      • premium

  • Weaknesses

    • Excessive Executive Compensation

  • Opportunities

    • Ability to secure major contracts in Mid East

    • Well positioned in shale gas boom

  • Threats

    • Struggling Int’l Operations

    • Weak asset value in oil & gas properties

    • Low barriers to entry


Nabors industries chart valuation
Nabors Industries Chart & Valuation

  • Yahoo!Chart

  • Current Price: $17.94

  • Morningstar

    • Fair Value: $34.00

    • Consider Buy: $17.00

    • Consider Sell: $59.50

  • NEV/EBITDA (25%/45% M.O.S.)

    • Fair Value: $33.92

    • Consider Buy: $25.44

    • Consider Sell: $49.18


Nbr news
NBR News

  • Energy Stocks: Winners and Losers

    • The Street

  • 6 Undervalued Oil Stocks That Analysts Expect To Double In 2012

    • Seeking Alpha

  • Nabors shareholders are looking for payback

    • CNN Money


Valero energy intro
Valero Energy Intro

  • Valero Energy Corporation (Valero), incorporated in 1981, is a North America’s independent petroleum refiner and marketer.

  • As of December 31, 2010, the Company owned 14 petroleum refineries, which were located in the United States, Canada and Aruba. The Company’s refineries can produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products, as well as a slate of premium products.

  • The Company also sells refined products through a network of about 5,800 retail and wholesale branded outlets in the United States, Canada, and Aruba.

  • Valero also owns 10 ethanol plants in the Midwest with a combined ethanol production capacity of about 1.1 billion gallons per year. It operates in three segments: refining, ethanol and retail.



Valero energy swot
Valero Energy SWOT

  • Strengths

    • Ability to process cheap crude

    • Can pass costs along retail network

    • Economies of Scale

  • Weaknesses

    • Not integrated

      • Does not produce crude

  • Opportunities

    • Pipeline projects for heavy crude

    • WTI-margin exposure

  • Threats

    • Slow US economic growth

    • Alternative Fuels

    • Narrowing of heavy crude discount


Valero energy chart valuation
Valero Energy Chart & Valuation

  • Yahoo! Chart

  • Current Price: $22.27

  • Morningstar

    • Fair Value: $28.00

    • Consider Buy: $14.00

    • Consider Sell: $29.00

  • NEV/EBITDA (25%/45% M.O.S.)

    • Fair Value: $30.96

    • Consider Buy: $23.22

    • Consider Sell: $44.89


Vlo news
VLO News

  • U.S. Nears Milestone: Net Fuel Exporter

    • WSJ

  • Dividend Alert: Valero Triples Its Payout

    • Seeking Alpha

  • Valero Energy Trades Substantially Below Intrinsic Value

    • Seeking Alpha



Recommendations
Recommendations

  • Peabody (5/10)

    • Int’l exposure

    • Large reserves

  • Helmerich & Payne (8/10)

    • Competitive Advantage

    • Large Customers

  • Nabors (7/10)

    • Largest Growth Potential

    • Shale Gas

  • Valero (8/11)

    • Most Undervalued

    • Competitive Advantage

    • Good Dividend

  • Purchase Two companies from different subsectors

  • Growth: Nabors & Peabody

    • International Risk

    • Higher Leverage

  • Safe: Helmerich & Valero

    • Lower Leverage

    • Competitive advantages

  • Mixture: 1 Safe & 1 Growth

  • $4,000 in 2 stocks ~ 5% of portfolio


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