Best Oil Stocks For 2014

[ August 18, 2013 | Author: Admin | Weather: | Mood: normal]

Investors in oil and gas MLP EV Energy Partners (NASDAQ: EVEP  ) have endured a very rough year. The company’s units have been cut by nearly a third since the year started. With units now trading at a much lower price, let’s look at three reasons why you might want to add these units to your portfolio.

Strong asset base
EV Energy has built a solid asset base over the past few years. The company has total reserves of 905 billion cubic feet equivalent, which are long-lived reserves, and have an estimated reserve-life index of 15 years. The only problem, given the current commodity price environment, is that 67% of these reserves are natural gas.

A bulk of the company’s reserves are in the Barnett Shale of Texas. The company has 532.5 billion cubic feet equivalent of proved reserves here and, last year, it produced 70.5 million cubic feet equivalent per day from the play. The company’s position in the play is dwarfed by Devon Energy (NYSE: DVN  ) , which has 14 trillion cubic feet equivalent of net-risked resource, and a drilling inventory of over 2,500 wells. Last quarter, the oil and gas giant produced 1.4 billion cubic feet equivalent per day, while growing its liquids production to 24% of the total production. What this means for EV Energy is that there is tremendous potential for it to grow in its core play, even as it captures opportunities to expand its portfolio.

Best Oil Stocks For 2014: ATP Oil And Gas Corp (ATPO.MU)

ATP Oil & Gas Corporation, incorporated in 1991, is engaged in the acquisition, development and production of oil and natural gas properties. As of December 31, 2011, the Company had estimated net proved reserves of 118.9 Million barrels of crude oil equivalent (MMBoe), of which approximately 75.9 MMboe (64%) were in the Gulf of Mexico and 42.9 MMBoe (36%) were in the North Sea. The reserves consisted of 78.6 Million barrels (MMBbls) of oil (66%) and 241.5 billion cubic feet (Bcf) of natural gas (34%). Its proved reserves in the deepwater area of the Gulf of Mexico account for 62% of the Company Read More>>

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