Investors following the North American oil and gas industry should be aware that oil production volumes from the Eagle Ford shale play have blown past expectations this year.
According to the Texas Railroad Commission, crude oil production from the Eagle Ford region averaged more than half a million barrels per day for the first quarter of 2013. This is a whopping 34% increase from 2012 production levels and is also the highest since the south Texas play hit oil in 2008. Energy research firm Wood Mackenzie estimates that total Eagle Ford capital expenditure will hit $28 billion in 2013. It's pretty evident that the value extracted by major operators is exceeding expectations. However, this shouldn't come as a big surprise, either. In the last couple of years, exploration and production companies have been quietly raking up acreage in this shale play.
The movers and shakers
Marathon Oil (NYSE: MRO ) increased its stake to 330,000 net acres in the liquids-rich window of the Eagle Ford. For the first quarter, average net sales volumes from this acreage stood at 72,000 barrels of oil equivalent per day�-- a fourfold increase year over year. Still in the growth phase, the company should be further increasing production where this property is concerned. This shale play should have a major role in increasing Marathon's overall production volumes in the next three years.
Top Mid Cap Companies To Watch For 2015: Genco Shipping & Trading Limited (GNK)
Genco Shipping & Trading Limited engages in the ocean transportation of drybulk cargoes through the ownership and operation of drybulk carrier vessels worldwide. It transports iron ore, coal, grain, steel products, and other drybulk cargoes. The company charters its vessels primarily to trading houses, which include commodities traders; producers; and government-owned entities. Its fleet consists of 53 drybulk carriers, including 9 Capesize, 8 Panamax, 17 Supramax, 6 Handymax, and 13 Handysize drybulk carriers with an aggregate carrying capacity of approximately 3,810,000 dwt. The company, through its subsidiary, Baltic Trading Limited, operates a fleet of two Capesize, four Supramax, and three Handysize drybulk carriers with an aggregate carrying capacity of approximately 672,000 dwt. Genco Shipping & Trading Limited was incorporated in 2004 and is based in New York, New York.
Advisors' Opinion:- [By silvmich]
This is Part Three of a series of articles published on GuruFocus outlining a short thesis against Genco Shipping and Trading (GNK). Part One was published on October 31, 2013 and Part Two was published on November 14, 2013. This Part Three provides certain updates on the situation, including recent news items, as well as a look into a number of counterarguments made against the short position.
- [By FinanceGuru]
The second contrarian indicator is that the short interest in DryShips has increased significantly. They're topped only now by Genco Shipping (GNK), which is currently poised to be heading into bankruptcy.
5 Best Railroad Stocks To Invest In 2014: Holcim Ltd (HOLN)
Holcim Ltd (Holcim) is a Switzerland-based holding company that specializes in the manufacture, distribution and marketing of building materials. The Company operates four business segments, including Cement, Aggregates, Other construction materials and services, and Corporate. The Cement segment is engaged in the development of cement and comprises clinker and other cementitious materials, among others. The Aggregates business segment includes crushed stone, gravel and sand. The Other construction materials and services business segment comprises ready-mix concrete, concrete products, asphalt, construction and paving, and trading, among others. Additionally, other construction materials and services segment provides environmental services, including waste management, among others. The Corporate segment is engaged in holding activities and general management. It operates through subsidiaries in Asia Pacific, Latin America, Europe, North America, Africa and Middle East regions. Advisors' Opinion:- [By Sofia Horta e Costa]
Holcim Ltd. (HOLN) lost 0.9 percent to 68.15 francs in Zurich. Bank of America Corp.�� Merrill Lynch unit cut its rating on the world�� largest cement maker to underperform, similar to a sell recommendation, from neutral. Merrill Lynch cited the company�� exposure to emerging markets.
5 Best Railroad Stocks To Invest In 2014: ICL Israel Chemicals Ltd (ISCHY.PK)
ICL Israel Chemicals Ltd (ICL) is an Israel-based company, engaged in the fertilizer and specialty chemical sectors. The company operates in three segments: Fertilizers, Industrial Products, and Performance Products. The Fertilizers segment is engaged in the production of standard, granular, fine red and white potash from three sources, as well as in the production of phosphates, such as phosphate rock, phosphoric acid, fertilizers and animal feed addictives. The Industrial Products segment produces flame retardants, such as brominates and organ phosphorus; elemental bromine, and other chemicals. In addition the Performance Products segment produces specialty phosphates, such as technical, food grade and electronic grade phosphoric acid, phosphate salts, food additives and wildfire safety products, as well as alumina and other chemicals. Advisors' Opinion:- [By Chris Damas]
I never thought Uralkali would get back together with Belaruskali as I expressed in this article written a day after the break-up roiled the fertilizer world, causing 20% plunges in the stocks of major producers such as Potash Corp (POT), Mosaic Company (MOS) and Israel Chemicals Ltd (ISCHY.PK).
5 Best Railroad Stocks To Invest In 2014: iShares MSCI Japan ETF (EWJ)
iShares MSCI Japan Index Fund (the Fund) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the aggregate in the Japanese market, as measured by the MSCI Japan Index (the Index). The Index seeks to measure the performance of the Japanese equity market. The Index is a capitalization-weighted index that aims to capture 85% of the (publicly available) total market capitalization. Component companies are adjusted for available float and must meet objective criteria for inclusion in the Index. The Index is reviewed quarterly.
The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. iShares MSCI Japan Index Fund's investment advisor is Barclays Global Fund Advisors.
Advisors' Opinion:- [By Mark Hulbert]
The ETFs linked to these respective regions that Mr. Nadig�� firm favors are the iShares MSCI Japan fund (EWJ) �, with a 0.53% expense ratio; the iShares MSCI EMU Index fund (EZJ) �, also with a 0.53% expense ratio; and the iShares Core MSCI Emerging Markets fund (IEMG) �, with a 0.18% expense ratio.
- [By Matthew McCall]
iShares MSCI Japan ETF (NYSE: EWJ)
The first country to open for the week after the news out of Ukraine hit the wires was Japan, and it was an ugly open. The major stock indices fell by over two percent before they were able to rebound and the Nikkei finished the first day of the week lower by 1.3 percent. The Japanese Yen was down 0.5 percent versus the U.S. Dollar, which is good news for Japanese exporters.
- [By Philip Springer, President, Retirement Wealth Management, Inc.]
The first of two ETF alternatives here is iShares MSCI Japan (EWJ). It provides broad exposure, with 300 stocks and a tilt toward large export-oriented and financial companies.
- [By Stephen Leeb, Founder and Research Chairman, Leeb Group]
Despite the 30% plus gains they've enjoyed this year, the stocks that comprise the iShares MSCI Japan ETF (EWJ) still trade at 14 times depressed earnings.
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