Hot Energy Stocks To Invest In Right Now

Royal Dutch Shell (NYSE: RDS-A  ) has finally found a buyer for its downstream assets in Australia, as the Anglo-Dutch oil major embarks on a major restructuring of its global refining business and plans to sell billions of dollars worth of assets over the next two years.�

Shell sells Australian refinery and retail network
Shell today announced that it has reached a binding agreement to sell its 120,000 barrel-per-day Geelong oil refinery and network of some 870 Australian retail outlets to Vitol, one of the world's largest energy and commodity trading firms, for approximately A$2.9 billion (U.S. $2.6 billion).

The company had been seeking a buyer for the underperforming refinery since April 2012. Refineries in Australia, many of which are older and smaller, are simply not generating sufficient returns for Shell and other oil majors because of weak margins and intense competition from newer, larger refineries in other regions.

Geelong, for instance, had extremely thin margins because it was designed to process more expensive light crude oil from the nearby Bass Strait. The only option to revive Geelong's competitiveness would have been to upgrade the facility to process cheaper heavy crude oil -- a highly expensive alternative whose costs simply didn't outweigh the potential returns.

Top 5 Up And Coming Stocks To Invest In 2015: GulfMark Offshore Inc.(GLF)

GulfMark Offshore, Inc. provides offshore marine services primarily to companies involved in the offshore exploration and production of oil and natural gas. The company?s vessels provide various services supporting the construction, positioning, and ongoing operation of offshore oil and natural gas drilling rigs and platforms, and related infrastructure. Its vessels transport drilling materials, supplies, and personnel to offshore facilities, as well as move and position drilling structures, and provide anchor handling and towing services. The company?s fleet includes anchor handling, towing, and supply vessels; fast supply vessels; platform supply vessels; specialty vessels, including towing and oil response; and small anchor handling, towing, and supply vessels. GulfMark also offers management services to other vessel owners. As of April 27, 2011, its active fleet included 74 owned vessels and 15 managed vessels. It primarily serves integrated oil and natural gas compani es, large independent oil and natural gas exploration and production companies working in international markets, and foreign government-owned or controlled oil and natural gas companies, as well as companies that provide logistics, construction, and other services to such oil and natural gas companies and foreign government organizations. The company primarily operates in the North Sea, Southeast Asia, and the Americas. GulfMark Offshore, Inc. was founded in 1996 and is based in Houston, Texas.

Advisors' Opinion:

• [By Rich Smith]

  Houston-based GulfMark Offshore (NYSE: GLF  ) has a new CFO.

  On Monday, the marine transport company announced that when current Chief Financial Officer Quintin Kneen takes office as president and CEO on Tuesday, James (Jay) M. Mitchell will become the company's new executive vice president and CFO.

• [By Traders Reserve]

  For investors who want a piece of this developing trend, Transocean and Seadrill are two of the bigger players in this arena. Other offshore drillers/rig operators are Noble (NE) and Ensco (ESV). Companies that provide services to offshore drillers and benefit from increases in exploration and drilling activity are Gulfmark Offshore (GLF), Hornbeck (HOS), Seacor (CKH) and Tidewater (TDW).

Hot Energy Stocks To Invest In Right Now: Matador Resources Co (MTDR)

Matador Resources Company is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its operations are focused primarily on the oil and liquids-rich portion of the Eagle Ford shale play in South Texas and the Wolfcamp and Bone Spring plays in the Permian Basin in Southeast New Mexico and West Texas. The Company also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. In addition, it has a large exploratory leasehold position in Southwest Wyoming and adjacent areas of Utah and Idaho where it is testing the Meade Peak shale.

As of December 31, 2012, the Company owned a 100% working interest in approximately 26,900 gross acres and 24,100 net acres in Gonzales, Karnes, LaSalle, Wilson and Zavala Counties and a 50% working interest in approximately 2,800 gross and 1,400 net acres in DeWitt County and are the operator of this acreage. It also owns an approximate 21% working interest in approximately 12,800 gross acres in Atascosa County operated by EOG Resources, Inc.

South Texas

The Company focuses on the exploration and development of its Eagle Ford shale properties in South Texas. During 2012, the Company completed and began producing oil and natural gas from 28 gross/24.5 net operated Eagle Ford shale wells, including 25 gross/23.7 net operated and 3 gross/0.8 net non-operated Eagle Ford shale wells. During 2012, 43% of its daily production, or 3,908 barrels of oil equivalent (BOE) per day, including 3,246 one stock tank barrel (Bbl) of oil per day and 4.0 one million cubic feet of natural gas (MMcf) of natural gas per day, was produced from the Eagle Ford shale in South Texas. During 2012, the Company drilled and completed a total of 32 gross/30.5 net Eagle Ford wells on its operated properties. As of December 31, 2012, its aggregate leasehold int! erests consisted of approximately 42,500 gross acres and 27,900 net acres in the Eagle Ford shale play in Atascosa, DeWitt, Gonzales, Karnes, LaSalle, Wilson and Zavala Counties in South Texas.

Northwest Louisiana and East Texas

During 2012, bout 56% of its average daily production, or 5,042 BOE per day, including 31 Bbl of oil per day and 30.1 MMcf of natural gas per day, was from its leasehold interests in Northwest Louisiana and East Texas. For the year ended December 31, 2012, about 76% of its daily natural gas production, or 26.0 MMcf of natural gas per day, was produced from the Haynesville shale, with another 12%, or 4.1 MMcf of natural gas per day, produced from the Cotton Valley and other shallower formations in this area. As of December 31, 2012, the Company had leasehold and mineral interests in approximately 22,300 gross and 14,200 net acres prospective for the Haynesville shale.

Advisors' Opinion:

• [By Ben Levisohn]

  Heading into today, Matador Resources (MTDR) had gained 40% so far this year, as the competitor to Anadarko Petroleum (APC) and EOG Resources (EOG) has boosted oil & gas revenue and oil production. Make that 32% after Matador Resources announced a secondary offering.

Hot Energy Stocks To Invest In Right Now: Phillips 66 Partners LP (PSXP)

Phillips 66 Partners LP, incorporated on February 20, 2013, owns, operates, develops and acquires primarily fee-based crude oil, refined petroleum product and natural gas liquids (NGL) pipelines and terminals and other transportation and midstream assets. The Company�� initial assets consist of the three systems, which include Clifton Ridge crude system, Sweeny to Pasadena products system and Hartford Connector products system. A refined petroleum product pipeline, terminal and storage system extending from Phillips 66�� Sweeny refinery in Old Ocean, Texas, to its refined petroleum product terminal in Pasadena, Texas, and ultimately connecting to the Explorer and Colonial refined petroleum product pipeline systems and other third-party pipeline and terminal systems.

A crude oil pipeline, terminal and storage system located in Sulphur, Louisiana, that is the primary source for delivery of crude oil to Phillips 66�� Lake Charles refinery. A refined petroleum product pipeline, terminal and storage system located in Hartford, Illinois, that distributes diesel and gasoline produced at the Wood River refinery (a refinery owned by a joint venture between Phillips 66 and Cenovus Energy Inc.) to third-party pipeline and terminal systems, including the Explorer refined petroleum product pipeline system.

Advisors' Opinion:

• [By Robert Rapier] In last week’s MLP Investing Insider (MLPII) I took a look at the MLP IPOs from the first half of 2013. Today I review the half dozen that have debuted in the second half of 2013.
  
  Phillips 66 Partners (NYSE: PSXP) launched on July 23 as one of the most anticipated IPOs this year. PSXP owns some of the midstream logistics assets of its sponsor, Phillips 66 (NYSE: PSX). PSXP has yet to announce its first distribution, but according to the IPO prospectus the minimum yield will be $0.85 per unit on an annualized basis. At the current unit price, this equates to a minimum annual yield of 2.8 percent, which is mainly a function of the huge run-up in unit price between the IPO pricing and today’s unit price. If the distribution does come in near the minimum, the unit price will almost certainly correct downward following the announcement.
  
  Marlin Midstream Partners (Nasdaq: FISH) launched on July 26. The partnership provides natural gas gathering, transportation, treating and processing services, NGL transportation services and crude oil transloading services. Marlin’s assets include three natural gas processing facilities in Texas, two natural gas gathering systems, two NGL transportation pipelines, and two crude oil transloading facilities. Marlin expects most of the gross margin to be generated under fee-based, minimum volume commercial agreements.
  

  Marlin targets a coverage ratio of 1.10x to support distributions. Marlin’s partnership agreement provides for a minimum quarterly distribution of $0.35 per unit for each whole quarter, or $1.40 per unit on an annualized basis. The prorated distribution for the two months of the recently concluded quarter since tje IPO should be announced soon. The minimum annual yield based on the current unit price is projected at 7.7 percent. The unit price has declined 6 percent since the IPO.
  

• [By Robert Rapier]

  One of the most anticipated IPOs this year was that of Phillips 66 Partners (NYSE: PSXP). PSXP owns some of the midstream logistics assets of its sponsor, the refiner Phillips 66 (NYSE: PSX), and the IPO was initially intended to be 15 million shares at an indicated range of $19 to $21. But demand proved to be so strong that the offering was seriously oversubscribed, so the deal was upsized to 16.4 million shares and the price increased to $23 a unit.

• [By Aimee Duffy]

  We've watched several midstream spinoffs from refiners hit the market with very low yields. Most recently, Phillips 66 Partners (NYSE: PSXP  ) was less than 3% when it debuted, and it collapsed even further with PSXP's first-day pop -- all this despite the average yield for an MLP in today's market coming in around 6%. Here's a quick look at what the other refining midstream MLPs are yielding right now.

Hot Energy Stocks To Invest In Right Now: LRR Energy LP (LRE)

LRR Energy, L.P (LRR Energy) is a limited partnership formed by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America. The Company�� properties are located in the Permian Basin region in West Texas and southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas and the Gulf Coast region in Texas. As of March 31, 2011, the Company�� total estimated proved reserves were approximately 30.3 million barrels of oil equivalent (MMBoe), of which approximately 84% were proved developed reserves. During the year ended December 31, 2010, approximately 55% of its pro forma revenues were from oil and natural gas liquids (NGLs) and approximately 37% of its total estimated proved reserves were oil and NGLs. As of March 31, 2011, the Company operated 93% of its proved reserves. Based on its pro forma average net production of 6,503 barrels of oil equivalent per day (Boe/d) for December 31, 2010, the Company�� total estimated proved reserves as of March 31, 2011 had a reserve-to-production ratio of approximately 12.8 years. In January 2013, the Company acquired oil and natural gas properties in the Mid-Continent region in Oklahoma from its sponsor, Lime Rock Resources. In April 2013, it announced that it closed its acquisition of oil and natural gas properties in the Mid-Continent region in Oklahoma.

The Company�� general partner, LRE GP, LLC, is controlled by Lime Rock Management LP. The Company�� general partner has sole responsibility for conducting its business and for managing its operations. The Company�� properties consist of mature, low-risk onshore oil and natural gas reservoirs with long-lived, predictable production profiles located across three diverse producing regions: the permian basin region in west texas and southeast new mexico, the mid-continent region in oklahoma and east texas, and the gulf coast region in texas. As of March 31, 2011, the Company�� estimated proved developed non-! producing reserves included 192 gross (158 net) recompletion, refracture stimulation and workover projects. In addition, as of March 31, 2011, the Company�� proved undeveloped reserves included 213 gross (140 net) identified drilling locations.

As of March 31, 2011, approximately 55% of the Company�� estimated proved reserves and approximately 44% of its pro forma average daily net production for the three months ended December 31, 2010, were located in the Permian Basin region. Approximately 60% of the Company�� estimated net proved reserves in the Permian Basin region are oil and NGLs. The Permian Basin is one of the oil and natural gas producing basins in the United States, extending over 100,000 square miles in West Texas and southeast New Mexico, and has produced over 24 billion barrels of oil. The Company owns an 83% average working interest across 665 gross (552 net) wells and operates approximately 92% of its properties in the Permian Basin. The Company�� estimated proved reserves for its Permian Basin properties as of March 31, 2011 totaled 16.6 MMBoe and had a standardized measure of $237.7 million, which represented 69% of the total standardized measure for all of its estimated proved reserves.

The Company�� properties in the Red Lake area is an oil-weighted field located in Eddy County, New Mexico. The Red Lake properties have produced approximately 4.9 MMBoe. The primary producing formations are the San Andres and Yeso at a depth of approximately 2,000 to 5,000 feet. The Company operates approximately 99% of its proved reserves in the Red Lake area, including 157 gross (144 net) producing wells in the field with an average working interest of 92%, and own a non-operated working interest in 10 gross (3 net) additional wells in the area with an average working interest of 31%. The Company�� properties in the field contained 9.6 MMBoe of estimated net proved reserves as of March 31, 2011, approximately 86% of which are oil and NGLs, and generated average n! et produc! tion of 1,410 Boe/d for December 31, 2010. These properties represented 32% of its total estimated proved reserves as of March 31, 2011 and 22% of the Company�� pro forma average net production for December 31, 2010. In addition, these properties had a standardized measure of $163.3 million as of March 31, 2011, which represented 48% of the total standardized measure for all of the Company�� estimated proved reserves.

The Company�� properties in the Pecos Slope area is a gas-weighted field located in Eddy, Chaves, Lea and Roosevelt Counties, New Mexico. The Company operates approximately 100% of its proved reserves in the Pecos Slope area, including 434 gross (382 net) producing wells in the field with an average working interest of 88%. The Company�� Willow Lake field is an oil-weighted field located in Eddy County, New Mexico. There are 41 gross (8 net) producing wells in this area with an average non-operated working interest of 19%. The Cowden Ranch area is an oil-weighted field located in Crane County, Texas. The Company operate s100% of its proved reserves in the Cowden Ranch area, including 8 gross (approximately 5 net) producing wells in the field with an average working interest of 71%. The Company�� properties in the Corbin and Vacuum have produced approximately 3.0 MMBoe. The Company operates 100% of its proved reserves in the Corbin and Vacuum areas, including 8 gross (8 net) producing wells with an average working interest of 100%.

As of December 31, 2010, approximately 33% of the Company�� estimated proved reserves and approximately 38% of its pro forma average daily net production for December 31, 2010 were located in the Mid-Continent region. The Company�� Potato Hills Area is an Arkoma Basin natural gas property located in Latimer and Pushmataha Counties in Southeast Oklahoma. The Company�� Reklaw properties have produced approximately 5.6 MMBoe. The Company operates 100% of its proved reserves in the Reklaw area, including 63 gross (61 net) pro! ducing we! lls in the field with an average working interest of 97%. Its properties in the Black Bayou-Doyle Creek area is a natural gas-weighted field located in Angelina, Cherokee and Nacogdoches Counties, Texas, in close proximity to the Reklaw area. The Company�� non-operated interest in 43 gross (approximately 12 net) producing wells in the field with an average non-operated working interest of 26%.

As of March 31, 2011, approximately 12% of the Company�� estimated proved reserves and approximately 18% of its pro forma average daily net production for December 31, 2010 were located in the Gulf Coast region. Approximately 31% of the Company�� estimated net proved reserves in the Gulf Coast region are oil and NGLs. The Company owns an 82% average working interest across 42 gross (35 net) wells and operates 100% of its properties in the Gulf Coast region. The Company�� property New Years Ridge area is a natural gas-weighted field located in DeWitt County, Texas. The Company�� George West-Stratton areas consist of natural gas-weighted fields located in Live Oak and Hidalgo Counties, Texas. The Company�� operates 100% of its proved reserves in the George West-Stratton areas, including 23 gross (17 net) producing wells in the George West-Stratton areas with an average working interest of 73%.

Advisors' Opinion:

• [By Travis Hoium]

  What: Shares of LRR Energy (NYSE: LRE  ) dropped as much as 10% today after the company released earnings.

  So what: Revenue dropped nearly 50%, to $15.8 million, and the company swung to a loss of $7.5 million, or $0.32 per share. Analysts had expected $28.4 million in revenue, and earnings of $0.13 per share.�

• [By Robert Rapier]

  LRR Energy (NYSE: LRE) was another name I covered in the article Upstream Turbulence Yields Bargains. LRE is an upstream MLP focused on acquiring and developing oil and natural gas properties in the Permian Basin, the Mid-Continent region, and the Gulf Coast region in Texas. Total proved reserves at the end of 2012 were 31.7 million barrels of oil equivalent (BOE), of which 50 percent were liquids. The partnership is ~85 percent hedged through 2017 at average prices of $92.73/barrel for oil, $37.04/bbl for NGLs, and $5.06 per MMBtu for natural gas.

• [By Robert Rapier]

  I am going to address LRR Energy LP (NYSE: LRE) and Memorial Production Partners LP (NASDAQ: MEMP) in an upcoming issue of MLP Investing Insider.

  (Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

• [By Robert Rapier]

  LRR Energy (NYSE: LRE) is an upstream MLP focused on acquiring and developing oil and natural gas properties in the Permian Basin, the Mid-Continent region, and the Gulf Coast region in Texas. Total proved reserves at the end of 2012 were 31.7 million barrels of oil equivalent (BOE), of which 50 percent were liquids. The partnership is ~85 percent hedged through 2017 at average prices of $92.73/barrel for oil, $37.04/bbl for NGLs, and $5.06 per MMBtu for natural gas.

Hot Energy Stocks To Invest In Right Now: Total SA (FP)

Total SA is a France-based integrated international oil and gas company. It is an integrated international oil and gas company and a chemicals manufacturer. Total engages in all aspects of the petroleum industry, including Upstream operations (oil exploration and production, together with activities related to natural gas), Refining & Chemicals (refining, petrochemicals, speciality chemicals, crude oil trading and shipping) and Marketing & Services (focused on the supply and sale of petroleum products, together with activities related to renewable energy). In April 12, 2013, it inaugurated the partnership with Veolia Environnement SA the Osilub plant. In July 2013, it sold its TIGF (Transport et Infrastructures Gaz France), gas transport and storage business. In September 2013, it announced the transfer to The National Gas Company of Trinidad &Tobago of all of its E&P assets in Trinidad through the sale of Total E&P Trinidad B.V and Elf Exploration Trinidad B.V. Advisors' Opinion:

• [By Sofia Horta e Costa]

  Lloyds dropped 3.5 percent after the U.K. government sold a 3.2 billion-pound ($5.1 billion) stake in the lender. Continental and Galp Energia SGPS SA fell at least 2.5 percent as investors sold shares in the companies. Total SA (FP) retreated 1.3 percent following a report that Groupe Bruxelles Lambert SA may dispose of its 4 percent stake in the French oil producer.

• [By Namitha Jagadeesh]

  Telecom Italia (TIT) SpA gained 1.7 percent as Telefonica SA agreed to increase its stake in the phone operator. Nokia Oyj added 2.4 percent after a U.S. judge found that HTC Corp. violated two of its patents. Total (FP) SA climbed 2.6 percent after Barclays Plc raised its rating on the oil producer. Burckhardt Compression Holding AG slid 7.3 percent after saying fiscal first-half net income will decline from the year-earlier period.

Hot Energy Stocks To Invest In Right Now: Royal Dutch Shell PLC (RDS.B)

Royal Dutch Shell plc (Shell), incorporated on February 5, 2002, is an independent oil and gas company. The Company owns, directly or indirectly, investments in the numerous companies constituting Shell. Shell is engaged worldwide in the principal aspects of the oil and gas industry and also has interests in chemicals and other energy-related businesses. The Company operates in three segments: Upstream, Downstream and Corporate. Upstream combines the operating segments Upstream International and Upstream Americas, which are engaged in searching for and recovering crude oil and natural gas; the liquefaction and transportation of gas; the extraction of bitumen from oil sands that is converted into synthetic crude oil, and wind energy. Downstream is engaged in manufacturing; distribution and marketing activities for oil products and chemicals, in alternative energy (excluding wind), and carbon dioxide (CO2) management. Corporate represents the key support functions, comprising holdings and treasury, headquarters, central functions and Shell�� self-insurance activities. In October 2011, the Company bought a marine terminal on Canada's Pacific Coast as a possible site for a liquefied natural gas export terminal. In January 2012, the Company's 50% owned, Australia Arrow Energy Holdings Pty Ltd acquired all of the shares in Bow Energy Ltd. In January 2014, Royal Dutch Shell plc completed the acquisition of Repsol S.A.'s liquefied natural gas (LNG) portfolio outside North America.

Upstream International manages the Upstream businesses outside the Americas. It searches for and recovers crude oil and natural gas, liquefies and transports gas, and operates the upstream and midstream infrastructure necessary to deliver oil and gas to market. Upstream International also manages Shell�� entire liquefied petroleum gas (LNG) business, gas to liquids (GTL) and the wind business in Europe. Its activities are organized primarily within geographical units, although there are some activities that are mana! ged across the businesses or provided through support units.

Upstream Americas manages the Upstream businesses in North and South America. It searches for and recovers crude oil and natural gas, transports gas and operates the upstream and midstream infrastructure necessary to deliver oil and gas to market. Upstream Americas also extracts bitumen from oil sands that is converted into synthetic crude oil. Additionally, it manages the United States-based wind business. It comprises operations organized into business-wide managed activities and supporting activities.

Downstream manages Shell�� manufacturing, distribution and marketing activities for oil products and chemicals. These activities are organized into globally managed classes of business, although some are managed regionally or provided through support units. Manufacturing and supply includes refining, supply and shipping of crude oil. Marketing sells a range of products including fuels, lubricants, bitumen and liquefied petroleum gas (LPG) for home, transport and industrial use. Chemicals produces and markets petrochemicals for industrial customers, including the raw materials for plastics, coatings and detergents. Downstream also trades Shell�� flow of hydrocarbons and other energy-related products, supplies the Downstream businesses, markets gas and power and provides shipping services. Downstream additionally oversees Shell�� interests in alternative energy (including biofuels, and excluding wind) and CO2 management.

Projects and Technology manages the delivery of Shell�� major projects and drives the research and innovation to create technology solutions. It provides technical services and technology capability covering both Upstream and Downstream activities. It is also responsible for providing functional leadership across Shell in the areas of health, safety and environment, and contracting and procurement.

Advisors' Opinion:

• [By Sara Sjolin]

  In the energy sector, shares of BP PLC (UK:BP) � (BP) �fell 0.7% and Royal Dutch Shell PLC (UK:RDSB) � (RDS.B) �dropped 0.6%.

• [By Vinay Singh]

  Natural gas isn't as cheap as it was a year ago and that's leading to big changes in the energy market. That will be a good thing for Ultra Petroleum (UPL), Royal Dutch Shell (RDS.B) and Alliance Natural Resource Partners (ARLP).

• [By Cash Flow Investor]

  Using this alternative payout ratio has saved me from a few situations in which the traditional payout ratio indicated that the dividend was covered - only for the company to later declare a dividend freeze or cut when the free cash flow ran out. One specific example is Royal Dutch Shell (RDS.B), the global oil behemoth.

Hot Energy Stocks To Invest In Right Now: China Petroleum & Chemical Corporation(SNP)

China Petroleum & Chemical Corporation engages in the exploration, development, production, and marketing of crude oil and natural gas properties primarily in China. It operates 16 oil and gas production fields in China. As of December 31, 2010, the company?s estimated proved reserves of crude oil and natural gas consisted of 3,963 million barrels-of-oil equivalent comprising 2,888 million barrels of crude oil and 6,447 billion cubic feet of natural gas. It also engages in the refining of crude oil; marketing and distribution of refined petroleum products; and production and sale of petrochemical products that consist of intermediate petrochemicals, synthetic resins, synthetic fiber monomers and polymers, synthetic fibers, synthetic rubber, and chemical fertilizers, as well as owns and operates oil depots and service stations. The company was founded in 2000 and is based in Beijing, the People?s Republic of China. China Petroleum & Chemical Corporation is a subsidiary of China Petrochemical Corporation.

Advisors' Opinion:

• [By Rich Duprey]

  Just a few years ago, China was in a mad dash to buy up the world's resources, particularly those in Africa.�China Petroleum & Chemical (NYSE: SNP  ) , also known as Sinopec, was not only in Argentina taking over Occidental Petroleum's oil and gas fields, but it was also was negotiating for deepwater assets off Angola.