The recent and very rapid rise in bond yields is changing the playing field for banks. As second-quarter earnings announcements rapidly approach, expect them to have an impact on both revenue and profit margins.�
Every bank will be affected, from the trillion-dollar megabanks like JPMorgan Chase (NYSE: JPM ) and�Wells Fargo (NYSE: WFC ) , to the community bank headquartered in your home town (or an index of community banks, like the SPDR S&P Regional Banking Index).
In the video below, Motley Fool contributor Jay Jenkins explains these critical issues and what they mean heading into the second-quarter earnings season.�
Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's�new report. It's free, so click here to access it now.
Top 5 Undervalued Stocks To Invest In 2015: SeaWorld Entertainment Inc (SEAS)
SeaWorld Entertainment, Inc., incorporated on October 2, 2009, is a theme park and entertainment company. The Company is engaged in delivering personal, interactive and educational experiences that blend imagination with nature and enable its customers to celebrate, connect with and care for the natural world. The Company own or license a portfolio of globally recognized brands including SeaWorld, Shamu and Busch Gardens. The Company has built a diversified portfolio of 11 destination and regional theme parks that are grouped in key markets across the United States. Its theme parks feature a diverse array of rides, shows and other attractions with broad demographic appeal which deliver memorable experiences and a strong value proposition for its guests. In addition to its theme parks, it has recently begun to leverage its brands into media, entertainment and consumer products.
The Company generates revenue primarily from selling admission to its theme parks and from purchases of food, merchandise and other spending. During the year ended December 31, 2012, it hosted more than 24 million guests in its theme parks, including approximately 3.5 million international guests from over 55 countries and six continents. In 2012, the Company opened new attractions in seven of its theme parks. In November 2012, the Company acquired Knott�� Soak City, a standalone Southern California water park, from an affiliate of Cedar Fair L.P. The Company�� products and services include Admission Tickets, Theme Park Operations, Culinary Offerings , Merchandise , Licensing and Consumer Products , Group Events and Conventions and Corporate Sponsorships and Strategic Alliances.
Admission Tickets, which generate most of its revenue from selling admission to its theme parks. The Company also offers a Fun Card at select theme parks that allows additional visits throughout that calendar year. In addition, visitors can purchase vacation packages with preferred hotels, behind-the-scenes tours, specialt! y dining packages and front of the line access to enhance their experience. Theme Park Operations delivers a level of service, safety and security at its theme parks. It comprised of rides, shows and attractions operations, safety, security, environmental, water park and guest arrival services (including parking, tolls, admissions, guest relations, entry and exit), the theme park operations team manages the planning and execution of the overall theme park experience on a daily basis.
Culinary Offerings delivers a variety of high quality, creative and memorable culinary experiences to its guests. Culinary operations are strategically organized into five key guest-oriented disciplines designed to drive in-park per capita spending: restaurants, catering, carts and kiosks, specialty snacks and vending. The Company�� culinary team focuses on providing creative menu offerings that appeal to our diverse guest base. Merchandise offers guests the opportunity to capture memories through its products and services, including through traditional retail shops, game venues and customized photos and videos. It focuses on effort to leverage the emotional connection of the theme park experiences, capitalize on trends and optimize brand alignment with its merchandise product offerings.
Licensing and Consumer Products capitalize on its brands, it has begun to leverage its intellectual property and content through media and consumer strategic licensing arrangements. It extended the reach of its brands through outbound media licensing in areas such as films, television programs and digital e-books, as well as its first-ever multi-platform mobile app game, TurtleTrek, which launched on iTunes in November 2012. Group Events and Conventions host a variety of different group events, meetings and conventions at its theme parks both during the day and at night. Its venues offer indoor and outdoor space for meetings, special events, entertainment shows, picnics, teambuilding events, group tours and spec! ial group! ticket packages. Park buy-outs allow groups to enjoy exclusive itineraries, including meetings and shows, up-close encounters with animals and behind the scenes tours. Corporate Sponsorships and Strategic Alliances seek to secure long-term corporate sponsorships and strategic alliances with companies and brands that share its core values, deliver brand marketing value and influence and drive mutual business gains. Its current corporate sponsors include, among others, Southwest Airlines, which has been a sponsor for over 20 years, and The Coca-Cola Company.
SeaWorld.
SeaWorld is recognized as the marine-life theme park brand in the world. Its SeaWorld theme parks, located in Orlando, San Antonio and San Diego, each rank among the most highly attended theme parks in the industry and offer up-close interactive experiences and a variety of live performances, including shows featuring Shamu in specially designed amphitheaters. It offers its guests numerous animal encounters, including the opportunity to work with trainers and feed marine animals, as well as themed thrill rides and theatrical shows that creatively incorporate its animal collection.
Busch Gardens
Its Busch Gardens theme parks are family-oriented destinations designed to immerse guests in foreign geographic settings. They are renowned for their beauty and landscaping and gardens and allow its guests to discover the natural side of fun by offering a family experience featuring a range of attractions and rollercoasters in a richly-themed environment. Busch Gardens Tampa presents its collection of animals from Africa, Asia and Australia.
Aquatica
Its Aquatica branded water parks are premium, family-oriented destinations that are based in a South Seas-themed tropical setting. Aquatica water parks build on the aquatic theme of its SeaWorld brand and feature high-energy rides, water attractions, white-sand beaches ande entertaining presentation of marine and terrestrial an! imals. Th! e Company positions its Aquatica water parks as companion water parks to its SeaWorld theme parks in Orlando and San Diego and it has an Aquatica water park situated within its SeaWorld San Antonio theme park.
Discovery Cove
Discovery Cove is a reservations only, all-inclusive, marine-life day resort adjacent to SeaWorld Orlando. Discovery Cove offers guests personal, signature experiences, including the opportunity to swim and interact with dolphins, take an underwater walking reef tour and enjoy pristine white-sand beaches and landscaped private cabanas. Discovery Cove presently limits its attendance to approximately 1,300 guests per day and features premium culinary offerings in order to provide guests with a more relaxed, intimate and high-end luxury resort experience.
Sesame Place
Sesame Place is the only United States theme park based entirely on the television show Sesame Street. It is located between Philadelphia and New York City, Sesame Place is a destination where parents and children can share in the spirit of imagination and experience Sesame Street together through whirling rides, water slides, colorful shows and furry friends. In addition, it has introduced Sesame Street brands in its other theme parks through Sesame Street-themed rides, shows, children�� play areas and merchandise.
The Company competes with The Walt Disney Company, Universal Studios, Six Flags, Cedar Fair, Merlin Entertainments and Hershey Entertainment and Resorts Company.
Advisors' Opinion:- [By Sue Chang]
SeaWorld Entertainment Inc. (SEAS) �is expected to post a loss of 15 cents a share in the fourth quarter.
10 Best Regional Bank Stocks To Own For 2014: Carlisle Companies Incorporated (CSL)
Carlisle Companies Incorporated operates as a diversified manufacturing company in the United States and internationally. Its Construction Materials segment manufactures and sells rubber and thermoplastic polyolefin roofing systems; rigid foam insulation panels for various roofing applications; and liquid and spray-applied waterproofing membranes, vapor and air barriers, and HVAC duct sealants and hardware for the commercial and residential construction markets, as well as markets and sells polyvinyl chloride membrane and accessories. The company�s Transportation Products segment offers bias-ply, steel-belted radial trailer tires, stamped or roll-formed steel wheels, non-automotive rubber tires, and tire and wheel assemblies; and power transmission products, such as industrial belts and related components. Its Brake and Friction segment provides off-highway braking systems and friction products for off-highway, on-highway, aircraft, and other industrial applications. The company�s Interconnect Technologies segment offers wire, cable, contacts, fiber optic, RF/microwave, and specialty filtered connectors; specialty cable assemblies; integrated wired racks; trays; and airframe subsystem solutions primarily for the aerospace, defense electronics, and test and measurement industries. Its FoodService Products segment provides commercial and institutional foodservice permanentware, table coverings, cookware, display pieces, lighting equipment, and supplies to restaurants, hotels, hospitals, nursing homes, schools, and correctional facilities; and industrial brooms, brushes, mops, and rotary brushes. The company markets its products to original equipment manufacturers, distributors, and end-users. It serves customers in commercial roofing, energy, agriculture, lawn and garden, mining and construction equipment, aerospace and electronics, dining and food delivery, and healthcare markets. The company was founded in 1917 and is headquartered in Charl otte, North Carolina.
Advisors' Opinion:- [By Adam Haigh]
CSL Ltd. (CSL), an Australian maker of blood-derived therapies, climbed 2 percent to A$65.96 in Sydney, a second day of gains. The company will announce another share buyback of at least A$900 million ($824 million) at its full-year earnings release in August, Bank of America Corp. analyst Matthew Prior wrote in a report, upgrading the shares to buy from neutral.
- [By Lee Samaha]
Carlisle Companies (NYSE: CSL ) also has a major construction materials division that supplies roofing products to Beacon. It appears to have taken the opposite approach to Owens Corning, and gone for volume growth instead of� keeping pricing and margins up.�In discussing its third quarter results on Oct.22, Carlisle disclosed:
- [By Adam Haigh]
CSL Ltd. (CSL), a maker of blood-derived therapies that gets about 38 percent of sales in the U.S., gained 3.5 percent in Sydney. Cnooc Ltd. (883), China�� largest offshore energy explorer, added 2.1 percent in Hong Kong as crude oil traded near a 14-month high. Dentsu Inc., a Japanese advertising company that bought Aegis Group Plc, sank 9.2 percent after saying it will raise as much as 120.1 billion yen ($1.2 billion) selling shares to help pay for the deal.
10 Best Regional Bank Stocks To Own For 2014: Laredo Petroleum Inc (LPI)
Laredo Petroleum, Inc., formerly Laredo Petroleum Holdings, Inc., incorporated in August 12, 2011, is an independent energy company focused on the exploration, development and acquisition of oil and natural gas in the Permian and Mid-Continent regions of the United States. The Company�� activities are primarily focused in the Wolfberry and deeper horizons of the Permian Basin in West Texas and the Anadarko Granite Wash in the Texas Panhandle and Western Oklahoma, where it has assembled 134,680 net acres and 37,850 net acres, respectively, as of December 31, 2011.
Permian Basin
The Permian Basin, located in west Texas and southeastern New Mexico, is an onshore oil and natural gas producing regions in the United States. The Company�� Permian activities are centered on the eastern side of the basin approximately 35 miles east of Midland, Texas in Glasscock, Howard, Reagan and Sterling Counties. As of December 31, 2011, it held 134,680 net acres in over 300 sections with an average working interest of 96% in wells drilled as of that date. The overall Wolfberry interval, the principal focus of its drilling activities, is an oil play that also includes a liquids-rich natural gas component. Its production/exploration fairway extends approximately 20 miles wide and 80 miles long. While exploration and drilling efforts in the southern half of its acreage block has been centered on the shallower portion of the Wolfberry (Spraberry, Dean and Wolfcamp formations) the emphasis in the northern half has been on the deeper intervals, including the Wolfcamp, Cline Shale, Strawn and Atoka formations.
As of December 31, 2011, the Company had drilled and completed approximately 600 gross vertical wells and had defined the productive limits on its acreage throughout the trend. It has expanded its drilling program to include a horizontal component targeting the Cline and Wolfcamp Shales. The Company has drilled four gross horizontal Wolfcamp Shale wells as of December 31, 2011. A! s of December 31, 2011, it had drilled a total of 27 gross horizontal wells in the Wolfcamp and Cline formations, of which 23 are in the Cline Shale and four in the Wolfcamp Shale. It had over 5,600 total gross identified drilling locations (both vertical and horizontal) in the Permian, all of which are within the Wolfberry and Cline Shale interval during the year ended December 31, 2011.
Anadarko Granite Wash
Straddling the Texas/Oklahoma state line, its Granite Wash play extends over a large area in the western part of the Anadarko Basin. As of December 31, 2011, it held 37,850 net acres in Hemphill County, Texas and Roger Mills County, Oklahoma. The Company�� play consists of vertical and horizontal drilling opportunities targeting the liquids-rich Granite Wash formation. As of December 31, 2011, it had drilled and completed over 150 gross vertical wells. During 2011, its horizontal Granite Wash program was in the development phase. As of December 31, 2011, it had approximately 100 gross identified potential drilling locations for the horizontal Granite Wash, which included both its Texas and Oklahoma acreage.
Other areas
The Company, in addition to its Permian Wolfberry and Anadarko Granite Wash plays, evaluated opportunities in three other areas within its core operating regions during 2011. The Dalhart Basin is located on the western side of the Texas Panhandle. As of December 31, 2011, the Company held 83,295 net acres in the Dalhart Basin. As of December 31, 2011, it had drilled two gross vertical wells in the Dalhart Basin. The second area is centrally located in the Central Texas Panhandle, where its operations were conducted through its joint venture with ExxonMobil as of December 31, 2011. As of December 31, 2011, it held 46,915 net acres in the Central Texas Panhandle. The third area is located in the eastern end of the Anadarko Basin, in Caddo County, Oklahoma. As of December 31, 2011, the Company held 33,306 net acres in the Eastern An! adarko.! p> Advisors' Opinion:
- [By Robert Rapier]
Laredo Petroleum (NYSE: LPI) is a smallish (~$4 billion market capitalization) oil and natural gas producer in the booming Permian Basin, where it holds leases on ~144,000 net acres.
- [By Tony Daltorio]
Other companies already drilling in the Cline include Apache Corp. (NYSE: APA), Gulfport Energy Corp. (Nasdaq: GPOR), and another pioneer in the region, Laredo Petroleum Holdings Inc. (NYSE: LPI).
- [By Tyler Crowe]
Who's doing it the best?
Company % Liquids in�Portfolio Oil Production Replacement Rate (3 Years) Reserve Replacement Costs (3-Year Average) Per boe Rosetta Resources� (NASDAQ: ROSE ) 57% 846% $6.99 Continental Resources� (NYSE: CLR ) 72% 827% $12.61 Laredo Petroleum� (NYSE: LPI ) 52% 1,042% $13.51 SM Energy� (NYSE: SM ) 53% 392% $14.67 SandRidge Energy� (NYSE: SD ) 58% 704% $14.85
It can be pretty handy to evaluate the entire industry on how efficiently it's replacing reserves, but reserve replacement costs can be more effective in evaluating individual companies. The lower the costs, the better it is. According to Ernst & Young, the most effective company at controlling reserve replacement costs is private company�Antero Resources, with a three-year average reserve replacement cost of about $2.88 per barrel of oil equivalent. Antero, and four of the other top five companies on Ernst & Young's list, are almost pure natural gas plays. If we've learned one thing over the past couple of years, it's that oil reserves and natural gas reserves are two totally different things when it comes to value. The five following companies have more than 50% liquids on�their�reserves and had the lowest reserve replacement costs for 2012.Sources: Ernst & Young and S&P Capital IQ; author's calculations.
10 Best Regional Bank Stocks To Own For 2014: Nintendo Co Ltd (NTDOY)
Nintendo Co., Ltd. is a Japan-based company mainly engaged in the leisure machine business. The Company operates in two business segments. The Leisure Machine segment is engaged in the development, manufacturing and sale of portable and console game machines as well as game software. The Others segment is engaged in the manufacture and sale of poker cards and karuta (Japanese-style playing cards), the sale of Pokemon (a Japanese animation character) goods, the management of intellectual property rights and the provision of electronic registration services of home use console machines, among others.
Advisors' Opinion:- [By Dan Carroll]
Investors in electronics stocks across the Pacific have a lot to watch in the next few weeks. Nintendo (NASDAQOTH: NTDOY ) has struggled as its Wii U video game console has sold below expectations this year. The disappointment has taken its toll on the firm's stock, which has dropped more than 12% year to date -- certainly no benefactor of Japan's stimulus. Video games have retreated away from the console with developers sticking to more successful rivals and leaving Nintendo with few titles to appeal to consumers with. Nintendo has changed course by opting not to hold a large conference at next week's pivotal Electronic Entertainment Expo, or E3, a major event for the game industry that Nintendo has traditionally targeted with significance.
- [By Keith Noonan]
Now that the Sony (NYSE: SNE ) PlayStation 4 and the Microsoft (NASDAQ: MSFT ) Xbox One have launched in a large number of territories, attention turns to whether or not these systems will deliver the content necessary to create long-term success. As the Wii U from Nintendo (NASDAQOTH: NTDOY ) has demonstrated, hardware launches are often followed by long periods of software drought. Take this fact and combine it with the tendency of the first-quarter release window to be the weakest of the year from both the quality and the commercial standpoints and there is reason to suspect that 2014 will fall victim to undesirable trends. On the contrary, this year's first quarter will see the release of some very big games. One of them could even shape the outcome of the console wars.�
- [By WWW.DAILYFINANCE.COM]
xboxone.com Microsoft (MSFT) is tired of letting Sony (SNE) pad its lead in competition among the latest generation of gaming consoles, so the Xbox parent is going on the offensive. Microsoft will release a cheaper Xbox One on June 9, the day before diehard gamers converge at the annual E3 conference. Slashing the system's price by $100 to $399 will match what Sony is commanding for its PlayStation 4, but Xbox fans will have to do without the motion-based Kinect controller to get the lower price. That's a big sacrifice given how Microsoft has promoted its camera-based controller to players and developers, but it was the easiest way to cut the price just seven months into the console's life cycle. Microsoft doesn't have much choice. The Xbox 360 dominated the Wii and PS3 in the previous generation of consoles, but Sony's leading the way now. One is the Loneliest Number Sony claims to have sold 7 million PS4s to consumers since they hit the market in November. Microsoft rolled out the Xbox One a week later, and says it has sold 5 million of the consoles to retailers. There's a big a difference between the sell-through figure that Sony is using and Microsoft's number, which includes systems that may still be on retailers' shelves. Sony's real lead is likely significantly greater than 2 million units. This is clearly Sony's generation. Nintendo (NTDOY) put out the Wii U a year earlier, and it was still the PS4 that became the first next-gen platform to crack through the mark of 7 million systems sold. The PS4 isn't winning just because it's cheaper. The Wii U costs less -- and that was even before a price cut of its own last summer. Sony and Microsoft both have powerful machines, but the Xbox upset too many gamers last year when it began talking about requiring constant connectivity or reportedly pondering copy protection that would disallow secondhand games from playing. Microsoft backed away from many of its initial restrictive features before the November
10 Best Regional Bank Stocks To Own For 2014: Quality Systems Inc.(QSII)
Quality Systems, Inc. engages in the development and marketing of healthcare information systems in the United States. The company operates through three divisions: QSI Dental, NextGen, and Practice Solutions. The QSI Dental division develops, markets, and supports software suites for dental and medical practices, as well as supports medical clients that utilize its UNIX based medical practice management software product and Software as a Service based NextDDS financial and clinical software. It also develops, markets, and manages electronic data interchange(EDI)/connectivity applications, as well as QSInet application service provider solutions. The NextGen division offers NextGen ambulatory product suite comprising electronic health records and enterprise practice management solutions; and NextGen inpatient products, including NextGen Clinicals for work efficiency and communication, as well as NextGen Financials, a financial and administrative system. It also offers comm unity connectivity solutions, such as health information exchange, patient portal, and health quality measures; and EDI, hosting, data protection, consulting, and physician resources services. The Practice Solutions division provides technology solutions and consulting services in the areas of revenue cycle management services, including billing and collection services for medical practices. The company?s solutions automate various aspects of medical and dental practices, as well as networks of practices, such as physician hospital organizations and management service organizations, ambulatory care centers, community health centers, and medical and dental schools. Quality Systems was founded in 1974 and is headquartered in Irvine, California.
Advisors' Opinion:- [By Dan Caplinger]
Tomorrow, Quality Systems (NASDAQ: QSII ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.
- [By Brian Stoffel]
For instance, Quality Systems (NASDAQ: QSII ) stock made huge moves in the aughts. The company designed systems to help doctors and dentists transition their record-keeping services to one easy-to-use electronic database. The move helped bring down costs for doctors, and certainly rewarded investors between 2000 and 2010.
- [By Ben Levisohn]
In our view, [Athenahealth] possesses the strongest position to harvest opportunities arising from the invariable chaos created by ICD-10 [a revamp of the World Health Organization's disease codes. Ed.] in October. In a recent investor call with the AC Group…CEO Mark Anderson estimated that of the 1.1MM billable healthcare providers (active physicians and nurse practitioners) in the U.S., 20-25% will be transitioned to an outsourced billing service following the implementation of ICD-10 in October 2014. To put his point into perspective, we are modeling for 10,400 new physicians to go live on Collector in 2014. Mr. Anderson was quite vocal about the superiority of athenaCollector to ambulatory RCM services provided by eCW (private), Quality Systems (QSII), and CareCloud (private). We continue to believe Athena has the “mouse trap” technology for outsourced billing services to hospital-owned and independent practices.
- [By CRWE]
Quality Systems, Inc. (NASDAQ:QSII) reported that its management will host a conference call to review results of its fiscal 2013 second quarter ended September 30, 2012, on Friday, October 26, 2012 at 10:00 AM ET (7:00 AM PT).
10 Best Regional Bank Stocks To Own For 2014: Energy Recovery Inc (ERII)
Energy Recovery, Inc. incorporated in April 1992, is engaged in developing, manufacturing and selling of energy recovery devices and circulation pumps primarily for uses in seawater desalination plants that use reverse osmosis technology. The Company's products are sold under the trademarks AquaBold, AquaSpire, ERITM, PXT, Pressure Exchanger, PX Pressure Exchanger, PEIT, Pump Engineering and Quadribaric. The Company develops and sells two main lines of energy recovery devices: PX pressures Exchanger devices and turbochargers. Each line includes a range of models and sizes to address the breadth of required process flow rates, plant designs and sizes. The company has two wholly owned subsidiaries: Energy Recovery Iberia, S.L. and ERI Energy Recovery Ireland Ltd. During the year ended December 2011, the Company merged three subsidiaries including, Osmotic Power, Inc.; Energy Recovery, Inc. International and Pump Engineering, Inc. into the parent company, Energy Recovery, Inc.
Energy recovery devices
The Company's PX offering includes: the PX-300 and PX-Q300; the 65 series (the PX-260, PX-220 and PX-180); the 4S series (PX-140S, PX-90S, PX-70S, PX-45S and PX-30S) and brackish PX devices (for the desalination of water with a lower concentration of salt than seawater). The Company's turbocharger offering includes: the HTCAT series (HTCAT-1800, HTCAT-2400, HTCAT-3600, HTCAT-4800, HTCAT-7200 and HTCAT-9600); the HALO line (HALO-50, HALO-75, HALO-100, HALO-150, HALO-225, HALO-300, HALO-450, HALO-500, HALO-600, HALO-900 and HALO-1200) and the LPT series for brackish water desalination applications (LPT-63, LPT-125, LPT-250, LPT-500, LPT-1000, LPT-2000 and LPT-3200).
High-pressure and Circulation pumps.
The Company manufactures and sells high-pressure feed, circulation and booster pumps for uses with its energy recovery devices in reverse osmosis desalination plants. The Company's line of pumps includes the AquaBold series (AquaBold 2x3x5, AquaBold 3x4x7 and ! AquaBold 4x6x9); the AquaSpire series (AquaSpire-300, AquaSpire-450, AquaSpire-600, AquaSpire-900, AquaSpire-1200, AquaSpire-1800, AaquaSpire-2400, AquaSpire-3600, AquaSpire-4800, AquaSpire-7200 and AquaSpire-9600) and a line of small circulation pumps.
Technical support and Replacement parts
The Company provides engineering and technical support to customers during product installation and plants commissioning. The Company also offers replacement parts and services for its PX devices and turbochargers. The Company's PX devices and turbochargers are also used to retrofit or replace older energy recovery devices in existing desalination plants.
The Company Competes with Flowserve Corporation (Flowserve) based in Irving, Texas and Fluid Equipment Development Company, Clyde Union Ltd., Duchting Pumpen Maschinenfabrik GmbH & Co KG, KSB Aktiengesellschaft, Torishima Pump Mfg. Co., Ltd. and Sulzer Pumps, Ltd.
Advisors' Opinion:- [By Ant贸nio Costa]
Energy Recovery, Inc. (NASDAQ: ERII) broke out of a small consolidation area with heavy volume and will likely have the attention of the swing-traders in the next days.
10 Best Regional Bank Stocks To Own For 2014: EP Energy Corp (EPE)
EP Energy Corporation, incorporated on August 8, 2013, is an independent exploration and production company. The Company is engaged in the acquisition and development of unconventional onshore oil and natural gas properties in the United States. The Company is focused on creating shareholder value through the development of its low-risk drilling inventory located in four core areas: the Eagle Ford Shale (South Texas), the Wolfcamp Shale (Permian Basin in West Texas), the Altamont field in the Uinta Basin in northeastern Utah and the Haynesville Shale (North Louisiana). In its core areas, it has identified approximately 5,200 drilling locations (including 916 drilling locations to which it has attributed proved undeveloped reserves as of September 30, 2013), of which approximately 96% are oil wells. As of September 30, 2013, it had proved reserves of 513 million barrels of oil equivalent (54% oil and 67% liquids) and for the three months ended September 30, 2013, it had average net daily production of 88,149 barrels of oil equivalent per day (45% oil and 54% liquids). During the year ending September 31, 2013, it sold certain of its natural gas properties, including CBM properties located in the Raton, Black Warrior and Arkoma basins, the majority of its Arklatex natural gas properties and its natural gas properties in South Texas. In May 2014, the Company acquired certain producing properties and undeveloped acreage directly offsetting existing Wolfcamp operating areas in Reagan and Crockett Counties in the Southern Midland Basin.
Eagle Ford Shale
The Eagle Ford Shale, located in South Texas, is the unconventional oil plays in the United States. The Eagle Ford formation in La Salle County has up to 125 feet of net thickness, making it some of the prolific acreage in the area. Due to its high carbonate content, the Eagle Ford is also brittle, and delivers high productivity when fractured, with initial 30-day oil equivalent production rates up to 1,100 barrels of oil equivalent! per day.. The Company as of september 30, 2013, has 97,689 net acres in the Eagle Ford, where it has identified 983 drilling locations. As of September 30, 2013, it had six rigs running and it plan to drill 126 wells in 2013 (of which 100 have been drilled through September 30, 2013), representing 58% of its total wells planned in 2013.
Wolfcamp Shale
The Wolfcamp Shale is located in the Permian Basin, which has produced more than 29 billion barrels of oil and 75 trillion cubic feet of gas over the past 90 years and is estimated by industry experts to contain recoverable oil and natural gas reserves exceeding what has already been produced. With oil production of over 880 one thousand barrels per day from over 80,000 wells during the six months ended June 30, 2013, the Permian Basin represented 51% of the crude oil produced in the State of Texas and approximately 17% of the crude oil and condensate produced onshore in the lower 48 United States. As of September 30, 2013, it had three rigs running and it plans to drill 65 wells in 2013 (of which 48 have been drilled through September 30, 2013), representing 30% of its total wells planned in 2013.
Altamont
The Altamont field is located in the Uinta Basin in northeastern Utah. Its operations are primarily focused on developing the Altamont Field Complex (comprised of the Altamont, Bluebell and Cedar Rim fields). It owns 170,523 net (315,272 gross) acres in Duchesne and Uinta Counties, making it the ease owner in the Altamont Field Complex. Its activity is mainly focused on the development of its vertical inventory on 160-acre spacing. The Company has identified an inventory of 1,135 drilling locations (781 vertical and 354 horizontal). The industry is piloting 80-acre vertical downspacing programs in the Wasatch and Green River formations and horizontal development programs in the multiple shale and tight sand intervals. As of September 30, 2013, it had two rigs running and it plans to drill 26 wells in ! 2013 (of w! hich 20 have been drilled through September 30, 2013), representing 12% of its total wells planned in 2013.
Haynesville Shale
Haynesville Shale is located in East Texas and Northern Louisiana. its operations are concentrated primarily in Desoto Parish, Louisiana in the Holly Field. This area is within the core of the Haynesville Shale with net thickness of 114 feet (210 feet gross), resulting in initial 30-day gas equivalent production rates up to 18 million cubic feet per day. As of September 30, 2013, it has identified 190 drilling locations.
Advisors' Opinion:- [By Matt Jarzemsky var popups = dojo.query(".socialByline .popC"); popups.forEach]
Rice Energy Inc.(RICE) has rallied 44% since its $1.1 billion January IPO through Thursday. RSP Permian Inc.(RSPP) has gained 42% since debuting the same month. This year�� other E&P IPO, EP Energy Corp.(EPE), is off 1.9% since it went public in January.
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