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Profiting from America’s Energy Revolution – Best Investments for Income and Growth

Profiting from America’s Energy Revolution – Best Investments for Income and Growth. Elliott H. Gue EnergyandIncomeAdvisor.com CapitalistTimes.com EGue@Capitalisttimes.com 1-888-960-2759. Oil Demand Story is Emerging Markets. The Supply Side: Oseburg in Norway.

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Profiting from America’s Energy Revolution – Best Investments for Income and Growth

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  1. Profiting from America’s Energy Revolution – Best Investments for Income and Growth Elliott H. Gue EnergyandIncomeAdvisor.com CapitalistTimes.com EGue@Capitalisttimes.com 1-888-960-2759

  2. Oil Demand Story is Emerging Markets

  3. The Supply Side: Oseburg in Norway • Discovered in 1979 and put into production in 1988 • Currently produces 55,000 bbl/day down from around 200,000 at peak in the mid to late 1990s. • Produced with a pressure maintenance strategy

  4. Spending More, Producing Less

  5. Not Peak Oil, The End of Easy Oil

  6. Schlumberger (NYSE: SLB)

  7. Master Limited Partnerships (MLPs) • MLPs offer high yields – average MLP in the Alerian MLP Index yields roughly 6% • MLPs offer significant tax deferral advantages • Most MLPs are involved in the midstream energy business, offering low risk fee-based cash flow streams.

  8. Focus on Yield AND Growth

  9. Western Gas Equity Partners (WGP) • Western Gas Partners (WES) owns natural gas gathering and processing assets in Rockies. • Primarily fee-based and exposed to liquids-rich basins like Niobrara. • Drop-downs from parent Anadarko (APC) • WGP likely to grow its distributions at 33% annualized pace. • 2 to 3 percent yield in 2013

  10. Hydraulic Fracturing and Horizontal Drilling….Keys to Shale Production

  11. Proppant Intensity

  12. Hi-Crush Partners • 8 percent yield, well above MLP average of 5.5% to 6%. • Cost Leader in Northern White Sand production. • Wisconsin mines have unit train capability • D&I Silica acquisition boosts exposure to Marcellus and Utica Shale • 10-12 percent annualized distribution growth going forward • Avista is a strong sponsor company.

  13. Shale Requires More Compression

  14. Shale is the Game Changer

  15. California is . . . . .Different

  16. Pacific Coast Oil Trust (ROYT) • 9.9% Yield with upside potential paid monthly • 80% of net profits from developed properties – mature, well-understood formations. • 7.5% royalty or 25% of profits in remaining properties including Diatomite • 98% Crude oil • 70% Hedged through March 31, 2014 • Diatomite Drilling is ahead of expectations

  17. Occidental Petroleum (OXY) • Known as an enhanced oil recovery (EOR) firm focused on mature fields. • Largest acreage holder in CA, 148k bbl/day in 2012 +10%. • 61% domestic production, focused mainly on Permian Basin and CA • Monterey Shale acreage holds long-term upside. • Abu Dhabi gas onstream in 2014 • Roughly 3% yield, growing at 15 to 20% annualized.

  18. The Denver-Julesburg Basin

  19. Niobrara Offers Solid Economics

  20. Noble Energy (NBL) • First wells in the DJ Basin in 2010, last year drilled 195 Wattenburg, 25 in CO • By 2016 plans 500 wells/yr. in DJ Basin • Liquids rich portion of Marcellus • Eastern Med. Tamar 9 tcf and Leviathan 17 tcf in Israel, Cyprus-A 5 to 8 tcf

  21. Shelf Life

  22. Exploration and Production Stocks

  23. EPL Oil & Gas (NYSE: EPL) • Energy Partners filed for Chapter 11 bankruptcy protection in 2009. • Reorganized, shifted from 60% gas to 80% oil. • Developed in the 50’s and 60’s but new seismic data identifies new targets. • Targeting new oilfields located 20,000 feet beneath the seafloor and announced results could be major upside catalyst.

  24. Eni (NYSE: E) • 16.81% stake in Kashagan in Caspian Sea first oil due middle 2013 • 100,000 boe/day in deepwater GOM • 700,000 in new projects over 4 years, 3 to 4% annualized • Mamba Complex Mozambique 30 tcf gas • Barent’s Sea Norway and Russia • Disposing of non-core assets • PIIGS discount unwarranted. • Offers a 5.7% yield.

  25. Profiting from America’s Energy Revolution – Best Investments for Income and Growth Elliott H. Gue EnergyandIncomeAdvisor.com CapitalistTimes.com EGue@Capitalisttimes.com 1-888-960-2759

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