5 Best Energy Stocks To Own Right Now

The joint monthly web chat for subscribers of The Energy Strategist (TES) and MLP Profits (MLPP) took place last week. The chat is conducted by Igor Greenwald, who is managing editor for TES and chief investment strategist for MLPP, and myself. �

There were four energy sector questions remaining at the end of the chat that required an extended answer, or a bit more research. This week I will answer two of the four questions that were left: One on the importance (or lack thereof) of the Keystone XL pipeline, and one on Nordic American Tankers. Next week�� issue will tackle the other two questions: One on Argentina�� expropriation from Repsol in 2012 and one on Shell�� massive floating liquefied natural gas project.

For answers to some of the remaining MLP questions from the chat, see this week�� MLP Investing Insider.

Q: With the impending development of Canada’s own Western and Eastern pipelines, does the Northern leg of Keystone remain essential for Canadian E&Ps or is it just important to transport from the Dakotas?

Top 10 Industrial Conglomerate Stocks To Watch For 2015: Royal Dutch Shell PLC (RDS.A)

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 Tony Daltorio]

  Although it may be hard to believe, the shale revolution is not being led by the major oil companies such as Exxon Mobil Corp. (NYSE: XOM), Chevron Corp. (NYSE: CVX), and Royal Dutch Shell plc (NYSE: RDS.A).

• [By Fede Zaldua]

  Royal Dutch Shell (RDS.A) has never cut its dividend in over 70 years and its current dividend yield, at 5.2%, is one of the highest among peers, as its the company's main way to returning cash to shareholders. The company has distributed over $11 billion of dividends in the last twelve months, including the scrip dividend, which accounted for 44% in the second quarter this year.

• [By Aaron Levitt]

  In response to the terrible year, many of Europe�� biggest energy firms have undergone a huge asset selling binge. Both ENI and Royal Dutch Shell (RDS.A) have begun selling everything but the kitchen sink as well as cutting capital expenditure on new projects. Shell — which had been the capex king�–�has reduced its planned spending by nearly 20% this year, while E has plans to reduce its spending over the next four years by 5%.

5 Best Energy Stocks To Own Right Now: Foresight Energy LP (FELP)

Foresight Energy LP, incorporated on January 26, 2012, is an underground coal producer in the United States. The Company operates four underground mining complexes, all in the Illinois Basin region of the United States. The Company�� mining complexes consist of: Williamson Energy, LLC, Sugar Camp Energy, LLC, Hillsboro Energy, LLC and Macoupin Energy, LLC.

Williamson Energy, LLC is a longwall mining complex in southern Illinois, producing coal with one longwall mining system and two continuous miner units, with a productive capacity in excess of approximately 7.5 million tons per year. Sugar Camp Energy, LLC is a longwall mining complex in southern Illinois, producing coal with one longwall mining system and three continuous miner units. Hillsboro Energy, LLC is a longwall mining complex in central Illinois, producing coal with one longwall mining system and two continuous miner units. The complex has a productive capacity of 24.0 million tons per year with all three of its longwall mining systems operational. Macoupin Energy, LLC is a continuous miner operation in central Illinois, producing with one continuous miner. The complex has a productive capacity of 8.7 million tons per year with the operation of a second continuous miner unit and the development of a new mine with a longwall mining system accessing its additional reserves.

Advisors' Opinion:

• [By Ben Levisohn]

  The upshot: “The fundamental case for coal is strengthening but requires several years of patience,” Bridges says. in the meantime, he recommends Consol Energy(CNX), Alliance Resource Partners (ARLP) and Foresight Energy (FELP), as the yield from coal MLPs are the “only segment that [is] resonating with investors.” Last week, Consol said it may form an MLP for coal assets.

• [By Monica Gerson]

  Nonmetallic Mineral Mining:
  This industry declined 0.62% by 11:00 am with Foresight Energy LP (NYSE: FELP) moving down 2.2%. Foresight Energy's trailing-twelve-month EPS is $0.50.

• [By Robert Rapier]

  Foresight Energy Partners�(NYSE: FELP), a coal producer operating four underground mining complexes in the Illinois Basin. FELP is one of the largest owners of coal reserves in the US, and claims to be the lowest cost and highest margin domestic thermal coal producer

5 Best Energy Stocks To Own Right Now: Pioneer Energy Services Corp (PES)

Pioneer Energy Services Corp., formerly Pioneer Drilling Company, incorporated in 1979, provides drilling and production services to independent oil and gas exploration and production companies throughout much of the onshore oil and gas producing regions of the United States and internationally in Colombia. The Company operates in two segments: Drilling Services Division and Production Services Division. The Company�� Drilling Services Division provides contract land drilling services. The Company�� Production Services Division provides a range of services to oil and gas exploration and production companies. On December 31, 2011, the Company acquired Go-Coil, LLC.

Drilling Services Division

The Company�� Drilling Services Division provides contract land drilling services with its fleet of 64 drilling rigs in South Texas, East Texas, West Texas, North Dakota, North Texas, Utah, Appalachia and Colombia. As of February 10, 2012, 55 drilling rigs are operating under drilling contracts, 44 of which are under term contracts. In 2011, the Company established its West Texas drilling division location location where it has 18 drilling rigs operating. In addition to its drilling rigs, the Company provides the drilling crews and the ancillary equipment needed to operate its drilling rigs. Its drilling contracts provide for compensation on either a daywork, turnkey or footage basis.

As of February 10, 2012, the Company owned a fleet of 54 trucks and related transportation equipment that it uses to transport its drilling rigs to and from drilling sites. Under daywork drilling contracts, it provides a drilling rig and required personnel to its customer who supervises the drilling of the well. Under a turnkey contract, the Company agrees to drill a well for its customer. It provides technical and engineering services, as well as the equipment and drilling supplies required to drill the well. The Company often subcontracts for related services, such as the provision of cas! ing crews, cementing and well logging. Under footage contracts, it is paid a fixed amount for each foot drilled.

The Company competes with Helmerich & Payne, Inc., Precision Drilling Trust, Patterson-UTI Energy, Inc. and Nabors Industries, Ltd.

Production Services Division

The Company�� Production Services Division provides a range of services to oil and gas exploration and production companies, including well services, wireline, coiled tubing and fishing and rental services. Its production services operations are managed through locations concentrated in the United States onshore oil and gas producing regions in the Gulf Coast, Mid-Continent, Rocky Mountain and Appalachian states. The Company provides its services to a diverse group of oil and gas exploration and production companies. Under well services, it provides rig-based well services, including maintenance of existing wells, workover of existing wells, completion of newly-drilled wells, and plugging and abandonment of wells at the end of their useful lives.

The Company provides wireline services in Texas, Kansas, Colorado, Utah, Montana, North Dakota, Louisiana, West Virginia, Wyoming and Mississippi. The Company�� Coiled tubing is used for a number of horizontal well applications such as milling temporary plugs between frac stages. Its coiled tubing business consists of ten coiled tubing units which are deployed in Texas, Louisiana, Oklahoma and Pennsylvania. The Company�� rental and fishing tool business provides a range of specialized services and equipment that are utilized on a non-routine basis for both drilling and well servicing operations. It provides rental services out of four locations in Texas and Oklahoma. As of February 10, 2012, the Company had a total of 91 well service rigs. Its well service rig fleet consists of eighty-one 550 horsepower rigs, nine 600 horsepower rigs, and one 400 horsepower rig. As of February 10, 2012, the Company had 109 wireline units in 24 locations.

The Company competes with Key Energy Services, Basic Energy Services, Nabors Industries, Superior Energy Services, Inc,

CC Forbes, Schlumberger Ltd., Halliburton Company, Weatherford International, Baker Hughes, Superior Energy Services, Basic Energy Services, and Key Energy Services, Quail Tools and Knight Oil Tools.

Advisors' Opinion:

• [By Lee Jackson]

  Pioneer Energy Services Corp. (NYSE: PES) is another small cap name that could be a huge home run for investors in 2014. The company provides contract land drilling services and production services to independent and oil and gas exploration and production companies in the United States and Colombia. The company operates in two segments, Drilling Services and Production Services. The Deutsche Bank price target is a whopping $14, and the consensus is much lower at $9.50. Pioneer Energy closed Monday at $8.

• [By Lisa Levin]

  Pioneer Energy Services (NYSE: PES) shares reached a new 52-week high of $14.15. Pioneer Energy shares have jumped 96.60% over the past 52 weeks, while the S&P 500 index has gained 20.97% in the same period.

5 Best Energy Stocks To Own Right Now: Gran Tierra Energy Inc (GTE)

Gran Tierra Energy Inc. (Gran Tierra) is an independent international energy company engaged in oil and gas acquisition, exploration, development and production. Gran Tierra owns oil and gas properties in Colombia, Argentina, Peru and Brazil. During the year ended December 31, 2011, the Company focused on development of producing fields and generation of exploration prospects in Colombia, including the acquisition of three blocks in the Petrolifera acquisition and the acquisition of a working interest in the Llanos 22 Block. It delivers its oil to Ecopetrol S.A. (Ecopetrol) through its transportation facilities, which include pipelines, gathering systems and trucking. On March 18, 2011, the Company acquired of all the issued and outstanding common shares and warrants of Petrolifera Petroleum Limited (Petrolifera). Advisors' Opinion:

• [By Richard Moroney]

  Based in Canada, Gran Tierra Energy (GTE) explores for oil and gas in Colombia, Argentina, Peru, and Brazil. In August, management raised its full-year production guidance, with the midpoint implying 27% growth.

• [By Jake Mann]

  Energy has been the sector most beaten up in 2014. It has yielded up a number of deeply undervalued companies and it's likely that it enjoys some rebound in 2015. My favorite companies are Adams Resources & Energy Inc (NYSE: AE), VAALCO Energy, Inc. (NYSE: EGY), Pacific Ethanol Inc (NASDAQ: PEIX), Statoil ASA (ADR) (NYSE: STO), VOC Energy Trust (NYSE: VOC), Gran Tierra Energy Inc. (NYSE: GTE), Petrobras Argentina SA ADR (NYSE: PZE), and PBF Energy Inc (NYSE: PBF), all of which are cheap on an acquirer's multiple basis.