Devon Energy Corporation (NYSE:DVN) today reported a net loss of $357 million for the quarter ended December 31, 2012, or $0.89 per common share ($0.89 per diluted share). The company’s fourth quarter financial results were impacted by a non-cash asset impairment charge of $896 million. Excluding the asset impairment charge and other items securities analysts typically exclude from estimates, Devon earned $316 million or $0.78 per diluted share in the fourth quarter of 2012.
Asset impairments also led to a loss of $206 million for the year ended December 31, 2012, or $0.52 per common share ($0.52 per diluted share). Excluding adjusting items, the company earned $1.3 billion or $3.26 per diluted share in 2012.
“In spite of a challenging commodity price environment that impacted our financial results, Devon delivered solid operating results in 2012. During the year, we continued to make significant progress toward the conversion of our asset portfolio to a higher oil weighting,” commented John Richels, Devon’s president and chief executive officer. “This is evident through the strong oil production growth we delivered during the year and the impressive growth in oil reserves.”........Read the entire Devon Energy earnings report.
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Wednesday, February 20, 2013
Tuesday, February 19, 2013
National Oilwell Varco and Robbins & Myers Receive Clearance
National Oilwell Varco (NYSE: NOV) and Robbins & Myers (NYSE: RBN) jointly announced today that the Antitrust Division of the United States Department of Justice has closed its investigation of the parties’ previously announced merger.
NOV and RBN also received today a no action letter from the Canadian Competition Bureau. Having received clearance from the United States and Canada, NOV and RBN expect to complete the merger tomorrow, February 20, 2013. The transaction has been cleared without modification.
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NOV and RBN also received today a no action letter from the Canadian Competition Bureau. Having received clearance from the United States and Canada, NOV and RBN expect to complete the merger tomorrow, February 20, 2013. The transaction has been cleared without modification.
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EIA: Gulf Coast Crude Stocks Generally Fall Sharply in December Because of Inventory Taxes
Crude oil inventories in the Gulf Coast often fall sharply in December, averaging a decline of nearly 8 million barrels in that month from 1981 through 2011. Preliminary data for December 2012 show a decline of more than 12.5 million barrels in the region, bringing end of year crude inventories to approximately 165 million barrels.
The reason for this sharp decline: December 31 is the typical assessment date for taxes on crude oil stocks that are collected by many states/counties/municipalities in regions where the bulk of U.S. crude oil and petroleum product inventories are stored. To decrease crude inventories, companies can do a combination of the following: delay or decrease imports, increase runs at refineries, move crude oil out of the taxable region, or sell crude oil to other market participants.
Following December declines, inventories tend to recover in January. Although large crude oil draws can be an indication of demand outpacing supply, the December phenomenon typically does not reflect tightening of the oil market, but rather how companies in the region are taxed on crude stocks. During the middle of the year, crude inventories in the Gulf Coast region both rise and fall, averaging out to relatively small net changes in stocks for a given month.
At the end of December each year, parts of Texas and Louisiana, where significant volumes of crude oil are stored, assess ad valorem taxes (meaning, according to value) on end of year crude oil inventories. These taxes, along with the generally accepted accounting practice of last in, first out (LIFO) method used to value the assets, create an incentive to draw down crude stocks in the region at the end of the year in order to reduce the tax bill.
If oil prices have risen during the year, this accounting practice gives companies stronger incentive to reduce inventory because doing so will further limit their tax exposure. Conversely, if oil prices have fallen throughout the year, companies have less incentive to reduce crude held in storage.
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The reason for this sharp decline: December 31 is the typical assessment date for taxes on crude oil stocks that are collected by many states/counties/municipalities in regions where the bulk of U.S. crude oil and petroleum product inventories are stored. To decrease crude inventories, companies can do a combination of the following: delay or decrease imports, increase runs at refineries, move crude oil out of the taxable region, or sell crude oil to other market participants.
Following December declines, inventories tend to recover in January. Although large crude oil draws can be an indication of demand outpacing supply, the December phenomenon typically does not reflect tightening of the oil market, but rather how companies in the region are taxed on crude stocks. During the middle of the year, crude inventories in the Gulf Coast region both rise and fall, averaging out to relatively small net changes in stocks for a given month.
At the end of December each year, parts of Texas and Louisiana, where significant volumes of crude oil are stored, assess ad valorem taxes (meaning, according to value) on end of year crude oil inventories. These taxes, along with the generally accepted accounting practice of last in, first out (LIFO) method used to value the assets, create an incentive to draw down crude stocks in the region at the end of the year in order to reduce the tax bill.
If oil prices have risen during the year, this accounting practice gives companies stronger incentive to reduce inventory because doing so will further limit their tax exposure. Conversely, if oil prices have fallen throughout the year, companies have less incentive to reduce crude held in storage.
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Sunday, February 17, 2013
Crude Oil, Natural Gas and Gold Weekly Technical Outlook for Sunday February 17th
It's Sunday and that means it's time to check in with our friends at Oil N'Gold.com and get their call on crude oil, natural gas and gold......
Crude oil stayed in range below 98.24 last week. With daily MACD staying below signal line, 98.24 should be a short term top and deeper decline is in favor. Below 94.97 will confirm this case and should bring deeper pull back to 55 days EMA (now at 92.47) and below. On the upside, break of 98.24 is needed to confirm rally resumption. Otherwise, near term outlook is neutral at best.
In the bigger picture, price actions from 114.83 are viewed as a triangle consolidation pattern, no change in this view. And, such consolidation could still be in progress and Crude oil remains bounded in the converging range. Nonetheless, the pattern should be close to completion and an upside breakout should be seen soon. Above 100.42 will strongly suggest that whole rebound from 33.29 has resumed for above 114.83. And in case of another fall, strong support should be seen above 77.28 to bring rebound.
In the long term picture, crude oil is in a long term consolidation pattern from 147.27, with first wave completed at 33.2. The corrective structure of the rise from 33.2 indicates that it's second wave of the consolidation pattern. While it could make another high above 114.83, we'd anticipate strong resistance ahead of 147.24 to bring reversal for the third leg of the consolidation pattern.
Nymex Crude Oil Continuous Contract 4 Hour, Daily, Weekly and Monthly Charts
Natural gas finally broke through the medium term rising trend line last week and closed below. The development suggest that whole up trend from 1.1902 has completed at 3.933 after hitting long term channel resistance. Further decline is now expected as long as 3.323 minor resistance holds, to 3.05 first. Break will resume the whole decline from 3.933 and should target 100% projection of 3.933 to 3.05 from 3.645 at 2.762 next.
In the bigger picture, the bounce off from the long term falling channel resistance for 6.108 retained the case that such decline isn't finished. Break of 2.575 support should make a new low below 1.902 to extend the whole long term down trend. Nonetheless, strong rebound from 2.575, followed by break of 3.933 resistance, will revive that case of long term reversal and target a test on 4.983 key resistance.
Nymex Natural Gas Continuous Contract 4 Hour, Daily, Weekly and Monthly Charts
Gold dropped sharply last week, especially on Friday and breached 1600 level before closing at 1610.3. The development is confirmed with the view that fall from 1798.1 is still in progress. Near term outlook stays bearish as long as 1651 minor resistance holds. Current decline should target a test on 1526.7 low next.
In the bigger picture, price actions from 1923.7 high are viewed as a medium term consolidation pattern. There is no indication that such consolidation is finished, and more range trading could be seen. In any case, downside of any falling leg should be contained by 1478.3/1577.4 support zone and bring rebound. Meanwhile, break of 1792.7/1804.4 resistance zone will argue that the long term up trend is possibly resuming for a new high above 1923.7.
In the long term picture, with 1478.3 support intact, there is no change in the long term bullish outlook in gold. While some more medium term consolidation cannot be ruled out, we'd anticipate an eventual break of 2000 psychological level in the long run
Comex Gold Continuous Contract 4 Hour, daily, Weekly and Monthly Charts
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Crude oil stayed in range below 98.24 last week. With daily MACD staying below signal line, 98.24 should be a short term top and deeper decline is in favor. Below 94.97 will confirm this case and should bring deeper pull back to 55 days EMA (now at 92.47) and below. On the upside, break of 98.24 is needed to confirm rally resumption. Otherwise, near term outlook is neutral at best.
In the bigger picture, price actions from 114.83 are viewed as a triangle consolidation pattern, no change in this view. And, such consolidation could still be in progress and Crude oil remains bounded in the converging range. Nonetheless, the pattern should be close to completion and an upside breakout should be seen soon. Above 100.42 will strongly suggest that whole rebound from 33.29 has resumed for above 114.83. And in case of another fall, strong support should be seen above 77.28 to bring rebound.
In the long term picture, crude oil is in a long term consolidation pattern from 147.27, with first wave completed at 33.2. The corrective structure of the rise from 33.2 indicates that it's second wave of the consolidation pattern. While it could make another high above 114.83, we'd anticipate strong resistance ahead of 147.24 to bring reversal for the third leg of the consolidation pattern.
Nymex Crude Oil Continuous Contract 4 Hour, Daily, Weekly and Monthly Charts
Natural gas finally broke through the medium term rising trend line last week and closed below. The development suggest that whole up trend from 1.1902 has completed at 3.933 after hitting long term channel resistance. Further decline is now expected as long as 3.323 minor resistance holds, to 3.05 first. Break will resume the whole decline from 3.933 and should target 100% projection of 3.933 to 3.05 from 3.645 at 2.762 next.
In the bigger picture, the bounce off from the long term falling channel resistance for 6.108 retained the case that such decline isn't finished. Break of 2.575 support should make a new low below 1.902 to extend the whole long term down trend. Nonetheless, strong rebound from 2.575, followed by break of 3.933 resistance, will revive that case of long term reversal and target a test on 4.983 key resistance.
Nymex Natural Gas Continuous Contract 4 Hour, Daily, Weekly and Monthly Charts
Gold dropped sharply last week, especially on Friday and breached 1600 level before closing at 1610.3. The development is confirmed with the view that fall from 1798.1 is still in progress. Near term outlook stays bearish as long as 1651 minor resistance holds. Current decline should target a test on 1526.7 low next.
In the bigger picture, price actions from 1923.7 high are viewed as a medium term consolidation pattern. There is no indication that such consolidation is finished, and more range trading could be seen. In any case, downside of any falling leg should be contained by 1478.3/1577.4 support zone and bring rebound. Meanwhile, break of 1792.7/1804.4 resistance zone will argue that the long term up trend is possibly resuming for a new high above 1923.7.
In the long term picture, with 1478.3 support intact, there is no change in the long term bullish outlook in gold. While some more medium term consolidation cannot be ruled out, we'd anticipate an eventual break of 2000 psychological level in the long run
Comex Gold Continuous Contract 4 Hour, daily, Weekly and Monthly Charts
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Saturday, February 16, 2013
New Video....the "Paid Pullback" Strategy
All the stock trading strategies you're using aren't producing the type of results you had hoped, are they? Sure, you thought it would. So called gurus told you how well those strategies performed and if you tried it, you'd be rich beyond your wildest dreams.
But was it a lie? Not totally, no, because some stock trading strategies do work. But those strategies that are producing consistent results are few and far between.
So you'll be happy to know, we have found that "needle in a haystack", And I don't say that lightly. But I just finished watching a trade presentation that I'm confident will make a big difference in the way you trade.
And unlike what you might expect for a strategy like this, you get complete access for absolutely no cost whatsoever.
We are talking about buying your stocks at wholesale prices instead of the retail prices everyone else has to pay. And we're not talking about buying your stock at a lower limit price.
This is part of a series and this video will only be up for about 48 hours.So watch it now....
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But was it a lie? Not totally, no, because some stock trading strategies do work. But those strategies that are producing consistent results are few and far between.
So you'll be happy to know, we have found that "needle in a haystack", And I don't say that lightly. But I just finished watching a trade presentation that I'm confident will make a big difference in the way you trade.
And unlike what you might expect for a strategy like this, you get complete access for absolutely no cost whatsoever.
We are talking about buying your stocks at wholesale prices instead of the retail prices everyone else has to pay. And we're not talking about buying your stock at a lower limit price.
This is part of a series and this video will only be up for about 48 hours.So watch it now....
Watch > "The Paid Pullback Strategy"
Get our Free Trading Videos and Lessons today!
Friday, February 15, 2013
Crisis Investing 101: How to Protect Your Portfolio With Commodities
There are so many traders calling for a double top and BIG pull back in this market that it might be helpful to mix in some common sense about how to protect your portfolio in the trading environment we find ourselves in. And David Goodboy is just the guy
One of our trading partners, Adam Hewison, just sent this over to us and I think it's a great read. Goodboy shows us how to allocate, how to invest and what to invest in if we want to protect our portfolio with commodities.
Read "Crisis Investing 101: How to Protect Your Portfolio With Commodities"
One of our trading partners, Adam Hewison, just sent this over to us and I think it's a great read. Goodboy shows us how to allocate, how to invest and what to invest in if we want to protect our portfolio with commodities.
Read "Crisis Investing 101: How to Protect Your Portfolio With Commodities"
Baker Hughes Latest U.S. and Canadian Rig Counts
BHI Rig Count: U.S. + 3 at 1762 rigs.
U.S. Rig Count is up 3 rigs from last week at 1762, with oil rigs up 7 at 1337, gas rigs down 4 at 421, and miscellaneous rigs unchanged at 4. U.S. Rig Count is down 232 rigs from last year at 1994, with oil rigs up 65, gas rigs down 295, and miscellaneous rigs down 2.
The U.S. Offshore rig count is 55, unchanged from last week and up 14 year over year.
BHI Rig Count: Canada + 20 at 651 rigs
Canadian Rig Count is up 20 rigs from last week at 651, with oil rigs up 20 at 500, gas rigs unchanged at 151. Canadian Rig Count is down 54 rigs from last year at 705, with oil rigs down 16, gas rigs down 38.
Additional information on the rig count is available at Baker Hughes.com
Must see....our latest video expalining how to use our new stock selection strategy
U.S. Rig Count is up 3 rigs from last week at 1762, with oil rigs up 7 at 1337, gas rigs down 4 at 421, and miscellaneous rigs unchanged at 4. U.S. Rig Count is down 232 rigs from last year at 1994, with oil rigs up 65, gas rigs down 295, and miscellaneous rigs down 2.
The U.S. Offshore rig count is 55, unchanged from last week and up 14 year over year.
BHI Rig Count: Canada + 20 at 651 rigs
Canadian Rig Count is up 20 rigs from last week at 651, with oil rigs up 20 at 500, gas rigs unchanged at 151. Canadian Rig Count is down 54 rigs from last year at 705, with oil rigs down 16, gas rigs down 38.
Additional information on the rig count is available at Baker Hughes.com
Must see....our latest video expalining how to use our new stock selection strategy
Rigzone: Obama 'Will Keep Cutting' Oil & Gas Red Tape
In his State of the Union address Tuesday night President Obama pledged to keep cutting red tape in the energy sector and to speed up new oil and gas permits, while also announcing the launch of a new oil and gas sector funded Energy Security Trust aimed at developing technologies to help wean U.S. vehicles off oil.
President Obama noted that the recent U.S. boom in natural gas had led to cleaner power and greater energy independence.
"That's why my Administration will keep cutting red tape and speeding up new oil and gas permits. But I also want to work with this Congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and water," Obama said.....Read the entire Rigzone article.
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President Obama noted that the recent U.S. boom in natural gas had led to cleaner power and greater energy independence.
"That's why my Administration will keep cutting red tape and speeding up new oil and gas permits. But I also want to work with this Congress to encourage the research and technology that helps natural gas burn even cleaner and protects our air and water," Obama said.....Read the entire Rigzone article.
Check out our new stock selection strategy
Thursday, February 14, 2013
Ever Wonder How to Find That "Perfect" Stock?
A must watch video from Todd, Doc, and Dave at Trading Concepts.......
With over 7,000 possible candidates, it can be overwhelming, even impossible at times, to know exactly what to look for. You're already trying to find the right stock trading strategy for placing your entry and getting out at the right price, and sometimes even that's not happening the way you hoped.
You want to trade stocks for supplementary income... build up that IRA... or, heck, maybe even go full time one of these days - but the reality is you also have a life outside of trading. And the last thing you want to do is waste all your time trying to find a stock that doesn't perform!
So you wonder: Will I be able to make stock trading work for me?
Can I find a way to select stocks that have a higher probability of making money, using a lot less of my own time? Is there an easy to understand strategy for quickly selecting stocks, using my own broker or free tools? As it turns out, there is such a strategy. And rather than trying to convince you on how powerful this is - I'm going to give it to you and let you see for yourself. Nothing to hide or buy.
You get our complete Stock Selection Strategy for narrowing over 7,000 stocks down to less than a dozen stocks in under 15 seconds.
And hey, while we are giving you this stock selection strategy - there's something else you should know (and a lot of people are going to be pretty angry at me). If you want me to let you in on a dirty Wall Street secret, designed to stack the odds against you - watch this now!
With over 7,000 possible candidates, it can be overwhelming, even impossible at times, to know exactly what to look for. You're already trying to find the right stock trading strategy for placing your entry and getting out at the right price, and sometimes even that's not happening the way you hoped.
You want to trade stocks for supplementary income... build up that IRA... or, heck, maybe even go full time one of these days - but the reality is you also have a life outside of trading. And the last thing you want to do is waste all your time trying to find a stock that doesn't perform!
So you wonder: Will I be able to make stock trading work for me?
Can I find a way to select stocks that have a higher probability of making money, using a lot less of my own time? Is there an easy to understand strategy for quickly selecting stocks, using my own broker or free tools? As it turns out, there is such a strategy. And rather than trying to convince you on how powerful this is - I'm going to give it to you and let you see for yourself. Nothing to hide or buy.
You get our complete Stock Selection Strategy for narrowing over 7,000 stocks down to less than a dozen stocks in under 15 seconds.
And hey, while we are giving you this stock selection strategy - there's something else you should know (and a lot of people are going to be pretty angry at me). If you want me to let you in on a dirty Wall Street secret, designed to stack the odds against you - watch this now!
Key Onshore Crude Oil Production Basins
The growth in U.S. crude oil production over the past several years has come largely from onshore basins in which exploration and production (E&P) companies are most active Currently, the most important basins for production growth are......
* The Williston Basin in North Dakota and Montana, which includes the Bakken Formation
* The Western Gulf Basin in south Texas, which includes the Eagle Ford Formation
* The Permian Basin in West Texas and southeast New Mexico, which includes the Spraberry and Wolfcamp formations
Notice that the counties with at least one producing well from 2008 to present are shaded. Basins are represented with dashed outlines. The seven model regions are indentified with leading numbers in legend.
Click here to see the EIA complete short term energy outlook supplement.
Check out our newest stock selection service
* The Williston Basin in North Dakota and Montana, which includes the Bakken Formation
* The Western Gulf Basin in south Texas, which includes the Eagle Ford Formation
* The Permian Basin in West Texas and southeast New Mexico, which includes the Spraberry and Wolfcamp formations
Notice that the counties with at least one producing well from 2008 to present are shaded. Basins are represented with dashed outlines. The seven model regions are indentified with leading numbers in legend.
Click here to see the EIA complete short term energy outlook supplement.
Check out our newest stock selection service
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