Wednesday's earnings....Devon Energy [DVN], Murply Oil Corp. [MUR] and Phillips 66 [PSX]

Phillips 66 (NYSE: PSX), an energy manufacturing and logistics company, announces first quarter earnings of $1.4 billion compared with earnings of $636 million in the first quarter of 2012. Adjusted earnings were $1.4 billion, an increase of $617 million from the first quarter of 2012.

“We achieved strong financial results in the first quarter by capturing favorable chemicals and refining margins,” said Greg Garland, chairman and chief executive officer. “Operating excellence is our top priority, and in the first quarter we continued to improve upon our solid safety and environmental performance. We also are investing in the continued growth of our business. Our plans for a new natural gas liquids fractionator on the Gulf Coast reinforce our commitment to the American energy landscape and highlight our unique opportunities across the downstream value chain.”

“Increasing shareholder distributions remains a key component of our strategy and value proposition. During the quarter, we paid an increased dividend and repurchased $382 million of stock as part of our $2 billion share repurchase program. Since the company’s inception a year ago, we have returned $1.2 billion of capital to shareholders through dividends and share repurchases,” Garland concluded......Read the entire Phillips 66 earnings report.

Devon Energy Corporation (NYSE:DVN) today reported a net loss of $1.3 billion or $3.34 per common share ($3.34 per diluted share) for the quarter ended March 31, 2013. The quarterly loss was attributable to a $1.9 billion non cash asset impairment charge primarily related to lower oil and natural gas liquids pricing. Adjusting for this non cash charge and other items securities analysts typically exclude from their published estimates, the company earned $270 million or $0.66 per diluted share in the first quarter of 2013.

Devon continued to deliver strong oil production growth in the first quarter of 2013. Companywide oil production averaged 162,000 barrels per day, a 14 percent increase compared to the first quarter of 2012 and an 8 percent increase over the fourth quarter of 2012. Driven by the Permian Basin, the most significant growth came from the company’s U.S. operations, where oil production increased 23 percent year over year.

Total production of oil, natural gas and natural gas liquids increased to an average of 687,000 oil equivalent barrels (Boe) per day in the first quarter. This exceeded the top end of the company’s guidance by 2,000 barrels per day. First quarter production benefited from better-than-expected results across several core development assets, including Jackfish and Cana-Woodford......Read the entire Devon Energy earnings report.

Murphy Oil Corp. (NYSE: MUR) announced today that net income in the first quarter of 2013 was $360.6 million ($1.88 per diluted share), compared to net income of $290.1 million ($1.49 per diluted share) in the first quarter of 2012. The first quarter of 2013 included income from discontinued operations of $152.6 million ($0.80 per diluted share) compared to income of $8.6 million ($0.05 per diluted share) in 2012.

The 2013 discontinued operations results primarily related to a gain on sale of two oil and natural gas properties in the United Kingdom during the quarter. Income from continuing operations was $208.0 million ($1.08 per diluted share) in the first quarter 2013, down from $281.5 million ($1.44 per diluted share) in the 2012 quarter.

Income from continuing operations declined in the 2013 quarter compared to 2012 due primarily to higher expenses for exploration, administration, financing and income taxes. Better results for the Company’s downstream operations partially offset these higher expenses......Read the entire Murphy Oil Corp. earnings report.


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Does this concern you? Let's look at the "Macro Trend of the Markets"

Great post from our trading partner Doc Severson this morning.....

The Bureau of Labor Statistics stated 60% more seniors are working today than they were 10 years ago. Isn't that shocking? There are some clear reasons for this.

When I was a kid, I was told to "save for retirement" and invest in the stock market. This was good advice when bank interest rates were upwards of 10%, and you could count on the S&P making regular advancements. But over the last 13 years, people are only now starting to see the writing on the wall.

Back in the day, the macro trend of the markets steadily climbed from the mid-70s UNTIL the peak in 2000.

But since the crash in 2000, we've seen nothing but sideways trading for the last 13 years and interest rates at an all time low. During the same time, we also had two major crashes, and well.....who knows what could happen by the end of the year.

So what's next?

I'd rather not pretend to predict the market. Instead, I'll continue to trade a robust trading plan, proven to generate a consistent monthly income during the same time most people have struggled.

It's a system that's taken me years to develop, and is uniquely designed to use a combination of non-directional strategies, semi directional strategies, and directional strategies. This way your trading results are independent of market direction!

Not only will I teach you how to trade these trading strategies, when you enroll in OptionsMD today, I'll take you by the hand to show you exactly what I plan to trade, how I plan to trade it, and let you see my open trades.

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Kinder Morgan Completes Acquisition of Copano Energy KMP CPNO

COT fund favorite Kinder Morgan Energy Partners (NYSE: KMP) today closed its previously announced acquisition of Houston based Copano Energy (NASDAQ:CPNO). KMP has acquired all of Copano’s outstanding units for a total purchase price of approximately $5 billion, including the assumption of debt. The transaction, which was approved by the Copano unitholders on April 30 (with more than 99 percent of the units that voted voting in favor of the transaction) and previously by the boards of directors of both companies, is a 100 percent unit for unit transaction with an exchange ratio of .4563 KMP units per Copano unit.

“We are delighted to complete this transaction, which will enable us to significantly expand our midstream services footprint and offer a wider array of services to our customers,” said KMP Chairman and CEO Richard D. Kinder. “We will now pursue incremental development in the Eagle Ford Shale play in South Texas, and gain entry into the Barnett Shale Combo in North Texas and the Mississippi Lime and Woodford shales in Oklahoma. The transaction is expected to be modestly accretive to KMP in 2013, given the partial year, and about $0.10 per unit accretive for at least the next five years beginning in 2014”......Read the entire Kinder Morgan press release.


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Tuesdays earnings.... Valero Energy [VLO] and Exco Resources [XCO]

EXCO Resources (NYSE:XCO) today announced first quarter results for 2013. Adjusted net income, a non GAAP measure adjusting for gains from asset sales, non cash gains or losses from derivative financial instruments (derivatives), non cash ceiling test write downs and other items typically not included by securities analysts in published estimates, was $0.13 per diluted share for the first quarter 2013 compared to $0.03 per diluted share for the first quarter2012.

Adjusted earnings before interest, taxes, depreciation, depletion and amortization, gains on asset sales, ceiling test write downs and other non cash income and expense items (adjusted EBITDA, a non GAAP measure) for the first quarter 2013 were $96 million compared with $111 million in the first quarter 2012.

GAAP results were net income of $158 million, or $0.74 per diluted share, for the first quarter 2013 compared with a net loss of $282 million, or $1.32 per diluted share, for the first quarter 2012. The first quarter 2013 includes a $187 million gain from the contribution of 74.5% of our interests in certain conventional properties to our partnership with Harbinger Group Inc. (HGI). The first quarter 2012 net loss was primarily due to a $276 million non-cash ceiling test writedown of oil and natural gas properties......Read the entire Exco Resources earnings report.

Valero Energy Corp. (NYSE:VLO) today reported net income attributable to Valero stockholders of $654 million, or $1.18 per share, for the first quarter of 2013 compared to a net loss attributable to Valero stockholders of $432 million, or $0.78 per share, for the first quarter of 2012. Included in the first quarter 2012 results was a noncash asset impairment loss of $605 million after taxes, or $1.09 per share, predominately related to the Aruba refinery.

First quarter 2013 operating income was $1.1 billion versus an operating loss of $244 million in the first quarter of 2012. Excluding the noncash asset impairment loss noted above, first quarter 2012 operating income was $367 million. The resulting increase in operating income of approximately $700 million in 2013 was primarily due to higher refining throughput margins in each of Valero's operating regions, except the U.S. West Coast. The increase in refining throughput margins was mainly due to an increase in margins for diesel and jet fuel and wider discounts on crude oil and feedstocks......Read the entire Valero Energy earnings report.


No reason to get left behind....The OptionsMD Mentoring Program is now available

No reason to get left behind....The OptionsMD Mentoring Program is now available

2013 will go down as the year that options trading became "the buzz" in the stock market world. And regardless of the claims made by the internet promoters or the talking heads and their guest on TV they sure didn't make it any easier to understand options trading or even where to get started.

One of our trading partners, underground Options trader Doc Severson, is opening a new version of his mentoring program. The OptionsMD Mentoring Program, and it is now available for the first time since he sold out over 6 months ago.

Whether you are new to trading options or you are an experienced fund manager you need to get on board for you or your clients sake.

If you know anything about Doc, then you know he's doing things with options trading that most people have never even heard of. And now, he's offering his mentoring program with an unbelievable one year 100% money back PLUS $500 performance guarantee.

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Lot's of talk out there about equities putting in a top at these levels. And professional fund managers aren't dealing with it on their own, why should you? If you're struggling with a topping market or not making the amount of money you think you should be making, there's nothing better than to be mentored by someone that really has a strategy that works no matter which way the market turns.

This is the first release like this where traders are sending us emails trying to get us to have Doc release it early to them. Because of the personal support that Doc and his team provide it truly is offered to a limited number of traders. That's not some marketing ploy we all see everyday on the internet. Once it's closed, it's closed.

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See you in the markets!
Ray C. Parrish
The Crude Oil Trader


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Are you ready? Gold Traders and Investors Better Get Ready To Rumble!

We have talked about how gold, silver and gold mining stocks have been flying under the media radar for over a year and that they were not catching the attention of traders, investors and the public anymore. I also said it would take some sharp price action (breakdown or rally) for it to be front and center again on TV, Radio and Newspapers.

But since gold has plummeted 17.5% dropping from $1600 down to $1320 per ounce with silver and gold stocks falling also they are now headline news once again. This move has caused some serious damage to the charts when looking at it from a technical analysis point of view. Below are some basic analysis points that show a new swing trading entry point.

The Technical Traders Chart Analysis

Broken Support – Once a support level has been broken it becomes resistance. Gold is trading under a major resistance level.

Momentum Bursts - Since the April 15th low, gold has been setting up for another short selling entry point. Remember the market tends to move in bursts of three, seven or ten days then price reverses direction or pauses. It has now been 10 days.

Moving Average Resistance – Gold has worked its way up to the 20 day moving average which can act as resistance.

Bearish Inside Bars – This type of chart pattern points to lower prices. When there is a big down day followed by 3, 7 or 10 up days inside the price action of the down bar we can typically expect another sharp drop which tests the recent lows as shown with the arrow on the chart.



Gold Short Selling Conclusion:

In short, gold is setting up for a low risk entry point that should allow us to profit from lower gold prices. Using an inverse ETF like DZZ or even the gold mining stock inverse ETF DUST could be played. These funds go up in value as the price of gold falls.

While I expect gold to pullback, I do not think it will make another leg lower. Instead, a test of the recent low or pierce of the low by a few bucks then reverse and start building a bullish basing pattern before going higher.

From our trading partner Chris Vermeulen.

Click here to get his Book, free of charge, and "Learn How To Manage Your Trades, Money & Emotions"

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Monday's Earnings Reports.....Atlas Pipeline Partners [APL] and Ensco [ESV]

Atlas Pipeline Partners (NYSE: APL) today reported adjusted earnings before interest, income taxes, depreciation and amortization ("Adjusted EBITDA"), of $67.7 million for the first quarter of 2013, driven primarily by a continued increase in volumes across the Partnership's gathering and processing systems. Processed natural gas volumes averaged 1,033 million cubic feet per day ("MMCFD"), a 63% increase over the first quarter of 2012.

Distributable Cash Flow was $43.5 million for the first quarter of 2013, or $0.67 per average common limited partner unit, compared to $35.2 million for the prior year's first quarter. The Partnership recognized a net loss of $27.5 million for the first quarter of 2013, which included a $26.6 million loss on the early retirement of the Partnership's 8.75% Senior Notes due 2018, compared with net income of $6.5 million for the prior year first quarter.

Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures, which are reconciled to their most directly comparable GAAP measures in the tables included at the end of this news release. The Partnership believes these measures provide a more accurate comparison of the operating results for the periods presented......Read the entire Atlas Pipeline Partners earnings report.

Ensco plc (NYSE: ESV) reported diluted earnings per share from continuing operations of $1.36 in first quarter 2013, compared to $1.20 per share in first quarter 2012. Discontinued operations primarily related to rigs and other assets no longer on the Company’s balance sheet resulted in a loss of $0.05 per share a year ago. Diluted earnings per share increased 18% year to year to $1.36 from $1.15 in first quarter 2012.

Earnings increased $52 million to $317 million and operating income grew 17% to $402 million on record revenues of $1.150 billion in first quarter 2013. These increases were driven by a $28,000 increase in the average day rate and a 6% increase in floater rig days as new rigs were added to the active fleet......Read the entire Ensco earnings report.

Make sure to catch all of Doc Severson's video series and download the PDF's while the links still work....

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If you've been struggling with making money and just want to find a simpler way to manage your accounts and draw a regular paycheck you need to watch this video now. Doc's road map is broken down into a 4 step process that can almost bullet proof your income from ever getting slammed by the market again.

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After watching the presentation please feel free to leave a comment and let us [and our readers] know what you really think about Doc's new system. And since you can put this method right to work...no matter what the size of account is....we'll see you in the markets next week.

Ray C. Parrish
The Crude Oil Trader

Where is the Larger Bubble: the S&P 500 Index or U.S. Treasuries?

Today we have a plethora of companies reporting earnings and are moving through the 1st Quarter earnings season at a rapid pace. Thus far, earnings have been far from exciting and have made the previous 2013 forward earnings estimates laughable.

The only way we get to the proposed valuations is through multiple expansion which is simply going to require the Federal Reserve to continue to pump $85 billion into Treasury’s and MBS securities each month. I am confident they will comply.

There are a few analysts out there who are discussing the potential bubble forming in equities and other risk assets as Bernanke’s plan is working to the extent that asset prices are rising. However, even fewer analysts are pointing out that both retail and institutional money is constantly chasing yield at this point.

Simply take a look at the 2013 price action in high yield dividend paying stocks, high yield bonds, preferred stocks, and master limited partnerships. It is safe to say that a bubble has formed not just in equities, but in various fixed investments as well.

Consider the following chart of the S&P 500 Index (SPX) shown as the dotted trendline and Johnson & Johnson (JNJ) shown as the solid black line.....Read the entire article "Where is the Larger Bubble: the S&P 500 Index or U.S. Treasuries"


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Friday's Earnings.....Chevron [CVX], National Oilwell Varco [NOV] and Total [TOT]

Chevron Corporation (NYSE: CVX) today reported earnings of $6.2 billion ($3.18 per share – diluted) for the first quarter 2013, compared with $6.5 billion ($3.27 per share – diluted) in the 2012 first quarter. Sales and other operating revenues in the first quarter 2013 were $54 billion, down from $59 billion in the year - ago period, mainly due to lower prices for crude oil.

“Our first quarter earnings were strong, ”said Chairman and CEO John Watson. “Our consistent financial performance has enabled us to significantly increase the dividend again, and fund major development projects that are the foundation of the company’s future growth in production, earnings and cash flows.” “Our key development projects remain on track,” Watson added.

“Construction is progressing well on the Gorgon and Wheatstone LNG projects in Australia. Important milestones have been reached recently for our Jack/St. Malo and Big Foot deepwater projects in the Gulf of Mexico, and both remain on schedule for start - up in 2014”......Read the entire Chevron earnings report.

National Oilwell Varco (NYSE: NOV) today reported that for its first quarter ended March 31, 2013 it earned net income of $502 million, or $1.17 per fully diluted share, compared to fourth quarter ended December 31, 2012 net income of $668 million, or $1.56 per fully diluted share. The first quarter 2013 results included transaction costs primarily related to the Robbins & Myers acquisition and Venezuela currency devaluation charges, which combined for a total of $73 million in pre tax costs and charges. Excluding these costs and charges, earnings were $553 million, or $1.29 per fully diluted share.

Revenues for the first quarter of 2013 were $5.31 billion, a decrease of seven percent from the fourth quarter of 2012 and an increase of 23 percent from the first quarter of 2012. Operating profit for the quarter, excluding the transaction charges, was $816 million, or 15.4 percent of sales. Sequentially, first quarter operating profit decreased 14 percent, while year-over-year first quarter operating profit decreased seven percent......Read the entire National Oilwell Varco earnings report.

Total (TOT) reports 1st quarter adjusted net profit -7.1% to €2.86B, slightly below consensus of €2.95B. Net profit -58% to €1.54B, due to higher taxes and a €1.25B loss related to the sale of a Canadian oil sands project. Revenues -6% to €48.13B. Oil prices -5%. As expected, oil and gas output -2% to 2.32M barrels of oil equivalent a day, with the decline due to the shutdown of the U.K.'s Elgin-Franklin gas fields, natural decline rates, and maintenance. Remains confident of achieving targets. Total declares a 1st quarter dividend of $0.59 per share, unchanged from previous quarter. ADR timetable: Ex dividend date September 19th, record date September 23, Payment date October 15th......Read the entire Total earnings report.

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