A Pair of Value Aces and Two Growth Kings
We’ve added BP (NYSE: BP) and ConocoPhillips (NYSE: COP) to The Energy Strategist’s Conservative Portfolio in recognition of lucrative asset sales, ample cash flow and a renewed focus on shareholder returns. BP is aggressively repurchasing shares with divestiture proceeds now that the Gulf oil spill has stopped draining resources. ConocoPhillips has spun off refining operations and has ample capital to pursue promising returns in unconventional North American oil plays while continuing to grow a generous dividend. Buy BP below $56 and COP below $73. For more information on these picks, see the story in the Feb. 12 issue of The Energy Strategist.
We’ve also added Rice Energy (NYSE: RICE) and Jones Energy (NYSE: JONE) to The Energy Strategist’s Aggressive Portfolio. Both of the recent IPO’s are fast-growing efficiency leaders in their respective plays, Rice in the Marcellus and the Utica and Jones in the Cleveland play of the Anadarko Basin in the Texas Panhandle. Buy RICE below $27 and JONE below $21. For more information on these picks, see the story in the Feb. 12 issue of The Energy Strategist.
We’ve also added Rice Energy (NYSE: RICE) and Jones Energy (NYSE: JONE) to The Energy Strategist’s Aggressive Portfolio. Both of the recent IPO’s are fast-growing efficiency leaders in their respective plays, Rice in the Marcellus and the Utica and Jones in the Cleveland play of the Anadarko Basin in the Texas Panhandle. Buy RICE below $27 and JONE below $21. For more information on these picks, see the story in the Feb. 12 issue of The Energy Strategist.
Stock Talk
Thomas Lewis
Your recent recommendation of Jones Energy (JONE) has taken a hit. What do you think caused this, and is it still a recommendation?
Tom
Igor Greenwald
Jones was down following its 2014 guidance and operations update, which may have been muddled a bit by apparently inconclusive early returns from a new fracking technique the company is trying. The Q4 update was in line with expectations, and this is a cost leader in its play that will grow production 30 percent this year (based on its proven drilling methods, not the recent experimental ones) largely out of cash flow, and very few drillers can make that claim. But the float is small, the stock is underfollowed, and volatility is the result. I added in relatives’ retirement accounts on the weakness.
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