Best Gas Companies To Buy For 2014

Over the course of the last few months many investors have been holding on to Linc Energy Ltd (LNCGY.PK) in the hopes that the company's potentially massive shale oil discovery in the Arckaringa Basin of Australia would pay off. The following will explore the potential upsides and downsides of owning a position in Linc Energy despite the prevalent difficulties and costs international natural gas companies are presently facing.

At the beginning of this year, Linc Energy reported a discovery of what was predicted to be anywhere from 3.5-233 billion barrels of recoverable oil under 16 million acres of land owned by the company. Though the costs of recovery may be rather costly, due to the expenses behind hydraulic fracking (the necessary drilling process to obtain shale oil) the amount of recoverable oil still has a minimum value of $359 billion and maximum value, which is estimated to be upwards of $20 trillion. It is expected that the initial costs involved in enabling production are around $300 million. That being said, the costs to begin production are irrelevant when juxtaposed with the potential gains in the region. If the reports analyzing the discovery of the shale oil reserves are confirmed through drilling, then the gains will be enormous with relation to the company's stock value. In addition, the confirmation of such a discovery would put Australia on par with Saudi Arabia with regards to oil production in the global marketplace. However there are certain issues that may hamper the company's progress in the future that should be considered.

Hot Trucking Companies To Invest In 2015: Markwest Energy Partners LP (MWE)

MarkWest Energy Partners, L.P. (MarkWest Energy) is a master limited partnership engaged in the gathering, processing and transportation of natural gas; the transportation, fractionation, storage and marketing of natural gas liquids (NGLs), and the gathering and transportation of crude oil. It provides services in the midstream sector of the natural gas industry. The Company also provides processing and fractionation services to crude oil refineries in the Corpus Christi, Texas area through its Javelina gas processing and fractionation facility. As of December 31, 2011, the Company operated in four segments: Southwest, Northeast, Liberty and Gulf Coast. Effective December 31, 2011, the Company acquired the remaining 49% interest in MarkWest Liberty Midstream. On February 1, 2011, the Company acquired Langley processing plant.

Southwest Segment

The Company owns a system in East Texas that consists of natural gas gathering pipelines, centralized compressor stations, a natural gas processing facility and an NGL pipeline. The East Texas system is located in Panola, Harrison and Rusk Counties and services the Carthage Field. Producing formations in Panola County consist of the Cotton Valley, Pettit, Travis Peak and Haynesville formations. During the year ended December 31, 2011, approximately 77% of its natural gas volumes in the East Texas System result from contracts with six producers. The Company sells substantially all of the purchased and retained NGLs produced at its East Texas processing facility to Targa Resources Partners, L.P. (Targa) under a long-term contract. Such sales represent approximately 19.4% of its consolidated revenue in 2011.

The Company owns a natural gas gathering system in the Woodford Shale play in the Arkoma Basin of southeast Oklahoma. The liquids-rich natural gas gathered in the Woodford system is processed through Centrahoma Processing LLC (Centrahoma), its equity investment, or other third-party processors. In addition, it owns the Foss Lake! natural gas gathering system and the Western Oklahoma natural gas processing complex, all located in Roger Mills, Beckham, Custer and Ellis Counties of western Oklahoma. The gathering portion consists of a pipeline system that is connected to natural gas wells and associated compression facilities. The Company also owns a gathering system in the Granite Wash formation in Wheeler County in the Texas panhandle that is connected to its Western Oklahoma processing complex. The Company completed the expansion of the Western Oklahoma natural gas processing plant in October 2011.

Approximately 70% of its Oklahoma volumes result from contracts with three producers in 2011. The Company sells substantially all of the NGLs produced in the Western Oklahoma processing complex to ONEOK Hydrocarbon L.P. (ONEOK) under a long-term contract. Such sales represent approximately 13.2% of its consolidated revenue in 2011. The Company owns a number of natural gas gathering systems located in Texas, Louisiana, Mississippi and New Mexico, including the Appleby gathering system in Nacogdoches County, Texas. It gathers a portion of the gas produced from fields adjacent to its gathering systems, including from wells targeting the Haynesville Shale. In addition, it owns four lateral pipelines in Texas and New Mexico.

Northeast Segment

The Company�� Northeast segment assets include the Kenova, Boldman, Cobb, Kermit and Langley natural gas processing plants, an NGL pipeline and the Siloam NGL fractionation plant. In addition, it has two caverns for storing propane at its Siloam facility and additional propane storage capacity under a long-term firm-capacity agreement with a third party. The Northeast segment operations include fractionation and marketing services on behalf of the Liberty segment. The Company owns and operates a crude oil pipeline in Michigan (Michigan Crude Pipeline) providing transportation service for three shippers.

Liberty Segment

The Company pr! ovides na! tural gas midstream services in southwestern Pennsylvania and northern West Virginia through MarkWest Liberty Midstream. It is a processor of natural gas in the Marcellus Shale, with gathering, processing, fractionation, storage and marketing operations.

Utica Segment

Effective January 1, 2012, the Company and The Energy and Minerals Group (EMG) formed MarkWest Utica EMG, a joint venture focused on the development of natural gas processing and NGL fractionation, transportation and marketing infrastructure to serve producers' drilling programs in the Utica shale in eastern Ohio. During 2011, the Utica Segment did not have any operations.

Gulf Coast Segment

The Company owns and operates the Javelina processing facility, a natural gas processing facility in Corpus Christi, Texas that treats and processes off-gas from six local refineries operated by three different refinery customers. As of December 31, 2011, the Company owned a 40% interest in Centrahoma Processing LLC (Centrahoma), a joint venture with Cardinal Midstream, LLC (Cardinal). Centrahoma owns certain processing plants in the Arkoma Basin and Cardinal operates an additional processing plant that is not owned by Centrahoma but is located adjacent to and operates in conjunction with the Centrahoma plants.

Advisors' Opinion:

• [By Arjun Sreekumar]

  1 midstream company to watch
  But the company that has perhaps invested most aggressively in Utica infrastructure is MarkWest Energy Partners (NYSE: MWE  ) . In just the past year alone, it has completed 60 miles of gathering pipelines, commenced operations at two major gas plants in the region, and hammered out agreements with a handful of major operators, including Gulfport Energy (NASDAQ: GPOR  ) , Antero Resources, PDC Energy, Rex Energy, and ��most recently ��CNX.

• [By Ben Levisohn]

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• [By Callum Turcan]

  The Utica Marcellus Texas Pipeline is being constructed by another�joint venture, but this time�between�Kinder Morgan Energy Partners and MarkWest Energy Partners (NYSE: MWE  ) . In order for NGL producers to want to use the new�pipeline, they need to know someone at the end of the line will be able to buy and process their product. Kinder Morgan Energy Partners is nice enough to offer both the logistics and the processing capacity to allow America's energy boom to happen.�

• [By David Dittman]

  Question: Thoughts on MarkWest Energy Partners LP (NYSE: MWE)? I live in Western Pennsylvania, and MarkWest hass been laying pipeline everywhere.

  Answer: The pullback since mid-March offers a good opportunity to buy MarkWest Energy under 66. Management recently boosted the quarterly distribution rate by 1.2 percent and increased the MLP’s revolving credit facility to $1.3 billion and extended its maturity by 18 months to March 2019.

Best Gas Companies To Buy For 2014: Genesis Energy LP (GEL)

Genesis Energy, L.P. (Genesis) is a limited partnership focused on the midstream segment of the oil and gas industry in the Gulf Coast region of the United States, primarily Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and in the Gulf of Mexico. The Company has a portfolio of customers, operations and assets, including pipelines, refinery-related plants, storage tanks and terminals, barges and trucks. Genesis provides an integrated range of services to refineries, oil, natural gas and carbon dioxide (CO2) producers, industrial and commercial enterprises that use sodium hydrosulfide (NaHS) and caustic soda, and businesses that use CO2 and other industrial gases. The Company operates in three segments: Pipeline Transportation, Refinery Services, and Supply and Logistics. In August 2011, the Company acquired black oil barge transportation business of Florida Marine Transporters, Inc. In November 2011, it acquired a 90% interest in a 3,500 barrel per day refinery located in Converse County, Wyoming, including 300 miles of abandoned 3- 6 pipeline. On January 3, 2012, it acquired interests in several Gulf of Mexico crude oil pipeline systems, including its 28% interest in the Poseidon pipeline system, its 29% interest in the Odyssey pipeline system, and its 23% interest in the Eugene Island pipeline system. In August 2013, the Company announced that it has completed the acquisition of all the assets of the downstream transportation business of Hornbeck Offshore Transportation, LLC (Hornbeck).

Pipeline Transportation

The Company transports crude oil and carbon dioxide (CO2) for others for a fee in the Gulf Coast region of the United States through approximately 550 miles of pipeline. Its Pipeline Transportation segment owns and operates three crude oil common carrier pipelines and two CO2 pipelines. Its 235-mile Mississippi System provides shippers of crude oil in Mississippi indirect access to refineries, pipelines, storage terminals and other crude oil infrastructure ! located in the Midwest. Its 100-mile Jay System originates in southern Alabama and the panhandle of Florida and provides crude oil shippers access to refineries, pipelines and storage near Mobile, Alabama. The Company�� 90-mile Texas System transports crude oil from West Columbia to several delivery points near Houston. Its crude oil pipeline systems include access to a total of approximately 0.7 million barrels of crude oil storage.

The Company�� Free State Pipeline is an 86-mile, 20 CO2 pipelines that extends from CO2 source fields near Jackson, Mississippi, to oil fields in eastern Mississippi. It has a twenty-year transportation services agreement (through 2028) related to the transportation of CO2 on its Free State Pipeline.

Refinery Services

Genesis provides services to eight refining operations located in Texas, Louisiana and Arkansas, which operates storage and transportation assets in relation to its business and sell NaHS and caustic soda to industrial and commercial companies. The refinery services involve processing refiner�� sulfur (sour) gas streams to remove the sulfur. The refinery services also include terminals and it utilizes railcars, ships, barges and trucks to transport product. Its contracts are long-term in nature and have an average remaining term of four years.

Supply and Logistics

The Company provides services to Gulf Coast oil and gas producers and refineries through a combination of purchasing, transporting, storing, blending and marketing of crude oil and refined products, primarily fuel oil. It has access to a range of more than 250 trucks, 350 trailers and 50 barges with 1.5 million barrels of terminal storage capacity in multiple locations along the Gulf Coast, as well as capacity associated with its three common carrier crude oil pipelines.

Advisors' Opinion:

• [By Marc Bastow]

  Midstream oil and gas MLP Genesis Energy (GEL) raised its quarterly distribution 2.5% to 52.25 cents per share, payable Nov. 14 to unitholders of record as of Nov. 1.
  GEL Dividend Yield: 4.25%

• [By Aimee Duffy]

  Distributions are incredibly important to master limited partnerships -- they are the reason many investors buy in, and ultimately what drive the market performance for this asset class. As news of distribution increases trickle in for the third quarter, Fool.com contributor Aimee Duffy takes a look at the payouts from Genesis Energy (NYSE: GEL  ) , Plains All American Pipeline (NYSE: PAA  ) , and Memorial Production Partners (NASDAQ: MEMP  ) , as all three MLPs are leading the way with the biggest distribution increases.

Best Gas Companies To Buy For 2014: Target Energy Ltd (TEXQY)

Target Energy Limited is an Australia-based company engaged in the development, production and exploration of oil and gas in the United States of America. During the fiscal year ended June 30, 2012, the Company continued to develop and explore its oil and gas prospects in Texas and Louisiana. The Snapper wells in St Martin Parish, the Pine Pasture #1 and #2 wells in the East Chalkley field, the Merta #1 well at the Highway 71 prospect continued to produce. The Merta #1 well at the Highway 71 prospect continued to produce. Drilling commenced in the Fairway project on September 10, 2011, with the BOA 12 #1 well being completed as a producer. On August 12, 2012, the Darwin #1 well was drilled to a total depth of 3,070 meter. It is located three kilometer north-east of the BOA wells and will test both the Wolfberry and Fusselman formations. The Company�� subsidiaries include TELA (USA) Inc, TELA Louisiana Limited Inc, TELA Texas Holdings Limited Inc and Target Energy Limited. Advisors' Opinion:

• [By CRWE]

  Target Energy Limited (OTCQX:TEXQY, ASX:TEX) (http://targetenergy.com.au/) is an oil and gas exploration and production company listed on the Australian Securities Exchange and trading under ticker “TEX” and OTC Markets trading under ticker “TEXQY”.

  Today�(July 10), Target Energy Limited ticker (OTCQX:TEXQY) had remained (0.00%) +0.000 at $6.48 thus far (ref. google finance 12:34PM EDT�July 10, 2013), and Target Energy Limited on the Australian Securities Exchange ticker (ASX:TEX) had surged (+9.68%) +0.006 at $.068 with�106,557 shares in play at the close (ref. google finance July 10, 2013 – Close).

  Target Energy Limited previously reported that the company is continuing drilling operations at the Pine Pasture #3 oil well on their East Chalkey Oil Field in Parish, Louisiana. The Company had independent studies which indicated that put upside recoverable reserves for Pine Pasture #3 range between 250,000 and 450,000 barrels of oil. In addition, the report also revealed that the East Chalkey Field has an upside estimate of 4 million barrels of oil.

Best Gas Companies To Buy For 2014: Memorial Production Partners LP (MEMP)

Memorial Production Partners LP incorporated on April 4, 2011, is a limited partnership formed by Memorial Resource to own, acquire and exploit oil natural gas properties in North America. As of December 31, 2012, the Company�� total estimated proved reserves were approximately 609 Billions of Cubic Feet Equivalent (Bcfe), of which approximately 62% were natural gas and 59% were classified as proved developed reserves. As of December 31, 2012, the Company produced from 1,671 gross (731 net) producing wells across its properties, with an average working interest of 44%. On April 1, 2012, it acquired oil and natural gas producing properties in East Texas from Memorial Resource Development LLC. In May 2012, it acquired oil and natural gas properties in East Texas and North Louisiana. Effective April 1, 2012, the Company acquired certain oil and natural gas properties in East Texas from Memorial Resource Development LLC. In October 2012, the Company acquired oil and natural gas properties in East Texas from Goodrich Petroleum Corporation. On December 12, 2012, the Company acquired oil and gas producing properties offshore Southern California from Rise Energy Partners, LP. In March 2013, the Company announced that it has closed its acquisition of certain oil and natural gas producing properties in East Texas and North Louisiana from its sponsor, Memorial Resource Development LLC. In September 2013, Memorial Production Partners LP closed two separate transactions to acquire certain oil and natural gas properties from third parties in East Texas and in the Rockies. In October 2013, the Company acquired oil and natural gas properties in the Permian Basin, East Texas, and the Rockies.

The Company�� properties are located in South and East Texas and consist of mature, legacy onshore oil and natural gas reservoirs. The Partnership Properties consist of operated working interests in producing and undeveloped leasehold acreage and in identified producing wells in South and East Texas, and non-ope! rated working interests in producing and undeveloped leasehold acreage. As of December 31, 2012, approximately 58% of its estimated proved reserves and approximately 53% of its average daily net production were located in the East Texas/North Louisiana region. Its East Texas/Louisiana properties include wells and properties located in Navarro, Anderson, Wood, Upshur, Gregg, Harrison, Rusk, Panola, Leon, Polk, Smith, Tyler and Shelby Counties, Texas and De Soto and Lincoln Parishes, Louisiana. Its East Texas/North Louisiana properties include properties in the Joaquin and Carthage fields in Panola and Shelby Counties, the Willow Springs field located in Gregg County, the East Henderson field located in Rusk County, and the Terryville field located in Lincoln Parish.

As of December 31, 2012, approximately 27% of its estimated proved reserves and approximately 35% of average daily net production were located in the South Texas region. Its South Texas properties include wells and properties in numerous natural gas weighted fields located in McMullen, Live Oak, Duval, Jim Hogg, Webb and Zapata Counties, Texas, including the NE Thompsonville, Laredo and East Seven Sisters fields. The Company�� South Texas properties contained 167 Bcfe of estimated net proved reserves as of December 31, 2012. The Company�� Beta properties, consist of a 51.75% working interest and a 35.03% average net revenue interest in three Pacific Outer Continental Shelf blocks (P-0300, P-0301 and P-0306); a 4.575% overriding royalty interest in the Beta unit; a 51.75% undivided interest in two wellbore production platforms with permanent drilling equipment systems and one production handling and processing platform, and a 51.75% controlling equity interest in a 17.5-mile pipeline and an onshore tankage and metering facility. The Company�� Beta properties include a 51.75% undivided interest in Ellen and Eureka platforms. The Beta properties include a controlling interest in the San Pedro Bay Pipeline Company, which owns a! nd operat! es a 16-inch diameter oil pipeline.

Advisors' Opinion:

• [By Lee Jackson]

  Memorial Production Partners L.P. (NASDAQ: MEMP) also has�seen a tremendous amount of insider buying. As of the end of last year, the company had 609 billion cubic feet of natural gas equivalents. Oppenheimer has put a $24 price target on the stock, and the consensus target is at $24.50. Investors are paid a 10.1% distribution.

• [By Robert Rapier]

  Memorial Production Partners (Nasdaq: MEMP) is another upstream MLP, but the majority of its reserves are natural gas. The partnership operates in east Texas, northern Louisiana, south Texas and offshore Southern California. In July, it acquired additional assets in the Permian Basin and in the Rockies. Total proved reserves are just over 1 trillion cubic feet of natural gas equivalent.