RRC - $29.42 - Range Resources ** Stop Loss $25.50 **
RRC continued to rise despite the drop in oil as it is primarily a gas driller/producer. RRC exploded out of the gate on Thursday after issuing guidance that they were going to report a record quarter for Q2. With gas prices still climbing I believe this will be a very good play.
Range Resources Corporation (RRC) is an independent natural gas and oil company engaged in the exploration, development and acquisition of oil and gas properties, primarily in the Southwestern, Appalachian and Gulf Coast regions of the United States. As of December 31, 2004, RRC has proved reserves of 1.18 trillion cubic feet (Tcfe) of natural gas equivalent, of which 81% natural gas; 64% is proved developed reserves, and 77% operated with a reserve life of 14.9 years. The Company owns 2,428,000 gross (1,890,000 net) acres of leasehold plus over 400,000 royalty acres. RRC has a multi-year inventory of drilling projects that includes over 5,000 identified drilling locations. On June 23, 2004, RRC purchased the 50% of the remaining Great Lakes that it did not own. In December 2004, RRC also purchased additional Appalachian properties through the purchase of PMOG Holdings, Inc, a private company, or Pine Mountain.
Dec 2005 $30 CALL RRC-LF @ $2.90
Entry $30.50 (7/13)
APA - $66.83 - Apache ** Stop Loss $62.00 **
This entry did not work out as expected. Bullishness in APA led it to spike over our breakout entry despite the miss by Dennis. The Thursday drop in oil knocked -$5 off the APA price. As with all the oils I believe it is only temporary but it is painful.
Apache Corporation is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. In North America, the exploration and production interests are focused in the Gulf of Mexico, the Gulf Coast, the Permian Basin, the Anadarko Basin and the Western Sedimentary Basin of Canada. The Company has interests in seven countries, such as the United States, Canada, Egypt, Australia, the United Kingdom, China and Argentina. Its segments are the United States, Canada, Egypt, Australia, North Sea and Other International. On August 20, 2004, Apache signed a definitive agreement to acquire all of Anadarko's Gulf of Mexico-Outer Continental Shelf properties (excluding certain deepwater properties). During the year ended December 31, 2004, the Company participated in drilling 1,913 gross wells, with 1,735 (90.7%) completed as producers.
JAN 2008 $75 LEAP CALL YWA-AO @ $13.70
Entry $70.50 (7/12)