UPL $50.55 Ultra Petroleum ** Stop Loss $46.00 **
Ultra was rebounding nicely until Thursday morning when the bottom fell out taking it all the way back to $46.50. There was no news and the dip was quickly bought. I tightened the stop this time around and another break below last weeks low will take us out for the last time.
Earnings Schedule: Oct-25th
Ultra Petroleum Corp. is an oil and gas company engaged in the development, production, operation, exploration and acquisition of oil and gas properties. The Company's operations are focused in the Green River Basin of southwest Wyoming and Bohai Bay, offshore China. During the year ended December 31, 2004, it owns interests in approximately 166,974 gross (92,997 net) acres in Wyoming covering approximately 260 square miles. The Company owns working interests in approximately 241 gross productive wells in this area and is operator of 41.5% of the 241 gross wells. Through Pendaries Petroleum Ltd., it is active in oil and gas exploration and development in Bohai Bay, China. The Company also owns interests in 15,518 gross (14,652 net) acres in Pennsylvania, as well as interest in approximately 720 gross (320 net) acres and interests in three productive wells in Texas.
March $60 Call UPL-CL @ $5.10
Entry $50.55 (10/16)
CHK - $32.60 Chesapeake Energy ** Stop loss $30.00 **
CHK also fell on no news on Thursday to stop out our play from last week. The low of $30.20 also corresponds to the longer-term uptrend in the stock. CHK earnings is later than most and hopefully they will occur at a much higher level.
Earnings Schedule: Nov-4th (approx)
Chesapeake Energy Corporation is an oil and natural gas exploration and production company engaged in the acquisition, exploration and development of properties for the production of crude oil and natural gas from underground reservoirs and the marketing of natural gas and oil for other working interest owners in properties that it operates. The Company's properties are located in Oklahoma, Texas, Arkansas, Louisiana, Kansas, Montana, Colorado, North Dakota and New Mexico. The proved oil and natural gas reserves as of December 31, 2004 were approximately 4.9 trillion cubic feet of gas equivalent (tcfe). At December 31, 2004, approximately 89% of the Company's proved reserves (by volume) were natural gas, and approximately 70% of its proved oil and natural gas reserves were located in the primary operating area, the Mid-Continent region of the United States, which includes Oklahoma, western Arkansas, southwestern Kansas and the Texas Panhandle.
APRIL $35 CALL CHK-DG @ 4.20
Entry $32.60 (10/16)
ECA - $49.11 - Encana ** Stop Loss $45.75 **
Encana retreated to uptrend support just like the rest of the crowd and triggered our breakdown entry at $48.50 on Thursday. Encana should not see any negative impact from the hurricanes and sales of gas should have expanded to fill the available pipeline capacity.
Earnings Schedule: Oct 26th
EnCana Corporation is an independent crude oil and natural gas exploration and production company. Its key landholdings are in western Canada, the United States Rocky Mountains, Ecuador, the United Kingdom central North Sea, offshore Canada's East Coast and the Gulf of Mexico. EnCana explores for, produces and markets natural gas, crude oil and natural gas liquids (NGLs) in Canada and the United States. EnCana is also engaged in exploration and production activities internationally including production from Ecuador and the United Kingdom central North Sea. EnCana has interests in midstream operations and assets, including natural gas storage, NGLs gathering and processing facilities, power plants and pipelines.
APR 2006 $55 CALL ECA-DK @ $4.80
Entry $48.50 (10/13)
EOG - $66.83 - EOG Resources ** Stop Loss $63.25 **
EOG rallied to trigger our breakout level at $70.50 on Tuesday by only +30 cents before crashing back to earth with the rest of the sector. The sharp drop on Thursday gave us a solid stop for the current play although we are underwater at present.
Earnings schedule: Nov-2nd
EOG Resources, Inc. (EOG) explores for, develops, produces and markets natural gas and crude oil primarily in major producing basins in the United States, Canada, offshore Trinidad, the United Kingdom North Sea and, from time to time, select other international areas. At December 31, 2004, EOG's total estimated net proved reserves were 5,647 billion cubic feet equivalent (Bcfe), of which 5,047 billion cubic feet (Bcf) were natural gas reserves and 100 million barrels (MMBbl), or 600 Bcfe, were crude oil, condensate and natural gas liquids reserves. At such date, approximately 50% of EOG's reserves (on a natural gas equivalent basis) were located in the United States, 25% in Trinidad, 24% in Canada and 1% in the United Kingdom North Sea. EOG's operations are all natural gas and crude oil exploration and production related.
APR 2006 $80 CALL EOG-DP @ $5.20
Entry $70.50 (10/11)
DVN - $62.03 - Devon Energy ** Stop Loss $58.50 **
Devon retreated to support at $60 but not before triggering the breakout stop at $64.50 on Tuesday. The selling on Thursday knocked nearly -$5 off the price with a strong rebound on Friday recovering much of the loss.
Earnings Schedule: Nov-2nd
Devon Energy Corporation (Devon) is an independent energy company engaged primarily in oil and gas exploration, development and production, the acquisition of producing properties, the transportation of oil, gas and natural gas liquids (NGLs) and the processing of natural gas. Devon operates oil and gas properties in the United States, Canada and various regions located outside North America. Devon's North American properties are concentrated within five geographic areas. Operations in the United States are focused in the Permian Basin, the Mid-Continent, the Rocky Mountains and onshore and offshore Gulf Coast. Canadian properties are focused in the Western Canadian Sedimentary Basin in Alberta and British Columbia. Properties outside North America are located primarily in Azerbaijan, China, Egypt, and areas in West Africa, including Equatorial Guinea, Gabon and Cote d'Ivoire.
APR 2006 $70 CALL DVN-DN @ $4.80
Entry $64.50 (10/11)
TSO - $57.24 - Tesoro Corp ** Stop Loss $53.75 **
Tesoro fell below uptrend support and did not rebound until hitting the 100-day average at $53.56. Tesoro is a west coast refiner and has no hurricane exposure. Profits should be high due to high gasoline prices and no capacity restrictions.
Earnings Schedule: Nov-3rd
Tesoro Corporation, is an independent refiner and marketer of petroleum products with two major operating segments, Refining and Retail. Through its refining segment, the Company manufactures products, primarily gasoline and gasoline blendstocks, jet fuel, diesel fuel and heavy fuel oils for sale to a variety of commercial customers principally in the mid-continental and western United States. It operates six refineries in the United States with a combined rated crude oil capacity of 558,000 barrels per day. During the year ended December 31, 2004, approximately 50% of the Company's total refining throughput was heavy crude oil. Its retail segment distributes motor fuels through a network of branded gas stations, primarily trading under the Tesoro and Mirastar brands. The Company markets its products to wholesale and retail customers, as well as commercial end users. On November 8, 2004, the Company changed its name to Tesoro Corporation.
FEB 2006 $65 CALL TSO-BM @ $4.40
Entry $58.50 (10/13)
NOV - $56.40 - National Oilwell Varco ** Stop Loss $53.50 **
NOV had a record $1.2 billion backlog of orders as of August 5th. After two damaging hurricanes that backlog should have grown with increased profits as demand sent prices higher. NOV retreated back to uptrend support at the 100-day average at $54 on the 13th and rebounded Friday with the rest of the sector. The price of oil should not be as critical for NOV but earnings guidance will be the key.
Earnings Schedule: Oct-28th
National-Oilwell Varco Inc., formerly National-Oilwell, Inc. designs, manufactures and sells systems, components and products used in oil and gas drilling and production, as well as distributes products and provides services to the exploration and production segment of the oil and gas industry. The Company's Products and Technology segment designs and manufactures complete land drilling and workover rigs, as well as drilling-related systems on offshore rigs. Non-capital revenue sources within its Products and Technology segment include drilling motors and specialized downhole tools that are sold or rented, spare parts and service on the large installed base of its equipment, expendable parts for mud pumps and other equipment and smaller downhole, progressive cavity and transfer pumps. Company's Distribution Services segment provides maintenance, repair and operating supplies and spare parts to drill site and production locations throughout North America and to offshore contractors.
FEB 2006 $60 CALL NOV-BL @ $4.10
Entry $57.50 (10/13)