STR - $77.42 Questar ** Stopped $77.50 **
The selling on Thursday knocked -$6 off Questar and Friday's rebound regained half of that. The outlook is still good for STR but we are not going to reenter at this time. STR did not return to prior uptrend support at $80 and although it did not reach the 100-day average the beating left bruises. Maybe after earnings we will reenter if a new uptrend develops.
Earnings: Oct 26th (estimate)
Questar Corporation (Questar) is a natural gas focused energy company with three principal lines of business gas and oil exploration and production, interstate gas transmission, and retail gas distribution. Questar conducts most of its operations through its subsidiaries Questar Market Resources (Market Resources), Questar Pipeline Company and Questar Gas Company (Questar Gas). Market Resources is a sub-holding company that owns Questar Exploration and Production Company (Questar E&P), Wexpro Company (Wexpro), Questar Gas Management Company (Gas Management) and Questar Energy Trading Company (Energy Trading). Questar Pipeline provides interstate natural gas transmission, storage and gas processing and treating services. Questar Gas conducts retail natural gas distribution.
APR 2006 $90 CALL STR-DR @ $6.10, exit $3.10, -3.00
Entry $86 (10/04)
BTU - $77.68 Peabody Energy ** Stop Loss $73.00 **
Peabody is my hero! BTU is the only stock in the portfolio that was not stopped out and actually finished with a gain for the week! A move over $79 would trigger additional buying and confirmation of a new uptrend.
** CAUTION - earnings are OCT-18th **
Peabody Energy Corporation (Peabody) is a private-sector coal company in the world. During the year ended December 31, 2004, the Company sold 227.2 million tons of coal. It sells coal to over 300 electricity generating and industrial plants in 16 countries. The Company owns, through its subsidiaries, majority interests in 32 coal operations located throughout all the United States coal producing regions and in Australia. Most of the production in the western United States is low-sulfur coal from the Powder River Basin. In the West, it owns and operates mines in Arizona, Colorado, New Mexico and Wyoming. In the East, it owns and operates mines in Illinois, Indiana, Kentucky and West Virginia. The Company owns four mines in Queensland, Australia. Most of the Australian production is low-sulfur, metallurgical coal. In addition to the mining operations, the Company markets, brokers and trades coal.
MAR 2006 $80 CALL BTU-CP @ $6.30
Entry $74.65 (10/09)
UPL $50.55 Ultra Petroleum ** Stopped $48.00 **
Ultra was whacked with the sector losing -$5 on Thursday. By the close on Friday it had returned to within a buck of its Wednesday close. I reinstated UPL as a current play today.
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 @ $5.70, exit $3.80, -1.90
CHK - $32.60 Chesapeake Energy ** Stopped $31.00 **
CHK only lost -$3 in the Thursday crash and held up better than most of the sector. All the news is good surrounding CHK and I reinstated it as an active play today.
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 @ 5.30, exit $3.70, -1.60
Entry $33.99 (10/09)
BR - $70.06 Burlington Resources ** Stopped $68.00 **
BR took the hit along with the rest of the crowd and is now trading below support. Despite the strong gas play here there is some hurricane exposure. We will wait until after earnings for a new trend to develop before reentering.
Burlington has over 12 trillion CF of gas reserves and onshore gas in the U.S. accounts for more than 85% of their production. BR is very well positioned to profit from a continuing rise in gas prices.
Earnings Schedule: Oct-18th
Burlington Resources Inc. is one of the world's largest independent oil and natural gas exploration and production companies, and holds one of the industry's leading positions in North American natural gas reserves and production. Our hallmarks include long-life reserves, strong cash flow generation and high expertise in producing from complex geologic reservoirs. Our reserves base of 12 trillion cubic feet equivalent of natural gas at year-end 2004 was concentrated in North America, which supplies nearly 85 percent of current production, with a key focus being the Rocky Mountain gas fairway of the U.S. and Canada.
Burlington's producing areas include the giant San Juan Basin Field of New Mexico and Colorado, where Burlington is the leading producer; Wyoming's highly productive Madden Field; the Williston Basin of North Dakota; the Anadarko Basin in Oklahoma; the Barnett Shale and Bossier trends in Texas, and South Louisiana. Major Canadian production comes from the Deep Basin, O'Chiese, Foothills, Northern Plains, Kaybob and Southern Plains areas. We also produce natural gas in the East Irish Sea, the Dutch North Sea, Argentina and China, and oil in Algeria, offshore China and Ecuador. With headquarters in Houston, we employ more than 2,200 people.
Buy FEBRUARY $80 Call BR-BP @ $3.90, exit $1.85, -2.05
Entry $72.71 (10/09)
SWN - $68.13 Southwestern Energy ** Stopped $68.00 **
SWN started selling a day before the rest of the sector and gave up nearly -$10 from Tuesday to Thursday's lows. The strong rebound on Friday did not rebuild my confidence after such a strong beating.
Earnings: Oct 28th
Southwestern Energy Company is an
integrated energy company headquartered in
Houston, Texas, primarily focused on the exploration for and production of
natural gas. Originally organized in 1929 as a local natural gas distribution
company in Arkansas, today the Company is involved in many different activities.
Buy DEC-$80 Call SWN-LP @ $5.10, exit $4.20, -0.90
Entry $72.00 (10/9)
KMG $85.32 Kerr McGee ** Stopped $84.00 **
KMG actually rebounded above its Thursday open and erased all the end of week losses. However, we still got stopped at $84 and I want to see a rebound above $89.00 (Tuesday's high) before reentering. We were killed on the exit and I am gun shy.
Kerr-McGee Corporation (Kerr-McGee) is an energy and inorganic chemical holding company whose consolidated subsidiaries, joint ventures and other affiliates (together, affiliates) have operations throughout the world. The Company's core businesses include exploration and production, and chemicals. Kerr-McGee's oil and gas exploration and production areas are onshore in the United States, in the Gulf of Mexico, the United Kingdom sector of the North Sea and China. In addition, the Company has exploration programs in Alaska, Brazil, Morocco, Bahamas and Benin. Kerr-McGee affiliates engaged in chemical businesses produce and market inorganic industrial chemicals, lithium-metal-polymer batteries and heavy minerals. On June 25, 2004, the Company completed a merger with Westport Resources Corporation. On Oct 7th, 2005, the Company announced its decision to proceed with the proposal to spin off its chemical business in Q4-2005.
APRIL $90 Call KMG-DR @ $7.40, exit $4.30, -3.10
Entry $87.59 (10/9)