UPL $47.81 Ultra Petroleum ** Stopped $46.00 **
Ultra rebounded on Monday to $53.55 before falling victim to the oil crash and futures selling. We were stopped out by -90 cents and I would have put them back into the mix were it not for earnings on Tuesday.
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, exit $3.90, -1.20 (10/20)
Entry $50.55 (10/16)
CHK - $29.55 Chesapeake Energy ** Stopped $30.00 **
CHK collapsed on Tuesday but held its ground right at our stop the rest of the week. I considered adding CHK as a new play but the unexpected jump in gas reserves suggests caution until a new trend develops.
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, exit $2.95, -1.25 (10/19)
Entry $32.60 (10/16)
ECA - $48.75 - Encana ** Stop Loss $45.00 **
Encana held above uptrend support and was the only play not stopped out. Rumors that Shell was going to make a $65 offer sent ECA to $55 on Thursday but the rumor proved to be untrue. Earnings should be strong but keep your stop tight and take no chances.
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 - $61.26 - EOG Resources ** Stopped $63.25 **
EOG broke down sharply on Tuesday and Wednesday and the short term chart suggests it was one seller nibbling away at it both days. After a brief rebound on Wednesday it was knocked for a -$6 loss on Thursday. Not a good week for EOG.
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, exit $3.00, -2.20 (10/19)
Entry $70.50 (10/11)
DVN - $58.07 - Devon Energy ** Stopped $58.50 **
Devon suffered the same fate as EOG and the short-term 30-min chart patterns are almost exactly identical. Somebody was exiting a big position and taking no prisoners.
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, exit $2.70, -2.10 (10/20)
Entry $64.50 (10/11)
TSO - $55.26 - Tesoro Corp ** Stopped $53.75 **
Tesoro fell below uptrend support and did not stop until it broke the 100-day average at $54.20. TSO has no hurricane exposure and has been running at 100% capacity. The short term chart pattern is the same EOG and DVN suggesting a large fund was dumping all their energy at the same time.
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, exit $3.20, -1.20 (10/19)
NOV - $57.66 - National Oilwell Varco ** Stopped $53.50 **
NOV actually posted a gain for the week after a brief dip to $53.15 and stopping us out by 35 cents. It was an opening gap down on Wednesday and it quickly recovered but was no help to us.
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, exit 3.10, -1.00 (10/19)
Entry $57.50 (10/13)
BTU - $73.88 Peabody Energy ** Stopped $73.00 **
Peabody really frustrated me this week. After spiking to $83.52 it fell to $72.45 after missing earnings by a penny. You would think +100% earnings growth would be good enough but profit takers were ready to pull the trigger. We were stopped out by only 55 cents. Fortunately we only lost a dime on the trade plus commissions. We missed +$4 in profit but only lost a dime.
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, exit $6.20, -0.10 (10/20)
Entry $74.65 (10/09)