You wouldn’t necessarily know this from the performance of the benchmark Alerian MLP Index, which has corrected sideways from May highs and has significantly underperformed the broader energy sector as well as the S&P 500 over that span.
But note that the largest IPO of the year took place only last week and related to a master limited partnership, as insiders raised $2.7 billion from the sale of a minority stake in Plains GP Holdings (NYSE: PAGP), the incorporated repository of general-partner interests and incentive distribution rights in Plains All American Pipeline L.P. (NYSE: PAA), one of the largest MLPs.
According to Hinds Howard of MLP HINDSight, PAGP’s resulting indicative yield of 2.7 percent was the lowest ever for a GP offering. The lower the yield, of course, the stronger the investor demand and growth expectations. So even though the deal priced at the bottom of the forecast range, investors still paid top dollar based on comparable past transactions.
Top 10 Small Cap Companies To Invest In Right Now: InterOil Corp (IOC)
InterOil Corporation (InterOil), incorporated on August 24, 2007, is an integrated energy company operating in Papua New Guinea and the surrounding Southwest Pacific region. InterOil operates in four segments: upstream, midstream, downstream and corporate. The upstream segment explores, appraises and develops crude oil and natural gas structures in Papua New Guinea. This segment also manages its construction business, which services the development projects underway in Papua New Guinea. The midstream segment produces refined petroleum products at Napa Napa in Port Moresby, Papua New Guinea for the domestic market and for export. It is developing liquefaction and associated facilities in Papua New Guinea for the export of liquefied natural gas (LNG). The downstream segment markets and distributes refined products domestically in Papua New Guinea on a wholesale and retail basis.
During 2012, it sold approximately 13% of its refined petroleum products to Pacific Energy Aviation (PNG) Ltd for aviation refueling at Papua New Guinea�� international airport in Port Moresby. The corporate segment provides support to the other business segments by engaging in business development and improvement activities and providing general and administrative services and management, undertakes financing and treasury activities, and is responsible for government and investor relations. This segment also manages the Company�� shipping business, which operates two vessels transporting petroleum products for it�� and external customers, both within PNG and for export in the South Pacific region.
Upstream - Exploration and Production
InterOil�� upstream business segment focuses on the development program for the Elk, Antelope and Triceratops fields. The Elk and Antelope fields are onshore gas fields with contingent resources. As at December 31, 2012, it had interests in three PPLs and one PRL in Papua New Guinea covering 3,996,453 gross acres, all of which were operated by the Co! mpany. PPLs 236, 237 and 238 and PRL 15 are located onshore in the Eastern Papuan Basin, northwest of Port Moresby. It undertook exploration activities in its three exploration licenses, PPL 236, PPL 237 and PPL 238. These exploration activities involved a regional airborne geophysical survey, various seismic surveys across a number of prospects and preparation for drilling of its next appraisal well, Triceratops 2, which was spudded in mid-January 2012.
As of December 31, 2012, the Company had a 100% working interest in PPL 236. The license consists of 53 graticular blocks covering an area of 4,502 square kilometers or 1,112,464 acres. As of December 31, 2012, the Company had a 100% working interest in PPL 237. The license consists of 34 graticular blocks covering an area of 3,238 square kilometers or 715,648 acres. As of December 31, 2012, the Company had a 100% working interest in PPL 238. The license consists of 94 graticular blocks covering an area of 7,922 square kilometers or 1,978,565 acres.
Midstream
The Company�� refinery is located across the harbor from Port Moresby, the capital city of Papua New Guinea. Its refinery is the sole refiner of hydrocarbons located in Papua New Guinea. Jet fuel, diesel and gasoline are the primary products that the Company produces for the domestic market. The refining process also results in the production of two Naphtha grades and low sulfur waxy residue. Papua New Guinea is its principal market for the products its refinery produces, other than Naphtha and LSWR. Its refinery is fully certified to manufacture and market Jet A-1 fuel to international specifications and markets this product to both domestic Papua New Guinea and overseas airlines.
Downstream - Wholesale and Retail Distribution
The Company has the wholesale and retail petroleum product distribution base in Papua New Guinea. This business includes bulk storage, transportation distribution, aviation, wholesale and retail facilities! for refi! ned petroleum products. Its downstream business supplies petroleum products nationally in Papua New Guinea through a portfolio of retail service stations and commercial customers. As of December 31, 2012, InterOil provided petroleum products to 53 retail service stations with 43 operating under the InterOil brand name and the remaining 10 operating under their own independent brand. Of the 53 service stations that the Company supplies, 16 are either owned by or head leased to it, which it then sublease to company-approved operators. The remaining 37 service stations are independently owned and operated. It also provides fuel pumps and related infrastructure to the operators of the majority of these retail service stations that are not owned or leased by the Company under cover of equipment loan agreement. Its retail business accounted for approximately 15% of its total downstream sales during 2012. Its retail and wholesale distribution business distributes diesel, jet fuel, avgas, gasoline, kerosene and fuel oil, as well as branded commercial and industrial lubricants, such as engine and hydraulic oils.
The Company competes with ExxonMobil.
Advisors' Opinion:- [By Dan Caplinger]
Outside the Dow, InterOil (NYSE: IOC ) has soared more than 10% after announcing results for its first quarter. The company, which has extensive natural-gas reserves in Papua New Guinea, recorded lower profit for the quarter on a 3.6% rise in revenue. More important than these results, though, is whether InterOil can secure a partner for its planned liquefied-natural-gas project in the island nation. That will be the key to whether InterOil can get its gas to lucrative Asian markets and cash in on its massive opportunity.
- [By Lisa Levin]
InterOil (NYSE: IOC) shares reached a new 52-week low of $50.60. InterOil's PEG ratio is -2.01.
Linktone (NASDAQ: LTON) shares touched a new 52-week low of $1.30. Linktone's trailing-twelve-month operating margin is -20.15%.
- [By Robert Rapier]
InterOil Corporation (NYSE: IOC) advertises itself as an integrated energy company operating in Papua New Guinea and the surrounding region. The company has four segments: upstream, midstream, downstream and corporate. The upstream segment explores, appraises and develops crude oil and natural gas structures in Papua New Guinea.
- [By Travis Hoium]
What: Shares of energy explorer InterOil (NYSE: IOC ) jumped 12% today after the company released earnings.
So what: First-quarter revenue rose 3.6% to $350.3 million and topped the $331.5 million estimate from Wall Street. Net income fell 58% to $4.0 million, or $0.08 per share, but analysts were expecting a $0.12 loss per share.
Best Sliver Stocks To Own Right Now: Diamond Offshore Drilling Inc. (DO)
Diamond Offshore Drilling, Inc. operates as an offshore oil and gas drilling contractor worldwide. It provides offshore drilling services in both the floater market, such as ultra-deepwater, deepwater, and mid-water; and in the non-floater and jack-up markets. The company operates a fleet of 44 offshore drilling rigs, consisting of 32 semisubmersibles, 7 jack-ups, and 5 dynamically positioned drillships, of which 4 are under construction. It serves independent oil and gas companies, and government-owned oil companies. The company was founded in 1989 and is headquartered in Houston, Texas. Diamond Offshore Drilling, Inc. is a subsidiary of Loews Corporation.
Advisors' Opinion:- [By Ben Levisohn]
The overwhelming majority of Loews can be valued as the sum of its three largest subsidiary businesses that also have publicly trading stock: CNA Financial (CNA), Diamond Offshore (DO) and Boardwalk Pipeline�(BWP). The sum of these stakes is equivalent to 97.7% of the market capitalization of Loews. For almost ��ree,��imknvestors also get ownership of Boardwalk�� B shares and general partnership, a small national hotel chain, natural gas and oil E&P HighMount and the $4B in fungible assets on Loews�� corporate balance sheet…
- [By Ben Levisohn]
Diamond Offshore Drilling (DO) hit black gold with its earnings release today–and gave the beaten-down sector a boost, as Transocean (RIG), Seadrill (SDRL) and Noble Corp. (NE) all posted big gains.
ReutersHeading into today, it had been a tough, tough year for the offshore drillers as investors bet that the market for rigs would be weak. Transocean had lost 15% including reinvested dividends, while Noble Corp. had dropped 16%, Diamond Offshore had declined 13% and Seadrill, which one analyst had described as being in a bit of a pickle, had fallen 17%.
The came Diamond Offshore’s earnings. It reported a profit of 93 cents a share, beating analyst forecasts for 65 cents. Cowen’s J.B. Lowe explains how Diamond Offshore managed to beat expectations:
Contract drilling expenses were the main driver of earnings outperformance compared to our estimates; opex of $370 million was well below our $412 million estimate and guidance of $405-$425 million for the quarter. Diamond managed to record better-than-expected cost containment results across all segments of the floater market; in particular, deepwater expenses outperformed, at $72 million versus our $90 million forecast.
To top it off, Diamond Offshore also announced that it would pay a special cash dividend of 75 cents a share and some new short-term contracts for some of its drill fleet.� “We believe the beat combined with a slightly positive fleet status report and the announcement that the company has actively been repurchasing shares should result in shares trading higher,” Wunderlich Securities analyst Todd Scholl said in a report released before the open.
Trading higher might be an understatement. Shares of Diamond Offshore have gained 9.2% to $53 at 1:50 p.m. today–and cut its year-to-date price drop to just 6.9%. Diamond Offshore’s earnings also boosted the shares of Transocean, which has risen 4.3% to $43.21, Seadrill, which ha
Best Sliver Stocks To Own Right Now: Diana Containerships Inc.(DCIX)
Diana Containerships Inc. owns and operates containerships in Greece. The company engages in the seaborne transportation of semi-finished and finished consumer and industrial products. As of February 23, 2012, its fleet consisted of 8 containerships with a carrying capacity of approximately 32,693 twenty-foot equivalent units. Diana Containerships Inc. was founded in 2010 and is based in Athens, Greece.
Advisors' Opinion:- [By Monica Gerson]
Diana Containerships (NASDAQ: DCIX) is projected to report its Q1 earnings at $0.01 per share on revenue of $13.22 million.
Intrawest Resorts Holdings (NYSE: SNOW) is expected to post its Q3 earnings at $2.69 per share on revenue of $294.89 million.
Best Sliver Stocks To Own Right Now: Ishares Gold Trust (IAU)
ishares Gold Trust (the Trust), incorporated on January 21, 2005, is to own gold transferred to the Trust in exchange for shares issued by the Trust (Shares). Each Share represents a fractional undivided beneficial interest in the net assets of the Trust. The assets of the Trust consist of gold held by the Trust�� custodian on behalf of the Trust. The sponsor of the Trust is BlackRock Asset Management International Inc. (the Sponsor). The trustee of the Trust is The Bank of New York Mellon (the Trustee) and the custodian of the Trust is JPMorgan Chase Bank, N.A., London branch (the Custodian).
The activities of the Trust are limited to issuing Baskets of Shares in exchange for the gold deposited with the Custodian as consideration; selling gold as necessary to cover the Sponsor�� fee, Trust expenses not assumed by the Sponsor and other liabilities, and delivering gold in exchange for Baskets of Shares surrendered for redemption. It does not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the price of gold.
Advisors' Opinion:- [By Peter Pham]
Although the Fed doubled its bond buying last September, the top gold exchange-traded funds, or ETFs, including SPDR Gold Shares (NYSEMKT: GLD ) , iShares Gold Trust (NYSEMKT: IAU ) , and ETFS Physical Swiss Gold Shares (NYSEMKT: SGOL ) , have dropped around 25% each over the last 12 months, which speaks to gold's extreme vulnerability to QE tapering. Even the mere mention of tapering seems to send gold into a tailspin, as seen with SPDR Gold Shares, which has plunged 24% year to date and also suffered massive losses with its physical holdings. Market Vectors Gold Miners ETF (NYSEMKT: GDX ) has suffered a massive drop of 48% so far in 2013, making it one of the worst-performing ETFs this year.
- [By Dan Caplinger]
Moreover, historians point to the 1933 executive order that required individuals to deliver gold coins, bullion, and certificates to banks in exchange for regular currency at a rate of $20.67 per ounce as being functionally equivalent to confiscation. With the government proceeding to devalue the dollar to $35 per gold ounce the following year, those who complied with the order suffered a substantial loss of purchasing power. Indeed, many gold investors use that same argument in arguing against bullion ETFs SPDR Gold Trust (NYSEMKT: GLD ) , iShares Gold (NYSEMKT: IAU ) , and iShares Silver Trust (NYSEMKT: SLV ) , preferring instead to take physical possession of their gold and silver to ensure its safekeeping themselves.
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