Bakken Stocks Are Booming!

Dynamic Wealth Report  |  Friday, September 14, 2012 The Quickest, Easiest Way To Profit From Rising Commodity Prices Commodity prices are soaring across the board and if you're not making money... then you're being left behind! But the good news is... the bull market is just getting started! Read all about it in this FREE report. Bakken Stocks Are Booming! By Justin Bennett After a lackluster first half of the year, Bakken based oil exploration stocks are quickly getting back in good graces with investors.  In fact, companies operating in this specific region are some of the market's leading performers over the past few months. Take a look… As you can see, Oasis Petroleum (OAS), EOG Resources (EOG), and Continental Resources (CLR) are galloping higher in recent trading.  Look even closer and you'll find these Bakken focused stocks are vastly outperforming the S&P 500 (pink line) since June 1st. Why are investors all the sudden going bonkers for the Bakken? After all, it wasn't long ago that US based unconventional oil exploration stocks as a whole were in the gutter.  Investors were selling OAS, EOG, and CLR with reckless abandon earlier this year. What's changed? Well, let's get the obvious out of the way first.  The stock market as whole is strong and oil has rallied back near $98 a barrel.  These two factors are a clear tailwind for oil stocks no matter where they operate. But there's something else going on… Maybe you don't realize it, but crude prices differ from region to region here in the US.  And as recently as June 2012, Bakken crude was trading at a $14 discount to West Texas Intermediate Crude (WTIC). That means when WTIC was trading at $80 in June, Bakken producers were getting a mere $66 a barrel.  Clearly, that's not what you want to see if you're an oil producer like Oasis or Continental. But now the price disparity is swinging the other direction… Ever since June went by the wayside, Bakken crude has made a phenomenal turnaround.  As a matter of fact, oil from the Williston Basin is now trading at a $5 premium to WTIC.  As a result, Bakken producers are now getting in the neighborhood of $103 a barrel. What's behind the rally in Bakken crude? First of all, the Seaway pipeline reversal is quickly reducing the oil glut at the Cushing, Oklahoma supply hub.  As you may know, the Seaway runs from Cushing, down to the many refineries surrounding Houston, Texas.  This timely reversal is allowing more crude to flow out of the Bakken, thereby giving it a hefty price boost. And that's not all… Railroads are playing an increasing role in transporting crude out of the Bakken.  In fact, Tesoro (TSO) received their first trainload of Bakken crude at their Washington State refinery on September 4th.  The refiner expects nearly 50,000 barrels a day will be transported by rail to this facility going forward. What does all this add up to? … Bakken takeaway capacity is increasing. You see, takeaway capacity is the ability to transport oil out of the fields and into refineries.  The better the takeaway capacity, the quicker (and cheaper) it is to get oil to market.  And if there's one thing that's held Bakken oil producers back, it's insufficient takeaway capacity. But this problem is slowly reversing.  Pipeline companies and railroad operators are working feverishly to put additional transportation infrastructure into the Bakken. Doing so will get oil out of the region more efficiently. And here's the best part… Increasing takeaway capacity will greatly benefit Bakken oil producers.  In fact, we should see third quarter top and bottom line performance for OAS, EOG, and CLR improve drastically over recent quarters. So if you're looking to add oil stocks to your portfolio, keep Bakken focused producers at the top of your list! ***Editor's Note***  Yesterday our friend and colleague Gordon Lewis added a stock to his Penny Stock All-Stars Portfolio that he thinks just about every investor should buy.  It's a tiny company that has more cash in the bank than its entire market value... the kind of company Warren Buffett drools over!  Click here for more... Until Next Time, Justin Bennett An Urgent Opportunity For Aggressive Investors Only... These tiny stocks are RED-HOT! Right now, forces have aligned that signal the beginning of an immense bull market in one particular area of the market. The current boom has sent many stocks in this sector up 100%, 500%, even 1,000% in just the last few months! And the best part is the bonanza has just begun... Click here for all the details. Copyright 2012 Hyperion Financial Group, LLC.  All Rights Reserved.  Protected by copyright laws of the United States and international treaties. This email may only be used pursuant to the subscription agreement controlling use of the Dynamic Wealth Report website and any reproduction, copying, or redistribution of this email or its contents, in whole or in part, is strictly prohibited without the express written permission of Hyperion Financial Group, LLC. LEGAL DISCLAIMER: Neither Hyperion Financial Group LLC nor any of it's employees, contractors or officers are registered investment advisors or a Broker/Dealer. As such, Hyperion Financial Group, LLC does not offer or provide personalized investment advice. Although Hyperion Financial Group, LLC employees and contractors may answer general customer service questions, they are not licensed under securities laws to address your particular investment situation. Nothing in this report, nor any communication by our employees or contractors to you should be considered personalized investment advice. Owners and writers may have positions in the securities that are discussed. However, no associated employees or contractors may intentionally engage in any transaction that directly or indirectly competes with the interests of our subscribers. We accept no compensation from any companies mentioned in our reports. Past performance is no guarantee of future results. All information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell any security. 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