"Sorry Ma'am, We Can't Cash That"

The Daily Reckoning Weekend Edition presents... June 14, 2014     "Sorry Ma'am, We Can't Cash That"   How an elderly woman just outside of San Antonio, "Eunice Hansen," was shocked when two bank representatives denied her access to her money (and the strange way her story you lead you to a seven-figure fortune)... Plus, the one essay we recommend you absolutely read this week -- Matt Insley reveals the ticker symbols of four companies he believes will transform into tomorrow's "Big Oil"...     Keep this SECRET until June 17? A big announcement could be coming on June 17. It's not just any announcement… This could be the biggest medical story of 2014. It very well could improve the lives of millions of Americans, while generating billions of dollars… Can you keep a secret? Because we're taking a big chance telling you this… Go here for all the details.     Baltimore, Md. June 14, 2014 Peter Coyne, relaying a true story about an elderly woman... Until you hear the real story we're about to tell you, you probably won't appreciate the once-in-a-lifetime investment opportunity we've published for you today. It's the true tale of a day in the life of a gracious, elderly woman who made a simple request well within her rights, and was told no. To protect this sweetheart's identity, we're going to creatively call her Eunice Hansen. On that particular day, Eunice Hansen had good reason to head to her bank. In fact, it was her first trip there in a while. The task at hand seemed ordinary enough to her -- make a routine transaction. And for all intents and purposes, it was. Save for one very important detail. Eunice patiently made her way down her driveway and into her well-used Buick. She thought hard about which bank branch was nearest to her -- and shifted into drive. She lived in Gonzales, Texas. And the town of the bank branch she decided on was Shiner, we believe. About a 22-minute drive without traffic. Maybe 30 minutes tops. Anyway, after entering the bank building, the grandmotherly Eunice approached the teller innocently as could be… in equally measured steps… not too slow, not too fast. "We simply cannot cash this check for you." Until she got to the counter, stopped, gave the man opposite her a smile and then handed him the watermarked paper. There was a brief pause... "I'm sorry, ma'am," the young teller said within a few seconds of inspecting Eunice's check, "we… we can't cash that." "Pardon me?" Eunice said, politely confused. She wasn't hard of hearing, but figured she probably wasn't paying attention. "I said, I'm sorry," the man embarrassedly repeated. "But we're unable to cash this check." "Oh, I see," said Eunice, now certain of her confusion. "Well, may I see the bank manager, please?" "Of course, ma'am," he said. And he fetched the bank's president, who upon arrival gave Eunice's check a longer inspection and then regretfully repeated the same thing. "I'm sorry, ma'am," the bank president said, "but we simply cannot cash this check for you." Eunice furrowed her brow with a pleading look. "But surely you have $15,000 on hand," she said. "I'm sorry, ma'am," said the bank president again, with cheeks beet-red, "but that check is for $1.5 million." "I'm sorry, ma'am, but that check is for $1.5 million." A moment for reflection… Now, where could Eunice Hansen -- an elderly woman with no extraordinary talents -- possibly have gotten that kind of money? The answer's simple. Eunice collected royalties from a company that was drilling shale oil on her land in Gonzales, Texas. The town is within the Eagle Ford Formation -- one of the booming areas in the U.S. driving our energy renaissance. Why is that relevant to you? Because if you're not getting turned away from your teller for trying cashing too big a check just like Eunice -- you're probably doing something wrong. It may be hard to believe, but seven-figure fortunes are being made by thousands of ordinary people like you and Eunice. All you need to know where to invest a very small amount pot of money -- say, $500. As a 47-year-old we know recently told us: "There are literally thousands of people out here who are millionaires and some who are going to be billionaires." And you don't need to own land in Texas and lease it out to be drilled on to be one of them. As long as you have just $500 to start with, you can reliably turn that grubstake into a seven-figure fortune. Just like the story. There are just two steps to follow... First, click here right now to learn the specifics of raking in a seven-figure fortune, just like Eunice's. Then, read Matt Insley's essay below to learn the four companies he believes will be the next Exxons. We published this selection during this week and consider it mandatory (re)reading. Have a pen and paper handy so you can take down the ticker symbols he gives you. Once you are done, send us your thoughts, complaints or ramblings on the matter: peter@dailyreckoning.com     The New Swiss "Bank Account" Wall Street firms have poured almost $200 million into a new "underground banking system." Some are calling it "the new Swiss bank account." Regulators are confounded… but some investors have made as much as quadruple-digit returns already. Click here now to learn more.     In Case You Missed It...   Your Front Row Seat to the Next "Big Oil"   by Matt Insley   When it comes to America's shale boom your eyes shouldn't be on "big oil." Pardon me while I generalize substantially. But, big oil left the U.S. oil patch years ago. Companies went overseas, they went offshore, they started researching alternative fuels -- with each step they moved further from conventional oil production. These big companies were thinking conventionally. They thought the commercial amounts of U.S. oil were long-gone. And they were dead wrong. Small companies with determined owners cracked the code to America's shale plays. They thought unconventionally and it's paying dividends today -- for citizens and investors alike! That's why today we're going to revisit a list of companies that are on their way to becoming the next "big oil" players. Right here in the U.S. As these companies gear up production and start lowering costs with efficiencies we're in for a few Exxon-like run-ups. Just as Exxon got its start back in the U.S. oil patch, a few companies are set to ramp up production and grow larger than most Wall Street analysts would ever believe. It's THESE companies I urge you to focus on today, not the big oil companies, like Exxon. I've said it before but it's worth repeating, by some merits a company like Exxon has become too big for its own good. Sure, the scope of a big oil candidate like Exxon offers a "safer," more diversified investment. But if you're looking for a growth story you won't find it in Exxon. It's THESE companies I urge you to focus on today, not the big oil companies, like Exxon. Just think about it, Exxon is working all around the world, offshore, onshore, Middle East, non-Middle East, some harsh conditions, some not, basically anywhere they can find oil -- almost at any cost. Plus the company is also working on alternative energy solutions like biofuel. I have no clue how much the company spent last year on biofuel or other alternative technologies, but I bet it's a LARGE number. The companies that I want to share with you today don't have a biofuel budget. For the most part they don't have much international exposure or offshore activity. Simply put, these companies are focused on producing as much American oil as they can, as cheap as they can. That's exactly how Exxon got its start. And it's a winning strategy in today's domestic energy boom. So without further ado, let's revisit my list of explosive growth opportunities. The following list won't be long. But the companies I'm about to list hold immense growth potential. They all have lots of acreage in America's shale plays -- particularly in the hot spots, like Texas' Eagle Ford and North Dakota's Bakken. As production ramps up and more oil gets discovered (or "technology'd" out of the ground) these companies will grow well beyond Wall Street's modest expectations. Remember, the value of any company's share hinges on its future revenue stream. The companies you'll find below are about to tap rivers of cash… EOG Resources (EOG) -- market cap: $58 billion. EOG is a huge player in America's shale game. In particular the company holds some prime acreage in the Eagle Ford shale (as well as the Bakken and Permian shale plays.) The company expects to be a "best in class" crude oil growth story through (at least) 2017. The companies you'll find below are about to tap rivers of cash… Using the most recent data, production has grown over 40% a year for the past four years. The company currently produces 285,000 barrels per day (bpd) up from just 55,000 bpd in 2009. Plus, according to company data, at current drilling rates EOG will have another 12 years of drilling in the Eagle Ford, same goes for the Bakken -- that's likely to be 12 years of growing production! And if growth continues as I expect in the three formations that EOG holds acreage, production numbers should just continue to leap higher. Marathon Oil (MRO) -- market cap: $25 billion. As a caveat to adding Marathon Oil to this list of Exxon-like growth potential, it's important to note that this company is much less of a pure-play than the others on the list. To see Marathon achieve that "big oil" growth we'll want to see a focus on their domestic plays, like the prime acreage they have in the Eagle Ford. According to Lance Robertson, Vice President for Marathon's Eagle Ford operations. "They are going to get a lot better next year." Again, Marathon is less of a pure play here. But we can't disregard the acreage position they have in the Eagle Ford. There's certainly some long-term Exxon-like potential. Indeed, there's still mucho growth left in the company's South Texas fields. Pioneer Natural Resources (PXD) -- market cap: $30 billion. In 2009 Pioneer was a $4 billion company. Today the company is over six times that size and I don't see an end to their growth. This company is truly on pace to be the next Exxon-like growth story. And remember, Exxon's market cap is around $390 billion, so there's plenty of room for Pioneer to grow (that represents a 13-bagger, if you're wondering.) A decade from now when U.S. shale oil production is commonplace, natural gas may be back in vogue. With production in the Eagle Ford ramping up, through more drilling, down-spacing and cost savings this company could start throwing off loads of cash. But that's not where their resource run ends. According to CEO Scott Sheffield in the Permian Basin of West Texas is like "12 Eagle Fords stacked on top of each other." Pioneer is a huge acreage holder in the Permian -- the sky is the limit here. On top of that (and looking years out) Pioneer also holds prime acreage in the dry gas section of the Eagle Ford. So a decade from now when U.S. shale oil production is commonplace, natural gas may be back in vogue. If that's the case, watch out because Pioneer will be a huge producer. And here's a funny one… Last year, I was at the Developing Unconventionals conference in San Antonio (just north of Eagle Ford production zones) and it hit me. There I was watching the Q&A for Pioneer Natural Resources. About halfway through the questions, a man stood up and asked how, in the next decade or so, Pioneer expects to spend all of its money… exploring elsewhere? Maybe dividend payouts? Frankly the response from the Pioneer's chairman and CEO, Scott Sheffield, wasn't too memorable. He breezed over the cycle of shale plays and how eventually all plays become "cash cows" -- so at some point the Eagle Ford and Permian will hit that stage of the cycle. But "it's gonna grow for a long time" says Sheffield. But here's the funny part. It was amazing how nonchalant everyone in the room was. Pioneer is looking at so much growth potential people are worried about what they're going to do with all of their cash for decades to come. Nice problem to have, eh? On the low end that means a 70% gain. On the high end, a 1,900% gain. For now, who cares what the company's answer is. As the cash continues to roll in and production continues to ramp up, this company -- and ones like it -- should be on your radar. Oasis Petroleum (OAS) -- market cap: $5 billion. This list wouldn't be complete without mentioning a standout in North Dakota, Oasis Petroleum. Although the company holds most of its exposure in that one play, it has plenty of room for growth. Much like the companies working in the Eagle Ford, Oasis is testing its ability to down space its Bakken wells. This company is the cheapest on the list too, with a market cap around $4 billion. So keep an eye on the future for this mini-Exxon. Add it all up and I wouldn't be surprised to see all of the companies listed above crack the $100 billion market cap level. On the low end that means a 70% gain. On the high end, a 1,900% gain. Looking at the share price over the past four months, we're starting to see a nice uptrend emerge, too. The companies listed above are up 26%, 14%, 21%, 25% and 17% respectively in that time frame. Now's a good time to look at this outperforming bunch. Besides the numbers, just keep in mind that the oil industry is changing in front of our eyes. Smaller, laser-focused companies like we highlighted above are going to provide the best growth opportunities in the next decade. In that sense, keep your eyes on "small oil" for the biggest gains! Keep your boots muddy, Matt Insley for The Daily Reckoning [Ed. note: The shale oil revolution going on in Texas is the simplest way to "carve your legacy in stone," as our friend put it. And Richard D., who's 47 years old, recently told us: "There are literally thousands of people out here who are millionaires and some who are going to be billionaires." Click here to see learn how much money there is to go around and how to mint a seven-figure fortune in t wo months with a grubstake as small as $500.]       Matt Insley is the managing editor of the Daily Resource Hunter and now the co-editor of Real Wealth Trader and Outstanding Investments.       BE SURE TO ADD dr@dailyreckoning.com to your address book.   Additional Articles & Commentary: Join the conversation! Follow us on social media: The Daily Reckoning is committed to protecting and respecting your privacy. We do not rent or share your email address. To end your Daily Reckoning e-mail subscription and associated external offers sent from Daily Reckoning, feel free to click here. Please read our Privacy Statement. For any further comments or concerns please email us at dr@dailyreckoning.com. 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