Top Gas Stocks To Watch For 2014

Margins matter. The more Simpson Manufacturing (NYSE: SSD  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Simpson Manufacturing's competitive position could be.

Here's the current margin snapshot for Simpson Manufacturing over the trailing 12 months: Gross margin is 43.3%, while operating margin is 10.0% and net margin is 6.1%.

Unfortunately, a look at the most recent numbers doesn't tell us much about where Simpson Manufacturing has been, or where it's going. A company with rising gross and operating margins often fuels its growth by increasing demand for its products. If it sells more units while keeping costs in check, its profitability increases. Conversely, a company with gross margins that inch downward over time is often losing out to competition, and possibly engaging in a race to the bottom on prices. If it can't make up for this problem by cutting costs -- and most companies can't -- then both the business and its shares face a decidedly bleak outlook.

Top 10 Quality Stocks To Invest In 2015: Rock Energy Inc (RENFF.PK)

Rock Energy Inc. (Rock) is an energy company engaged in the exploration for and development and production of crude oil and natural gas in Western Canada. Rock owns 35,915 (35,881 net) acres of land in the Plains area of east central Alberta and west central Saskatchewan. Rock owns 6,280 (5,960 net) acres of land in the Onward area of south west Saskatchewan, which consists primarily of two Lloydminster heavy oil pools. As of December 31, 2011, the Mantario area consisted of 4,480 (4,480 net) acres of land. Its Bigstone area, which is within the Greater Kaybob region includes Rock�� Saxon, Tony Creek and Waskahigan properties. As of December 31, 2011, Rock owned 101,278 (58,992 net) acres of land in the Elmworth area of Alberta, with two dimensions (2D) and three dimensions (3D) seismic coverage. The property included 38 (12.77 net) producing natural gas wells. During the first quarter of 2012, Rock acquired an additional 5,748 (5,748 net) acres of land. Advisors' Opinion:

• [By Value Digger]

  Same thing happened with Rock Energy (RENFF.PK), when I recommended it at $1 about three months ago. My article is here.

  Rock Energy is at $1.3 today, and its annual report confirmed my bullish call. I have been alone in that bullish call once again.

Top Gas Stocks To Watch For 2014: Southern Pacific Resource Corp (STPJF.PK)

Southern Pacific Resource Corp. (Southern Pacific) is engaged in the acquisition and development of heavy oil and bitumen producing properties, with a focus on thermal extraction in-situ oil sands projects in the Western Canadian sedimentary basin. Southern Pacific has two principal assets STP-McKay and STP-Senlac. The Company also holds additional oil sands leases in the McMurray and Peace River sub-basins in northeastern Alberta. The Company has 100% working interest in approximately 37,760 acres, of oil sands leases in McKay Block. Southern Pacific has its 100% working interest SAGD thermal heavy oil asset near Unity, Saskatchewan, STP-Senlac. In September 2013, the Company announced the closing of a disposition of non-core assets related to its Leismer property. Advisors' Opinion:

• [By Stephan Dube]

  Cold Lake's most notable producers:

  Husky Energy (HUSK.PK), see article here.Pengrowth Energy Corporation (PGH), see article here.Southern Pacific Resource (STPJF.PK), see article here.Canadian Natural Resources (CNQ), see article here.Devon Energy (DVN), see article here.Imperial Oil (IMO), see article here.Baytex, see article here.Bonavista Energy (BNPUF.PK), see article here.

  Athabasca's most notable producers:

Top Gas Stocks To Watch For 2014: Vermilion Energy Inc (VET)

Vermilion Energy Inc. (Vermilion), is engaged in the business of oil and natural gas exploitation, development, acquisition and production in Australia, Canada, France, Ireland and the Netherlands. As of December 31, 2011, Vermilion holds an average working interest of 68.5% in 395,616 (271,067 net) acres of developed land, 582 (396 net) producing natural gas wells and 319 (198 net) producing oil wells in Canada. Vermilion holds an 83.6% working interest in 193,017 acres of developed land in the Aquitaine and Paris Basins. Vermilion's Netherlands assets consist of eight onshore concessions and one offshore concession located in the northern part of the country. In October 2013, Vermilion Energy Inc, through its wholly owned subsidiary acquired Northern Petroleum Nederland B.V. Advisors' Opinion:

• [By Marc Bastow]

  Oil exploration and production company Vermillion Energy (VET) raised its monthly dividend 7.5% to 21.50 cents (Canadian) per share, and is expected to be payable on February 17.
  VTE Dividend Yield: 1.52%
  

Top Gas Stocks To Watch For 2014: Genel Energy PLC (GEGYF.PK)

Genel Energy plc, formerly Vallares PLC, is an exploration and production company. It is an independent oil producer in the Kurdistan Region of Iraq. The Group has two reportable business segments, which are its oil and gas exploration and production business in the KRI and its oil and gas exploration business in Africa. The Company had operational bases in Ankara, Turkey; in Taq Taq, Erbil and Suleimaniah in the Kurdistan Region, and in London. The Company�� oil producing fields of Taq Taq (in which it held a 44% interest) and Tawke (25% interest) had estimated gross proven and probable reserves of 1.2 billion barrels of oil and proven, probable and possible reserves of 1.9 billion barrels of oil. The Company�� subsidiaries include: Genel Energy Holding Company Ltd, Genel Energy Somaliland Limited, A&T Petroleum Limited, Genel Energy UK Services Limited, Genel Energy Netherlands Holding 2 B.V. and Genel Energy Somaliland Limited. Advisors' Opinion:

• [By Street Smart Investor]

  DNO International is an independent E&P company, geographically focused on the Middle East and North Africa with operations in Yemen, the Kurdistan region of Iraq, Tunisia, Oman, Ras Al Khaimah and Somaliland. The company's asset portfolio currently stands at 20 assets in six countries. For the year ended December 2012, DNO International has proven and probable reserves of 520.3 MMboe with 90% of the reserves in the Kurdistan region of Iraq. The company's reserves in Kurdistan come from the Tawke oil block, which is among the largest oil blocks in Kurdistan. DNO International has a 55% stake in the Tawke block with Genel Energy PLC (GEGYF.PK) holding a 25% stake. The remaining 20% stake is held by the Kurdistan Regional Government. For the first half of 2013, DNO International had a production rate of 33,917 boepd, which includes production from Kurdistan, Oman and Yemen.

Top Gas Stocks To Watch For 2014: Enterprise Products Partners LP (EPD)

Enterprise Products Partners L.P. (Enterprise), incorporated on April 9, 1998, owns and operates natural gas liquids (NGLs) related businesses of Enterprise Products Company (EPCO). The Company is a North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and certain petrochemicals. Its midstream energy asset network links producers of natural gas, NGLs and crude oil from supply basins in the United States, Canada and the Gulf of Mexico with domestic consumers and international markets. Its midstream energy operations include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminals; crude oil gathering and transportation, storage and terminals; offshore production platforms; petrochemical and refined products transportation and services; and a marine transportation business that operates on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. Its assets include approximately 50,000 miles of onshore and offshore pipelines; 200 million barrels of storage capacity for NGLs, petrochemicals, refined products and crude oil; and 14 billion cubic feet of natural gas storage capacity. In addition, its asset portfolio includes 24 natural gas processing plants, 21 NGL and propylene fractionators, six offshore hub platforms located in the Gulf of Mexico, a butane isomerization complex, NGL import and export terminals, and octane isobutylene production facilities. The Company operates in five business segments: NGL Pipelines & Services; Onshore Natural Gas Pipelines & Services; Onshore Crude Oil Pipelines & Services; Offshore Pipelines & Services, and Petrochemical & Refined Products Services.

NGL Pipelines & Services

The Company�� NGL Pipelines & Services business segment includes its natural gas processing plants and related NGL marketing activities; approximately 16,700 miles of NGL pipel! ines; NGL and related product storage facilities; and 14 NGL fractionators. This segment also includes its import and export terminal operations. At the core of its natural gas processing business are 24 processing plants located across Colorado, Louisiana, Mississippi, New Mexico, Texas and Wyoming. Natural gas produced at the wellhead (especially in association with crude oil) contains varying amounts of NGLs. Once the mixed component NGLs are extracted by a natural gas processing plant, they are transported to a centralized fractionation facility for separation into purity NGL products. Once processed, this natural gas is available for sale through its natural gas marketing activities. Its NGL marketing activities generate revenues from the sale and delivery of NGLs it takes title to through its natural gas processing activities and open market and contract purchases from third parties. Its NGL marketing activities utilize a fleet of approximately 670 railcars, the majority of which are leased from third parties.

The Company�� NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing facilities, refineries and import terminals to fractionation plants and storage facilities; distribute and collect NGL products to and from fractionation plants, storage and terminal facilities, petrochemical plants, export facilities and refineries, and deliver propane to customers along the Dixie Pipeline and certain sections of the Mid-America Pipeline System. Revenues from its NGL pipeline transportation agreements are based upon a fixed fee per gallon of liquids transported multiplied by the volume delivered. Certain of its NGL pipelines offer firm capacity reservation services. It collects storage revenues under its NGL and related product storage contracts based on the number of days a customer has volumes in storage multiplied by a storage fee. In addition, it charges customers throughput fees based on volumes delivered into and subsequently withdrawn from storage. Its ! principal! NGL pipelines include Mid-America Pipeline System, South Texas NGL Pipeline System, Seminole Pipeline, Dixie Pipeline, Chaparral NGL System, Louisiana Pipeline System, Skelly-Belvieu Pipeline, Promix NGL Gathering System, Houston Ship Channel pipeline, Rio Grande Pipeline, Panola Pipeline and Lou-Tex NGL Pipeline. It operates its NGL pipelines with the exception of the Tri-States pipeline.

The Company�� NGL operations include import and export facilities located on the Houston Ship Channel in southeast Texas. It owns an import and export facility located on land it leases from Oiltanking Houston LP. Its import facility can offload NGLs from tanker vessels at rates up to 14,000 barrels per hour depending on the product. During the year ended December 31, 2012, its average combined NGL import and export volumes were 132 thousand barrels per day. In addition to its Houston Ship Channel import/export terminal, it owns a barge dock also located on the Houston Ship Channel, which can load or offload two barges of NGLs or other products simultaneously at rates up to 5,000 barrels per hour.

The Company owns or have interests in 14 NGL fractionators located in Texas and Louisiana. NGL fractionators separate mixed NGL streams into purity NGL products. The primary sources of mixed NGLs fractionated in the United States are domestic natural gas processing plants, crude oil refineries and imports of butane and propane mixtures. Mixed NGLs sourced from domestic natural gas processing plants and crude oil refineries are transported by NGL pipelines and by railcar and truck to NGL fractionation facilities.

The Company�� NGL fractionation facilities process mixed NGL streams for third party customers and support its NGL marketing activities. It earns revenues from NGL fractionation under fee-based arrangements, including a level of demand-based fees. At its Norco facility in Louisiana, it performs fractionation services for certain customers under percent-of-liquids co! ntracts. ! Its fee-based fractionation customers retain title to the NGLs, which it processes for them. Its NGL fractionators include Mont Belvieu fractionator, Shoup and Armstrong fractionator, Hobbs NGL fractionator, Norco NGL fractionator, Promix NGL fractionators and BRF fractionators.

Onshore Natural Gas Pipelines & Services

The Company�� Onshore Natural Gas Pipelines & Services business segment includes approximately 19,900 miles of onshore natural gas pipeline systems, which provide for the gathering and transportation of natural gas in Colorado, Louisiana, New Mexico, Texas and Wyoming. It leases salt dome natural gas storage facilities located in Texas and Louisiana and own a salt dome storage cavern in Texas, which are integral to its pipeline operations. This segment also includes its related natural gas marketing activities.

The Company�� onshore natural gas pipeline systems and storage facilities provide for the gathering and transportation of natural gas from producing regions, such as the San Juan, Barnett Shale, Permian, Piceance, Greater Green River, Haynesville Shale and Eagle Ford Shale supply basins in the western United States. In addition, these systems receive natural gas production from the Gulf of Mexico through coastal pipeline interconnects with offshore pipelines. Its onshore natural gas pipelines receive natural gas from producers, other pipelines or shippers at the wellhead or through system interconnects and redeliver the natural gas to processing facilities, local gas distribution companies, industrial or municipal customers, storage facilities or to other onshore pipelines.

Its onshore natural gas pipelines generates revenues from transportation agreements under which shippers are billed a fee per unit of volume transported multiplied by the volume gathered or delivered. Its onshore natural gas pipelines offer firm capacity reservation services whereby the shipper pays a contractually stated fee based on the level of through! put capac! ity reserved in its pipelines whether or not the shipper actually utilizes such capacity. Under its natural gas storage contracts, there are typically two components of revenues monthly demand payments, which are associated with a customer�� storage capacity reservation and paid regardless of actual usage, and storage fees per unit of volume stored at its facilities. The Company�� natural gas marketing activities generate revenues from the sale and delivery of natural gas obtained from third party well-head purchases, regional natural gas processing plants and the open market.

Onshore Crude Oil Pipelines & Services

The Company�� Onshore Crude Oil Pipelines & Services business segment includes approximately 5,100 miles of onshore crude oil pipelines, crude oil storage terminals located in Oklahoma and Texas, and its crude oil marketing activities. Its onshore crude oil pipeline systems gather and transport crude oil in New Mexico, Oklahoma and Texas to refineries, centralized storage terminals and connecting pipelines. Revenue from crude oil transportation is based upon a fixed fee per barrel transported multiplied by the volume delivered.

The Company owns crude oil terminal facilities in Cushing, Oklahoma and Midland, Texas, which are used to store crude oil volumes for it and its customers. Under its crude oil terminaling agreements, it charges customers for crude oil storage based on the number of days a customer has volumes in storage multiplied by a contractual storage fee. With respect to storage capacity reservation agreements, it collects a fee for reserving storage capacity for customers at its terminals. In addition, it charges its customers throughput (or pumpover) fees based on volumes withdrawn from its terminals. It provides fee-based trade documentation services whereby it documents the transfer of title for crude oil volumes transacted between buyers and sellers at its terminals. The Company�� crude oil marketing activities generate revenues! from the! sale and delivery of crude oil obtained from producers or on the open market.

Offshore Pipelines & Services

The Company�� Offshore Pipelines & Services business segment serves active drilling and development regions, including deepwater production fields, in the northern Gulf of Mexico offshore Texas, Louisiana, Mississippi and Alabama. This segment includes approximately 2,300 miles of offshore natural gas and crude oil pipelines and six offshore hub platforms. Its offshore Gulf of Mexico pipelines provide for the gathering and transportation of natural gas or crude oil. Revenue from its offshore pipelines is derived from fee-based agreements whereby the customer is charged a fee per unit of volume gathered or transported multiplied by the volume delivered. Poseidon Oil Pipeline Company, L.L.C. (Poseidon), in which it has a 36% equity method investment, purchases crude oil from producers and shippers at a receipt point (at a fixed or index-based price less a location differential) and then sells quantities of crude oil at onshore Louisiana locations (at the same fixed or index-based price, as applicable).

The Company�� offshore platforms are components of its pipeline operations. Platforms are used to interconnect the offshore pipeline network; provide means to perform pipeline maintenance; locate compression, separation and production handling equipment and similar assets, and conduct drilling operations during the initial development phase of an oil and natural gas property. Revenues from offshore platform services consist of demand fees and commodity charges. Revenue from commodity charges is based on a fixed-fee per unit of volume delivered to the platform multiplied by the total volume of each product delivered.

Petrochemical & Refined Products Services

The Company�� Petrochemical & Refined Products Services business segment consists of propylene fractionation plants, pipelines and related marketing activities; a butane isom! erization! facility and related pipeline system; octane enhancement and isobutylene production facilities; refined products pipelines, including its Products Pipeline System, and related marketing activities, and marine transportation and other services.

The Company�� propylene fractionation and related activities consist of seven propylene fractionation plants (six located in Mont Belvieu, Texas and a seventh in Baton Rouge, Louisiana), propylene pipeline systems aggregating approximately 680 miles in length and related petrochemical marketing activities. This business includes an export facility and associated above-ground polymer grade propylene storage spheres located in Seabrook, Texas. Results of operations for its polymer grade propylene plants are dependent upon toll processing arrangements and petrochemical marketing activities. The toll processing arrangements include a base-processing fee per gallon (or other unit of measurement). Its petrochemical marketing activities include the purchase and fractionation of refinery grade propylene obtained in the open market and generate revenues from the sale and delivery of products obtained through propylene fractionation. The revenues from its propylene pipelines are based upon a transportation fee per unit of volume multiplied by the volume delivered to the customer. As part of its petrochemical marketing activities, it has refinery grade propylene purchase and polymer grade propylene sales agreements. Its butane isomerization business includes three butamer reactor units and eight associated deisobutanizer units located in Mont Belvieu, Texas, which comprise the commercial isomerization facility in the United States.

The Company�� commercial isomerization units convert normal butane into mixed butane, which is fractionated into isobutane, isobutane and residual normal butane. The uses of isobutane are for the production of propylene oxide, isooctane, isobutylene and alkylate for motor gasoline. These processing arrangements inclu! de a base! -processing fee per gallon (or other unit of measurement). Its isomerization business also generates revenues from the sale of natural gasoline created as a by-product of the isomerization process. The Company owns and operates an octane enhancement production facility located in Mont Belvieu, Texas, which produces isooctane, isobutylene and methyl tertiary butyl ether (MTBE). The products produced by this facility are used in reformulated motor gasoline blends. The isobutane feedstocks consumed in the production of these products are supplied by its isomerization units. The Company owns a facility located on the Houston Ship Channel, which produces high purity isobutylene (HPIB). The feedstock for this plant is produced by its octane enhancement facility located at its Mont Belvieu complex. HPIB is used in the production of alkylated phenols used as antioxidants, lube oil additives, butyl rubber and resins.

Refined products pipelines and related activities consist of its Products Pipeline System, equity method investment in Centennial Pipeline LLC (Centennial) and refined products marketing activities. The Products Pipeline System transports refined products, and petrochemicals, such as ethylene and propylene and NGLs, such as propane and normal butane. These refined products are produced by refineries and include gasoline, diesel fuel, aviation fuel, kerosene, distillates and heating oil. Refined products also include blend stocks, such as raffinate and naphtha. Blend stocks are used to produce gasoline or as a feedstock for certain petrochemicals. The Centennial Pipeline intersects its Products Pipeline System near Creal Springs, Illinois, and loops the Products Pipeline System between Beaumont, Texas and south Illinois. In addition, it has refined products terminals located at Aberdeen, Mississippi and Boligee, Alabama adjacent to the Tombigbee River and on the Houston Ship Channel in Pasadena, Texas. Its related marketing activities generate revenues from the sale and delivery of refin! ed produc! ts obtained from third parties on the open market.

The Company�� marine transportation business consists of tow boats and tank barges, which are used to transport refined products, crude oil, asphalt, condensate, heavy fuel oil, liquefied petroleum gas and other petroleum products along inland and intracoastal the United States waterways. Its marine transportation assets service refinery and storage terminal customers along the Mississippi River, the intracoastal waterway between Texas and Florida and the Tennessee-Tombigbee Waterway system. It owns a shipyard and repair facility located in Houma, Louisiana and marine fleeting facilities in Bourg, Louisiana and Channelview, Texas. Other services consist of the distribution of lubrication oils and specialty chemicals and the bulk transportation of fuels by truck, in Oklahoma, Texas, New Mexico, Kansas and the Rocky Mountain region of the United States.

Advisors' Opinion:

• [By Ben Levisohn]

  So as not to bury the lede, we do not see risk to our positive 12-18 month thesis for US refiners based on Pioneer Natural Resources’ (PXD) and�Enterprise Products Partners’ (EPD) recently granted permits for condensate exports. Specifically, we do not see a step change in the current regulatory framework that bans blanket crude oil exports, since stabilized condensate is more akin to a refined product than an “unrefined oil”, as characterized by media reports. The spirit of the law, that hydrocarbon liquids produced in the US must be processed in the US, remains in place, and permits for condensate exports do not constitute precedent for crude oil in our view. Comments from US officials and even from Pioneer Natural Resources in the media indicate a similar conclusion We continue to see potential for a meaningful feedstock advantage for US refiners emerging later in 2014, with a crude supply inflection point of 9MM bpd of domestic production against a Gulf Coast import baseline in the 2.8-3.0MM bpd range.

• [By Matt DiLallo]

  There is a real effort on the part of midstream companies to increase fee-based revenue. As I mentioned, this stabilizes cash flow and leads to a much more secure distribution which is something that's important to investors. Top midstream operator�Enterprise Products Partners (NYSE: EPD  ) , for example, boasts of fee-based margins of more than 80% this year. Enterprise has invested billions to steadily increase that number which just two years ago was just slightly over 70%. With more than 30 consecutive distribution increases, this has been money well spent. Atlas, on the other hand, has a long way to go to get its fee-based margins that high, but its heading in the right direction.�

• [By Robert Rapier]

  The index includes everything from behemoths like Enterprise Product Partners (NYSE: EPD) and Kinder Morgan Energy Partners (NYSE: KMP) down to a pair with market capitalizations under $1 billion in Martin Midstream Partners (NASDAQ: MMLP) and Navios Maritime Partners (NYSE: NMM). The total market cap of the index is $328 billion, and its one-, three- and five-year total returns are 20 percent, 48 percent and 194 percent. The index yield is 6 percent.

Top Gas Stocks To Watch For 2014: Husky Energy Inc (HUSKF.PK)

Husky Energy Inc. (Husky), incorporated on June 21, 2000, is an international integrated energy company. The Company operates in two segments: Upstream and Downstream. Upstream includes exploration for, development and production of crude oil, bitumen, natural gas and natural gas liquids and other producers��crude oil, natural gas, natural gas liquids, sulphur and petroleum coke, pipeline transportation and processing of heavy crude oil and natural gas, storage of crude oil, diluents and natural gas and cogeneration of electrical and thermal energy (infrastructure and marketing). Downstream includes upgrading of heavy crude oil feedstock into synthetic crude oil (upgrading), refining in Canada of crude oil and marketing of refined petroleum products, including gasoline, diesel, ethanol blended fuels, asphalt and ancillary products, and production of ethanol (Canadian refined products) and refining in the United States of crude oil to produce and market gasoline, jet fuel and diesel fuels that meet United States clean fuels standards (United States refining and marketing).

During the year ended December 31, 2012, the Company had 512 retail locations in its light refined products operations, which consisted of 361 owned or leased locations (husky controlled) and 151 independent retailer locations. The Company is continually monitoring the owned and leased locations for environmental protection or to address regulatory compliance requirements, such as reporting.

Upstream Operations

Husky�� portfolio of Upstream assets includes properties with reserves of light crude oil (30掳 API and lighter), medium crude oil (between 20掳 and 30掳 API), heavy crude oil (liquid between 20掳 API and 10掳 API), bitumen (solid or semi-solid with a viscosity greater than 10,000 centipoise at original temperature in the deposit and atmospheric pressure), NGL, natural gas and sulphur. The Wenchang field is located in the western Pearl River Mouth Basin, approximately 400 kilometers ! south of Hong Kong and 100 kilometers east of Hainan Island. The Wenchang 13-1 and 13-2 oil fields are producing from 32 wells in 100 meters of water into an FPSO vessel stationed between fixed platforms located in each of the two fields. In December 2012, Husky signed a joint venture contract with CPC Corporation, Taiwan for an exploration block in the South China Sea. The exploration block is located 100 kilometers southwest of the island of Taiwan and covers approximately 10,300 square kilometers.

Husky has a 40% interest in approximately 621,700 acres (2,516 square kilometers) of the Madura Strait block, located offshore East Java, south of Madura Island, Indonesia. Husky�� two partners are CNOOC which is the operator and has a 40% working interest, and Samudra Energy Ltd., which holds the remaining 20% interest through its affiliate, SMS Development Ltd. Husky�� offshore East Coast Canada exploration and development program is focused on the Jeanne d��rc Basin on the Grand Banks, which contains the Hibernia and Terra Nova fields, as well as the White Rose field and satellite extensions including the North Amethyst, West White Rose and the South White Rose extensions. The White Rose oil field is located 354 kilometers off the coast of Newfoundland and Labrador and approximately 48 kilometers east of the Hibernia oil field on the eastern section of the Jeanne d��rc Basin. Husky is the operator of the White Rose field and satellite tiebacks, including the North Amethyst, West White Rose and South White Rose extensions. The Terra Nova oil field is located approximately 350 kilometers southeast of St. John��, Newfoundland and Labrador. The Terra Nova oil field is divided into three distinct areas, known as the Graben, the East Flank and the Far East. As of January 16, 2013, Husky held a working interest in 17 Exploration Licences (ELs) offshore Newfoundland, Labrador and Greenland. Husky is the operator of 13 of these ELs and has working interests ranging from 35% to 100%.

Hus! ky is the operator of two ELs offshore the west coast of Disko Island, Greenland. Tucker is an in-situ SAGD oil sands project located 30 kilometers northwest of Cold Lake, Alberta. Husky holds in excess of 550,000 acres in undeveloped oil sands leases and has a 100% working interest in all leases except in Athabasca South in which it has a 50% working interest. Husky�� heavy oil assets are primarily concentrated in a large producing region in the Lloydminster, Alberta/Saskatchewan area. The Company maintains a land position of approximately two million gross acres within this area. Over 90% of Husky�� proved reserves in the region are contained in the heavy crude oil producing areas of Pikes Peak, Edam, Tangleflags, Celtic, Bolney, Paradise Hill, Westhazel, Big Gully, Mervin, Marwayne, Lashburn, Gully Lake, Vermilion, Swimming, Morgan, Lindbergh, Aberfeldy, Marsden, Epping, Furness and Rush Lake, and in the medium gravity crude oil producing fields of Wildmere and Wainwright. As of December 31, 2012, the Company produces from oil and gas wells ranging in depth from 450 meters to 650 meters and holds a 100% working interest in the majority of these wells. In the Lloydminster area, the Company owns and operates 21 oil treating facilities which are tied into the Husky heavy oil pipeline systems. Husky operates 67 facilities in the area. Husky is the operator of a number of properties in southern Alberta and southern Saskatchewan. The Foothills Northwest Plains area is located in western and northern Alberta and British Columbia. The area is made up of five distinct districts: Rainbow Lake, Northern Alberta, Northern Alberta & British Columbia Plains, Ansell-Galloway and Foothills.

Husky provides heavy crude oil feedstock to its Upgrader and its asphalt refinery, which are located at Lloydminster, Alberta/Saskatchewan. The combined dry crude feedstock requirements of the Upgrader and asphalt refinery are approximately equal to Husky�� heavy crude oil production from the Lloydminster area.! Husky al! so purchases third party volumes. Husky markets heavy crude oil production directly to refiners located in the mid-west and eastern United States and Canada. Husky markets its light and synthetic crude oil production to third-party refiners in Canada, the United States and Asia in addition to Husky�� Lima Refinery. NGL are sold to local petrochemical end users, retail and wholesale distributors and refiners in North America.

The Company holds a 50% interest in a 90 megawatts natural gas fired cogeneration facility adjacent to Husky�� Rainbow Lake processing plant. The cogeneration facility produces electricity for the Power Pool of Alberta and thermal energy (steam) for the Rainbow Lake processing plant. It provides power directly to the Power Pool of Alberta under an agreement with the Alberta Electric System Operator to provide additional electricity generating capacity and system stability for northwestern Alberta. The Company also operates and has a 50% interest in a natural gas storage facility at East Cantuar near Swift Current, Saskatchewan.

Downstream Operations

The Lima Refinery, located in Ohio between Toledo and Dayton, has an atmospheric crude throughput capacity of 160 thousand of barrels/day. The refinery produces gasoline, gasoline blend stocks, diesel, jet fuel, petrochemical feedstock and other by-products. The feedstock is received via the Mid-Valley and Marathon Pipelines and the refined products are transported via the Buckeye and Inland pipeline systems and by rail car to primary markets in Ohio, Illinois, Indiana and southern Michigan. During 2012, crude oil feedstock throughput at the Lima Refinery averaged 150 thousand of barrels/day. Production of gasoline averaged 77 thousand of barrels/day, total distillates averaged 56 thousand of barrels/day and total butanes averaged 17 thousand of barrels/day. The BP-Husky Toledo Refinery, in which Husky holds a 50% interest, has an atmospheric crude throughput capacity of 160 thousand of barrels/day. Pr! oducts in! clude low sulphur gasoline, ultra low sulphur diesel, aviation fuels, propane, kerosene and asphalt. The refinery is located in one of the highest energy consumption regions in the United States. Husky owns and operates the Husky Lloydminster Upgrader, a heavy oil upgrading facility located in Lloydminster, Saskatchewan. The Upgrader is designed to process blended heavy crude oil feedstock into high quality, low sulphur synthetic crude oil. Production at the Upgrader averaged 61 thousand of barrels/day of synthetic crude oil, 13 thousand of barrels/day of diluent and 4 thousand of barrels/day of low sulphur diesel in 2012.

Husky�� Canadian Refined Products operations include refining of light crude oil, manufacturing of fuel and fuel grade ethanol, manufacturing of asphalt products from heavy crude oil and acquisition by purchase and exchange of refined petroleum products. Husky�� retail distribution network includes the wholesale, commercial and retail marketing of refined petroleum products and provides a platform for non-fuel related convenience product businesses. Husky�� Pounder Emulsions division has a market share in Western Canada for road application emulsion products. Additional non-asphalt based road maintenance products are also marketed and distributed through Pounder Emulsions. Husky�� asphalt distribution network consists of emulsion plants and asphalt terminals located at Kamloops, British Columbia, Edmonton and Lethbridge, Alberta, Yorkton, Saskatchewan and Winnipeg, Manitoba and three emulsion plants located at Watson Lake, Yukon and Lloydminster and Saskatoon, Saskatchewan. Husky�� ethanol production supports its ethanol-blended gasoline marketing program. When added to gasoline, ethanol promotes more complete fuel combustion, prevents fuel line freezing and reduces carbon monoxide emissions, ozone precursors and net emissions of greenhouse gases.

Advisors' Opinion:

• [By Caiman Valores]

  But as highlighted earlier Whitecap's Canadian light sweet crude is not as heavily discounted as Canadian heavy oil or bitumen. This does not leave it exposed to the same price risks and volatility as those companies that have a significant portion of their production made up by Canadian heavy oil and Bitumen, such as Husky Energy (HUSKF.PK), Suncor (SU), Imperial Oil (IMO) and Canadian Natural Resources (CNQ).

Top Gas Stocks To Watch For 2014: EP Energy Corp (EPE)

EP Energy Corporation, incorporated on August 8, 2013, is an independent exploration and production company. The Company is engaged in the acquisition and development of unconventional onshore oil and natural gas properties in the United States. The Company is focused on creating shareholder value through the development of its low-risk drilling inventory located in four core areas: the Eagle Ford Shale (South Texas), the Wolfcamp Shale (Permian Basin in West Texas), the Altamont field in the Uinta Basin in northeastern Utah and the Haynesville Shale (North Louisiana). In its core areas, it has identified approximately 5,200 drilling locations (including 916 drilling locations to which it has attributed proved undeveloped reserves as of September 30, 2013), of which approximately 96% are oil wells. As of September 30, 2013, it had proved reserves of 513 million barrels of oil equivalent (54% oil and 67% liquids) and for the three months ended September 30, 2013, it had average net daily production of 88,149 barrels of oil equivalent per day (45% oil and 54% liquids). During the year ending September 31, 2013, it sold certain of its natural gas properties, including CBM properties located in the Raton, Black Warrior and Arkoma basins, the majority of its Arklatex natural gas properties and its natural gas properties in South Texas. In May 2014, the Company acquired certain producing properties and undeveloped acreage directly offsetting existing Wolfcamp operating areas in Reagan and Crockett Counties in the Southern Midland Basin.

Eagle Ford Shale

The Eagle Ford Shale, located in South Texas, is the unconventional oil plays in the United States. The Eagle Ford formation in La Salle County has up to 125 feet of net thickness, making it some of the prolific acreage in the area. Due to its high carbonate content, the Eagle Ford is also brittle, and delivers high productivity when fractured, with initial 30-day oil equivalent production rates up to 1,100 barrels of oil equivalent! per day.. The Company as of september 30, 2013, has 97,689 net acres in the Eagle Ford, where it has identified 983 drilling locations. As of September 30, 2013, it had six rigs running and it plan to drill 126 wells in 2013 (of which 100 have been drilled through September 30, 2013), representing 58% of its total wells planned in 2013.

Wolfcamp Shale

The Wolfcamp Shale is located in the Permian Basin, which has produced more than 29 billion barrels of oil and 75 trillion cubic feet of gas over the past 90 years and is estimated by industry experts to contain recoverable oil and natural gas reserves exceeding what has already been produced. With oil production of over 880 one thousand barrels per day from over 80,000 wells during the six months ended June 30, 2013, the Permian Basin represented 51% of the crude oil produced in the State of Texas and approximately 17% of the crude oil and condensate produced onshore in the lower 48 United States. As of September 30, 2013, it had three rigs running and it plans to drill 65 wells in 2013 (of which 48 have been drilled through September 30, 2013), representing 30% of its total wells planned in 2013.

Altamont

The Altamont field is located in the Uinta Basin in northeastern Utah. Its operations are primarily focused on developing the Altamont Field Complex (comprised of the Altamont, Bluebell and Cedar Rim fields). It owns 170,523 net (315,272 gross) acres in Duchesne and Uinta Counties, making it the ease owner in the Altamont Field Complex. Its activity is mainly focused on the development of its vertical inventory on 160-acre spacing. The Company has identified an inventory of 1,135 drilling locations (781 vertical and 354 horizontal). The industry is piloting 80-acre vertical downspacing programs in the Wasatch and Green River formations and horizontal development programs in the multiple shale and tight sand intervals. As of September 30, 2013, it had two rigs running and it plans to drill 26 wells in ! 2013 (of w! hich 20 have been drilled through September 30, 2013), representing 12% of its total wells planned in 2013.

Haynesville Shale

Haynesville Shale is located in East Texas and Northern Louisiana. its operations are concentrated primarily in Desoto Parish, Louisiana in the Holly Field. This area is within the core of the Haynesville Shale with net thickness of 114 feet (210 feet gross), resulting in initial 30-day gas equivalent production rates up to 18 million cubic feet per day. As of September 30, 2013, it has identified 190 drilling locations.

Advisors' Opinion:

• [By Matt Jarzemsky var popups = dojo.query(".socialByline .popC"); popups.forEach]

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