The Best "Yardstick" for Picking Oil and Gas Stocks to Buy

Please do not reply to this message. Replies to this message are routed to an unmonitored mailbox. You are receiving this email as a part of your subscription to Oil & Energy Investor. Your ability to alter your subscription information can be found at the bottom of this email. [Oil and Energy Investor with Dr. Kent Moors] [If you're not a part of this, you're only hurting yourself (door closes Sunday at midnight)]( Even with the market's abysmal performance, members of Shah Gilani's [top-performing research service]( haven't batted an eye... in fact, they're getting the chance to make more money than ever before. Recently, he showed them an incredible [1,156% gain in just two weeks](... only to cap it off with ANOTHER 100% win a week later. But Shah knows his information is much too valuable to keep offering at its current cost - and frankly, we have to agree. So this Sunday at midnight, we're drastically raising the price... and this may be permanently out of your reach. Before that happens, [you need to see this](. --------------------------------------------------------------- March 9, 2018 [The Best "Yardstick" for Picking Oil and Gas Stocks to Buy]( Dear Oil & Energy Investor, Kent's Premium Services Energy Advantage [Your Once-in-a-Lifetime Opportunity on This Energy Metal]( Energy Inner Circle [This Three Minute Trade Sets You Up to "Win Both Ways" on Oil Prices]( Micro Energy Trader [Buy This Vertical Power Company]( As every savvy investor knows, multiples are one of the best "yardsticks" when it comes to finding undervalued oil and gas stocks to buy. More often than not, that involves a hard look at the multiple of a company's earnings to determine whether or not a stock is fairly valued. In the case of energy stocks, however, there is a more important multiple you need to understand. This yardstick applies most frequently to oil and natural gas stocks, although it has variants that can be applied to power producers and even coal and uranium miners. This new tool looks at the relationship between a company's booked reserves and its trading price. It takes into consideration the extractable reserves a company has in the ground and opens up a window into how that stock should trade. I've used this measure time and again to [bring home market-beating trades](. Once you understand how to use this yardstick, you can too. Here's how it works... How to Pick Potential Oil and Gas Stocks to Buy Of course, using a measure like this is just one factor in determining a target price for a stock. Aggregate supply and demand considerations, the broader corporate debt and working capital ratios, access to midstream and downstream transport and processing assets and at what cost, along with the market price itself, are certainly other important considerations. PROFIT OPPORTUNITY The [U.S. oil and gas boom]( has ignited a slew of brand new investment opportunities... The U.S. is on the brink of total global energy dominance on crude's epic comeback. Already, analysts are calling for a 23% increase in investment in U.S. oil this year. That means a whopping $61 billion is set to hit the sector. Millions could be made here - maybe even billions - by investors who invest in the right companies... I've been in the energy industry for 40 years, and I think [the investment opportunities I'm tracking right now]( could dwarf anything the energy sector has seen before. In fact, I just shared a recommendation with my Energy Advantage readers with the potential to deliver incredible, lifestyle-changing profits. And I'd like you to be able reap any rewards too... which is why I'm excited to offer you access to [my research and recommendations -all of the perks I reserve for this elite readership - at 80% off the retail price](. My publisher has set aside 100 slots for new members, so please secure your spot before this offer expires. Just [click here]( to learn how. Still, unlike companies in non-energy sectors, there is a rather direct correlation here between what is available as raw materials and how that translates into profit. Reserve multiples address the estimated value of oil and gas a company has accessible, but not yet extracted. Actually, I prefer to consider this factor as extractable reserves, those assets in the ground that are both technically and financially extractable. That is, what an oil and gas company can extract immediately at a cost that is justified by the current market conditions. Now, reserve figures are among the most manipulated statistics in the business. But looking at extractable reserves in a way that considers both the effects of technology and economics accomplishes two objectives... First, it reduces the overall reserve figure beyond even what is required by the SEC before the company can book it. In this case, there are several classifications of reserves essentially separated by how likely (how probable) it is that the reserves can be exploited. My approach reduces the actual reserves considered to those with the highest probability of production. Second, it places a clear (and statistically verifiable) distinction between reserves and resources. Companies will often blur the distinction between these two, especially where figures are calculated for foreign holdings. Resources are less reliable and undergo less rigorous analysis than is applied to reserve categories. Among those in wide use, the best approach in applying this distinction may actually be the Russian, rather than the SPE (Society of Petroleum Engineers), categorization. [Saudi Arabia Is Pouring Billions into This]( When I tell you the Saudis just invested $100 billion into one type of fuel, you're probably thinking of oil. But there's a worldwide energy transformation taking place, and this one universal fuel is slated for an inevitable global takeover. It can propel ships, run your car, and even power the entire U.S. electrical grid... and there's enough to last the planet 36,000 years! [Go here now to see how it's possible](. My far more conservative figures make this distinction between genuine reserves and potential resources easier to make. An extractable reserve multiple merely divides the total market value of oil and gas most easily extractable - though still in the ground - by the total market cap of the producing company. This should give us a relatively simple way to identify undervalued companies, those with the best opportunity to provide near-term value appreciation in a market where oil and gas prices are trading within a narrow range, are static, or experience appreciation. In this last case, in which the market price of oil and/or gas is rising, we might anticipate that most producers would benefit. Yet that is often not the case... Why Bigger Is Not Always Better The truth is, some companies are always rising faster than others. And in the other cases mentioned - when the raw material is trading within a narrow range or hardly changing at all - we also see that some shares fare better than others. All of this leads me to a couple of interesting observations that I have already applied when selecting shares within the universe of operating companies for both my [Energy Advantage]( and [Energy Inner Circle]( services. Initially, as I apply my extractable reserve multiples standard (with much lower available reserve figures than generally employed), it allows me to identify the more efficient and cost-effective projects. These projects are the primary profit drivers and tend to benefit the overall valuation of a company's shares. Next, my (narrowly defined extractable) reserve multiples approach supports an observation I have made several times in Oil & Energy Investor. Super large companies, such as Exxon Mobil Corp. ([XOM](), BP plc ([BP](), Chevron Corp. ([CVX](), and the like, may make a lot of money. But they do not end up with the best figures using those multiples. Put more directly: Smaller, well-managed, and narrow-focused producers perform better when using the reserve multiples as a yardstick. [Billionaire entrepreneur's $2 million startup set for 59,850% revenue surge!]( This serial entrepreneur guided his last startup to rare 20,000% gains. And now, in a once-in-a-lifetime opportunity, he's heading a tiny $2 million startup that could hit a 59,850% revenue surge... as it takes on a new $7 trillion energy sub-niche. Insiders are already gobbling up shares, so make sure you don't miss your chance. [Find out all you need to know to take action now](... As I have noted several times over the past few years, smaller companies emphasizing certain production basins in which they have had prior success, applying leaner field strategies with less overhead, and led by solid management will provide better profits per unit produced and higher stock appreciation than the big boys. Keep in mind that this yardstick shouldn't be your only consideration when selecting investment plays. But it is becoming a much more important measurement. And it is likely to give us another way to find undervalued oil and gas stocks to buy that are likely to advance long before everyone else catches on. Needless to say, that always translates into big investment profits. Sincerely, Kent Also this week [Your "Inside Scoop" on What Could be the Most Exciting Windsor Meeting in Years]( Early next week I will be attending the annual Windsor Energy Consultations - a three-day event that promises some intense discussions. I'll be taking you inside this exclusive meeting and telling you about [a new, post-oil world](. [This Tiny U.S. Firm Is at the Forefront of BIGGEST Defense Boom Ever]( Hostilities in the South China Sea now seem inevitable, and thanks to an alarming new superweapon, Chinese war hawks believe they have a huge advantage. But the Pentagon has been quietly racing to funnel millions into a tiny defense contractor with a top-secret technology that could end this threat before it even begins. And mark my words: Once this story breaks, this small firm could skyrocket. [Go here now before it's too late](. [There's No Telling How Much This New Bond Market Cycle Will Hand Us (But it's a Lot)]( Any way you look at it, a wide swath of U.S. oil and natural gas producers are going to take rising rates on the chin. The bond market is about to enter a phase we haven't seen in 70 years...and there's profit to be made there. We might have to tread carefully, [but there are many opportunities](. What Wall Street Is Desperately Trying to Hide About These Wild Markets Everything you've heard about the stock market's violent moves this past week is wrong. What's really wrong is how hardly anyone knows what's wrong, and the handful of people who do know aren't being honest. Shah Gilani is going to tell you something you aren't going to hear or read anywhere else: the truth about what's wrong with stock markets, how they got to be so dangerous, and how to trade this new reality. To get Shah's latest report - and to sign up for his free, twice-weekly Wall Street Insights & Indictments - [click here](. [Why the Middle East's Dream of a Post-Oil Economy is at a Crossroads]( In just over two weeks, I will be attending the annual Windsor Energy Consultation at Windsor Castle outside London. One matter we will be discussing involves a new "Energy Revolution" that is sending shockwaves throughout the energy sector, and it deals with the [Middle East's energy diversification](. [After Six Decades, the U.S. Is About to Hit a Major Energy Milestone]( In a 2005 meeting I attended, it was unanimously determined that a good chunk of U.S. natural gas demand would be met by imports of a new fuel within the next decade. However, last week it was reported that the U.S. would become a net exporter of crude oil and natural gas by 2022. This is a very big deal, [and here's why](. You May Have Missed [These billionaires seem to be prepared for a massive market crash (are you?)]( [Your step-by-step guide to a crypto fortune (it's easier than you think)]( [People pay thousands for a chance at results like these (claim yours for free)]( [FCC approval just sparked the ground-floor opportunity of a lifetime]( --------------------------------------------------------------- Share This Article: [Facebook]( [Twitter]( [More...]( mailto:?subject=Oil%20and%20Energy%20Investor%20with%20Dr.%20Kent%20Moors%20Ph.D.&body=Check%20out%20http%3A%2F%2Foilandenergyinvestor.com%2F --------------------------------------------------------------- You are receiving this email at {EMAIL} as a part of your free subscription to The Oil & Energy Investor E-Letter. Remove your email from this list: [Unsubscribe]( To cancel by mail or for any other subscription issues, write to us at: Oil & Energy Investor | Attn: Member Services | 1125 N Charles Street | Baltimore, MD 21201 North America: 888.384.8339; International: 443.353.4519; Fax: 410.622.3050 [Contact Customer Service]( Website: [( © 2018 Oil & Energy Investor All Rights Reserved. Nothing in this email should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: Oil & Energy Investor. 1125 N Charles Street, Baltimore MD 21201.