5 Best Gas Stocks To Watch Right Now

With surging oil and natural gas output already making headlines from North Dakota to Pennsylvania, there�� reason to believe that the domestic energy boom is really just beginning. The combination of hydraulic fracturing, or fracking, and horizontal drilling now lets energy firms reach deposits locked in shale and other rock layers &emdash; resources once thought too difficult to exploit. As a result, domestic oil output is up 50% since 2008, and the U.S. has become the world�� top natural gas producer. So far, mammoth fields such as the Bakken Formation of North Dakota and Eagle Ford in Texas have garnered most of the oil and gas industry�� attention.

See Also: Cash In on the Natural Gas Shale Boom

A slew of future drilling hot spots are emerging, suggesting that the domestic energy boom is about to shift into higher gear. Start with the arc of promising finds dotting the South Central U.S., from the Gulf Coast to West Texas to Kansas. The Louisiana Department of Natural Resources reports mounting investment by energy firms in several of the state�� oil-bearing shale plays, including the Tuscaloosa Marine Shale, the Brown Dense Formation in northern Louisiana and ultradeep wells being drilled near the coast.

5 Best Gas Stocks To Watch Right Now: WPX Energy Inc (WPX)

WPX Energy, Inc. (WPX Energy), incorporated on April 19, 2011, is an independent natural gas and oil exploration and production company engaged in the exploitation and development of long-life unconventional properties. The Company focuses on exploiting its natural gas reserve base and related NGLs in the Piceance Basin of the Rocky Mountain region, and on developing its positions in the Bakken Shale oil play in North Dakota and the Marcellus Shale natural gas play in Pennsylvania. Its other areas of domestic operations include the Powder River Basin in Wyoming and the San Juan Basin in the southwestern United States. In addition, it owns a 69% controlling ownership interest in Apco Oil and Gas International, Inc. (Apco), which holds oil and gas concessions in Argentina and Colombia. As of December 31, 2010, it had proved reserves of 4,473 Bcfe, 59% of which were proved developed reserves. Average daily production as of March 31, 2011 was 1,251 MMcfe/d.

Bakken Shale

The Company acquired 89,420 net acres in the Williston Basin in North Dakota that is prospective for oil in the Bakken Shale. It acquired all of this acreage in December 2010 through the acquisition of Dakota-3 E&P Company LLC. As of December 31, 2010, it had three rigs operating on the Bakken Shale acreage. Since acquiring this acreage, the Company has drilled 10 operated wells on the Bakken Shale properties; nine Middle Bakken formation wells and one Three Forks formation well. Six of these wells have been completed and connected to sales with initial 30 day production rates ranging from 750 Boe/d to 1,100 Boe/d.

Marcellus Shale

The Company�� 99,301 net acres in the Marcellus Shale were acquired through two key transactions and additional leasing activities. In July 2010, the Company acquired 42,000 net acres in Susquehanna County in northeastern Pennsylvania. As of December 31, 2010, the Company had five rigs operating in the Marcellus Shale.

Advisors' Opinion:

• [By Claudia Assis]

  Among advancers, WPX Energy Inc. (WPX) rose 3.2%.

5 Best Gas Stocks To Watch Right Now: Enduro Royalty Trust (NDRO)

Enduro Royalty Trust (the Trust) is a statutory trust. On May 13, 2011, the Trust was formed by Enduro Resource Partners LLC (Enduro Sponsor) to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico (the Underlying Properties) held by Enduro Sponsor as of the date of the conveyance of the net profits interest to the trust. The business and affairs of the Trust will be managed by The Bank of New York Mellon Trust Company, N.A., as trustee (the Trustee). In addition, Wilmington Trust Company will act as Delaware trustee (the Delaware Trustee) of the Trust.

The Trust will enter into an administrative services agreement with Enduro pursuant to which Enduro will provide the Trust with certain accounting, bookkeeping, and informational services related to the Net Profits Interest. Enduro Sponsor is a privately-held limited liability company engaged in the production and development of oil and natural gas from properties located in Texas, Louisiana and New Mexico.

Advisors' Opinion:

• [By Rich Duprey]

  Statutory trust Enduro Royalty Trust (NYSE: NDRO  ) announced yesterday its July monthly distribution of $0.128817�per unit; it has paid a monthly dividend since November 2011. The distribution announced in May was $0.096825 per unit.

Top Healthcare Equipment Companies To Invest In Right Now: Western Gas Equity Partners LP (WGP)

Western Gas Equity Partners, LP, incorporated on September 11, 2007, was formed to own three types of partnership interests in Western Gas Partners, LP (WES). WES is a limited partnership formed by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. As of December 31, 2011, the Company had no independent operations. On January 13, 2012, WES acquired 100% interest of Mountain Gas Resources LLC (MGR). On August 1, 2012, WES acquired 24% interest of Chipeta Processing LLC (Chipeta).

WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil for Anadarko, as well as third-party producers and customers. The assets of WGP, through its partnership interests in WES, include thirteen gathering systems, seven natural gas treating facilities, ten natural gas processing facilities, two NGL pipelines, one interstate gas pipeline, one intrastate gas pipeline, and three separate interests in Fort Union, White Cliffs Pipeline, LLC (White Cliffs) and Rendezvous Gas Services, LLC (Rendezvous). These assets are located in East and West Texas, the Rocky Mountains (Colorado, Utah and Wyoming), and the Mid-Continent (Kansas and Oklahoma). WES also has facilities under construction in South Texas and northeast Colorado. During the year ended December 31, 2011, WES completed the construction of a cryogenic processing train at its Chipeta facility , which had a designed capacity of approximately 300 million cubic feet of natural gas per day and was placed into service in October 2012.

Advisors' Opinion:

• [By Jonas Elmerraji]

  The exact same setup is potentially giving traders a reason to jump into shares of $8.5 billion midstream gas company Western Gas Equity Partners (WGP). Just like Flotek, WGP is forming a textbook channel up. And this week, Western Gas is testing trendline support.

  It's a little too early to call WGP's trendline buyable here. At some point, all trends eventually fail -- and when this one does, you don't want to be left holding the bag. A bounce this week will be a good indication that WGP can still catch a bid at this price level. When and if that happens, I'd recommend keeping a tight protective stop in place just below WGP's most recent swing low at $38.

  While the 50-day moving average has been crossing paths with WGP quite a bit in the last month, I'd recommend ignoring it. The average hasn't acted as a meaningful support or resistance level to date. In the case of this particular name, it's just not technically relevant.

5 Best Gas Stocks To Watch Right Now: NGL Energy Partners LP (NGL)

NGL Energy Partners LP is a limited partnership company formed to own and operate a vertically-integrated propane business. The Company operates in three segments: retail propane; wholesale supply and marketing; and midstream. Its retail propane business sells propane to end users consisting of residential, agricultural, commercial and industrial customers. The Company�� wholesale supply and marketing business supplies propane and other natural gas liquids and provides related storage to retailers, wholesalers and refiners. Its midstream business, which consists of its propane terminaling business, takes delivery of propane from pipelines or trucks at its propane terminals and transfers the propane to third-party transport trucks for delivery to retailers, wholesalers or other consumers. The Company�� general partner is NGL Energy Holdings LLC (the General Partner). On October 14, 2010, it executed a series of transactions (the Combination) with NGL Supply, Inc. (NGL Supply). In February 2012, the Company acquired all of the assets comprising the propane and distillate operations of North American Propane. In May 2012, the Company acquired Downeast Energy Corporation. The assets contributed by Downeast are located in Maine and New Hampshire. In November 2012, the Company acquired limited liability company membership interests in Pecos Gathering & Marketing LLC and its affiliated companies (Pecos). In July 2013, NGL Energy Partners LP announced the acquisition of the assets of Crescent Terminals, LLC. Effective July 8, 2013, NGL Energy Partners LP acquired High Roller Wells Big Lake SWD No 1 LP. In August 2013, NGL Energy Partners LP acquired the water disposal and hauling business of Oilfield Water Lines LP. In September 2013, NGL Energy Partners LP acquired the water disposal business of Coastal Plains Disposal #1, LLC owned by WinCo Development, LLC. In November 2013, the Company announced acquisition of all of the equity interests of Gavilon, LLC.

Retail Propane

The Co! mpany�� retail propane business consists of the retail marketing, sale and distribution of propane, including the sale and lease of propane tanks, equipment and supplies, to more than 56,000 residential, agricultural, commercial and industrial customers. It markets retail propane primarily in Georgia, Illinois, Indiana and Kansas through its customer service locations. The Company owns or leases 44 customer service locations and 37 satellite distribution locations, with aggregate above-ground propane storage capacity of approximately four million gallons. It also owns a fleet of bulk delivery trucks and service vehicles.

Wholesale Supply and Marketing

The Company�� wholesale supply and marketing business provides propane procurement, storage, transportation and supply services to customers, through assets owned by it and by third parties. Its wholesale supply and marketing business also obtains the majority of the propane supply for its retail propane business. The Company procures propane from refiners, gas processing plants, producers and other resellers for delivery to leased storage, common carrier pipelines, rail car terminals and direct to certain customers. It has the right to utilize 100% of the ConocoPhillips Blue Line pipeline, which runs from Borger, Texas, to its propane terminals in East St. Louis, Illinois and Jefferson City, Missouri. The Company leases approximately 67 million gallons of propane storage space in various locations to accommodate the supply requirements and contractual needs of its retail and wholesale customers.

Midstream

The Company�� midstream business, which consists of its propane terminaling business, takes delivery of propane from a pipeline or truck at its propane terminals and transfers the propane to third party trucks for delivery to propane retailers, wholesalers or other customers. The Company�� midstream assets consist of its three propane terminals in East St. Louis, Illinois; Jefferson City, Missou! ri, and S! t. Catharines, Ontario. The Company is a service provider at each of its terminals, which have a combined annual throughput in excess of 170 million gallons of propane.

Advisors' Opinion:

• [By Garrett Cook]

  NGL Energy Partners LP (NYSE: NGL) shares tumbled 7.14 percent to $42.41 after the company priced an offering of 8 million shares at $43.85 per share.

5 Best Gas Stocks To Watch Right Now: Tallgrass Energy Partners LP (TEP)

Tallgrass Energy Partners, LP incorporated on February 6, 2013, is a limited partnership company. It provides natural gas transportation and storage services for customers in the Rocky Mountain and Midwest regions of the United States through its Tallgrass Interstate Gas transportation system and processing services for customers in Wyoming through its Midstream Facilities. The Company operates in two segments: Gas Transportation and Storage and Processing. The Gas Transportation and Storage segment is engaged in ownership and operation of interstate natural gas pipelines and related natural gas storage facilities that provide services to third-party natural gas distribution utilities and other shippers. The Processing segment is engaged in ownership and operation of natural gas processing and treating facilities that produce natural gas liquids and residue gas that is sold in local wholesale markets or delivered into pipelines for transportation to additional end markets.

The Company provides processing services for customers in Wyoming through its Casper and Douglas natural gas processing and West Frenchie Draw natural gas treating facilities. The Casper and Douglas plants have combined capacity of 138.5 138.5 MMcf/d. The Company has its operations in Lakewood, Colarado. The Company owns and natural gas processing plants in Casper and Douglas, Wyoming and a natural gas treating facility at West Frenchie Draw, Wyoming through its wholly-owned subsidiary, Tallgrass Midstream, LLC.

The Company competes with Kinder Morgan and Southern Star Central Gas Pipeline, Inc.

Advisors' Opinion:

• [By Robert Rapier]

  Tallgrass Energy Partners (NYSE: TEP) is a midstream limited partnership that provides natural gas transportation and storage services in the Rocky Mountain and Midwest regions of the US. The partnership launched on May 13, 2013 and in late June increased EBITDA guidance above analysts’ expectations, causing units to climb nearly 21 percent by year-end. In December TEP reiterated guidance for 1.2x distribution coverage for the entire year. The partnership recently declared a distribution of $0.3150 per unit for the fourth quarter of 2013 – a 5.9 percent increase from the Q3 2013 distribution. TEP’s annualized yield based on the most recent distribution is 4.8 percent, its current EV is $1.28 billion and its total debt/equity (mrq) is 30.5 percent.

• [By Aimee Duffy]

  Tallgrass Energy Partners (NYSE: TEP  ) followed closely behind, going public on May 14. This midstream company picked up some of Kinder Morgan Energy Partners'�western-based natural gas assets when KMP was forced to divest them to receive the Department of Justice's blessing on the El Paso acquisition.

• [By Robert Rapier] There were a half a dozen initial public offerings (IPOs) by master limited partnerships in the first half of the year, and all but one are now in the green while one has nearly doubled in value.
  
  The first MLP IPO of 2013 debuted on Jan. 15. USA Compression Partners (NYSE: USAC), which I mentioned in last week’s issue, provides compression services for the oil and gas industry. Units have advanced 36 percent since the IPO, and at the current price yield 7.3 percent.
  
  The day after the USA Compression Partners IPO, CVR Refining (NYSE: CVRR) made its debut.  CVRR was spun off from CVR Energy (NYSE: CVI), and both companies remain majority-owned by Carl Icahn. CVR Refining’s primary assets are two refineries located in Kansas and Oklahoma with a combined processing capacity of approximately 185,000 barrels per day (bpd). These refineries are strategically located near the major Cushing, Oklahoma shipment and storage hub, with easy access to discounted feedstock from the nearby Permian basin, as well as the Bakken shale and Canadian oil sands.
  
  But refiners have struggled with diminished margins in 2013 because of a much lower Brent-WTI differential. After the recently concluded second quarter, CVRR declared a distribution of $1.35 per unit, bringing its per-unit distributions for the first half of the year to $2.93. At the same time, CVR Refining lowered its annual distribution target to a range of $4.10 to $4.80 per unit. This was lower than the outlook issued in March, when it foresaw annual distributions of $5.50 to $6.50. CVRR units slid on the news, and are presently trading slightly below the $25 IPO price. The lower end of the revised forecast implies distributions of $1.17 per unit in the second half of the year, for a forward annualized yield of 10 percent based on the recent $23.50 unit price.
  
  SunCoke Energy Partners (NYSE: SXCP) was the third IPO to debut during a very busy third week of January. SXCP is the first M