February 14, 2014: Markets opened lower on Friday before posting some gains on higher bids for energy and materials. Tech remained in the doldrums until mid-afternoon before moving to the plus side of the ledger, causing the Nasdaq to reach its year-to-date high and a level not seen since 2000. In the final minutes of trading the DJIA was up 0.72%, the S&P 500 was up 0.42%, and the Nasdaq Composite was up 0.07%.
Today�� big mover among the Dow 30 stocks was UnitedHealth Group Inc. (NYSE: UNH). Shares were trading up 3.13% at $73.46 in a 52-week range of $52.51 to $77.33 shortly before the closing bell. Healthcare stocks, especially insurers, as a group performed well today UnitedHealth�� volume was about 20% above the daily average of around 49 million shares traded.
Cisco Systems Inc. (NASDAQ: CSCO) posted the largest percentage drop of the DJIA stocks yesterday, but is about half that loss back today. Shares are up 1.35% at $22.58 in a 52-week range is $19.98 to $26.49. Traders saw a buying opportunity here and took advantage of it. Trading volume was about 10% higher than the daily average of some 50 million shares.
Best Healthcare Technology Stocks For 2015: Mcdermott International Inc (MDR)
McDermott International, Inc. (MII),incorporated on August 11, 1959, is a engineering, procurement, construction and installation (EPCI) company. The Company is focused on designing and executing complex offshore oil and gas projects worldwide.
The Company provides fully integrated EPCI services; it delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning. Its business segments consist of Asia Pacific, Atlantic, Caspian and the Middle East. On March 19, 2012, the Company completed the sale of its former charter fleet business, which operated 10 of the 14 vessels.
Asia Pacific Segment
Through the Company�� Asia Pacific segment, it serves the needs of customers primarily in Australia, Indonesia, Vietnam, Malaysia and Thailand. Project focus in this segment includes the fabrication and installation of fixed and floating structures and the installation of pipelines and subsea systems. The majority of its projects in this segment are performed on an EPCI basis. Engineering and procurement services are provided by its Singapore office and are supported by additional resources located in Chennai, India and Houston, Texas. The primary fabrication facility for this segment is located on Batam Island, Indonesia. Additionally, through its equity ownership interest in a joint venture, the Company has developed a fabrication facility located in China.
The Company competes with Allseas Marine Contractors S.A.; Daewoo Engineering & Construction Co., Ltd.; EMAS Offshore Pte Ltd.; Heerema Group; Hyundai Heavy Industrial Co., Ltd.; Nippon Steel Corporation; Saipem S.P.A.; Samsung Heavy Industries Co., Ltd.; Sapura Kencana Petroleum; Subsea 7 S.A.; Swiber Holdings Ltd., and Technip S.A.
Atlantic Segment
Through the Company�� Atlantic segment, it serves the needs of customers primarily in the United States, Brazil, Mexico, Trinidad and West Africa. Project focus in this s! egment includes the fabrication and installation of fixed and floating structures and the installation of pipelines and subsea systems. Engineering and procurement services are provided by its Houston office, and its New Orleans office provides marine engineering capabilities to support its global marine activities. The primary fabrication facilities for this segment are located in Morgan City, Louisiana and Altamira, Mexico.
The Company competes with Allseas Marine Contractors S.A.; Dragados Offshore Mexico, S.A.; Gulf Island Fabrication Inc.; Heerema Group; Helix Energy Solutions Group, Inc.; KBR, Inc.; Kiewit Corporation; Saipem S.P.A.; Subsea 7 S.A., and Technip S.A.
Middle East Segment
Through the Company�� Middle East segment, which includes the Caspian region, it serves the needs of customers primarily in Saudi Arabia, Qatar, the United Arab Emirates (U.A.E.), Kuwait, India, Azerbaijan, Russia, and the North Sea. Project focus in this segment relates primarily to the fabrication and offshore installation of fixed and floating structures and the installation of pipelines and subsea systems. The majority of its projects in this segment are performed on an EPCI basis. Engineering and procurement services are provided by its Dubai, U.A.E., Chennai, India and Al Khobar, Saudi Arabia offices and are supported by additional resources from its Houston and Baku, Azerbaijan offices. The primary fabrication facility for this segment is located in Dubai, U.A.E.
The fabrication facilities in each segment are equipped with a variety of heavy-duty construction and fabrication equipment, including cranes, welding equipment, machine tools and robotic and other automated equipment. Project installation is performed by construction vessels, which the Company owns or leases and are stationed throughout the various regions and provide structural lifting/lowering and pipelay services. These construction vessels are supported by its multi-function vessels and chart! ered vess! els from third parties to perform a wide array of installation activities that include anchor handling, pipelay, cable/umbilical lay, dive support and hookup/commissioning.
The Company competes with Hyundai Heavy Industrial Co. Ltd.; Keppel Corporation; Larsen and Toubro Ltd (India); National Petroleum Construction Company (Abu Dhabi); Saipem S.P.A.; Technip S.A.; and Valentine and Swiber Holdings Ltd.
Advisors' Opinion:- [By Jake L'Ecuyer]
McDermott International (NYSE: MDR) was down, falling 6.65 percent to $7.30 after the company announced a public offering of 10 million tangible equity units, each with a stated value of $25.
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, engineering and construction company McDermott International (NYSE: MDR ) has earned a coveted five-star ranking.
Best Energy Companies To Buy Right Now: SEACOR Holdings Inc (CKH)
SEACOR Holdings Inc, incorporated on November 7, 1989, is a global provider of equipment and services primarily supporting the offshore oil and gas and marine transportation industries. The Company offers customers a diversified suite of services, including offshore marine, aviation, inland river, marine transportation, crisis and emergency management preparedness and response solutions, commodity trading and logistics and offshore and harbor towing. On March 19, 2012, J.F. Lehman & Company acquired National Response Corporation and its affiliated businesses NRC Environmental Services, SEACOR Response, and SEACOR Environmental Products (collectively NRC) from the Company. In January 2013, the Company sold its energy trading division, SEACOR Energy Inc. to Par Petroleum Corporation. On January 31, 2013, it completed the spin off its Era Group Inc unit (Era).
Offshore Marine Services
The Company�� Marine operates a diversified fleet of vessels, servicing the offshore oil and gas exploration, development, and production industry worldwide.The Company�� marine provides its customers with the assembly of offshore vessel services in the global offshore oil and gas industry, including transport of personnel, platform supply, offshore accommodation, intervention, maintenance and repair support, standby safety services, anchor handling and mooring services, wind farm support, lift boat services, offshore construction support, well enhancement support, and lightering services.
Aviation Services
The Company�� aviation services subsidiary, Era Group (Era), is the helicopter operators globally. ra supports the oil and gas industry in the United States Gulf of Mexico, Alaska, and internationally. Era provides air medical services, firefighting support, flightseeing tours in Alaska, and Search and Rescue and Emergency Medical Services. Era's affiliate, Era Training Center, offers flight training services. Era also markets and distributes specialty helicopter! equipment and accessories.
Inland River Services
The Company�� Inland River Services group owns and operates modern river transportation equipment; owns covered and open hopper barges, 10,000 and 30,000 barrel tank barges, deck barges, inland river towboats and smaller harbor boats; and provides ancillary services along the United States Inland River Waterways and the Parana-Paraguay and the Magdalena River Systems in South America. SCF Marine operates a fleet of hopper barges along the United States Inland River Waterways and South America, transporting agricultural, industrial, and project cargoes. The liquid division, Supercritical Fluid (SCF) Liquids, is a integrated towboat and tank barge company, specializing in the transportation of chemical, clean, and dirty products. Gateway Terminals is among the newest ethanol and petroleum storage terminals on the Mississippi River, with a capacity of 400,000 barrels and the ability to receive and transfer products by barge, unit train, and truck.
Marine Transportation Services
The Company�� ocean shipping and harbor towing subsidiary, SEACOR Ocean Transport, is an owner and operator of equipment engaged in oil transportation, bunkering, harbor towing, Liquefied Natural Gas (LNG) terminal support, short sea shipping and logistics, and third-party ship management services. Through all aspects of its operations, SEACOR Ocean Transport focuses to provide its customers with marine transportation solutions.
Commodity Trading and Logistics
The Company�� Commodity Trading and Logistics group specializes in the purchase, storage, transportation, and sale of agricultural and energy commodities, which include renewable fuels, blendstocks, sugar, rice, and salt. The Agricultural group is primarily focused on the global sourcing and logistics of sugar, rice, salt, and other dry bulk products. The Energy group is primarily focused on the domestic trading and transportation of physical e! thanol an! d clean blendstocks.
Harbor and Offshore Towing Services
The Company�� ocean shipping and harbor towing subsidiary, SEACOR Ocean Transport, is an operator of equipment engaged in oil transportation, bunkering, harbor towing, LNG terminal support, short sea shipping and logistics, and third-party ship management services. The harbor towing services group, Seabulk Towing, is a tugboat operator with operations along the Gulf Coast and Southeastern seaboard port system from Cape Canaveral, Florida, to Port Arthur, Texas. Seabulk Island Transport owns and operates four ocean tugs and five ocean liquid tank barges.
Advisors' Opinion:- [By Seth Jayson]
Margins matter. The more Seacor Holdings (NYSE: CKH ) 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 Seacor Holdings's competitive position could be.
- [By Traders Reserve]
For investors who want a piece of this developing trend, Transocean and Seadrill are two of the bigger players in this arena. Other offshore drillers/rig operators are Noble (NE) and Ensco (ESV). Companies that provide services to offshore drillers and benefit from increases in exploration and drilling activity are Gulfmark Offshore (GLF), Hornbeck (HOS), Seacor (CKH) and Tidewater (TDW).
Best Energy Companies To Buy Right Now: ATP Oil And Gas Corp (AOB)
ATP Oil & Gas Corporation, incorporated in 1991, is engaged in the acquisition, development and production of oil and natural gas properties. As of December 31, 2011, the Company had estimated net proved reserves of 118.9 Million barrels of crude oil equivalent (MMBoe), of which approximately 75.9 MMboe (64%) were in the Gulf of Mexico and 42.9 MMBoe (36%) were in the North Sea. The reserves consisted of 78.6 Million barrels (MMBbls) of oil (66%) and 241.5 billion cubic feet (Bcf) of natural gas (34%). Its proved reserves in the deepwater area of the Gulf of Mexico account for 62% of the Company�� total proved reserves and its proved reserves on the Gulf of Mexico Outer Continental Shelf account for 2% of its total proved reserves. During the year ended December 31, 2011, the Company acquired three licenses in the Mediterranean Sea covering potential natural gas resources in the deepwater off the coast of Israel (East Mediterranean). On August 17, 2012, ATP Oil And Gas Corp filed for Chapter 11 bankruptcy protection.
The Company�� natural gas reserves are split between the Gulf of Mexico (57%) and the North Sea (43%). Of its total proved reserves, 8.3 MMBoe (7%) were producing, 19.0 MMBoe (16%) were developed and not producing and 91.6 MMBoe (77%) were undeveloped. The Company�� average working interest in its properties at December 31, 2011, was approximately 81%. The Company operates 92% of its platforms. At December 31, 2011, in the Gulf of Mexico, it owned leasehold and other interests in 38 offshore blocks and 49 wells, including 23 subsea wells. The Company operates 43 (88%) of these wells, including 100% of the subsea wells. In the North Sea, it also had interests in 13 blocks and two Company-operated subsea wells. As of March 15, 2011, the Company owned an interest in 13 platforms, including two floating production facilities in the Gulf of Mexico, the ATP Titan at its Telemark Hub and the ATP Innovator at its Gomez Hub. It operates the ATP Innovator and the ATP Titan.
Advisors' Opinion:- [By John Emerson]
Most of the Chinese companies that I purchased now reside on the Pink Sheets or have disappeared altogether, but at one time they all traded on major US exchanges. One of them (AOB), even received the honor of ringing the opening bell at the New York Stock Exchange in 2007, and people say that crime does not pay.
Best Energy Companies To Buy Right Now: Oil and Gas Development Co Ltd (OGDC)
Oil and Gas Development Company Limited (OGDCL) is a Pakistan-based company engaged in the exploration and development of oil and gas resources, including production and sale of oil and gas and related activities. As the fiscal year ended June 30, 2012, the Company�� crude oil production was 37,615 barrels of oil per day, and 17 wells were spudded. As of June 30, 2011, the Company operated in 31 exploration blocks (22 blocks with 100% shares including an offshore block, and 12 blocks as operated joint ventures), including 3 offshore blocks. Its projects include Uch-II Development Project, KPD-TAY Integrated Development Project, Jhal Magsi Development Project, Sinjhoro Development Project and Nashpa/ Mela Development Project. Advisors' Opinion:- [By Weiyi Lim]
Drinkall, whose $83 million Frontier Emerging Markets Portfolio (MFMIX) beat 99 percent of peers tracked by Bloomberg during the past 12 months with a 40 percent gain, said he favors Nigeria because of its economic growth prospects and Pakistan on the nation�� improving political stability. His fund held shares of Lagos-based Dangote Cement Plc (DANGCEM) and Islamabad-based Oil & Gas Development Co. (OGDC) as of April 30, Morgan Stanley�� website shows.
Best Energy Companies To Buy Right Now: MRC Global Inc (MRC)
MRC Global Inc., formerly known as McJunkin Red Man Holding Corporation, incorporated on November 20, 2006, is a holding company. The Company is the distributor of pipe, valves and fittings (PVF) and related products and services to the energy industry. The Company offers a range of PVF and oilfield supplies encompassing a complete line of products from its global network of suppliers to its more than 12,000 customers. The Company operates in two segments: North American segment and International segment. Its North American segment includes over 180 branch locations, six distribution centers in the United States, one distribution center in Canada, 11 valve automation service centers and over 170 pipe yards located in the oil and natural gas regions in North America. Its International segment includes over 40 branch locations throughout Europe, Asia and Australasia with distribution centers in each of the United Kingdom, Singapore and Australia and 10 automation service centers in Europe and Asia. On June 9, 2011, it acquired Stainless Pipe and Fittings Australia Pty. Ltd. (MRC SPF). On July 22, 2011, it acquired Valve Systems and Controls (VSC). In January 2013, the Company's subsidiary, McJunkin Red Man Corporation,acquired operating assets of Production Specialty Services, Inc. In July 2013, MRC Global Inc announced that it has completed the previously announced acquisition of the operating assets of Dan H. Brown, Inc., D/B/A Flow Control Products (Flow Control). In December 2013, MRC Global Inc acquired Flangefitt Stainless Ltd. Effective January 6, 2014, MRC Global Inc a unit of GS Capital Partners LP subsidiary of Goldman Sachs Group Inc's Goldman Sachs & Co unit, acquired Stream AS.
The Company distributes products globally, including in PVF intensive, oil and natural gas exploration and production (E&P) areas, such as the Bakken, Barnett, Eagle Ford, Fayetteville, Haynesville, Marcellus, Niobrara and Utica shales in North America. Its Canadian subsidiary Midfield Supply ULC and its! subsidiaries (MRC Midfield), provides PVF products to oil and natural gas companies operating primarily in Western Canada, including the Western Canadian Sedimentary Basin, Alberta Oil Sands and heavy oil regions. It offers more than 150,000 stock keeping units (SKUs), including a range of PVF, oilfield supply, automation, instrumentation and other general and specialty industry supply products.
The Company is the majority owned subsidiary of PVF Holdings LLC. Its wholly owned subsidiary, McJunkin Red Man Corporation and its subsidiaries (MRC), are global distributors of pipe, valves, fittings and related products and services across each of the upstream (exploration, production and extraction of underground oil and gas), midstream (gathering and transmission of oil and gas, gas utilities, and the storage and distribution of oil and gas) and downstream (crude oil refining, petrochemical processing and general industrials) markets. The Company serves the global oil and natural gas industry, generating approximately 90% of its sales from supplying products and services to customers throughout the energy industry. Of its total sales, 62% of sales are comprised of valves, fittings and flanges and other industrial supply products and 38% are tubular products, mainly line pipe and oil country tubular goods (OCTG) as of September 30, 2011.
North American Operations
The Company distributes PVF products, primarily used in applications in the energy infrastructure sector, from its global network of suppliers. The products it distributes are used in the construction, maintenance, repair and overhaul of equipments. The products include Valves and Specialty Products, Line Pipe, OCTG, Carbon Steel Fittings and Flanges and Stainless Steel and Alloy Pipe and Fittings and others. The products under valves and specialty products include ball, butterfly, gate, globe, check, needle and plug valves, which are manufactured from cast steel, stainless/alloy steel, forged steel, carbon st! eel or ca! st and ductile iron. Specialty products include lined corrosion resistant piping systems, valve automation and top work components used for regulating flow and on/off service, and a range of steam and instrumentation products used in various process applications within its refinery, petrochemical and general industrial sectors.
Carbon line pipe is used in high-yield, high-stress, abrasive applications, such as the gathering and transmission of oil, natural gas and phosphates. Line pipe is part of its tubular product category. OCTG is part of its tubular product category, includes casing (used for production and to line the well bore) and tubing pipe (used to extract oil or natural gas from wells) and is either classified as carbon or alloy depending on the grade of material. Carbon steel fittings and flanges include carbon weld fittings, flanges and piping components used primarily to connect piping and valve systems for the transmission of various liquids and gases. These products are used across all the industries in which it operates. Stainless steel and alloy pipe and fittings include stainless, alloy and corrosion resistant pipe, tubing, fittings and flanges. These are used in the chemical, refining and power generation industries, as well as across all of the sectors in which the Company operates. Alloy products are principally used in high-pressure, high-temperature and high-corrosion applications typically seen in process piping applications.
The products under other category include natural gas distribution products, oilfield supplies, and other industrial products, such as mill and safety and electrical supplies. Natural gas distribution products include risers, meters, polyethylene pipe and fittings and various other components and industrial supplies used primarily in the distribution of natural gas to residential and commercial customers. It offers a range of oilfield and industrial supplies and completion equipment, and products offered include high density polyet! hylene pi! pe and fittings, valves, well heads, pumping units and rods. In addition, it supplies a range of specialized production equipment, including meter runs, tanks and separators used in its upstream sector.
The Company provides its customers with a range of services, including multiple deliveries each day, zone store management, valve tagging and system interfaces that directly tie the customer into its information systems. Its information system, which provides for customer and supplier electronic integrations, information sharing and e-commerce applications, provides service to its customers. The Company sources the products it distributes from a global network of suppliers. The remainder of the products it distributes are sourced from manufacturer representatives, trading companies and, in some instances, other distributors.
The Company competes with Wilson Industries, Inc., National Oilwell Varco, Inc. and Ferguson Enterprises.
International Operations
The Company�� International segment represents its valve and stainless and alloy pipe, fitting and flange distribution business to the energy and general industrial sectors, across each of the downstream and upstream sectors, through its distribution operations located throughout Europe, Asia, Australasia and the Middle East. Through its over 40 branch and service facilities throughout Europe, Asia, Australasia and the Middle East, it distributes a complete line of valve and stainless and alloy pipe, fittings and flanges and specialty products. Its Valve products offered include ball, butterfly, gate, globe, check, needle and plug valves, which are manufactured from cast steel, stainless/alloy steel, forged steel, carbon steel or cast and ductile iron. Valves are used in oilfield and industrial applications to control direction, velocity and pressure of fluids and gases within transmission networks. Specialty products include lined corrosion resistant piping systems, valve automation and top work compo! nents use! d for regulating flow and on/off service and a range of steam and instrumentation products used in various process applications within its offshore, refinery, petrochemical and general industrial sectors.
Stainless steel products are used in all sectors in which it operates, including oil and gas, mining and mineral processing, water treatment and desalination, and petrochemical. It provides its customers with a range of services, including multiple daily deliveries, zone stores management, valve tagging and system interfaces that directly tie the customer into its information systems.
The Company competes with Econosto.
Advisors' Opinion:- [By Eric Volkman]
MRC Global (NYSE: MRC ) now officially has a new asset in its portfolio. The company announced it has finalized the acquisition of the operating assets of Flow Control Products. It describes the once privately held firm as "a leading provider of pneumatic, electric and electro-hydraulic valve automation packages and related field support to the Permian Basin energy industry, including production facilities, pipelines, and plant operations." According to MRC Global, the company posted $28 million in revenues last year.
- [By Monica Wolfe]
MRC Global (MRC)
Over the duration of the second quarter, Columbia Wanger upped their position in MRC Global by 258.43%. The fund purchased 1,809,000 shares of the company�� stock at an average price of $29.69. Since their increase, the price per share has dropped -18.9%.
Best Energy Companies To Buy Right Now: 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).
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