In past natural resources posts, oil and gas exploration companies have been featured. They are generally smaller companies working to make their mark and achieve “going concern” status. These companies, however, are at the beginning of the food chain. They come in all shapes and sizes but operate to get the oil and gas to combust when and where it should. Understanding that these companies are just as solid for profit opportunity as the oil and gas exploration companies is not all that difficult. Finding them can be. An investor that can find a solid company capitalizing on oil and gas exploration is one that may also find profit.

Crosstex Energy L.P., a midstream natural gas company, works to transport, treat and market natural gas. The company currently services 4bcf of natural gas per/day with approximately 5,700 miles of pipeline, 12 processing plants, 4 fractionators and approximately 195 amine treating

...

by Terry Stanfield

If you are talking to a company about oil and gas investments it is important to know the signs of a scam. There are scams in every industry or anything that pertains to money. Don’t let someone scam you of your money. Here are six easy ways to tell you are talking to a scammer.

1. If you are talking to an oil investments company who claims there is absolutely no risk with the investment, it is a scam. Oil is a risky investment. Any smart investor knows this and any company who tells you otherwise is lying. You can lose every dime when you invest in oil and gas. This is a fact. You can also make a killing, but the risk is very high.

2. If a gas investments company tells you that they have found a well that is …

EnCana Corporation (

New York City-based Hess Corporation (HES), previously known as Amerada Hess Corporation (AHC), is an integrated oil company engaged in oil and gas exploration, production (E&P) and refining as well as marketing. As of year-end 2007, the company's proved reserves tally stood at 1.33 billion oil-equivalent barrels, of which approximately two-thirds consisted of crude oil/liquids.

Hess has slashed its 2009 capital budget in response to the pullback in crude oil prices and credit market turmoil, essentially bringing its outlays inline with projected internal cash flows. The company plans to spend $3.2 billion next year, down from the roughly $5 billion budgeted for 2008.

We consider the move as prudent given the macro backdrop. While we continue to see upstream momentum at Hess on the back of the company's large inventory of exploration and development projects, our Hold recommendation remains unchanged at this stage.

Read the full analyst report on HES

...

Texas-based Comstock Resources, Inc. (CRK) is an independent oil and gas exploration and production company engaged in the acquisition, exploration, and development of oil and gas properties. The company's operations are concentrated primarily in four regions in the U.S.: the Gulf of Mexico, East Texas/North Louisiana, Mississippi and South Texas.We are maintaining our Buy recommendation on Comstock shares, given the company's growing volumes (for the first nine months of 2008, volumes were up 36%), attractive valuation, and relatively lower risk profile. Additionally, the Bois d'Arc sale to Stone Energy has streamlined Comstock's operations and positioned it to function as a pure-play onshore natural gas producer. The Haynesville Shale play offers significant long-term reserve-add potential going forward. Comstock's drilling success in the Cotton Valley formation is another catalyst for future production growth.Read the full analyst report on CRK....

Loews Corporation (L) experienced a 3Q08 net loss from continuing operations came of $0.33 per share, the result of higher-than-expected catastrophe losses and investment losses at CNA Financial Corporation (CNA), which more than offset the improved results at the energy and drilling subsidiaries -- HighMount Exploration, Diamond Offshore Drilling, Inc. (DO) and Boardwalk Pipeline Partners LP (BWP).

The spin-off of Lorillard in 2Q08 eliminated the company's overhang from tobacco litigation, permitting an increased focuses on broadening hydrocarbon interests. While the company has announced large capital investments (which would benefit results in the future), we reiterate our Hold recommendation as of now.

CNA Financial is the 14th largest property-casualty insurer in the U.S., providing standard commercial lines, specialty lines (specialty property-casualty, professional and financial), surety, marine, and other property and casualty coverage as well as life, and group insurance coverage. CNA is 90.0% owned by Loews. This insurance

...

EOG Resources, Inc. (EOG) is a major independent oil and gas exploration and production company, with operations in the U.S., Canada, offshore Trinidad, and the U.K. North Sea. The company has historically concentrated on natural gas in preference to exploring for oil.EOG's third-quarter earnings of $588.3 million were up sharply from the year-earlier level, driven by increased volumes and improved commodity-price realizations, partly offset by higher costs. Domestic natural gas production grew 20%, while liquids volumes rose 65% over last year. With robust growth from most of its core areas, EOG remains on track to increase production by 15% this year and approximately 12% in 2009. With $886 million in cash and a net debt to total capitalization ratio of 10%, the company is in a strong financial position to face the current downturn in the energy sector. We maintain our Buy ...

Until 1990, gambling in Mississippi was not permitted. Now it is a major source of revenue for the state and an attractive tourist attraction. Following are some interesting facts about Mississippi:1. 25% of total employment is generated by the agriculture industry.2. Mississippi most important agricultural products are poultry and eggs, forestry, soybeans and corn.3. The state offers different business incentives to new businesses and businesses relocating to Mississippi. They include tax credits, and tax exemptions.4. The top manufactured products are processed foods, beverages, dairy and grain products.5. Between 2004 and 2005 Mississippi’s export increased by 26% to achieve a record $4 billion.6. Mississippi’s top export are chemical products.7. Manufacturing firms employ 172,000 workers in the state.8. Mississippi’s oil reserves rank it number 13 out of 50 states, with 167 million barrels of oil.9. Mississippi has the ...

Now that oil and gas prices have retreated from unsustainable levels, oil and gas exploration and development companies have begun to step back and assess where their prospects for future development and profit lie. Some may sell percentages of leases while others may drill. Having data in hand to make longer term decisions will be a key element for smaller oil and gas companies going forward. Finding those companies, that have planned for the long haul, is the path to profit. Finding them is the trick.

Kodiak Energy Inc., a development stage oil and gas exploration company, works to develop and extract oil and gas primarily in the United States and Canada. The company is currently focusing its efforts on winter drilling opportunities in Canada.

Although the company has solid prospects in both the United States and Canada, it is currently focusing a majority of its effort on its “Lucy” northern British

...

Basic Earth Science Systems, Inc. today reported its operating results for the 2nd Quarter ending September 30, 2008. Basic Earth is an independent oil and gas exploration company. Benefitting from higher oil and gasoline prices earlier in 2008, net income rose to $946,000. Oil and gas revenue was $2,697,000. Compared to the same period in 2007, net income was 120% higher and sales revenue was 51% higher.

Asked to comment on the company’s impressive results, Basic’s President, Ray Singleton, said the “combination of high commodity prices and the effect of our new Colorado wells coming on production have certainly supported the results of our second fiscal quarter.” According to Singleton, Basic Earth recognizes that declining oil prices will have a direct impact on future operations. However, he said Basic Earth has prepared a plan for this scenario based on prior experience.

Noting the company has faced

...