Watch These Two Oil Stocks With Big Things Coming, Good and Bad
Two of the most promising oil stocks out there right now are Apache Corporation (NYSE: APA) and Noble Energy (NYSE: NBL), assuming Egypt doesn’t trip them up.
For Noble, the highly anticipated cash cow is the completion of the Leviathan gas field--the giant field that put Israel on the energy map.
For Apache, it’s the anticipation of an Exxon-Guyana-style discovery in Suriname, a stone’s throw across the maritime border from Exxon’s 14-strong string of discoveries.
For both, Egypt is a bit of a sticking point right now, and analysts can’t seem to decide how vulnerable they are.
First, Noble Energy: This company isn’t going to have any cash flow just yet. It’s innovative and cost-cutting, but we’re waiting on Leviathan right now, with first production scheduled for late this year.
Houston super independent Noble Energy Inc., which is leading the development of two Eastern Mediterranean natural gas fields offshore Israel, plans to double firm volume commitments to Egypt’s Dolphinus Holdings Ltd. and extend the sales terms.
A lot rides on Egypt for Noble, though. Noble has cleared some important hurdles in this respect, with Israeli energy companies having just received approval from antitrust authorities to take a stake in a pipeline that will deliver this gas to Egypt. This deal will increase…